• Timothy Stranex, the co-founder and chief technology officer of cryptocurrency exchange Luno, departed in December.
• He was replaced by Simon Ince, who joined Luno two years ago as vice president of engineering.
• Luno is headquartered in London and has over 10 million customers worldwide.

Cryptocurrency exchange Luno recently said goodbye to one of its co-founders, Timothy Stranex, who served as the company’s chief technology officer (CTO). Stranex, who founded the company nearly 10 years ago with Carel van Wyk, Pieter Heyns and current CEO Marcus Swanepoel, announced his departure in December to pursue personal projects.

Luno, which is owned by Digital Currency Group (DCG), the same parent company of CoinDesk, has since appointed Simon Ince to the position of CTO. Ince, who joined Luno two years ago as vice president of engineering, has taken on the role of leading Luno’s technical teams and overseeing the company’s technology strategy.

Luno currently has over 10 million customers worldwide, with offices in London, Singapore, Cape Town, Johannesburg, Lagos and Sydney. The exchange offers a range of services, including the ability to buy, sell, store and trade cryptocurrencies such as Bitcoin, Ethereum, Litecoin and Ripple.

In a statement, Swanepoel honored Stranex’s contributions to the company, saying: “We are grateful to Tim for his many years of service and dedication to Luno. His insight and passion have been instrumental in shaping the company and we wish him all the best in his future endeavors.”

Stranex also thanked Luno in his statement, expressing his excitement to see the company continue to grow and develop: “It has been an incredible ride to build Luno from the ground up and to serve as CTO for the past nine years. I am excited to see Luno continue to grow and I look forward to what the future holds for the company.”

As for Ince, he said he is looking forward to the challenge of leading Luno’s technical teams and helping to take the company to the next level. “I am thrilled to be taking on the role of CTO and I am excited to help Luno continue to deliver the best possible service to our customers,” he said.

With Luno now under new leadership, the company is looking ahead to the future and continuing to serve its customers with the best digital currency products and services.

• Bloomberg reports that one of FTX founder Sam Bankman-Fried’s former confidants and roommates is in talks with the US Attorney’s Office of the Southern District of New York regarding a plea agreement.
• Nishad Singh, FTX’s former director of engineering, is said to have met with prosecutors in a „proffer session“ which often includes an offer of limited immunity in exchange for speaking freely.
• The latest prices in crypto markets, as of Jan. 10, 2023, according to CoinDesk Market Index (CMI) are 843 (+0.0 ▲ 0.0%), Bitcoin (BTC) at $17,229 (−3.1 ▼ 0.0%), Ethereum (ETH) at $1,326 (+9.5 ▲ 0.7%), S&P 500 futures at 3,896.00 (−17.8 ▼ 0.5%), and the FTSE 100 at 7,710.53 (−14.4 ▼ 0.2%).

On Jan. 10, 2023, Bloomberg reported that one of FTX founder Sam Bankman-Fried’s former confidants and roommates, Nishad Singh, is in talks with the US Attorney’s Office of the Southern District of New York regarding a possible plea agreement. Singh, who was FTX’s former director of engineering, is said to have met with prosecutors in a „proffer session.“ Such meetings often include an offer of limited immunity in exchange for the interviewee to speak freely. It is important to note that Singh has not been accused of any wrongdoing.

The latest prices in crypto markets, as of Jan. 10, 2023, according to CoinDesk Market Index (CMI), are 843 (+0.0 ▲ 0.0%), Bitcoin (BTC) at $17,229 (−3.1 ▼ 0.0%), Ethereum (ETH) at $1,326 (+9.5 ▲ 0.7%), S&P 500 futures at 3,896.00 (−17.8 ▼ 0.5%), and the FTSE 100 at 7,710.53 (−14.4 ▼ 0.2%).

This news comes on the heels of CoinDesk’s Markets team announcing its upcoming conference in Austin, Texas on April 26-28. The conference is set to be an important conversation in crypto and Web3 and is sure to be an event not to miss.

It’s clear that the crypto markets are ever-evolving, and staying up to date on the latest news is essential for any investor. CoinDesk’s daily newsletter First Mover is a great place to stay informed on the latest moves in crypto markets, as it puts them in context and keeps readers up to date.

It remains to be seen what will come of the plea agreement talks between Nishad Singh and the US Attorney’s Office, but one thing is certain—the crypto market is ever-changing and staying informed is key.

