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FTX opens lawsuit against former employees of Hong Kong affiliate

The bankrupt crypto exchange FTX has opened a lawsuit against former employees of a Hong Kong affiliate company Salameda to recover $157.3 million.

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The bankrupt crypto exchange FTX has opened a lawsuit against former employees of a Hong Kong affiliate company Salameda to recover $157.3 million.

The defunct cryptocurrency exchange FTX filed a lawsuit on Sept. 21 against former employees of Hong Kong-incorporated company Salamde affiliated with the FTX group, according to court documents

The court filing says FTX seeks to recover $157.3 million that it claims was fraudulently withdrawn in the timespan leading up to the exchange filing for bankruptcy.

According to the filing, Michael Burgess, Matthew Burgess, Lesley Burgess - the mother of Michael and Matthew, Kevin Nguyen and Darren Wong, along with two companies allegedly had ownership of companies with registered accounts and FTX.com and FTX US and were able to withdraw funds in the “preference period” prior to the actual bankruptcy filing.

The court filing reads:

“Each of these transfers to Defendant Michael Burgess was made with the intent to hinder, delay or defraud FTX US’s present or future creditors.”

It continues to point out that these transfers were completed hours prior to FTX halting all non-fiat user withdrawals on Nov. 8, 2022.

The allegations include that Mathew Burgess pressured FTX employees to “push out” particular pending withdrawal requisitions “from one of Michael Burgess’s FTX US exchange accounts, while misrepresenting the account to be his own.” It cited messages on the Slack application.

Related: Binance and CEO Changpeng Zhao ask court to dismiss SEC suit

This development comes as Sam Bankman-Fried (SBF), the former FTX CEO, sits in jail awaiting the first of his two-part trial, which is set to begin on Oct. 3, 2023. The second trail is anticipated for March 2024. 

On Sept. 21 judges decided against granting SBF early release from jail. He argued he couldn’t adequately prepare for trial from jail and said it violated his First Amendment Rights under the United States constitution.

However, on the same day, Judge Lewis Kaplan granted a motion proposed by the Department of Justice (DOJ) that bars testimony of SBF’s key witnesses.

Magazine: How to protect your crypto in a volatile market: Bitcoin OGs and experts weigh in

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Lightning Labs releases Taproot Assets alpha, bringing stablecoins to Bitcoin

Taproot Assets is “how we bitcoinize the dollar and the world’s financial assets,” says Ryan Gentry, director of business development at Lightning…

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Taproot Assets is “how we bitcoinize the dollar and the world’s financial assets,” says Ryan Gentry, director of business development at Lightning Labs.

Bitcoin layer-2 infrastructure firm Lightning Labs has released the mainnet alpha of Taproot Assets, a protocol aimed at enabling stablecoins and real-world assets to be issued on the Bitcoin and Lightning Network.

The current version, Taproot Assets v0.3, will provide a “feature-complete developer experience” to issue, manage and explore stablecoins and other assets on the Bitcoin blockchain, according to Ryan Gentry, head of business development at Lightning Labs.

“We believe this new era for Bitcoin will see a myriad of global currencies issued as Taproot Assets, and the world's foreign exchange transactions settled instantly over the Lightning Network.”

“With this release, developers can issue financial assets on-chain in a scalable manner,” Lightning Labs stated on Oct. 18 in a separate post. “Today marks a new era of multi-asset bitcoin.”

This version of Taproot Assets will work by routing through existing Bitcoin liquidity on the Lightning Network.

Gentry says the integration will extend Bitcoin’s network effects and move it one step closer toward “bitcoinizing the dollar.” He added:

“This is how we make bitcoin the global routing network for the internet of money. This is how we bitcoinize the dollar and the world's financial assets.”

Gentry described developer demand for stablecoin applications on Bitcoin as “overwhelming” — particularly given that some stablecoin issuers hold more United States Treasuries than the likes of Germany, South Korea.

“[It] signifies the importance of these assets globally, and gives a sense of scale for the global user demand,” Gentry added.

Related: BitVM wasn’t created to make Bitcoin a pseudo-Ethereum, says developer

Nearly 2,000 Taproot Assets were minted on testnets over the last several months in the lead up to the mainnet alpha launch, according to Gentry.

Alpha launches typically mean the development isn’t in its final state. Lightning Labs said the alpha tag indicates that they expect the community to test it for potential bugs.

Bitcoin Drivechains (through Bitcoin Improvement Proposal-300), Botanix Labs’ Spiderchain and the BitVM are among the other developments in the Bitcoin ecosystem looking to expand Bitcoin’s capabilities.

Magazine: Recursive inscriptions — Bitcoin ‘supercomputer’ and BTC DeFi coming soon

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The GDP Outlook: Now and Near Future

The October WSJ forecast survey is out. The mean forecast is for no downturn (no 2-quarter negative growth). It’s also a lot higher than three months…

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The October WSJ forecast survey is out. The mean forecast is for no downturn (no 2-quarter negative growth). It’s also a lot higher than three months ago.

First, here’s the forecast compared to three months ago, in levels.

