Lawyers of disgraced FTX founder Sam Bankman-Fried have once again sent a letter to Judge Lewis Kaplan, requesting their client be released from jail before his upcoming trial — only this time, they’ve come up with a plan they hope will satisfy authorities.

In the letter submitted on Monday, lawyers said that they are finding it “exceedingly difficult” to prepare for the complex case. “This is not a point we make lightly but it is the reality of the nature of this case,” the document reads.

“We appreciate the efforts the Government has made to provide our client access to the case materials and his counsel, but we respectfully submit that, in practice, they are not workable.”

Bankman-Fried’s lawyers are concerned by the overwhelming amount of information that the case requires the defense to process and prepare for. The letter explains that prosecutors have submitted:

• over 50 potential witnesses,
• more than 3,500 pages of material, and
• over 1,300 exhibits.

Lawyers have “no indication” of which witnesses prosecutors will actually call upon, meaning that in many cases, they won’t know who will take the stand until the day prior. This means the team must be able to meet with Bankman-Fried far more frequently than what’s possible from jail, at all hours of the day, just to keep up.

“We will not be able to do this unless he is temporarily released for trial,” the letter explains.

Read more: Sam Bankman-Fried still wants out over poor WiFi and laptop access

Bankman-Fried would live with a security guard under new proposal

In previous letters, Bankman-Fried’s attorneys outlined the realities of jail visiting hours. It detailed insufficient WiFi issues, as well as several instances when Bankman-Fried was barely able to prepare due to trivial jail proceedings out of his control.

The latest letter submitted on Monday, however, proposes a solution that lawyers believe would allow Bankman-Fried to be released for the duration of the trial in a way that will satisfy authorities.

Under this proposed plan, the FTX founder would:

• remain with attorneys at their office or temporary workspace, or with a security guard at a temporary residence in New York City for the duration of the trial,
• be able to leave the courthouse with his lawyers and travel with them to their office or a temporary workspace in order to prepare for trial, and
• have constant supervision from the security guard during the evenings, to ensure he doesn’t use computers, cell phones, or other electronic devices to access the internet or television.

Lawyers have also stated that Bankman-Fried will agree to a gag order to stop him from speaking to anyone about the case, outside of his legal team and family.

Judge Kaplan has yet to respond to this latest letter. However, time is running out — Bankman-Fried’s highly-anticipated trial will begin on October 3.

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Crypto influencer Ben Armstrong, formerly known as BitBoy, took to social media yesterday numerous times to collect donations via livestream — and has collected over $80,000 from his followers at press time.

Armstrong has been struggling since his YouTube channel and other social media accounts were taken from him by the Hit Network — a company that he helped to found — after he was accused of drug use and a family affair. Unable to use the BitBoy name, the crypto influencer has reinvented himself as Ben.

Claiming to be down on his luck, Armstrong listed three addresses for individuals to donate to: a Bitcoin address, a Cardano address, and an Ethereum address. So far one of the largest donations appears to be an almost 11,000 USDT donation from an anonymous source.

“The fact is I was under duress, I’ve been under duress.” Armstrong said in a livestream yesterday, “like, when people see what they did to me with this Lamborghini, trying to bleed me out, that’s what they’re trying to do.”

Armstrong’s Lamborghini Huracan Performante was confiscated by Hit Network because it was under the company’s name.

Money floods in as BitBoy sits in his mansion

Armstrong took to a YouTube livestream from the comfort of his Georgia mansion, from which viewers could see two large flatscreens, marbled countertops and walls, and expensive leather stools that lined his kitchen.

Meanwhile, he mostly spent the hour and a half livestream talking about supposed death threats, financial shenanigans, and “a citizen conspiracy.”

“I have the receipts for it,” Armstrong said, without showing anything, “they’re literally threatening to kill me.”

Read more: BitBoy’s token has cratered along with his career

Importantly, the influencer has outright stated that the donations he’s collecting as a “legal fund” will not be returned to individuals who donated.

“We’re gonna be able to keep the legal fund going, as well as, if money keeps coming into these addresses, we’re gonna use it to rebuild back everything.”

It’s worth noting that Armstrong attempted to file a restraining order against Hit Network — it was denied.

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A Thai man has been arrested near Bangkok for shooting his wife in the leg after a fight about losing their bitcoin investments, and subsequently barricading himself in his home for six hours as police surrounded the residence.

