FTX to be subject of US Senate hearing, New York bans proof-of-work mining and other news

November 27, 2022


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A week in review: November 20–26

Your weekly highlights to stay up to date with the latest crypto news

#1. US Senate committee schedules FTX hearing for Dec. 1, CFTC head to testify

A U.S. senate hearing slated for Dec. 1 will aim to look into FTX and the events surrounding its downfall. Titled "Why Congress Needs To Act: Lessons Learned From The FTX Collapse," the hearing will feature Commodity Futures Trading Commission Chairman Rostin Behnam, among other witnesses. According to recent documentation from FTX's Chapter 11 bankruptcy case, FTX Trading Ltd. owes a combined sum of more than $3 billion to its 50 largest creditors.

#2. Tornado Cash developer Alexey Pertsev to stay detained until next year's hearing

Amid an ongoing investigation into crypto mixer Tornado Cash, the product's developer, Alexey Pertsev, will be subject to at least another three months of detainment, as per a court ruling this week. Earlier in 2022, United States authorities flagged Tornado Cash as a tool nefarious parties allegedly used to launder funds. Pertsev was detained for suspicions of foul play, although the situation has drawn controversy.

#3. American CryptoFed registration at risk as SEC alleges filing anomalies

American CryptoFed DAO is at risk of losing its registration as a legal entity after the United States Securities and Exchange Commission (SEC) dug up anomalies in the Form S-1 registration statement filed by the firm in September. According to the SEC, the form lacks vital information regarding American CryptoFed DAO, such as audited financial statements and details about its business and management. CryptoFed was the first decentralized autonomous organization (DAO) to get legal recognition in the United States in July 2021.

#4. Prediction of the week. Bitcoin price levels to watch as traders bet on sub-$14K BTC

Bitcoin's price has largely struggled under $20,000 for much of November, according to Cointelegraph's BTC price index.

Pseudonymous Twitter user The London Crypto sees possible further downward price action for BTC based on history. "BTC has made a 77% correction in this bear market, compared to 84% in 2013 and 83% in 2017," he tweeted on Nov. 21 with an accompanying chart.

"Studying our previous cycles high vs lows, we can estimate the low for this bear to be the $10k-$12k range, followed by a high of $175k in 2024-2025."

#5. FUD of the week. New York governor signs PoW mining moratorium into law

After passing multiple stages of approval in 2022, a two-year ban on proof-of-work (PoW) mining has been signed into law by New York's governor, Kathy Hochul. The moratorium means new PoW mining operations cannot open in the state unless they utilize 100% renewable energy. Current PoW mining outfits in New York also will not be granted license renewal during the two-year ban.

#6. FUD of the week. HashFlare founders arrested in 'astounding' $575M crypto fraud scheme

Recently publicized court documentation revealed the arrest of Ivan Turõgin and Sergei Potapenko, founders of HashFlare — an allegedly fraudulent Bitcoin cloud mining operation. Started in 2015, HashFlare posed itself as a Bitcoin cloud mining company, but on the backend, its founders allegedly conducted multiple criminal acts, including numerous instances of wire fraud. HashFlare has seemingly not been active since 2019.