SBF pleads not guilty, Class action filed against Genesis, Voorhees eyes 2026 bull run

On Jan 3, 2023

The biggest news in the cryptoverse for Jan. 3 is dominated by SBF entering his ‘not guilty’ plea, Genesis hit by class action lawsuit, Bithumb chairman found not guilty, and more in this CryptoSlate Wrapped Daily.

CryptoSlate Top Stories

SBF free on bail for 10 months until trial in October as he pleads not guilty

Sam Bankman-Fried, the founder of FTX, pleaded not guilty to the eight charges filed against him at his hearing at the New York US District Court on Jan. 3.

Furthermore, SBF has requested the court redact the names of the co-signers of his bail, citing privacy and safety concerns of the individuals, according to the latest filing.

The other people linked with the case, former Alameda Research chief executive Caroline Ellison and FTX chief technology officer Gary Wang have pleaded guilty to fraud charges in cooperation agreements.

Crypto OG Erik Voorhees predicts bull market return by 2026

Crypto pioneer and CEO of ShapeShift, Erik Voorhees, predicted the bull market would return within six months to three years.

“It won’t be ten years. If it takes ten years for the bull market to happen, probably the whole thing failed. I’m happy bounding it that way. I would guess it’s sometime in the next six months to three years.”

Summing up the issue, Voorhees said if few people opt for self-custody and intermediaries hold the majority of crypto wealth, “we will never escape the regulation” and “never escape the need to trust humans.”

Gemini Earn users launch class arbitration against Genesis, DCG

Three users of Gemini Earn filed a class arbitration case against Genesis Global Capital, Digital Currency Group (DCG), and Genesis Global Trading, with the American Arbitration Association on Dec. 30.

The case also alleged that Genesis breached the Master Agreement on Nov. 16 and subsequently when it refused to return the assets of Gemini Earn users despite repeated requests. Genesis also breached its agreement by failing to pay the interest due to Gemini Earn users at the end of November, the case alleged.

Lastly, the demand for arbitration claimed that Genesis engaged in the unregistered sale of securities, violating the Securities Act. The claimants are, therefore, seeking related damages.

South Korean court finds former Chairman of Bithumb ‘not guilty’ of fraud

Lee Jung-hoon, the former chairman of the crypto exchange Bithumb, was acquitted by a South Korean court on Jan. 3.

The 34th Division of the Criminal Agreement of the Seoul Central District ruled that the evidence presented was insufficient to incriminate Jung-hoon, as per a local news report.

The South Korean acquittal of Jung-Hoon marks the assumed end of a long-drawn legal battle surrounding Bithumb.

Research Highlight

Research: Only 150K Bitcoin remain in Future OI as switch to risk-off fast approaches

Bitcoin (BTC) began the year risk-off — as seen in Futures Open Interest (OI) Crypto-Margined metrics.

The decline in BTC Futures OI percentage seen from July 2021 into 2022 portrayed a recovery into a risk-on narrative throughout 2022. However, starting at almost the lowest point in two years, risk is coming off the table fast as we begin 2023.

Approximately 150,000 BTC remains in Futures OI — its lowest levels since April 2022 — as the risk-off trend decline continues to emerge.

To further reveal the distinct switch away from BTC to risk-off and cash, the ‘Cash-Margined’ metric shows a constant incline since April 2021 to a current level of 327,000 BTC — backed by cash as the underlying asset.