Referred to as Kritsada by local outlet The Thaiger, the Thai man tried to kill his 31-year-old wife Pistamai after the couple argued over the loss of 700,000 baht ($19,500) in bitcoin investments. Fearing further violence, police negotiated with Kritsada instead of entering the home. He eventually surrendered.

Officer Manas Atthadod from Uthai Police District said they had seized the .38 calibre gun Kritsada also used to shoot himself in the leg after shooting his wife.

Read more: FBI warns of fake jobs abroad that enslave victims for crypto scams

Thai man charged with attempted murder over bitcoin loss

It remains unclear which bitcoin investments Kritsada made. However, Thailand’s Ministry of Digital Economy and Society has said over 200,000 citizens had become victims of crypto scams. In late August, it warned Meta that it needs to curb fraudulent ads on Facebook or risk watching the platform get banned in the country.

The Thai man’s bitcoin loss occurred after Pistamai had reportedly asked to be separated from him, which caused him to regularly visit their home, The Thaiger reports. Though receiving medical treatment, she is said to be safe.

Her husband was charged with attempted murder and unlicensed possession of a firearm and ammunition.

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Kenya’s interior cabinet secretary Kithure Kindiki has claimed that US authorities blocked the country from detaining several top executives of controversial crypto project Worldcoin.

Worldcoin’s co-founder and CEO Alex Blania, as well as its chief legal counsel Thomas Scott, were among those arrested in Nairobi’s airport by Kenyan authorities, a spokesperson for Worldcoin’s parent firm confirmed to local outlet Nation.

Co-founded by ChatGPT founder Sam Altman, the crypto company has come under fire across the globe for privacy and ethical concerns. In Kenya alone, it’s estimated that at least 350,000 people had elected to have their irises scanned by the company in exchange for just Sh7,000 ($48) in its volatile cryptocurrency, WLD.

In swift response to Worldcoin’s global rollout, Kenya decided to block the project on August 2. It set up an independent committee to probe its impacts.

US tells Kenya it wants its Worldcoin bigwigs back

At the committee hearing, Kindiki said that the US blocked authorities from going through with the detainments because Blania, Scott, and the other Worldcoin executives haven’t been “found guilty” of crime.

“They tried to leave the country but were stopped and put in custody. However, the US government intervened, saying they should be allowed to leave because they haven’t yet been found guilty of committing a crime and gave an undertaking that it will produce them when required,” Kindiki said.

The ad hoc committee probing Worldcoin has until September 28 to submit its findings. Last week, co-founder Altman was spotted attending a closed-door meeting with President William Ruto, the US Ambassador in Kenya Meg Whitman, and others.

Read more: Alleged Worldcoin whistleblower steps forward, says they’re aiding authorities

According to Kindiki, the government has recovered the ‘Orbs’ used by Worldcoin to controversially collect the biometric data of its citizens. “Pertinent documents” have also been recovered, along with “26 statements recorded from witnesses and persons of interest,” the interior cabinet secretary said.

This includes a statement from Blania, who had already appeared before the committee prior to his arrest. During his testimony, Blania said that Worldcoin had already invested Sh700 million ($4.8 million) in Kenya — apparently in the form of blockchain and crypto education and ICT awareness.

Our commitment to the people of Kenya is genuine,” Blania told the committee, “and we have at all times endeavoured to operate honestly, compliantly and above all transparently.”

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Chinese fintech giant Ant Group is reportedly pulling out of the crypto market by selling its $100 million stake in A&T Capital, amid market turbulence and increasing focus on AI.

A&T Capital was founded in April 2021 and has invested in various crypto firms including Matrixport and ConsenSys. The firm hit a significant snag several months ago when its founding partner Yu Jun resigned amid an investigation into his workplace conduct.

With the departure of its major investor, Ant Group, it’s unclear whether A&T Capital will shut down or look for new funding.

The move comes amid waning venture capital in crypto. VC funding hit a record low for crypto in June when it dropped by 23% from May, to just $520 million raised in 84 funding rounds, Bloomberg reports.

Read more: Opinion: Silicon Valley Bank and the hypocrisy of venture capitalists

Meanwhile, Ant Group has decidedly shifted its attention to AI. It entered China’s AI market two weeks ago by unveiling a finance-focused AI model.

Jack Ma-backed Ant Group, which owns Alibaba, is one of the biggest financial service firms in the entire world. Its most recent quarterly profits rose 17.4%, signalling a relief after two years of Chinese regulatory crackdowns that placed financial pressure on the fintech behemoth.

