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FTX founder Sam Bankman-Fred is reportedly under investigation for market manipulation

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According to two people familiar with the situation, federal prosecutors are looking into whether Sam Bankman-Fried, founder of FTX, manipulated the market for two cryptocurrencies last spring, causing their demise and starting a chain reaction that eventually led to the collapse of the private cryptocurrency exchange. it last month.

The possibility that Bankman Fried price-gouged two interrelated currenciesAnd TerraUSD and Luna, in favor of entities it controls, such as FTX and Alameda Research, a hedge fund he co-founded and owned, are being considered by US prosecutors in Manhattan, the people said.

The investigation is still in its early stages, so it’s not clear if prosecutors have found evidence of this Bankman Fried violations Or when they started looking at Trade TerraUSD and Luna. The case is part of a larger investigation into the downfall of Bankman-Fred’s cryptocurrency empire, which was based in the Bahamas, and the alleged theft of billions of dollars in client funds.

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The Securities and Exchange Commission and federal prosecutors are examining whether FTX’s transfer of client funds to Alameda was illegal. A run on deposits last month exposed an $8 billion hole in the stock exchange’s accounts, leading to the company’s demise. When FTX declared bankruptcy on November 11, Bankman-Fried stepped down as CEO.

According to three people familiar with the investigation, FTX is also being considered for possible violation of US money laundering laws, which require money transfer companies to know their customers and report any potential illegal activity to law enforcement. This investigation, first reported by Bloomberg News, began before FTX filed for bankruptcy. The activities of other cryptocurrency trading platforms abroad are also being investigated.

Bankman-Fried released a statement claiming,

I am not aware of any market manipulation and I certainly did not intend to engage in market manipulation.

To the best of his knowledge, all transactions were made for the purpose of hedging or investing.
Representatives for the attorney general for the Southern District of New York declined to comment. Requests for comment from FTX representatives did not immediately receive a response.

The legal controversy surrounding Bankman-Fried is increasing due to focus on potential market manipulation. The deliberate staging of market activity intended to manipulate the price of an asset is prohibited.

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Although TerraUSD was a “stablecoin”, its value was not backed by the dollar in the same way that other stablecoins are. Instead, it relied on a second currency called Luna and a complex system of algorithms to maintain its value. These currencies, whose prices have changed depending on the number of coins in circulation, can be created by traders working in the digital ecosystem. The supply of Luna will rise as the price of TerraUSD falls because traders will produce more Luna to try to make up the difference.

A person familiar with the market activity claimed that in May, major cryptocurrency market makers — exchanges or individuals who coordinate matching buyers and sellers — noticed an influx of “sell” orders into TerraUSD. The person stated that although the orders were in small quantities, they were quickly filled.

The sudden increase in TerraUSD sell orders overburdened the system, making it difficult to locate a compatible site “He buys” orders to them. Normal operating procedures match any sell orders that have not been fulfilled for a long time with buy orders at a lower price. Because of the way the two lots are linked, the longer orders go without being filled, the further the price of TerraUSD will drop and thus the price of Luna.

The exact reasons for the demise of the two cryptocurrencies are still unknown. However, according to the person familiar with the market activity, the majority of sell orders for TerraUSD seem to come from a single source: Sam Bankman-Fried’s cryptocurrency trade, which also made a big bet on Luna’s price drop.

Luna’s lower prices might have resulted in a big profit if the trade went as planned. Instead, the entire TerraUSD-Luna ecosystem collapsed. Several companies known to have filed for bankruptcy as a result of the crash also wiped out nearly a trillion dollars in value from the rest of the world Cryptocurrency market.

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The downfall of the Fried Corporation empire was ultimately affected by the fallout from Luna’s collapse. According to a person familiar with the situation, Alameda CEO Caroline Ellison told employees in November that loans to the company had been taken away because of the chaos the crash had created in the markets. However, Ellison informed the staff that Alameda’s borrowed funds were no longer easily accessible, so the company used FTX clients’ funds to cover the payments.

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BNT/USD is trading near the $0.50 resistance

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The Bancor price prediction shows that BNT is crossing the 9-day and 21-day moving averages while the coin is taking off to the upside.

