Crypto News: Sam Bankman-Fried Guilty on All Counts

Key Insights:

• SEC serves PayPal with a subpoena to provide documents relating to the PayPal USD stablecoin.
• The jury delivers Sam Bankman-Fried with guilty verdicts on all charges in four hours of deliberation.
• Coinbase reports a fall in trading volume, sending the stock price down during after-hours trading.

Sam Bankman-Fried Guilty on All Counts

The jury wasted no time in returning guilty verdicts on seven charges of securities fraud, wire fraud, money laundering, and conspiracy. Sam Bankman-Fried faces up to 110 years in prison. Significantly, the jury deliberated for just four hours before reaching guilty verdicts on all counts.

According to the Inner City Press, Judge Kaplan set a March 28, 2024 sentencing date. Before sentencing, SBF faces a second trial, set for March 15, 2024. Parties must advise the Court by February 1 if the trial will proceed.

Outside the Courtroom, federal prosecutor Damian Williams reportedly had this to say,

“The crypto industry might be new, the players like Sam Bankman-Fried may be new, but this kind of fraud is as old as time, and we have no patience for it.”

SEC Serves PayPal with Subpoena

On Wednesday, November 1, 2023, the SEC subpoenaed PayPal (PYPL), requesting documents relating to the PayPal USD (PYUSD) stablecoin. In a statement, PayPal said it was cooperating with the SEC.

Investors brushed aside the news. The share price jumped 6.58% on Thursday as investors responded to upbeat full-year profit forecasts.

Coinbase Report Fall in Trading Volumes

On Thursday, Coinbase (COIN) shares rallied 8.73%. However, COIN was down 4.27% in after-hours trading. A slump in trading volumes overshadowed better-than-estimated revenues.

Coinbase CEO Brian Armstrong shared the results on X (formerly Twitter).

Coinbase is in a legal battle with the SEC for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

In August, Coinbase filed a motion to dismiss (MTD). Since then, the SEC filed its opposition, with Coinbase submitting its reply brief. Presiding Judge Katherine Failla set a court date of January 17, 2024, for parties to present oral arguments.

Technical Analysis

Bitcoin Analysis

BTC held above the 50-day and 200-day EMAs, affirming bullish price signals.

A BTC break above the $35,265 resistance level would support a move toward the $36,400 resistance level. However, BTC may need a crypto event to break down resistance at the Thursday high of $36,024.

On Friday, BTC-spot ETF-related news and SEC activity will remain the focal points.

A BTC drop below $34,000 would give the bears a run at the $32,436 support level.

The 14-Daily RSI reading of 73.21 shows BTC sitting in overbought territory. Selling pressure may intensify.

Ethereum Analysis

ETH remained above the 50-day and 200-day EMAs, affirming bullish price signals.

An ETH break above the $1,805 resistance level would support a move to the trend line. News updates on the SEC cases against Ripple and Coinbase and ETH-spot ETF-related news will also influence buyer appetite.

Failure to break above the $1,805 resistance level would leave the $1,741 support level and 200-day EMA in play.

The 14-period Daily RSI, 61.88, suggests an ETH break above the $1,805 resistance level before entering overbought territory.