In July, Ant Group was slapped with a 7.12 billion yuan fine ($985 million) in China for violating several regulations surrounding consumer protection, anti-money laundering, and corporate governance.

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The Monetary Authority of Singapore (MAS) has said it has banned the founders of collapsed crypto hedge fund Three Arrows Capital (3AC), Su Zhu and Kyle Davies, from market activity in the country for nine years.

Effective immediately, both founders will be barred from director positions or becoming substantial shareholders of capital markets companies in the city.

“MAS takes a serious view of Mr. Zhu’s and Mr. Davies’ flagrant disregard of MAS’ regulatory requirements,” Loo Siew Yee, assistant managing director for policy, payments and financial crime at the central bank said in a statement. “MAS will take action to weed out senior managers who commit such misconduct.”

3AC went bankrupt in June last year, when it was decimated by the dramatic collapse of the Terra/Luna ecosystem and subsequent market crash. According to MAS, the crypto hedge fund “provided false information” by going over the limit of S$250 million ($184 million) that a registered fund management firm is allowed to oversee.

Read more: 3AC Ventures: Like 3AC but without the leverage

Zhu and Davies have been accused by the regulator of failing to comply with requirements to monitor and address risks associated with the crypto assets under its control.

Since 3AC’s collapse, the duo have launched controversial crypto exchange OPNX in the Seychelles, which was fined $2.7 million by Dubai’s crypto regulator last month. Zhu and Davies, along with co-founders Mark Lamb and Leslie Lamb were also fined.

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Rapper Soulja Boy, real name DeAndre Cortez Way, and singer Austin Mahone have lost against the Securities and Exchange Commission (SEC) in a lawsuit filed in March against the pair, crypto entrepreneur Justin Sun, and Sun’s company BitTorrent.

The suit is wide-ranging, making claims from market manipulation to not disclosing paid advertising. Soulja Boy and Mahone sat on the less troubling of these charges, being accused of promoting Sun’s cryptocurrency TRON without disclosing that they were paid posts.

However, the main defendants in the case who are facing the most serious charges are Sun and BitTorrent. They will respond next week if they choose to fight the SEC. It’s expected that a filing will be made by September 20.

In a final judgment against Mahone, the singer was ordered to not accept securities-related compensation for three years, to pay back the $7,507 he was paid (plus $682 in interest), and to cough up a $37,535 fine to the SEC.

In total, the singer has just under a year to pay the SEC $45,724 for an undisclosed advertisement for Tron.

Soulja Boy off in this h*e, watch me crank it, watch me avoid (the SEC)

Meanwhile, Soulja Boy has refused to respond to the SEC’s charges, which has likely led to him receiving a default judgement. It remains unclear how much the rapper must pay to the SEC, let alone if they’ve been able to contact him since his attorneys were informed of the upcoming default judgement.

Read more: SEC sues Justin Sun over TRX, BTT, market manipulation

The rapper, famous for his song Crank That (Soulja Boy) released back in 2007, continues to be quite active on Twitter. He most recently performed a show in Atlanta, Georgia.

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Brian Shroder, the chief exec of Binance US, has stepped down and been temporarily replaced by chief legal officer Norman Reed, as the firm cuts one-third of its employees amid mounting regulatory scrutiny.

Shroder’s departure comes hot on the heels of other Binance top executives leaving, including head of Eastern Europe and Russia, Gleb Kostarev, and global head of product, Mayur Kamat. The global crypto exchange is embroiled in numerous regulatory crackdowns and investigations by the US Commodity Futures Trading Commission (CFTC), Justice Department, and Securities and Exchange Commission (SEC), into money laundering, mishandling customer funds, ignoring sanctions, and more.

Binance US has also decided to cut another round of employees, this time more than 100 people. A spokesperson said in a statement that the move was a direct result of regulatory pressure in the US.

“The actions we are taking today provide Binance.US with more than seven years of financial runway and enable us to continue to serve our customers while we operate as a crypto-only exchange,” they said.

Read more: Another Binance executive jumps ship amid regulatory woes

“The SEC’s aggressive attempts to cripple our industry and the resulting impacts on our business have real world consequences for American jobs and innovation, and this is an unfortunate example of that.”

Shroder was the Binance US chief for two years, replacing former CEO Brian Brooks, who left the firm after just four months.

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Lawyers of disgraced FTX founder Sam Bankman-Fried say that a lack of sufficient WiFi and jail delays are hindering his ability to prepare for his upcoming court trial and he should therefore be granted pre-trial release.