Figure 1: GDP as of 2023Q1 3rd release (bold green), WSJ July mean forecast (light green), GDP as of 2023Q2 3rd release/comprehensive revision (bold black), WSJ October man forecast (sky blue), all in logs, 2022Q4=0. Source: BEA via FRED, ALFRED, WSJ (various), and author’s calculations. 

The upshift in levels is partly due to GDP higher than forecasted for Q2. But Q3 and Q4 GDP growth is also forecasted to be higher than 3 months ago — by about 1 ppt (annual rate), while 2024Q1 growth is about the same (0.36 ppts). 2024Q2 forecasted growth is about halved — from 1.06 ppts SAAR to 0.56 ppts.

It’s not that there aren’t some forecasting a recession. Figure 2 depicts the mean growth rate, along with the 20% trimmed high/low bands. While mean is all positive growth, median (Panday at S&P Global Ratings) has -1% and 0% growth (SAAR) in 2023Q4 and 2024Q1, respectively.

Figure 2: GDP (bold black), October WSJ survey mean (sky blue), 20% high/low forecasts (light gray lines), Atlanta Fed GDPNow as of 10/17 (blue square), all in billions Ch.2017$ SAAR. Source: BEA 2023Q2 3rd release/comprehensive revision, WSJ (October survey), and author’s calculations.

GDPNow, which uses data up to the 17th, is higher in Q3 than the 7th highest growth rate (out of 65 respondents), so the economy seems to be outperforming what respondents thought in early October.

Jonathan Holt at ScotiaBank forecasts two consecutive quarters of growth, in 2024Q1-Q2. Generally, most negative growth quarters are 2023Q4 through 2024Q2. So some people are still forecasting a rule-of-thumb recession (on GDP metric), even as less than half of respondents are now predicting a recession in the next year (specifically, 48%).

 

 

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WVU partnering with industry to improve health, environmental outcomes for disadvantaged communities

A West Virginia University team of industrial engineers is looking to turn $800,000 worth of Environmental Protection Agency funding into direct support…

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A West Virginia University team of industrial engineers is looking to turn $800,000 worth of Environmental Protection Agency funding into direct support for local industry.

Credit: WVU Photo/David Malecki

A West Virginia University team of industrial engineers is looking to turn $800,000 worth of Environmental Protection Agency funding into direct support for local industry.

They are partnering with industrial facilities in disadvantaged communities statewide, providing free technical assistance to help those businesses improve their energy efficiency and minimize their waste streams, air pollution and carbon footprints.

“Many chronic health issues in West Virginia can be linked to exposure to industrial emissions and disadvantaged communities are often affected to a greater extent,” said project lead Ashish Nimbarte, professor and chair of the Department of Industrial and Management Systems Engineering at the Benjamin M. Statler College of Engineering and Mineral Resources. “We will help these facilities reduce their impact on environmental and community health through updates to processes or equipment. This project is about supporting our state’s businesses in making changes that will really benefit their communities while maintaining their profitability.”

The funding, authorized by the Bipartisan Infrastructure Law, comes from the EPA’s Pollution Prevention Grant Program. That program advances the federal Justice40 Initiative, which is intended to direct 40% of certain federal benefits to communities overburdened by pollution and marginalized by underinvestment.

To identify industrial facilities in West Virginia, Nimbarte said his team will use data from the Council on Environmental Equality’s Climate and Economic Justice Screening Tool, which characterizes census tracts as disadvantaged based on a set of criteria related to climate change, energy, health, housing, legacy pollution and transportation. After that, they’ll begin the process of pre-visit assessments and outreach.

“Right now, we’re focused on identifying facilities with the largest impact on environmental and public health in disadvantaged communities,” Nimbarte said. “A majority of these businesses are busy running daily operations and may not have the resources to review the environmental and health impacts of the energy, water and materials they use. We want to partner with such businesses to assess their operations, to look at productivity improvement as well as resource conservation and waste minimization.”

Assistant Professor Avishek Choudhury said one of the biggest barriers facilities in disadvantaged communities face in developing and implementing source reduction plans is lack of technical support.

“That’s why we do onsite assessments — so our team’s recommendations can target each facility’s specific pollution, emissions and waste. Every assessment will be customized to the businesses, and we’ll develop highly collaborative relationships with the managers, who are often already aware of pollution prevention opportunities but may not have the resources to turn opportunities into operations.

“Our team will make sure managers have the sound technical knowledge they need to execute recommendations that can enhance their facilities’ environmental performance, competitiveness and profitability. Return on investment is a priority for them, so it will be an important measure in every write-up we provide,” Choudhury said.

The onsite technical assistance to facilities will include not only assessments and recommendations, but in-person trainings, videos, self-guided modules and interactive media.

Chris Moore, research associate, added onsite technical assistance isn’t the only form of support their team will offer businesses. They will also widely distribute information through online platforms such as e-newsletters, and they’ll organize a conference to present case studies and talk about ways technology and processes can prevent pollution through production reformulations, raw material substitutions, and improvements in maintenance, training or inventory control.

“In West Virginia’s most vulnerable communities, unemployment is high and incomes, education levels and life expectancies are low,” Nimbarte said. “Through this work, local businesses can serve as catalysts to improve the health and environment of struggling residents.”


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