Bancor Prediction Statistics Data:

  • Bancor price now – $0.34
  • Bancor’s market capitalization is $55.8 million
  • The circulating supply of Bancor – 162.5 million
  • The total supply of Bancor – 162.5 million
  • Bancor Coinmarketcap Ranking – #287

BNT/USD market

Key levels:

Resistance levels: $300, $310, $320

Support levels: $130, $120, $110

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BNTUSD – daily chart

BNT / USD It is currently trading at $0.345 after touching a daily high of $0.490, and is likely to return above the 9-day and 21-day moving averages. However, in case the buyers can push the price above the $0.50 resistance level, then the daily candlestick may close above this level, and the price may rise towards the upper boundary of the channel.

Bancor Price Prediction: Bancor is preparing for an upward movement

According to the daily chart, the Bancor price It is moving near the $0.40 resistance level as the coin is preparing for additional gains. The technical indicator’s RSI (14) is also moving to cross above the 50 level, where the signal line is pointing up to signal a buy signal.

However, if buyers are able to push the price and hold it above the 9-day and 21-day moving averages, Bancor price could rise towards the upper boundary of the channel to reach the potential resistance levels at $0.50, $0.55, and $0.60. While crossing below the lower border of the channel, it could lift the currency to the support levels at $0.25, $0.20, and $0.15, respectively.

Against Bitcoin, Bancor is following a bullish rally, and it could swing higher to cross above the upper boundary of the channel that could identify the resistance at 2400 SAT and above. On the other hand, if the market price crosses the lower boundary of the channel, it may reach the support level of 1800 SAT and below.

BNTBTC – Daily Chart

However, the technical indicator’s RSI (14) is currently moving to cross above the 50 level as the signal line is pointing north to confirm the upward move. Moreover, any further upward movement may create additional gains above the channel.

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DYDX/USD could rise above $1.20

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Since the coin starts the upward movement towards the upside, the dYdX price forecast is likely to move steadily inside the channel.

dYdX prediction stats data:

  • DYDX price now – $1.10
  • DYDX market capitalization – $72.7 million
  • Circulating supply of DYDX – 65.5 million
  • Total supply of DYDX – 1 billion
  • DYDX Coinmarketcap Rank – #198

DYDX/USD Market

Key levels:

Resistance levels: $2.00, $2.20, $2.40

Support levels: $0.50, $0.30, $0.10

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DYDXUSD – daily chart

DYDX/USD is likely to cross above the 9-day and 21-day moving averages as the currency begins its upward movement. in the past few days, dYdX price Struggles to cross over to the positive side. According to the daily chart, the RSI (14) technical indicator moved to cross above the 40 level, confirming the bullish movement of the currency.

dYdX Price Prediction: DYDX is ready for an uptrend

the dYdX price It is currently moving north. If the currency continues its upward movement, the bulls may cross above the 9-day and 21-day moving averages, which could reach the resistance levels at $2.00, $2.20, and $2.40. At the time of writing, DYDX/USD is showing a slight bullish movement on the daily chart.

Conversely, if the coin slips below the lower boundary of the channel, it may bring the coin back to the $0.50, $0.30, and $0.10 support levels, respectively. Meanwhile, long-term buyers should not be alarmed by the small impact down the road, as the future of DYDX is assured as evidenced by the technical indicator’s RSI (14).

Against Bitcoin, dYdX price is hovering below its 9-day and 21-day moving averages as the coin is poised for an upward move. The technical indicator’s RSI (14) also confirms the upward movement as the signal line encounters the 40 level. On the contrary, a potential downside move could emerge if the market price crosses below the lower boundary of the channel, which could reach the support level 200 SAT and below.

DYDXBTC – Daily Chart

Meanwhile, any further bullish move above the moving averages could push the coin to the 1200 SAT resistance level and above, and this could take the coin to a new high, and the market could remain in the bullish zone.

But, Dash 2 Trading It gives you the ability to improve your trading and scalping profits with effective crypto trading recommendations, automated trading, and analytics features. There is a D2T token pre-sale going on and time is running out. The launch of the pre-sale dashboard is coming soon as the product developer is ahead of schedule. To date, the prequel has raised nearly $12 million.

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SBF to Enter Plea Deal, Mango Exploiter Arrested, Celsius News: Hodler’s Digest, Dec. 25-31

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