The court filing from September 8 is the second pre-trial release request Bankman-Fried has sought in the past week. Lawyers argued that although the curly-haired former billionaire was promised access to a laptop and a hard drive from 8am to 7pm on weekdays, that hasn’t been the reality. Jail proceedings like inmate head counts have shed hours of prep time already, they said.

According to the filing, Bankman-Fried was held up from visiting rooms for two hours due to another inmate. Once he arrived, he wasn’t allowed to use his laptop without lawyers present, despite assurances that he would be. Additionally, once he did get access to the laptop, the internet was so slow that it took “10 minutes for the home page to load.” After an entire five-hour session, Bankman-Fried was only able to “load one document from the database to review” due to the WiFi and internal delays. Lawyers argued that not only was he brought in late, but he was “forced to return to his unit too early.”

Read more: Joseph Bankman warned Scaramucci about FTX

“Despite the Government’s efforts, there does not appear to be a way to solve the internet access problem in the cellblock,” the filing reads. “That means that Mr. Bankman-Fried has no way to review and search documents in the discovery database or the AWS database before the trial. The defendant cannot prepare for trial with these kinds of limitations.”

A previous appeal for pre-trial release failed, given that Bankman-Fried has been found by judges to have violated bail conditions on several occasions — which landed him in jail in the first place.

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In a video posted from his new X profile, Ben Armstrong announced that his persona, BitBoy, was dead and a new identity was born: Ben.

Armstrong had his YouTube channel, known as BitBoy Crypto, and his social media accounts taken from him by the Hit Network a couple weeks ago. Since then, the crypto influencer has admitted to “diet pill and steroid abuse” and vowed to a road to recovery and redemption.

Meanwhile, on YouTube Armstrong posted a video claiming he’d “lost everything” while wandering through a cavernous kitchen, lined with marble slabs and four different wall-mounted televisions. The shitcoin connoisseur also announces that “[Hit Network] took my Lamborghini from me because it was in the company name… they sold the Lamborghini out from under me.”

“We’re gonna get it all back,” he adds.

“Extremely humbled”

When a listener in his latest Space told Armstrong not to get rid of his Gucci tracksuits, his response was telling: “We’ll see what happens with the designer clothes, I may have to sell them all. That’s the place I’m in right now.” Why Armstrong would have to sell all his designer clothes and accessories is unclear, as no lawsuits or regulatory action have been taken against him yet.

Armstrong’s Ben coin, which is still down 87% from all-time highs, has popped 91% off its lows, and Armstrong has promised that “Going forward I have no enemies… I’m in no position to be telling people what to do.”

Read more: BitBoy’s token has cratered along with his career

Complaining about his bank from his luxury SUV, Armstrong stated that he is “feeling a lot better about the situation he is in,” because “man, these banks are screwed.”

“Blockchain is the only way we can save ourselves,” Armstrong said, but how blockchain will save Armstrong’s career is uncertain.

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The founder of collapsed Turkish crypto exchange Thodex, Farouk Fatih Özer, has been sentenced to 11,196 years, 10 months, and 15 days in prison along with his sister Serap Özer and brother Güven Özer, and fined for 135 million liras ($5 million).

The Anatolian 9th Heavy Penal Court announced the verdict on Thursday. Özer was accused of running off to Albania with $2 billion in customer funds when Thodex, one of the largest crypto exchanges in Turkey at the time, suddenly went dark in April 2021.

The Thodex founder was extradited back to Turkey in April 2023. Serap and Güven Özer were also detained, along with at least 83 others. However, the court acquitted 16 of the 21 defendants and released four of seven in jail due to lack of evidence. Several others were given prison sentences for various offences.

Read more: Thodex chief denies fraud, says crypto exchange was hacked

According to the prosecutor’s 22-page opinion, Thodex was established with the intent to deceive and defraud users who wanted to invest in crypto. Farouk Fatih Özer has always denied these allegations.

Özer was found guilty of aggravated fraud, leading a criminal organisation, and money laundering.

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Beijing-based social media app Weibo has removed 80 popular crypto influencers in compliance with China’s strict crypto crackdowns.

The influencers each had over eight million followers, according to the South China Morning Post (SCMP). In a statement on Tuesday, Weibo said they had breached eight regulations in the sphere of marketing, internet safety, telecommunications, trade, and finance.

