Bitcoin futures contracts traded on CME reached an all-time high this week, as BTC’s price briefly eclipsed $35,000. Meanwhile, FTX claim pricing has reached as high as 57%, according to data from Claims Market. This came after Sam Bankman-Fried was found guilty of all seven charges laid against him in his criminal trial, just hours after prosecutors laid down their final rebuttal to the defense.
CME Bitcoin futures hit record high
Open interest on Bitcoin futures reached $3.65 billion on the Chicago Mercantile Exchange (CME), a new all-time high. The metric suggests that more traders are gaining access to the Bitcoin market through derivatives.
In terms of bullish sentiment, there were 122 active large holders involved in Bitcoin futures during the week of Oct. 31, the highest on record. As a result, the Bitcoin CME futures premium reached its highest level in over two years.
Digital asset markets have seen a wave of positive momentum tied to speculation that the U.S. Securities and Exchange Commission is on track to approve its first spot Bitcoin ETF. This may have prompted the largest inflows into crypto exchange-traded products in over a year. According to CoinShares, crypto fund inflows totaled $326 million last week.
FTX claims climb to 57% as Sam Bankman-Fried found guilty on all counts
The current claim pricing of FTX has reached a maximum of 57%, according to data from Claims Market. The increase in FTX’s claim pricing is attributed to the valuation of the artificial intelligence (AI) companies that the now-bankrupt crypto exchange previously invested in.
Creditors stake their claims to try to recoup some of their investment when businesses experience financial difficulties or bankruptcy. Investors frequently trade these claims based on their estimates of the total amount recovered. There is an increase in the estimated recovery value when the pricing of a claim rises.
As the value of FTX’s investment in these AI companies jumped, so did the potential amount that could be recovered from its bankruptcy procedure. A claim is a legal assertion of a certain monetary amount. The claim percentage value refers to the percentage of the investment amount expected to be recovered from the platform. FTX claims value has jumped to the highest spot when compared with other bankrupt crypto firms, such as Celsius with 35–40%, Genesis with about 50%, Alameda with 10% and Three Arrows Capital with only 7–9%.
The surge in FTX claims also comes amid former FTX CEO Bankman-Fried’s public trial ending on Nov. 2, with the jury finding him guilty on all seven charges. The judge will announce sentencing in March 2024.
Sam Bankman-Fried is found guilty on all 7 charges in criminal trial
Bankman-Fried was found guilty of all seven charges by a jury in New York after about four hours of deliberations.
Bankman-Fried was found guilty of two counts of wire fraud, two counts of wire fraud conspiracy, one count of securities fraud, one count of commodities fraud conspiracy and one count of money laundering conspiracy.
He will return to court for sentencing by New York District Judge Lewis Kaplan on March 28, 2024. Government prosecutors will recommend a sentence, but Kaplan will have the final say.
SBF guilty on all charges.
I remember when consensus on this platform was that he was too politically connected to go to jail, the system was rigged, he would never get arrested, he would never go to court.
He was always going away, sorry conspiracy theorists.
— The Wolf Of All Streets (@scottmelker) November 2, 2023
Bankman-Fried’s crimes each carry a maximum sentence of between five and 20 years in prison, with the wire fraud, wire fraud conspiracy and money laundering conspiracy carrying a maximum 20-year sentence.
In a press conference outside the court, U.S. Attorney Damian Williams called Bankman-Fried’s crimes “a multibillion-dollar scheme designed to make him the king of crypto” and one of the biggest financial frauds in American history.
SBF “lied to get customers’ trust,” prosecutor says
U.S. Assistant Attorney Danielle Sassoon presented the prosecution’s rebuttal to Bankman-Fried’s defense on Nov. 2.
Speaking to the court, Sassoon claimed that prosecutors “met the burden” of proving Bankman-Fried’s guilt related to seven counts of fraud and conspiracy to commit fraud. She claimed that the former FTX CEO lied to customers about the safety of their funds, as well as FTX’s relationship with Alameda Research.
“He didn’t want to be a criminal on the run,” she said. “He lied to get customers’ trust.“
Sassoon also claimed that Bankman-Fried avoided hiring a risk officer because he “knew what he was doing was wrong.“
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.