The CryptoWatch roundup is here to bring you last week's top news on the world of blockchain and cryptocurrencies, including the criminal trial of Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, vs. the United States.
The case has been very controversial, with many revelations and counters done by both sides. Also, a Kenyan parliamentary panel asked the country's information technology regulator to shut down the operations of the Worldcoin crypto project in the country, but only temporarily until it resolves its problems.
Sam Bankman-Fried's Criminal Trial vs. US Begins
The US vs. Sam Bankman-Fried criminal trial began last Tuesday, October 3. It is one of the most significant cases in the industry involving a founder of a renowned crypto exchange company that recently went bankrupt.
It would take place until the second week of November, with two holidays taking place: Columbus Day on Monday, October 9, and Veterans Day on November 11.
Renowned attorney Mark Cohen of Cohen & Gresser law firm will represent Bankman-Fried in this case, centering on proving his innocence of committing fraud and conspiracy during his leadership.
FTX also recently filed a case against Bankman-Fried's parents, particularly for receiving massive amounts of money when the company was in its heyday.
Sam Bankman-Fried Claims Alameda Takes Customer Money
The US vs. Sam Bankman-Fried case also saw a significant fight from the defendants, with the former FTX CEO and co-founder accusing Alameda Research of "taking customers' money," accessing their finances during their operations.
This was also backed by Gary Wang, a disgraced FTX executive who claimed it took money from FTX as much as it wanted. Alameda's massive access to FTX customers' money was unveiled during Friday's hearing on SBF's case, with Wang serving as a key witness during its early proceedings, revealing what happened before its collapse.
FTX kept a negative balance on its sheets, with Alameda having massive access to the extensive line of credit from the bankrupted company on its previous operations.
Kenya Urges Shutdown of Worldcoin
A Kenyan parliament panel is now pushing for the shutdown of the Worldcoin crypto project, pleading to the country's IT regulators to temporarily halt its operations until more stringent regulations are put in place.
In early August, the project was suspended by the government due to privacy concerns regarding its scanning of users' irises in exchange for a digital ID intended for creating a new "identity and financial network."
But despite the suspension, the project still has a virtual presence in Kenya and can be accessed via the Internet. According to Reuters, authorities were worried about the project's strategy for seeking user permission.
The parliamentary panel's probe discovered that Worldcoin may have scanned the eyes of minors due to the lack of an age verification mechanism during the registration. Worldcoin has drawn criticism not just in Kenya but also in Britain, Germany, and France.
The 18-member Kenyan parliamentary panel urged the country's communications authority to ban relevant IP addresses and stop Worldcoin's virtual platforms.
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