The social media giant has removed these accounts as part of a larger cleansing of misinformation from its platform. Weibo said that it will continuously regulate the site in accordance to China’s laws and initiate crypto probes into “illegal virtual currency trading information.”

Crypto influencers in China have been facing restrictions and bans since 2019, SCMP reports.

China’s crackdown on crypto continues to see strict enforcement at play, though its effectiveness remains in question. In July, police arrested 21 individuals accused of running an illegal Tether money laundering ring.

Read more: Like it or not, crypto depends on China

Additionally, the government is actively seeking to implement global monitoring in the metaverse — a move criticized by experts.

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Crypto exchange Binance has lost its top execs in Russia as regulatory scrutiny and sanctions trouble mounts, adding to a rapidly growing list of the firm’s leaders that have recently resigned.

Binance announced it was considering leaving the Russian market at the end of August — right after a Wall Street Journal article claimed that Binance had committed sanctions violations with Russian banks. Just weeks later, its head of Eastern Europe and Russia, Gleb Kostarev, announced he was leaving the crypto exchange.

“It’s been an incredibly interesting five-year journey, and I’m glad if I’ve been able to contribute to crypto adoption and freedom of money,” Kostarev wrote on Wednesday through a Facebook post. The Binance exec thanked CEO Changpeng Zhao (CZ) and its other co-founder He Yi.

Soon after, Binance’s general manager for Russia and CIS posted his resignation through Facebook as well. “OK it’s all over now,” Vladimir Smerkis wrote (translated from Russian).

Smerkis thanked “the entire top management” and Kostarev. “I do not regret a single day in the company,” he said, and used the opportunity to encourage everyone to make time for holidays. “I will spam you with pictures of the sea, pizza and sunsets.”

Binance execs abandon ship

Kostarev and Smerkis’ words of gratitude, which included no reason for stepping down, mirror the resignation announcement of Binance’s global head of product, Mayur Kamat. On Monday, the exec thanked CZ for “an experience of a lifetime” and said they would be leaving after just over 16 months to “take some time off after 20 years of non-stop product work.”

Five other executives have also stepped down in recent months:

• Asia-Pacific head Leon Foong (resigned August 31)
• Compliance executive Steven Christie (resigned July 7)
• Chief strategy officer Patrick Hillmann (resigned July 6)
• General counsel Hon Ng (resigned July 6)
• US-based chief business officer Yibo Ling (resigned July 6)

Read more: Does Binance chief CZ need the price of BNB to stay above $200?

According to an anonymous source speaking to Forbes, Hillmann, Ng, and Ling decided to leave over CZ’s handling of the US Department of Justice’s ongoing investigation into money laundering and sanctions violations.

Binance is also under investigation across the EU, in the US, and Australia. At the end of July, it laid off over 1,000 employees and cut employee benefits, citing a decline in profits.

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Four individuals posing as currency dealers have been arrested and charged in Taiwan for defrauding at least 10 victims out of over NT$50 million ($1.6 million), by tricking them into buying tether (USDT).

As reported by CNA and Taiwan News, after months of investigation prosecutors obtained court approval to detain four individuals with the surnames Li, Hong, Lai, and Zhang. Following police searches on August 29 and September 1, the four fraudsters were arrested in Keelung, a coastal city just 30 minutes northeast of Taipei.

After questioning, all four allegedly admitted to fraud, money laundering, and organized crime.

The group apparently used popular messaging app LINE to message victims, encouraging them to invest in stocks. Once trust was established, they switched to promoting USDT.

Victims were reportedly shown how to set up a crypto wallet and were guided towards fake sites and apps that were secretly controlled by the fraudsters. Victims’ funds were then withdrawn and transferred to an unnamed benefactor to cover tracks and avoid investigation.

Read more: Chinese police arrest 21 in $55M Tether money laundering case

Prosecutors are currently investigating whether more victims were targeted. As it stands, the biggest victim identified lost NT$4 million ($144,000).

Crackdowns on Tether fraud are occurring in China as well. In July, authorities arrested 21 individuals involved in a major Tether over-the-counter trading ring that processed 380 million yuan ($55 million) in USDT.

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Crypto assets stolen by North Korea’s elite hacking groups and used to fund illicit weapons programs may soon be tracked and frozen by the South Korean government as it gears up to submit a new bill.

According to several South Korean government sources who spoke to Korea JoongAng Daily, officials have been working on legislation for 10 months that aims to “track and neutralize virtual coins and other cryptocurrency assets stolen by the North through hacking,” according to one insider. It has already gone through a round of revisions to include “practical measures to bolster national security” at the order of president Yoon Suk Yeol, several said.

