FTX execs who pleaded guilty are potential witnesses in Sam Bankman-Fried’s criminal case

According to reports from the courthouse, Assistant U.S. Attorney Danielle Sassoon named Caroline Ellison, Gary Wang and Nishad Singh among those who may offer testimony.

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FTX execs who pleaded guilty are
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Many former executives of the FTX cryptocurrency exchange or its sister companies are on the list to testify in the United States Justice Department’s criminal case against Sam “SBF” Bankman-Fried.

During jury selection for SBF’s trial on Oct. 3, Assistant U.S. Attorney Danielle Sassoon said former Alameda Research CEO Caroline Ellison, FTX co-founder Gary Wang, former FTX engineering director Nishad Singh and former FTX chief operating officer Constance Wang were among the names of witnesses who may testify against Bankman-Fried. Ellison, Gary Wang and Singh have already pleaded guilty to charges related to their roles in the collapse of FTX, while Ryan Salame, former co-CEO of FTX Digital Markets and the fifth person directly connected to the criminal case, will not testify.

Other names floated by Sassoon included SkyBridge Capital co-founder Anthony Scaramucci, who has previously criticized SBF’s alleged role in the crypto market downturn of 2022. Judge Lewis Kaplan started proceedings in the SBF criminal trial by asking prospective jurors questions related to the case.

According to multiple reports from the courthouse, Bankman-Fried appeared for the first time without his signature messy hair, which appeared to have been cut for the first week of the trial. Kaplan confirmed that prosecutors had not offered the former FTX CEO a plea deal in the case and questioned prospective jurors on scheduling, hardships and conflicts of interest. He also issued a warning about avoiding the consumption of media related to the trial.

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“This case has generated publicity,” said Kaplan, according to reports. “You’re to stay away from it — podcasts, anything. Did any of you watch 60 Minutes on Sunday?” [This likely refers to Michael Lewis’ interview on Bankman-Fried.]

Related: What has Sam Bankman-Fried been up to in jail?

At the time of publication, Kaplan had dismissed four out of 12 prospective jurors in the court and said selection would continue the morning of Oct. 4. The trial is expected to last through November, though the judge reportedly said that his cases “rarely take as long as the lawyers think.”

Opening arguments in the criminal trial are expected to begin on Oct. 4, during which the defense and prosecutors will each take roughly 25–40 minutes to address the jury. Bankman-Fried faces seven criminal counts in his first trial, with another five charges to be addressed in a second trial starting in March 2024.

Magazine: Can you trust crypto exchanges after the collapse of FTX?

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Crypto suffered 153% YoY increase in hacks and scams in Q3: Immunefi

The number of attack incidents increased to 76 in Q3 2023, compared to just 30 in the same quarter last year.

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Crypto suffered 153% YoY increase in
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Crypto and Web3 projects suffered a 153% increase in attack incidents from July to September 2023 compared to the same period in 2022, according to a report from blockchain security platform Immunefi. In Q3 2022, there were a total of 30 attack incidents. But in Q3 2023, this number swelled to 76. Nearly $686 million was lost in the recent quarter. 

Immunefi Q3 2023 report. Source: Immunefi

The highest loss came from the Mixin hack on Sept. 25, which drained approximately $200 million. The Multichain hack was the second-worst attack of the quarter, resulting in over $126 million in losses that have still not been recovered. In addition to these incidents, the Lazarus Group drained over $208 million worth of crypto through multiple attacks, including hacks of centralized services CoinEx, Alphapo, Stake and Coinspaid. The Lazarus Group was responsible for 30% of all stolen crypto in Q3, the report stated.

Related: Exclusive: Hackers selling discounted tokens linked to CoinEx, Stake hacks

A small portion of Q3 attacks consisted of rug pulls and other scams. Only $23 million, or 3.3% of total losses, came from these types of incidents, whereas the remaining 96.7% came from hacks or exploits. Overall, monetary losses from scams in Q3 decreased by 23.9% compared with Q3 2022.

The report stated that decentralized finance hacks accounted for 72.9% of total losses, while centralized services accounted for only 27.1% of exploit losses. Immunefi did not state how they defined “decentralized” versus “centralized” services.

The two networks most targeted by hackers and scammers were Ethereum and BNB Chain. Ethereum represented 42.7% of losses, while BNB Chain represented 30.5%. Base and Optimism were the third and fourth most popular networks for attackers to exploit.

The report provides further evidence that Q3 has been the worst quarter of the year for crypto-related hacks and scams. A report from CertiK on Oct. 2 came to similar conclusions.

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Steam for Web3: Is it the future of blockchain games?

The future of Web3 gaming will be shaped by reliable distribution platforms that take a cue from Steam’s success.

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Steam for Web3: Is it the future of
                                  blockchain games?


                                  Presented by QORPO

What are Web2 game distribution platforms?

Web2 game distribution platforms, also known as traditional gaming platforms, act as online game shops with community features that connect gamers worldwide in a common ecosystem. Players usually download a small software client to access the platform, which offers user-friendly interfaces with a streamlined purchase process and detailed information about each game title.

Currently, there are three major traditional game distribution platforms: Steam, Epic Games Store and Microsoft Store. Built by Half-Life maker Valve, Steam is the oldest of the three and has the most extensive library.

