Altcoin News by Thebittimes.Com

Former FTX CEO Sam Bankman-Fried, in a conversation with Vox admitted to using Alameda’s banking facilities for FTX user deposits. The FTX contagion saga sees new revelations around its misconduct every other day, and the latest one solidifies the collusion between the failed crypto exchange and its sister company Alameda Research from the very beginning. FTX like many other crypto exchanges found it difficult to get a banking partner to process fiat transactions- as banks have been hesitant to tie up with crypto exchanges due to a lack of regulatory oversight. FTX overcame this problem by using its sister company’s banking accounts to process transactions for the crypto exchange. Former CEO of FTX Sam Bankman-Fried confirmed in a conversation with Vox that the exchange was using Alameda’s bank accounts to wire customer deposits. Some customers were reportedly asked to wire their deposits through Alameda, which had a banking partnership with fintech bank Silvergate Capital. The colli...

The NYAG clarified that digital assets differ from blockchain technology, and it has no issues with citizens purchasing stakes in publicly traded blockchain-based businesses in retirement accounts. The turmoil surrounding crypto exchange FTX and Sam Bankman-Fried (SBF) reaffirmed regulators’ belief about the need for stricter oversight across the crypto ecosystem. Seeking investor protection against a similar fallout, New York Attorney General (NYAG) Letitia James recommended prohibit ing crypto investments in defined contribution plans and individual retirement accounts (IRAs). In a letter addressed to the members of the U.S. Congress, James requested legislation that would bar United States citizens from purchasing cryptocurrencies and digital assets using their funds in IRAs and defined contribution plans such as 401(k) and 457 plans. However, a survey from October 2022 showed that nearly 50% of U.S.-based investors want to see crypto become a part of their 401(k) retirement pl...