One higher-up who asked to remain anonymous told the outlet that the bill will reflect the president’s concerns that “the country’s cybersecurity framework urgently needs repair” after it was “allowed…to fall into ruin in order to avoid offending North Korea” under its last administration.

According to the South Korean National Intelligence Service, North Korea makes about 650,000 hacking attempts every day in South Korea alone. In April, a group of lawmakers condemned North Korean leader Kim Jong Un’s organised cybercrimes.

“You are turning your country into a giant crime ring, thieving and threatening the safety of other countries,” they said in an open letter read outside the North Korean embassy in the UK.

Alongside a plan to monitor and seize North Korean crypto, South Korea’s new bill will also include the creation of a national cybersecurity committee directly under the president’s control. It will be able to “ban the manufacture, import and sale of the products that interfere with cybersecurity,” according to one anonymous official.

North Korea has made a pretty crypto penny by hacking organizations and individuals over the years. According to Chainalysis, the country has racked up over $3 billion in digital heists. Its missile program has been funded roughly 50% by these cyberattacks, the US deputy national security adviser Anne Neuberger stated last year.

The methods used by government-backed hacking groups are growing more sophisticated. In July, government-backed group Labyrinth Chollima was found responsible for a cyberattack on US-based tech company JumpCloud in an attempt to gain access to its clientele of crypto firms. This method, known as “supply chain attacks” wherein service providers are infiltrated in order to access its wealthy customers, has become a well-honed specialty for North Korean hacking groups.

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Mango markets manipulator Avraham Eisenberg has been accused of possessing child pornography, according to court documents filed on Friday.

On page 37 of the US government’s memorandum of law in opposition of Eisenberg’s motion to dismiss, officials detailed how the FBI stumbled upon child pornography while extracting data from Eisenberg’s cellphone after obtaining a search warrant on January 19. This allowed the government to request a second search warrant, “expanding the scope…to search for evidence of offense related to the possession and receipt of child pornography,” the document said.

Eisenberg was arrested in Puerto Rico in December and charged with commodities fraud and manipulation. He admitted to the $100 million theft on Mango Markets — which he previously defended as a “legal” and “highly profitable trading strategy.”

His trial is set to begin in December. However, these newly discovered allegations of child pornography made in court documents have possibly added time to Eisenberg’s potential prison sentence.

Read more: Who is Avraham Eisenberg and why is he all over Crypto Twitter?

Under US law, possessing child pornography is often treated with the same gravity as knowingly receiving it with the intent to possess. Possession carries up to 10 years in prison, with no minimum sentence. However, the judge will likely take context into consideration. Details of the child pornography found in Eisenberg’s possession remain unknown; factors like amount found and the severity of the content itself make a difference in sentencing.

Eisenberg has so far not been charged with child pornography. However, according to investigative journalist Karlstack, who played a pivotal role in the case and first reported the child pornography accusations, that will change “any minute now.”

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An alleged whistleblower of crypto project Worldcoin has announced that they have severed ties with the organization and is currently aiding authorities “in multiple jurisdictions” to conduct “justified probes.”

Worldcoin is led by CEO Sam Altman, who is also the founder of ChatGPT. In a YouTube video self-published on Wednesday, alleged former employee Nadir Hajarabi said they had “many reservations” about the project from the get go. Several red flags were evident “from day one” but multiple attempts to address them were apparently dismissed.

“I wrote to the legal team [and] the CEO, and the answers weren’t satisfactory,” the alleged Worldcoin whistleblower said in the six-minute video. “They only contributed in cementing the conclusion that I came to: this is a great mission and vision but a horrendous execution that deserves whatever will come next.”

Hajarabi is referring to Worldcoin’s idea of “providing universal basic income to everyone around the world simply because they’re a human being.” That core mission drove Hajarabi to stay at the firm — but the Worldcoin token, WRLD, and the subsequent release of its white paper were deeply flawed, they said.

Read more: Kenyan committee given 42 days to investigate Worldcoin activity

The supposed Worldcoin whistleblower has obtained lawyers, who have advised Hajarabi not to elaborate further. The goal of the video, Hajarabi stated, was to make sure the world knew Worldcoin was no longer associated with their name.

“To anyone who is curious about Worldcoin,” Hajarabi said at the end of the video, “I urge you to thoroughly read what you are getting yourself into.”

