Crypto News: Sam Bankman-Fried Trial and Binance Draw Investor Interest

Key Insights:

• The UK FCA moves to prevent Binance from promoting crypto assets through a third-party partnership.
• Sam Bankman-Fried witnessed testimony from former girlfriend Caroline Ellison.
• BTC and ETH are under pressure this morning, with technical indicators sending bearish signals.

Sam Bankman-Fried Under Pressure in the Ongoing Trial

Caroline Ellison, former Alameda Research CEO and former girlfriend of Sam Bankman-Fried took the stand on Tuesday.

When asked about SBF’s involvement in the crimes, Ellison responded,

“He was the head of Alameda then FTX. He directed me to commit these crimes.”

The prosecutor (AUSA) went on to ask, what was the defendant’s role? To which Ellison replied,

“He set up all the systems and told us to take the money.”

The AUSA then asked how much money Alameda took to repay its lenders.

Ellison replied,

“In the ballpark of $10 billion. Ultimately around $14 billion.”

Ellison then stated that she sent balance sheets to lenders that made Alameda appear less risky than it was, adding that there was not enough money for customers in November 2022 because they took it to repay lenders.

Ellison also stated that Alameda could withdraw from FTX and sell on Binance if the coin was trading at a higher price. While under questioning, Ellison also said that SBF donated $10 million to Biden, thinking it would buy him access. SBF wanted to be the President of the United States.

At the end of the Tuesday session, AUSA Sassoon named two witnesses for the prosecution, including Zac Prince, the founder and CEO of BlockFi.

UK Financial Conduct Authority Targets Binance

The Financial Conduct Authority (FCA) imposed restrictions on rebuildingsociety.com on Tuesday, banning the firm from approving crypto-asset financial promotions.

The FCA also ordered rebuildingsociety.com to withdraw any existing approvals of Financial Promotions containing a Qualifying Cryptoasset by October 11.

The FCA move to address the involvement of rebuildingsociety.com in crypto promotions followed shortly after Binance announced a partnership with rebuildingsociety.com. Rebuildingsociety.com intended to handle all UK marketing and communications material on behalf of Binance..

Crypto exchange Bybit suspended UK services in response to the new UK Financial Conduct Authority (UK FCA) crypto regulations.

Technical Analysis

Bitcoin Analysis

BTC sat below the 50-day EMA while holding above the 200-day EMA, sending bearish near-term but bullish longer-term price signals.

A BTC break below the 200-day EMA would support a move to the $26,755 support level. SEC case-related news and BTC-spot ETF updates will remain focal points. News updates on the Middle East conflict also need consideration. The crypto market may be susceptible to a sell-off if the conflict escalates.

A BTC move through the 50-day EMA would give the bulls a run at the $28,187 resistance level.

The 14-Daily RSI reading of 49.44 suggests a BTC break below the $26,755 support level before entering oversold territory.

Ethereum Analysis

ETH sat below the 50-day and 200-day EMAs, sending bearish price signals.

An ETH break below the $1,502 support level would give the bears a run at $1,400. However, a return to $1,600 would support a move to the $1,626 resistance level.

ETH investors will likely respond adversely to the news of more high-profile ETH sales.

The 14-Daily RSI reading of 37.69 suggests an ETH move to the $1,502 support level before entering oversold territory.