FTX, SEC vs Ripple, & the SEC Sues Gemini Trust

On this episode of The Wiser Crypto Investor Podcast, Casey Smith and Robert Swarthout talk about the latest news in the Crypto market as a whole, as well as FTX, SEC vs Ripple case, and the SEC sues Gemini trust.

Listen or Watch:

SUMMARY:

Cryptocurrency Market is Up

The first week of 2023 was relatively quiet in the cryptocurrency market. Although, it started picking back up in the subsequent weeks. If you zoom out and look at the last quarter and a half, the crypto market as a whole is back to what it was pre-FTX meltdown. In general, this is good news for crypto investors. However, the question is: is it sustainable? We think that it has been a healthy recovery, but can’t ignore the fact that we don’t exactly know why the market recovering the way it is.

Bitcoin obviously leads the pack, but again, why is Bitcoin up? There’s not a very clear answer to those questions. As much as we love to see it up and thriving, at some point it needs to cool down a little in order to build a base and support, so we prevent big falls like we’ve seen recently.

Bankruptcies Amongst Crypto Companies

Bankruptcy filings have slowed down. However, DCG bankruptcy is still ongoing. For that reason, they’ve shut down their crypto wealth management division in an attempt to preserve cash.

On another note, the bankruptcy attorney for FTX, John Ray, has claimed that they’ve recovered $5B in cash from FTX’s liabilities. The total amount of liabilities is unknown. His team is trying to rebuild the transaction history to try to figure out what that true amount is.

Additionally, the Fed’s seized over $700M that was connected to SBF through different entities. Most of the $700M was applied in Robinhood stocks, and he claims that the company loaned him that money to buy those shares. Therefore, SBF believes the shares are still his. The DOJ stepped in and prohibited anyone from touching those shares since multiple creditors were coming after it.

The SEC & the Court

Gemini Trust and Gemini global were sued by the SEC for selling unregistered securities. Gemini is the exchange in this case, and they stated that they have talked with the SEC over many meetings and were not warned about this issue.

On the other hand, the SEC vs. Ripple case has entered a quiet period. All topics have been briefed, and at this point, everyone is waiting on the judge to make a ruling. The scheduling says that it will most likely happen by the end of March. The speculations are that there’s a chance that the judge will rule in a way that will split the case and both parties win in some instances. There’s also a big chance that the judge might rule in Ripple’s favor. 

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TIMESTAMPS:

01:45 Cryptocurrency Market is Up

05:05 Bankruptcies Amongst Crypto Companies

09:20 SEC & the Court

LINKS:

Learn more about Casey Smith, President of Wiser Wealth Management.

Learn more about Robert Swarthout, Founder, CEO & Portfolio Manager of Teton Crypto Capital.