Alleged whistleblower says they’re aiding authorities eye Worldcoin

Worldcoin aims to scan the irises of the global population in order to confirm online that they are human instead of an AI. Over 2.2 million people have given their biometric data to Worldcoin in exchange for its native cryptocurrency, the project claims.

Sam Altman’s dystopian crypto project launched in July worldwide — though notably not in the US, where it would likely be seen as a security in the eyes of the Securities and Exchange Commission. In response to its rollout, authorities across the globe were quick to investigate the project’s integrity and impact on citizens. Various concerns have been raised, chiefly data misuse and accusations that it exploited those in developing countries by paying just 25 WRLD for their biometric data — around $35.

Worldcoin has been suspended in Kenya, one of its major markets, and a dedicatted committee has just 39 days left to probe the project. Worldcoin’s warehouse in Nairobi was raided as part of the ongoing investigation. Watchdogs in Germany, France, and the UK have launched their own investigations.

Hajarabi said in the video that multiple authorities in several jurisdictions are now benefitting from their alleged information. Protos has been unable to independently verify that Hajarabi worked at Worlcoin. We’ve reached out to Hajarabi and to the firm and will update this piece when we hear back.

Quotes in bold are our emphasis. Got a tip? Send us an email or ProtonMail. For more informed news, follow us on Twitter, Instagram, Bluesky, and Google News, or subscribe to our YouTube channel.

Customer service for troubled crypto exchange Binance told a user that it has suspended EUR withdrawals and deposits through SEPA days after its payment processor Checkout.com terminated the relationship — but has since deleted the post.

“We regret to inform you that we have temporarily suspended EUR withdrawals and deposits via SEPA,” Binance customer support replied on X (formerly Twitter).

“Unfortunately, our provider can no longer support these transactions.”

Binance customer support was unable to specify when SEPA transfers would be reinstated and instead directed the EU user to alternative methods.

“At the moment, we don’t have a specific time frame for the restoration of SEPA transfers,” the X post read.

Read more: Binance loses yet another payment processor, Checkout.com

The temporarily available message was posted just days after payment processor Checkout.com terminated its relationship with Binance on the grounds of regulatory action. Binance faces scrutiny in the US, Australia, and Europe.

The uncertainty surrounding Binance SEPA payments in the EU have spread on X. One user wrote, “Binance is cut off from depositing via SEPA and is not able to handle your redraw request in euro.”

However, Protos has not verified whether euro deposits or withdrawals are currently possible and has reached out to Binance for clarification.

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China’s state-owned telecoms operator China Mobile is proposing global metaverse guidelines to the United Nations that bear eery similarities to the country’s controversial social credit system, Politico reported on Sunday.

A “digital identity system” for all metaverse users could be based on a mix of “natural characteristics” and “social characteristics.” Data points like occupation can be “permanently” stored and shared with police to “keep the order and safety of the virtual world,” China Mobile proposals state.

The guidelines are part of discussions between officials at the UN’s telecoms agency, the International Telecommunication Union (ITU), and tech experts. Experts who reviewed China Mobile’s proposals said metaverse users would be at risk of privacy and freedom violations if they were adopted.

“To build a unified digital identity system, to give each human a unique digital ID that includes social characteristics from social media and occupation — that sounds a lot like China’s social credit system,” Chris Kremidas-Courtney, a senior fellow at Brussels think tank Friends of Europe, told Politico.

Western officials have warned that China is seeking to push its controversial standards on the future of digital worlds, with both Chinese public and private actors pushing for these guidelines far more consistently than those from the US and Europe, according to a group member who spoke to Politico.

Read more: China is Binance’s biggest market despite crypto ban: WSJ

“Imagine a metaverse where your identity protocols are set and monitored by Chinese authorities. Every government must ask themselves: ‘Is that the kind of immersive world we want to live in?’” the group member said.

Under China’s social credit system, residents are ranked and scored based on their behaviour, occupation, social media activity, and a host of other characteristics. This data collection is often used by authorities to control citizens, such as barring international travel.

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The founder of collapsed crypto exchange FTX, Sam Bankman-Fried, has been dealt another blow in court after prosecutors revealed they had obtained a recording and several notes wherein Caroline Ellison blames him for misusing customer funds.

During a company-wide meeting right before the exchange went bankrupt, Ellison told employees of FTX sister firm Alameda Research that “Alameda will likely wind down once we can, like, repay all of our creditors and sort of wind down a bunch of our, like, whatever remaining obligations we have.”