• MicroStrategy, the business software vendor founded by crypto proponent Michael Saylor, has purchased an additional 2,395 bitcoins for $42.8 million between Nov. 1 and Dec. 21 through its MacroStrategy subsidiary.
• On Thursday, the company sold about 704 bitcoins for $11.8 million and then acquired an additional 810 bitcoins for $13.6 million, bringing its total holdings up to 132,500 bitcoins.
• The total cost of MicroStrategy’s acquisition of bitcoin since Nov. 1 is $44.6 million.

MicroStrategy, the business software vendor founded by crypto proponent Michael Saylor, has continued to add to its bitcoin (BTC) stockpile, purchasing about 2,395 bitcoins for $42.8 million between Nov. 1 and Dec. 21 through its MacroStrategy subsidiary, according to a filing with the Securities and Exchange Commission on Wednesday. This purchase marks the company’s ongoing commitment to acquiring bitcoin as an asset, bringing their total holdings up to 132,500 bitcoins.

The purchase was preceded by a sale of 704 bitcoins for $11.8 million last Thursday, with the company citing that the loss on the transaction would offset previous capital gains. This marks the first time MicroStrategy has sold bitcoin since it began acquiring the cryptocurrency in 2020. On Saturday, the company acquired an additional 810 bitcoins for $13.6 million, which further contributed to the company’s total bitcoin holdings. The total cost of MicroStrategy’s acquisition of bitcoin since Nov. 1 is $44.6 million.

The current market value of MicroStrategy’s investments in bitcoin is estimated to be $2.25 billion, a significant increase from their original purchase cost of $4 billion. Shares of MicroStrategy were up marginally in premarket trading, while the price of bitcoin remained little changed at about $16,700.

MicroStrategy’s decision to invest in bitcoin has been met with mixed reactions, with some arguing that it could be a risky move, while others applaud the company’s commitment to diversifying its portfolio. Regardless of the outcome, Michael Saylor and his team have made it clear that they are committed to investing in bitcoin and will continue to do so in the future.

Bullet Points:
• QuadrigaCX, a Canadian crypto exchange, collapsed in 2019 after its founder passed away.
• Ernst and Young is acting as the company’s bankruptcy trustee, attempting to find its assets and recover funds.
• Bitcoin that had been sitting in QuadrigaCX’s cold wallets has been moved elsewhere.

QuadrigaCX is a Canadian crypto exchange that made headlines back in January 2019 when it collapsed in dramatic fashion after its founder, Gerald Cotten, passed away due to complications from Crohn’s disease. The exchange owed thousands of customers around $200 million in crypto at the time, and it later came out that Cotten had misappropriated customer funds for personal purposes, leaving behind little paperwork or records for investigators to verify what assets or liabilities Quadriga had.

Since then, Ernst and Young, a Big Four auditor, has been appointed as the company’s bankruptcy trustee and has spent much of the last three years investigating Quadriga, attempting to find its assets and recover the funds. Furthermore, the Canada Revenue Agency has been digging into Quadriga to check on taxes that the exchange may not have filed when it was operating. Ernst & Young recently reported that it has become aware that bitcoin (BTC) that had been sitting in QuadrigaCX’s cold wallets has been moved elsewhere.

This news comes shortly after former FTX CEO Sam Bankman-Fried was released on a $250 million bond after being placed under house arrest. QuadrigaCX’s case has been a long and complex one, and while it appears that some of the lost funds may be recovered, it’s likely that much of the money will never be found.

• The U.S. Securities and Exchange Commission (SEC) has determined that FTX’s FTT exchange token is a security.
• Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to criminal fraud charges related to FTX’s collapse.
• Twitter has integrated cryptocurrency prices into search results through a plug-in from charting platform TradingView.

The U.S. Securities and Exchange Commission (SEC) has taken a stance on the FTX exchange token FTT, determining that it is a security. This ruling has the potential to have a wide-reaching impact on the industry, as the SEC noted in its complaint that “If demand for trading on the FTX platform increased, demand for the FTT token could increase, such that any price increase in FTT would benefit holders of FTT equally and in direct proportion to their FTT holdings.”

The SEC and Commodity Futures Trading Commission also announced charges against former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang, alleging that Ellison manipulated the price of FTT. The two have since pleaded guilty to criminal fraud charges and are cooperating with investigators.

