Crypto Market Recovers after Trading Volumes Near $5 Trillion, FTX and Alameda Reach Settlement With CFTC
Data from CryptoCompare shows that the price of Bitcoin rose around 15.6% over the past week to now trade at $58,700 after briefly surpassing the $60,000 mark in a recovery that came after a downturn that saw it plunge below $50,000 earlier this month.
Ethereum’s ether, the second-largest cryptocurrency by market capitalization, saw similar performance, rising 17.7% over the past seven days to now trade at $2,630, having seen $2,700 highs this week as it recovers from a $2,200 low.
Cryptocurrency prices recovered over the past week while CCData’s latest Exchange Review report revealed that trading volumes on centralized exchanges surged 19% to $4.94 trillion last month, marking its first rise in four months.
The report details that spot cryptocurrency trading volumes rose 14.3% to $1.44 trillion, while derivatives trading volumes rose 21% to $3.5 trillion in an uptick driven by several factors including the launch of spot Ether exchange-traded funds (ETFs) in the United States.
Binance has maintained its status as the leading cryptocurrency exchange with a 28.1% market share, despite a 4.9% decline in the metric from June. Meanwhile Bybit saw its spot volume rise 23%, helping it record 9.18% in market share with its third-highest monthly volume.
These volumes were revealed in the same week in which it was shown that investors betting on Bitcoin through BlackRock’s spot ETF, the iShares Bitcoin Trust, held onto their shares during te price drop, with the ETF recording zero outflows as prices crashed.
The crash saw the cryptocurrency market’s Fear & Greed Index plunge into “extreme fear” for the first time in two years and saw the price of the flagship cryptocurrency Bitcoin plunge below the $50,000 mark before recovering.
Russia Legalizes Cryptocurrency Mining, Brazil Greenlights Spot Solana ETF
Over the week, Russian President Vladimir Putin approved legislation to legalize cryptocurrency mining in the country, and establish a framework for digital currency oversight set to tafe effect in November.
The new law will see mining companies register with a state database, while individual miners can operate below a specific energy consumption threshold without official registration. The crypto industry in the country will be overseen by the central bank, the finance ministry, and a specially appointed cabinet committee.
Meanwhile’s Brazil’s securities regulator, the Comissão de Valores Mobiliários (CVM), has approved the launch of a spot Solana ETF, marking the launch of the first product of its kind in the country.
The ETF, issued by QR Asset and managed by Vortx, is still awaiting final approval from the Brazilian stock exchange, B3 and is the latest fund to launch in the country, which approved and listed spot Bitcoin and Ether ETFs between 2021 and 2022 on B3.
In the UK, the Financial Conduct Authority (FCA) revealed it has issued over 1,000 warnings to cryptocurrency firms since it introduced stricter marketing rules in October of last year. These rules require firms to be registered with the FCA to reach out to clients in the UK.
The FCA’s rules require firms to take steps to assess whether a consumer is restricted, high-net-worth, or a certified sophisticated investor before communicating financial promotions.tw
FTX and Alameda Reach $12.7 Billion Settlement with CFTC to Repay Creditors
A federal judge of the U.S. District Court for the Southern District of New York has notably approved a $12.7 billion settlement between collapsed cryptocurrency exchange FTX, its trading arm Alameda Research, and the Commodity Futures Trading Commission (CFTC).
The settlement comes after months of negotiations and puts an end to a lawsuit between the CFTC and the collapsed exchange founded by Sam Bankman-Fried. While the CFTC sought more than $52 billion in damages, the final settlement of $12.7 billion will see FTX’s estate distribute to creditors first, with the regulator receiving nothing until these are fully repaid.
Out of the total settlement amount, $8.7 billion will be returned to customers who suffered losses due to the exchange's collapse while an additional $4 billion in illicit profits will be disgorged. The funds will be managed through the ongoing bankruptcy proceedings, with the goal of maximizing recovery for defrauded customers.
The deal also bars FTX and Alameda defendants, along with their associated parties, from trading commodities, including digital asset commodities including Bitcoin, Ether, and USDT.
Francisco Memoria is a content creator at CryptoCompare who’s in love with technology and focuses on helping people see the value digital currencies have. His work has been published in numerous reputable industry publications. Francisco holds various cryptocurrencies.
