Crypto News: FTX Co-Founder Gary Wang Testimony Puts SBF in a Corner

Key Insights:

• Justin Sun unstaked a significant 20,000 ETH; investors reacted.
• Adam Yedidia claimed FTX defrauded its clients.
• Code alterations allowed Alameda unchecked access to FTX client accounts.

Tron Founder Justin Sun Unstaked 20,000 ETH

On Thursday, crypto analysis platform Data Nerd identified a withdrawal of 20,000 ETH from Lido Finance. Worth $32.4 million at the time, whale Oxbcb reportedly deposited the crypto to Binance. Data Nerd noted Tron founder Justin Sun recently deposited 5k ETH to Huobi via the same wallet.

Investors responded to the news, with ETH falling 2.21% to end the Thursday session at $1,611. ETH extended the losing streak to five sessions. Lackluster interest in the ETH-Futures ETFs kickstarted the bearish week.

SBF Prosecutors Put FTX Co-Founder Gary Wang on the Stand

Adam Yedidia, an SBF friend and former FTX employee, delivered testimony on Thursday. Asked for his reason for resigning, Yedidia stated,

“If Alameda took the money, it meant it did not have money of its own. It meant the money was simply gone.”

The AUSA also asked why his view changed about FTX, to which he replied,

“FTX defrauded its customers.”

However, asked whether he knew Alameda was spending the money from depositors, Yedidia said, “Not until the end.”

Gary Wang also gave testimony on Thursday.

Gary Wang is the former MIT roommate of SBF and the co-founder of FTX. The former crypto billionaire signed a plea agreement with the US DoJ in December 2022 on four counts, with a maximum statutory sentence of 50 years. Giving testimony shortly after Adam Yedidia, Gary Wang admitted to committing crimes at FTX, saying, “Yes, with Nishad Singh, Caroline Ellison, and Sam Bankman-Fried.”

Wang elaborated on the wire fraud charges, saying, “We allowed Alameda to withdraw unlimited funds.”

Gary Wang acknowledged that SBF directed him to write code to give Alameda Research unlimited access to FTX user accounts.

Nishad Singh and Caroline Ellison have also signed plea agreements with federal prosecutors.

While SBF listened to testimony in court, the Southern District Court of New York announced the seizure of two private jets owned by SBF.

Technical Analysis

Bitcoin Analysis

BTC held above the 50-day and 200-day EMAs, affirming bullish price signals. Significantly, the 50-day EMA moved away from the 200-day EMA, signaling a bullish trend.

A BTC move through the $28,187 resistance level would support a return to the Monday high of $28,593.

However, a break below the EMAs would bring the $26,755 support level into play.

BTC-spot ETF-related news and SEC v Coinbase (COIN) and Ripple case-related news need consideration.

The 14-Daily RSI reading of 57.57 supports a BTC move to the $28,187 resistance level before entering overbought territory.

Ethereum Analysis

ETH stayed below the 50-day and 200-day EMAs, affirming bearish price signals.

An ETH break above the $1,626 resistance level would support a move to the 50-day EMA. Progress toward an ETH-spot ETF would drive buyer demand for ETH.

However, failure to break above the $1,626 resistance level would support a drop below $1,600. An ETH drop below $1,600 would leave the $1,502 support level in view.

The 14-Daily RSI reading of 47.06 indicates an ETH fall below $1,550 before entering oversold territory.