The crypto industry also has been receiving some attention from Twitter recently. Through a plug-in from charting platform TradingView, the social media giant has integrated cryptocurrency prices into search results. Now when users type crypto or stock tickers into the search bar, they’ll be able to generate the current value and a price chart, as well as a link to the trading app Robinhood. Twitter’s involvement with the crypto industry has been growing since September 2021, when the company was under the management of Jack Dorsey and added a tipping feature. Since then, the company has been taken over by Elon Musk.

• The Certified Financial Planner (CFP) Board dropped a 14-page „Notice to CFP Professionals Regarding Financial Advice about Cryptocurrency-related Assets“ on Dec. 5.
• The report outlines a series of risks associated with cryptocurrency investment and lays out standards that financial advisors must adhere to in their decision to provide, or not provide, advice on crypto investment.
• The report emphasizes that financial advisors must adhere to Fiduciary Duty when giving advice on crypto and underscores the standards of competency necessary in giving crypto-related advice.

The Certified Financial Planner (CFP) Board recently released a 14-page „Notice to CFP Professionals Regarding Financial Advice about Cryptocurrency-related Assets“ on December 5th. This document is intended to provide guidance to financial advisors in regards to their decision to provide, or not provide, advice on cryptocurrency investment.

The report provides an overview of the various risks associated with cryptocurrency investment and makes it clear that financial advisors must adhere to their fiduciary duty when giving advice on any type of investment. It also outlines the standards of competency that financial advisors must adhere to when providing advice on cryptocurrency-related assets.

The report explains that the CFP Board’s Code and Standards does not require a CFP professional to offer financial advice to a client on every financial asset that is available in the marketplace. However, it does emphasize that financial advisors must take into account the goals, risk tolerances and personal/financial circumstances of their client when providing advice on cryptocurrency-related investments.

The CFP Board’s Notice to CFP Professionals Regarding Financial Advice about Cryptocurrency-related Assets is intended to provide financial advisors with the necessary guidance and standards for providing advice on cryptocurrency investments. The report provides a comprehensive overview of the risks associated with investing in cryptocurrencies and outlines the standards that financial advisors must adhere to in order to ensure that they are meeting their fiduciary duty when providing advice on any type of investment.

Bulletpoints:
• Paul Hastings LLP has been chosen to represent FTX creditors in their bankruptcy proceedings.
• A court document filed on the same day shows that Paul Hastings and Young Conaway Stargatt & Taylor LLP will be handling all papers served or required to be served in the bankruptcy case on behalf of creditors.
• At a meeting of FTX creditors held Tuesday, U.S. Trustee Juliet Sarkessian urged creditors to contact the committee’s counsel once formally in place.

FTX, a global crypto exchange, has tapped Paul Hastings LLP to represent creditors in their bankruptcy proceedings. The New York law firm, along with Delaware-based Young Conaway Stargatt & Taylor LLP, will be handling all papers served or required to be served in the bankruptcy case on behalf of creditors. A court document filed on the same day shows the process to select a financial adviser is ongoing.

At a meeting of FTX creditors held Tuesday, U.S. Trustee Juliet Sarkessian urged creditors looking to secure their representation in the case to reach out to the committee’s counsel once formally in place. She noted that even though the lawyers do not represent creditors personally, “they may be able to provide some help” and could potentially create a website for creditors.

The creditors‘ committee was formed last Thursday and chose Paul Hastings from among a number of firms that pitched for the role. What remains of the company is attempting to gather over $1 billion in cash assets that are scattered across the globe.

Meanwhile, FTX’s disgraced founder Sam Bankman-Fried was set to be extradited from the Bahamas to the U.S. to face criminal charges. Additionally, two executives in his inner circle, Caroline Ellison and Gary Wang, agreed to a plea deal with the Justice Department.

Overall, the bankruptcy proceedings are ongoing, and creditors are urged to contact the committee’s counsel once formally in place to secure their representation in the case. Paul Hastings LLP and Young Conaway Stargatt & Taylor LLP have been tapped to handle all papers served or required to be served in the bankruptcy case on behalf of creditors.

• Bitcoin’s realized volatility has been at a two-year low of 38%, making it the lowest since 2020.
• This low volatility may soon change as investors with ample capital supply begin to accumulate coins.
• This uptick in implied volatility with an extended period of low realized volatility is likely to be followed by wild price fluctuations.

The crypto market has been in a state of relative calm lately, with bitcoin stuck in the range of $16,000 to $18,000, amid lingering macroeconomic uncertainty and FTX contagion fears. However, this tranquility may soon be disrupted, as bitcoin’s realized volatility has fallen to its lowest level since the third quarter of 2020, just before the last bull run.

