Crypto.com Expands to Stocks, BTC & ETH ETFs Surge, Gotbit Fraud Uncovered: News of November 1, 2024

BTC ETFs: $32M Inflows, ETH ETFs: $13M Inflows

On October 1, net inflows into spot BTC-ETFs totaled +$32.3 million (compared to +$893.3 million in the previous trading session) and net inflows into spot ETH-ETFs totaled +$13 million (vs. +$4.4 million previously)

Trump's Crypto Business Slashes Fundraise Goal by 90% After Lackluster Sales

Donald Trump's crypto business World Liberty Financial slashed its fundraising goal after sales of its WLFI token fell dramatically short of the initial target, according to a regulatory filing.

The company now plans to raise up to $30 million from investors, a 90% cutback from the $300 million World Liberty Financial had originally sought. An SEC filing dated Oct. 30 says World Liberty Financial plans to "terminate" WLFI sales upon hitting $30 million.

US indicts founder of crypto firm Gotbit for alleged wire fraud

WASHINGTON, Oct 31 (Reuters) - The founder of cryptocurrency market maker Gotbit was indicted for his alleged role in a wide-ranging conspiracy to manipulate cryptocurrency markets on behalf of client cryptocurrency companies, the U.S. Justice Department said on Thursday.

Aleksei Andriunin, 26, was charged with wire fraud and conspiracy to commit market manipulation and wire fraud in a superseding indictment, the Justice Department said in a statement.Gotbit, Andriunin, Kedrov and Jalili could not immediately be contacted.

If convicted of wire fraud, Andriunin faces a maximum penalty of 20 years in prison. If convicted of conspiracy to commit market manipulation and wire fraud, he faces a maximum penalty of five years in prison, the Justice Department said.

Federal prosecutors said on Oct. 9 they had charged crypto firms Gotbit, ZM Quant, CLS Global and the leaders and employees of those and other companies in a takedown that led to four arrests, agreements by five people to plead guilty and the seizure of over $25 million worth of cryptocurrency.

Crypto.com acquires SEC-registered broker to expand equities offerings

Crypto.com has acquired SEC-registered broker-dealer Watchdog Capital, allowing its U.S. subsidiary to offer stocks and equity options to eligible traders. Watchdog, founded by digital asset advocate Bruce Fenton, is also a FINRA and SIPC member. CEO Kris Marszalek stated the acquisition supports Crypto.com's mission to integrate traditional and digital finance responsibly.

Tether Reports $2.5B Profit in Q3, Holds Over $100B of U.S. Treasuries

Tether’s latest report, audited by BDO Italy, shows $125.5 billion in reserves backing $119.4 billion in liabilities, leaving $6 billion in excess reserves as of September 30. Most of Tether’s assets—$105 billion—are in cash and cash equivalents, including $84.5 billion in U.S. Treasury bills. The company also holds $5 billion in gold and $4.8 billion in Bitcoin.

Tether’s venture arm, Tether Investments, now valued at $7.7 billion, is expanding into energy, mining, and AI. Tether owns 7,100 BTC, worth about $500 million.

Despite its central role as the third-largest cryptocurrency by market cap, Tether faces scrutiny; a recent Wall Street Journal report alleged it’s under U.S. criminal investigation for possible sanctions violations, which Tether denies. CEO Paolo Ardoino reaffirmed Tether’s commitment to U.S. sanctions compliance and continued investment in U.S. debt.

Top Gainers: TIA, ENA, KAS, WBT, RAY

Have a nice trading weekend, traders!