The founder of collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, is set to take the stand in his own defense at his fraud trial in New York, according to his attorney Mark Cohen.

Blockchain forensics firm Elliptic has clarified that the numbers being used to show how much cryptocurrency Hamas has raised are inaccurate, adding there’s little evidence showing terrorist groups are using cryptocurrency effectively.

The Financial Conduct Authority (FCA) has said that cryptocurrency-promoting firms have breached the United Kingdom’s new crypto marketing rules at least 221 times since these were implemented in early October.

Top stories in the Crypto Roundup today:

• FTX Founder to Testify in His Own Defense at Fraud Trial
• Elliptic Debunks Claims of Hamas Raising Millions in Crypto
• FCA Says Crypto Firms Already Broke New Advertising Rules 221 Times
• CCData Unveils Comprehensive Crypto Custody Report

FTX Founder Sam Bankman-Fried to Testify at His Fraud Trial

The founder of collapsed cryptocurrency exchange FTX, Sam Bankman-Fried, is set to take the stand in his own defense at his fraud trial in New York, according to his attorney Mark Cohen.

Cohen revealed his client’s decision at a hearing with prosecutors and the judge overseeing the case, with Bankman-Fried expected to testify today after federal prosecutors call their final witness.

Bankman-Fried is charged with orchestrating a fraudulent scheme that siphoned up to $10 billion from FTX’s customers, with prosecutors saying he used the stolen funds for political contributions, real estate purchases, and other extravagant spending.

The former CEO of FTX denies any wrongdoing and entered a not guilty plea to seven counts of fraud, conspiracy, and money laundering. If found guilty, he could face a potential life sentence.

Prosecutors have, over the first three weeks of trial, called his close friends and colleagues as witnesses, who testified Bankman-Fried lied to customers, investors, and lenders.

Bankman-Fried’s defense is planning to call three additional witnesses, including a financial services consultant who is expected to testify on the finances of FTX and Alameda Research, and a Bahamian lawyer who was involved in the case, as well as an expert on the preservation of corporate records.

Elliptic Debunks Claims of Hamas Raising Millions in Crypto

Blockchain forensics firm Elliptic has clarified that the numbers being used to show how much cryptocurrency Hamas has raised are inaccurate, adding there’s little evidence showing terrorist groups are using cryptocurrency effectively.

Elliptic’s clarification notes that while Hamas first started soliciting Bitcoin donations back in 2019, the organization stopped all public-facing crypto fundraising efforts in April, citing “concern about the safety of donors and to spare them any harm.”

Following Hamas’ attack on Israel on October 7, Elliptic noted that only about $21,000 in fresh cryptocurrency donations were received, with much of it already frozen.

The possible use of cryptocurrencies by terrorist organizations gained attention earlier this month after the Wall Street Journal reported, using Elliptic data, that Hamas and other militant groups raised millions in crypto before launching its attack on Israel. The report was cited by over 100 U.S. lawmakers.

Elliptic clarified that there’s no evidence suggesting “that crypto fundraising has raised anything close to this amount, and data provided by Elliptic and others has been misinterpreted.

Chainalysis, another crypto forensics firm, said earlier this month that claims suggesting millions of dollars in crypto have been moved to fund Hamas’ operations are likely to be “overstated.”

FCA Says Crypto Firms Already Broke New Advertising Rules 221 Times

The Financial Conduct Authority (FCA) has said that cryptocurrency-promoting firms have breached the United Kingdom’s new crypto marketing rules at least 221 times since these were implemented in early October.

In a recent statement, the regulator said that these firms have failed to show clear enough warnings about the risks of crypto, give enough information about the risk involved, and have made misleading claims about how safe, security, or easy it is to use crypto without mentioning risks.

The FCA announced that it has sent 146 alerts for violating the new crypto advertising rules in the first day since they came into effect on October 8. While most alerts appear to be illegitimate schemes offering high-yield returns on crypto investments, some actions are against seemingly legitimate businesses.

The FCA further mentioned it’s collaborating with various digital platforms, including social media sites, app stores, search engines, domain name registrars, and payment service providers to halt financial transactions related to banned promotions.

Under the new rules, only FCA-authorized or regulated firms can promote or approve crypto-related ads.

CCData Unveils Comprehensive Crypto Custody Report

CCData has recently released a detailed report, "Crypto Custody: An Institutional Primer," commissioned by Zodia Custody. The report focuses on the indispensable role custodians play in this rapidly evolving sector and delves into the challenges that institutions commonly encounter, as well as institutional integration and current trends in the industry.

The report makes it clear that self-custody presents increasing challenges for institutions, particularly in terms of operational complexities, security issues, and the lack of insurance coverage.

The need for secure storage amid the risks of exchange and hot wallet custody has led to the emergence of around 100 custodial services, ranging from Custodial Technology Providers to Hybrid and Regulated Custodians. Despite the variety of offerings, there’s a marked tilt towards regulated entities.

As traditional financial institutions venture into crypto, they look for features like multi-jurisdictional licensing and strong institutional backing, which highlight the role of regulated custodians in providing a compliant and secure environment for institutional clients.

CCData collects and analyzes data from globally recognized exchanges to offer a detailed view of various market aspects, including trade, derivatives, order book, historical, social, and blockchain data.

State of the Crypto by Top Tier Exchange Volume

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