“I guess, mostly I wanna say, like, I’m sorry. This really sucks.”

“Definitely feel free to take a break,” she told the team, explaining that anyone was free to leave. “I guess for people who do stick around, I think it’s, like, possible that there might be some kind of future thing.“

According to federal prosecutors, one employee asked Ellison who was responsible for using FTX customer deposits. “Um… Sam, I guess,” she replied.

Read more: SBF leaked diaries to harass Caroline Ellison and derail trial, lawsuit claims

Handwritten and typed notes will also be entered into court that prosecutors say detail the alleged criminal activity that execs at FTX and Alameda carried out. Ellison took notes “to memorialise information supplied to [her]…and to provide a reference to help…carry out [her] role in the conspiracy,” they said.

Among these notes is a memo titled Things Sam Is Freaking Out About which documents negative news about Alameda and FTX — and describes the supposed scheme between FTX and Alameda.

Prosecutors say the recording and notes show Ellison was acting on SBF’s behalf.

Ellison and Bankman-Fried’s legal woes at a glance

Ellison pleaded guilty to wire fraud and money laundering in December. Apart from working alongside Bankman-Fried, the pair dated on and off. She has agreed to become a key witness for prosecutors.

In October, once Bankman-Fried’s trial has begun, Ellison will be called to the stand and describe “when FTX began to unravel and customer withdrawals surged, and how the defendant tried to maintain his charade,” court documents said.

The emergence of this recording comes shortly after Bankman-Fried was accused of leaking Ellison’s personal diary entries to discredit her testimony. On Monday, the FTX founder had his bail revoked for trying to tamper with witnesses.

Bankman-Fried must now trade his parents’ California mansion for the Metropolitan Detention Center in Manhattan. Inmates complain of poor conditions at the jail, like moldy food and raw sewage.

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Crypto custodian Prime Trust and several of its affiliates have filed for chapter 11 bankruptcy after months of trouble.

In a statement, the Nevada-based custodian that once served Binance US said that it intends to file several motions in order to evaluate “all strategic alternatives, including potentially a sale of … assets and operations.”

In June, shortly after Binance US was sued by the Securities and Exchange Commission (SEC), Prime Trust customers reported slow withdrawals. The regulator had requested a temporary retraining order to freeze over $2 billion dollars of Binance US assets. In response to growing concerns, Prime Trust’s customers like Swan Bitcoin migrated customer assets away from the custodian, essentially causing a bank run situation.

Prime Trust was forced to halt withdrawals and deposits after receiving cease and desists from the US states it operated in, including its home state Nevada. By June 28, the custodian was accused of using customer funds and venture capital to cover lost deposits by Nevada’s Financial Institutions Division (FID). Attorneys filed a petition to impound Prime Trust assets, ban all employees from accessing accounts, and appoint a receiver for rehabilitation.

Read more: Prime Trust accused of using customer funds to cover lost deposits

The firm’s chapter 11 filing said that the move comes following the appointment of a receiver, Nevada Bank’s chief exec John Guedry, as well as a special restructuring committee comprised of three people: Guedry, John Wilcox, and Michael Wyse.

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Troubled crypto exchange Binance filed for a protective court order against the Securities and Exchange Commission (SEC) late on Monday, claiming that the regulator was on a “fishing expedition.”

The operating company of Binance US, BAM Trading, filed the document in the US District Court of Columbia. According to the filing, the SEC has requested a slew of information and documents from Binance, which the firm believes is “inappropriate, unduly burdensome, and well beyond the scope of the Federal Rules and Court Order.” Binance argued that it had already submitted enough information.

This protective order aims to limit the SEC in who it can depose. Particularly, Binance has opposed the depositions of BAM’s CEO and CFO, claiming that the pair don’t have “unique firsthand knowledge that is relevant.”

Binance was first sued by the SEC in June. The regulator claims that the firm and its chief exec Changpeng Zhao (CZ) inflated trading volumes, failed to restrict US customers, misled investors, and diverted customer funds. According to the protective order, the SEC has pushed back against Binance’s requests to limit the required information.

Read more: China is Binance’s biggest market despite crypto ban: WSJ

The crypto exchange is likely to have regulators fish in its waters more often. EU regulators are collaborating with the SEC in its investigation, Protos learned in June. Officials suspect that Binance has faked accounts in Ireland and Malta.

Binance faces investigation in France and Australia and has been forced to shut down operations in the Netherlands and Germany.

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