Joseph Bankman and Barbara Fried, the parents of cryptocurrency figure Sam Bankman-Fried, are making headlines as they seek to dismiss a lawsuit filed by the bankrupt crypto exchange FTX. The lawsuit aims to recover funds allegedly transferred under fraudulent circumstances.

In September 2023, FTX filed a lawsuit to recover millions of dollars from Bankman and Fried. This lawsuit came shortly before their son, Bankman-Fried, was convicted on all seven counts of defrauding customers and the U.S. government. His sentencing is currently slated for March.

As professors at Stanford Law School, Bankman and Fried have argued that there was no fiduciary relationship between Bankman and FTX, emphasizing that Bankman did not hold any significant managerial role within FTX. A January 15 court filing further contends that FTX failed to demonstrate ‘actual knowledge’ of any actions by the parents that would constitute a breach of fiduciary duty.

The lawsuit, while not specifying the total alleged misappropriation, does highlight specific transactions. These include Bankman’s $200,000 annual salary as an advisor to the FTX foundation, over $18 million for property in the Bahamas, and $5.5 million in donations to Stanford University, which the university plans to return.

This ongoing legal battle continues to unravel in the high-stakes world of cryptocurrency, capturing the attention of the global finance community.

Horizen, known for its layer 0 blockchain technology, is making a strategic shift away from being labeled as a privacy coin, a move influenced by intensifying global regulatory scrutiny. This decision marks a significant pivot in response to the evolving regulatory landscape in the cryptocurrency world.

The change in Horizen’s direction follows the tightening grip of regulators on privacy coins. Notably, the crypto exchange Huobi took a major step by delisting several privacy coins in September, aligning with regulations across various jurisdictions. Additionally, the European Banking Authority’s draft guidance in March threw a spotlight on the anti-money laundering risks tied to these tokens.

In a tweet, Horizen clarified, “Zen will no longer be considered a privacy coin after the deprecation of the mainchain shielded pools.” This move is also a part of their effort to ensure ZEN remains accessible to its global user base through various exchange partnerships.

Currently, the token is seeing some market movement, trading at $7.09. It’s navigating through liquidity challenges on major platforms like Binance and Coinbase, as per CoinMarketCap data.

Backing Horizen is the crypto hedge fund Grayscale’s Horizen Trust, boasting a value of approximately $4.3 million, according to CoinGlass. Grayscale’s connection to CoinDesk as a sister company under Digital Currency Group adds another layer to Horizen’s evolving narrative in the blockchain space.

Excitement is brewing in the finance world with the upswing of tokenized investment funds. These innovative funds represent investment units digitally using distributed ledger technology (DLT), the same tech behind cryptocurrencies. This trend is reshaping how financial institutions globally enhance market liquidity, efficiency, and transparency.

Leading the charge are tokenized funds focused on government securities like bonds, showcasing a realm of untapped market potential. But there’s more to tokenized funds than just liquidity enhancement. They’re versatile, offering functions like serving as collateral, as pointed out in a recent Moody’s Investor Services report.

However, integrating tokenization into investment funds demands extra technological prowess. With such groundbreaking tech, risks associated with DLT, such as potential disruptions in payments due to technological failures or bankruptcy, come into play.

Despite these challenges, the adoption of tokenized funds is not slowing down. Major financial players like Franklin Templeton, Goldman Sachs, and Hong Kong’s Monetary Authority are making strides in tokenized asset issuance, signaling strong faith in this cutting-edge financial tool.

Hello crypto enthusiasts! Have you heard about Ren’s astonishing journey in the cryptocurrency market this year? While most altcoins faced devaluation against the surging Bitcoin, Ren stood out with an impressive bull run. The price of Bitcoin skyrocketed from $3,693.85 to a year high of $13,880, affecting most altcoins. But Ren has been the exception, defying the odds with substantial growth.

Ren’s growth is nothing short of phenomenal. Starting the year at 549 satoshis, Ren has surged to 1,342 satoshis. That’s a whopping 144.44% gain in just seven months, outperforming many in the market.

The secret to Ren’s success lies in its long accumulation period. The coin was in range accumulation between December last year and July this year, oscillating between 400 and 890 satoshis. This solid foundation set the stage for a dramatic breakout on July 20, pushing Ren to new heights.

However, it’s not all rosy. Bearish signs are emerging, with Ren showing signs of bullish exhaustion. Despite bearish divergences and overbought conditions, Ren still maintains a technical uptrend, making it a strong candidate for buy-on-dip strategies.

Ren’s current midpoint range of 1,115 satoshis is a critical level to watch. If this level holds, we might see Ren challenging the 1,340 satoshis resistance soon.

IRS Sends Tax Compliance Notices to Cryptocurrency Holders

Attention, cryptocurrency enthusiasts! If you’re holding digital currencies like Bitcoin, Ethereum, or XRP, it’s time to peek into your mailbox. The Internal Revenue Service (IRS) is currently issuing notices to U.S. citizens who may have missed paying taxes on their cryptocurrency holdings or incorrectly reported them in their tax filings last year.

IRS Commissioner Chuck Rettig emphasizes the importance of these notices. He advises taxpayers to thoroughly review their past tax filings, amend any discrepancies, and settle any due taxes, interest, and penalties. This move is part of the IRS’s expanding focus on virtual currency, employing advanced data analytics to track compliance.

The IRS began sending these letters in late July, targeting about 10,000 taxpayers by the end of August. This initiative follows various IRS compliance efforts, including a notable case where Coinbase, a popular cryptocurrency trading platform, informed 13,000 customers of its compliance with a court order to share information on accounts valued at $20,000 or more from 2013 to 2015.

As per the IRS guidelines established in 2014, all virtual currencies are treated as property under U.S. tax law. This classification means that the sale or exchange of these digital tokens for other goods or services is a taxable event. Cryptocurrency traders must report any capital gains or losses from their transactions, much like stock market investors.

Short-term capital gains from cryptocurrency trades can be taxed up to 39% based on income brackets. However, if you hold onto your digital currency for more than a year before selling, you’re liable for a long-term capital gains tax, which ranges between 15% to 23.8%.

Lawmakers, like Rep. Warren Davidson from Ohio, are advocating for blockchain legislation, including modifications to the tax code concerning cryptocurrencies. This issue has gained further attention with the rise of new digital currencies like Facebook’s proposed Libra.

Don’t overlook these IRS notices! Ensuring tax compliance on your cryptocurrency investments is crucial for avoiding potential legal issues and keeping your digital currency dealings above board.