CryptoWatch: Caroline Ellison's Testimony against SBF, Crypto In Pro Sports Risk, FTC and Voyager

Another week of massive developments and stories behind cryptocurrency is here, with CryptoWatch giving you the scoop to keep you updated as the week starts. First off, there is the massive week for the US v. Sam Bankman-Fried criminal trial where his ex-girlfriend and former Alameda Research CEO, Caroline Ellison, has brought significant claims on her testimony against the disgraced executive.

There is also the FTC and Voyager battle where the case was dropped, but its ex-CEO faces new charges, and studies of how cryptocurrency affects professional sports fans at risk.

Caroline Ellison Testifies Against Sam Bankman-Fried and MORE

Last week was massive for the US v. Sam Bankman-Fried criminal trial, particularly as the former girlfriend and CEO of Alameda Research, Caroline Ellison, testified in the New York court. Here, Ellison brought significant claims that detail more of how SBF steered the ship on FTX, also revealing how Bankman-Fried commanded her to steal money from FTX customers.

The illegal actions centered on Ellison's work in Alameda, where the company attempted to pay off their lenders and loans using FTX customers' money, taken directly from their holdings.

Ellison was known for admitting her guilt earlier, claiming her crimes of fraud, money laundering, and more, but is currently cooperating with the US government for a lighter sentence, possibly without jail time.

Crypto in Pro Sports: Study Warns About its Risks for Fans

Cryptocurrency has massive applications in the world now, from buying to trading, but it also has a massive presence in professional sports among various leagues. However, a recent study has now taken the spotlight in announcing the many risks of crypto's ties with pro sports, stating that fans who are engaged in this may experience financial risks.

The UK's Culture, Media and Sport Committee, alongside the University of Liverpool Management School, detailed their findings in a recent report, stating that its marketing strategies raised some red flags. This was because the likes of NFT and the blockchain were being marketed as an investment opportunity, but it has massive risks of losing their expenditures on the tokens.

Still, some clubs promote coins and tokens in exchange for monetary gains. Fans and investors are given a warning to look into these risks and advise caution for their purchases and the like.

FTC and Voyager's Case Dropped, CEO Faces New One

Voyager, a company that has also announced its bankruptcy, has now settled with the US Federal Trade Commission (FTC), with the case dropped, but permanently bans the company from handling customer assets. Initially, Voyager claimed that it would be "safe" to hand over customer assets to them.

However, fast forward to when it faced financial difficulties, customer assets became hard to access for its rightful owners, with consumers also reporting a loss of as much as $1 billion in crypto.

Amidst this case seeing its conclusion, the FTC filed a lawsuit against Voyager's ex-CEO Stephen Ehrlich, for making "false claims" about FDIC insurance coverage for user accounts.