Epic Games Store came from the creators of Unreal Engine, one of the best, real-time 3D-creation tools. It’s known for its free games offered in a cycle. Meanwhile, Microsoft Store is not the first place to look for games. Its subscription service, Game Pass, enables access to hundreds of games with a Netflix-style monthly subscription.

What do Web2 game distribution platforms offer players and developers?

Game distribution platforms like Steam and Epic Store instill trust, as they host reputable brands and millions of people using their services. Customers aren’t afraid to provide their payment information and know they will be safe from scams when buying games.

For newcomers, Web2 platforms make purchasing and installing a new game incomparably easier than any manual alternative. Also, games stay updated without interacting with the developer site, thanks to automated update processes. Players can browse a massive library of games and start playing them after a few clicks. The user review and rating systems help other gamers navigate through the game selection.

As for developers, Web2 platforms provide direct access to a global audience via development kits, marketing assistance and distribution infrastructure. By employing robust anti-piracy measures, game distribution platforms also ensure developers are rightfully compensated for their hard work.

What are Web3 game distribution platforms, and how do they differ from traditional platforms?

Web3 game distribution platforms aim to promote a more player-centered and community-driven gaming ecosystem than their Web2 counterparts by giving users more power through decentralization. Blockchain technology lies at the heart of Web3 gaming. Players and stakeholders have a say in decisions through governance mechanisms such as decentralized autonomous organizations (DAOs), entities with no central leadership, where decisions are made from the bottom up and governed by a community that is organized around a specific set of rules enforced on a blockchain.

Web3 gaming usually involves smart
                                    contracts, DAOs and in-game assets.
Web3 gaming usually involves smart contracts, DAOs and in-game assets.

Nonfungible tokens (NFTs) vitalize the ecosystem’s economy and give value to in-game items by providing true ownership. Crypto assets can be used to purchase games and in-game items, opening the space to a new sector. Web3 elements introduce new monetization options like the play-to-earn model, where players earn crypto and NFTs by playing a game. These models help developers raise capital and attract players, but often lack sustainability.

A recent example is Ryu Games’s all-in-one solution Flame, which combines a Web3 marketplace, a multichain wallet and a game launcher in a single platform. Kongregate and Lootrush are also venturing into decentralized gaming. Some developers are even putting their Web3 games on Steam and Epic Games to reach the broader audience of Web2 gamers.

What are the key challenges Web3 game distribution platforms face?

Currently, Web3 gaming requires a more advanced understanding of underlying technologies than traditional platforms — both for players and developers. The process of building and launching games on Web3 platforms is more complex and expensive, posing a higher entry barrier for developers.

Gamers also need to understand concepts like crypto, NFTs and marketplaces. Even after getting familiar with the technology, the Web3 gaming space simply doesn’t provide enough titles. Steam achieved success by bundling the platform with Half-Life 2, considered one of the greatest PC games of all time. However, Web3 gaming has yet to produce a game that could compete with the legendary title.

Preconceptions about the Web3 and crypto space are another factor causing many people to steer away from the ecosystem. News of scams and schemes on these spaces spread like wildfire, while incidents on traditional platforms are often swept under the rug.

Developers prioritize monetization over originality and quality, which is insufficient to attract mass audiences. The Web3 gaming market is still in its early development stages, meaning this situation could quickly change with the right projects.

What would it take to establish the Steam of Web3?

A broad range of enjoyable games that cater to both Web3 and non-Web3 players’ interests is a crucial requirement for reproducing the success of Steam in the Web3 space. Transparency and security standards must instill confidence in the users so they can make purchases without worrying about the safety of their funds.

Web3 platforms should take a cue from the ease-of-use of platforms like Epic Games Store and Steam, and start thinking about how to present blockchain games with simple and well-designed interfaces.

Emphasizing community interaction and giving users a safe space to share opinions and make friends both go a long way. Extensive social features such as DAO voting also help with player engagement and retention.

QORPO, a Web3 game development company with two game titles, Citizen Conflict and AneeMate, offers all these features to gamers and developers of both worlds. The company recently merged all its fundamental products, including a game launcher, an NFT marketplace and a gaming asset management, under one roof called QORPO WORLD.

What is the future of Web3 game distribution platforms?

Web3 gaming platforms need to provide the means for deeper interaction between their users. Home to Web3 games from different genres, QORPO WORLD provides overviews and community ratings with reviews for games in its launcher to help users pick their next game and start playing right away.

The Web3-friendly economic cycle of
                                    Qorpo World. Source: QORPO
The Web3-friendly economic cycle of Qorpo World. Source: QORPO

A native crypto wallet and popular third-party wallets streamline the process of trading, collecting and leveling up in-game items.

Esports arenas are a big part of traditional gaming that fuel players’ competitive spirits and benefit overall engagement. Introducing an esports platform promotes tournament gaming and opens the door to sponsorships.

Just like Steam, QORPO has an integrated marketplace, allowing users to access their game assets through a simplified user interface. Web3 is foreign ground to many, and introducing its elements in a beginner-friendly manner is key to convincing newcomers to stay.

By adopting what works for Web2 and leapfrogging the shortcomings of traditional platforms, the Web3 gaming space has the potential to present a reliable alternative to established industry players like Steam or Epic Games Store.

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