Nov 11, 2024

California revokes BlockFi’s license amid bankruptcy, Caroline Ellison is sentenced, Crypto.com faces scrutiny in Poland, and Senator Cynthia Lummis supports Trump’s Bitcoin reserve proposal. 116 Total views United States Senator Cynthia Lummis expressed support for President-elect Donald Trump’s proposal for a Bitcoin reserve after Trump won the 2024 US presidential elections on Nov. 5. Lummis, a Wyoming Republican and strong crypto advocate, highlighted her intention to pursue the legislation in the Senate, suggesting that the US acquire 1 million BTC — about 5% of its supply — and hold it for at least 20 years. This initiative builds on Trump’s idea that the government should hold, rather than liquidate, its seized Bitcoin assets. The proposal comes as Republicans prepare for Senate majority control​. California revokes BlockFi’s license amid bankruptcy proceedings California’s Department of Financial Protection and Innovation (DFPI) permanently revoked the lending license of BlockFi, a cryptocurrency lender that declared bankruptcy two years ago. This decision followed an investigation revealing violations of the California Financing Law, including inadequate assessment of borrowers’ repayment ability, misleading loan disclosures and early interest charges before loan disbursement. BlockFi agreed to the revocation as well as to cease unsafe practices. Although fined $175,000, payment was waived to prioritize consumer repayments amid BlockFi’s bankruptcy. FTX’s Caroline Ellison receives prison sentence for role in Alameda Research Caroline Ellison, former CEO of Alameda Research, is set to begin a two-year prison sentence after pleading guilty to multiple counts of fraud and money laundering tied to FTX’s collapse. Her sentencing follows extensive testimony that implicated her ex-colleague, Sam Bankman-Fried, during his criminal trial. Despite facing intense media scrutiny and public criticism since 2022, Ellison’s case has highlighted the legal fallout of FTX’s downfall. Other implicated executives, including Gary Wang, are awaiting sentencing as well. Wang recently asked the judge not to sentence him to any jail time. Crypto.com faces regulatory warning in Poland Poland’s Financial Supervision Authority (KNF) issued a public warning regarding Crypto.com, stating that the platform is not registered as a virtual asset service provider under Polish law. The regulator emphasized potential risks to users, urging them to exercise caution when using unregistered services. The action was part of increasing regulatory scrutiny as the European Union prepares for its comprehensive Markets in Crypto-Assets (MiCA) regulations, aiming to bring more stringent oversight to the crypto sector.