Goldman Sachs buying crypto firms, SBF hit with lawsuits over the FTX collapse and other news


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A week in review: December 4–10

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

#1. 7 class action lawsuits have been filed against SBF so far, records show

Former FTX CEO Sam Bankman-Fried has been named in seven class action lawsuits filed since the fall of his crypto empire. These lawsuits, however, are separate from the numerous probes and investigations examining the crypto exchange and its founder, including a reported market manipulation probe by federal prosecutors. Another headline shows the United States House of Representatives has called on SBF to speak at a hearing on Dec. 13. Amid investigations by lawmakers and a flurry of civil litigation, SBF hired former federal prosecutor Mark Cohen to act as his defense attorney. A team of financial forensic investigators was also hired by FTX's new management to track down the billions of dollars worth of missing customer crypto.

#2. Goldman Sachs reportedly looking to buy crypto firms after FTX collapse

Goldman Sachs wants to invest millions in crypto firms as the FTX meltdown has affected crypto market prices. Mathew McDermott, an executive at Goldman Sachs, said in a recent interview that big banks are seeing opportunities that are "priced more sensibly" and are already doing due diligence on some crypto companies. The FTX collapse also highlighted the need for more regulation within the industry, according to the executive.

#3. 3AC subpoenas issued as dispute grows over claims of Terraform dump

An order signed by a federal judge overseeing the bankruptcy proceedings of Three Arrows Capital has authorized subpoenas for the company's former leadership, including co-founders Su Zhu and Kyle Davies. Under the authorized subpoenas, Zhu and Davies are required to hand over any "recorded information, including books, documents, records, and papers" related to the firm's financial affairs or property. The founders will not be served on Twitter, as previously required by the advisory firm and liquidator in this case, Teneo.

#4. Prediction of the week. Bitcoin takes liquidity near $17K as US dollar shows weakness pre-CPI

Bitcoin largely traded between $16,800 and $17,400 this week, showing some support around the $16,800 level, according to Cointelegraph's BTC price index.

"We're probably entering the final phase of the bear," pseudonymous Twitter commentator Byzantine General said on Dec. 7 after noting declining Bitcoin perpetual futures trading volume and other points. "But that last phase can last pretty long," he added. His tweets on the subject included accompanying charts.

#5. FUD of the week. Bank of Russia wants to ban miners from selling crypto to Russians

In another setback for the crypto industry in Russia, the central bank is proposing to ban local miners from selling coins to the country's population. The news comes just weeks after the Central Bank of the Russian Federation supported the idea of legalizing cryptocurrency mining in Russia through a draft bill introduced in mid-November 2022. Crypto sales, however, should be allowed only on foreign exchanges and to non-residents, according to the country's central bank.

#6. FUD of the week. Nigeria bans ATM cash withdrawals over $225 a week to force use of CBDC

Nigeria has lowered the limits for cash withdrawals via banks and ATMs in another step to its transition to digital money systems. Citizens will only be able to withdraw $225 worth of nairas in cash each week total. Anything above those limits at banks would incur a fee. The country had prior restrictions in terms of cash withdrawals, but the limit was $338 daily per person. Since the launch of its central bank digital currency in 2021, Nigeria has seen minimal usage of the asset in the country.