ALBAWABA- In this week's crypto news recap, PayPal faces an SEC subpoena, Sam Bankman-Fried's trial concludes with a guilty verdict, and a fraudulent Ledger Live app siphons off $600,000 in Bitcoin. These headline-grabbing events have had a significant impact on the cryptocurrency landscape so let's dive in!
Fake Ledger Live App on Microsoft Store Costs Users $600,000 in Bitcoin
Approximately $600,000 in Bitcoin was stolen from users who mistakenly downloaded a counterfeit Ledger Live app on the Microsoft Store.
This scam, dubbed "Ledger Live Web3," tricked users into believing they were getting the legitimate interface for Ledger hardware wallets. Analyst ZachXBT uncovered the scheme, which involved the scammer receiving 16.8 BTC worth $588,000 and making two withdrawals, leaving $473,800 or 13.5 BTC. Microsoft may have removed the fake app, but this incident underscores the dangers of such fraudulent applications. Ledger emphasizes that the only safe place to download Ledger Live is from their official website, ledger.com.
Former FTX CEO Sam Bankman-Fried Found Guilty on All Charges in New York Trial
Former FTX CEO Sam Bankman-Fried has been found guilty on all seven charges in his criminal trial in New York, including wire fraud, wire fraud conspiracy, securities fraud, commodities fraud conspiracy, and money laundering conspiracy. The jury reached this verdict after approximately four hours of deliberation. He is set to appear for sentencing on March 28, 2024, before New York District Judge Lewis Kaplan, who will have the final say on the recommended sentence from government prosecutors. Bankman-Fried could face a maximum sentence of between five and 20 years for each crime, with wire fraud, wire fraud conspiracy, and money laundering conspiracy carrying a potential maximum of 20 years. Bankman-Fried's legal team, however, indicates that the legal battle may continue.
PayPal Subpoenaed by SEC Over U.S. Dollar-Pegged Stablecoin
Payment giant PayPal has been served a subpoena by the United States Securities and Exchange Commission (SEC) concerning its U.S. dollar-pegged stablecoin. In response, PayPal confirmed its cooperation with the SEC's request for specific documents in its financial report. The SEC has been actively pursuing legal actions against major players in the crypto industry, such as its ongoing lawsuit against Coinbase. Notably, in October 2023, the SEC sought to dismiss its lawsuit against Ripple, the company responsible for the XRP token, one of the leading cryptocurrencies by market capitalization.