Realized volatility is a backwards-looking metric which measures the magnitude of daily price movements, irrespective of direction, over a specific period. Last week, Bitcoin’s annualized one-month realized volatility dropped to 38%, the lowest in two years. This drop in volatility has been accompanied by an increase in implied volatility, which is a forward-looking metric that reveals options traders‘ expectations for price turbulence over the coming week or month.

The low volatility and increased implied volatility has caused some analysts to caution investors to prepare for a sharp move soon. As highlighted in the Dec. 12 issue of Bitfinex’s Alpha report, “Calm waters do not last long in bitcoin, so be prepared for a sharp move here shortly.” Blockware’s weekly report also stated that, “Not counting the moment leading up to the FTX fallout, which had slightly higher volatility than what we have now, this is the lowest level for realized volatility since the third quarter of 2020, just before the last bull run. Prior to that instance, volatility was this low at the bottom of the 2018 bear market.”

The low volatility has also led to investors with ample capital supply beginning to accumulate coins, as they look to capitalize on the potential gains that may be achieved when the market volatility increases. As a result, this could be the start of another bull run, as the influx of capital begins to push the price of bitcoin higher.

Overall, the crypto market has been relatively calm lately, but this may not last for long. The recent drop in realized volatility, coupled with an increase in implied volatility, could be a sign of things to come, and investors should be prepared for a sharp move in the market in the coming days.

• British Columbia has imposed restrictions on crypto mining, prohibiting new connections to its power grid for 18 months.
• This follows similar restrictions imposed by utilities in Quebec and Manitoba, due to high demand for electricity.
• British Columbia wants to save electricity for electric vehicles, heat pumps, and businesses that are undertaking electrification projects.

The Province of British Columbia has recently joined Quebec and Manitoba in imposing restrictions on the crypto mining industry. In an effort to ensure that electricity is preserved for more important uses, the province has banned new connections to its power grid for an 18 month period.

The decision was announced on Wednesday by British Columbia’s minister of energy, mines and low carbon innovation, Josie Osborne. In her statement on the government’s website, she explained the need for such action: “We need to preserve electricity for electric vehicles and heat pumps, and for businesses and industries that are undertaking electrification projects that reduce carbon emissions and generate jobs and economic opportunities.”

Currently, 21 projects are requesting a total of 1,403 megawatts (MW) in the province. This amount of electricity is enough to power approximately 570,000 homes, or 2.1 million electric vehicles. By denying these requests, the province is making sure that the electricity is used for more important purposes.

The decision to restrict crypto mining follows similar restrictions imposed by utilities in Quebec and Manitoba. These provinces have both determined that the high demand for power is too great of a risk and has decided to limit the amount of electricity being used by the crypto mining industry.

British Columbia is taking a proactive stance in ensuring that electricity is used for more important purposes. Hopefully, this will lead to a significant reduction in carbon emissions and create much needed economic opportunities.

• FTX used its own token, FTT, to purchase a majority stake in trading platform Blockfolio for $84 million in 2020.
• FTT was at the center of the downfall of the company founded by Sam Bankman-Fried after CoinDesk revealed in early November that sister firm Alameda Research’s balance sheet was full of the token.
• Bankman-Fried now faces criminal charges in the U.S., including wire fraud, conspiracy to commit money laundering and violating campaign finance laws.

In 2020, cryptocurrency exchange FTX made headlines when it used its own token, FTT, to purchase a majority stake in trading platform Blockfolio for $84 million. According to financial documents, around 94% of the amount was in the token invented by FTX, giving them a 52% stake in the trading platform.

However, this move would soon lead to the downfall of FTX when CoinDesk revealed in early November that sister firm Alameda Research’s balance sheet was full of the token, exposing the parlous state of its finances and the close ties between the two. This sparked a series of events that would lead to the eventual downfall of FTX, culminating in the disgraced former CEO, Sam Bankman-Fried, facing criminal charges in the U.S., including wire fraud, conspiracy to commit money laundering and violating campaign finance laws.

The Securities and Exchange Commission (SEC) has since declared FTT a security, meaning FTX could face further legal implications due to its sale of the token. FTX has yet to comment on the matter, but the SEC’s decision could have a significant impact on the company’s future.

FTX’s purchase of Blockfolio may have seemed like an ambitious move at the time, but it quickly turned into a cautionary tale of how the wrong decision can have devastating consequences. The story of FTX serves as a reminder for other cryptocurrency companies to tread carefully when it comes to investments and acquisitions.