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Crypto recap: All that went down on Christmas

TL;DR

  • FTX debtors proposed a separate legal agreement targeting Sam Bankman-Fried in their bankruptcy proceedings.
  • The SEC set a December 29 deadline for crypto issuers to submit spot Bitcoin ETF updates, influencing potential early approvals.
  • Former BitMEX CEO Arthur Hayes warned that successful spot Bitcoin ETFs could critically damage the Bitcoin network.

As the world was busy unwrapping gifts and munching on Christmas treats, the crypto universe was witnessing its own drama unfold, dotted with legal twists, regulatory deadlines, and apocalyptic predictions. From the legal battles of FTX debtors to the SEC’s tight deadlines and Arthur Hayes’ gloomy forecasts, the crypto world was anything but quiet.

FTX’s Legal Tango and the SEC’s Deadline Dance

The ghost of FTX’s past reared its head in the legal arena, showcasing a new plot twist in the already convoluted saga of the defunct crypto exchange. FTX debtors, not ones to sit back and watch the show, proposed a separate legal agreement in the bankruptcy proceedings.

This wasn’t just about reclaiming lost funds; it was a strategic move in the high-stakes chess game involving FTX’s $220 million acquisition of Embed. The proposal, outlined in a December 22 filing with the U.S. Bankruptcy Court, suggested a settlement specifically targeting Sam Bankman-Fried’s involvement in the Embed Proceeding. In the world of crypto, this is equivalent to a side quest in a role-playing game, but with real money and legal consequences.

Meanwhile, the SEC, playing the role of the strict parent, set a December 29 deadline for crypto issuers to submit their revised spot Bitcoin ETF updates. The message was clear: make the cut by this date or miss out on the first wave of potential spot Bitcoin ETF approvals. This deadline sent ripples through the crypto community, with major players like BlackRock, Grayscale Investments, and ARK Investments in a scramble to meet the SEC’s demands. It’s not just about being early to the party; it’s about being part of a select group that could potentially reshape the Bitcoin landscape.

Arthur Hayes’ Crypto Doomsday Prophecy

In a stark contrast to the usual festive cheer, Arthur Hayes, the former CEO of BitMEX, splashed a generous dose of concern over the future of spot Bitcoin ETFs. In his apocalyptic vision, Hayes warned that these ETFs could “completely destroy” Bitcoin if they become too successful.

Picture a scenario where Bitcoin is hoarded and stored away in some metaphorical vault, causing a drastic reduction in the number of transactions on the Bitcoin network. This chilling prediction paints a picture of miners shutting down their rigs, leading to the network’s collapse and the vanishing of Bitcoin. It’s like envisioning a world where all the gold is locked away, never to be used or seen again.

Hayes’ grim forecast is more than just a holiday horror story; it’s a cautionary tale about the potential pitfalls of financial instruments that could inadvertently suffocate the very asset they’re meant to celebrate. In the crypto world, where the balance between innovation and preservation is delicate, Hayes’ words serve as a reminder of the unintended consequences that can arise from well-intentioned financial products.

As the crypto community digested these developments amidst the festive season, it became clear that the world of digital currencies never takes a holiday. From legal battles to regulatory deadlines and dire predictions, the crypto landscape remains as dynamic and unpredictable as ever. As we step into the new year, the crypto saga continues to unfold, promising more twists, turns, and maybe a few more doomsday prophecies. One thing is certain: in the crypto world, the only constant is change, and this Christmas was no exception.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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