• Sam Bankman-Fried, former CEO of FTX, was released on bail after appearing in US federal court in New York.
• The SEC is increasing scrutiny of audits of cryptocurrency companies to warn investors of potential risks.
• Justin Sun was reportedly a top client of crypto asset manager Valkyrie Investments, with over $580 million of bitcoin under management.
Sam Bankman-Fried, the former CEO of crypto derivatives exchange FTX, has been released on bail after appearing in a US federal court in New York. Bankman-Fried is to remain under house arrest and must adhere to a long list of requirements, including a ban on any financial transactions over $1,000. The bail was secured in part by his parents’ house in Palo Alto, California.
At the same time, the US Securities and Exchange Commission (SEC) is ramping up its scrutiny of cryptocurrency companies, warning investors of the potential risks associated with relying on audits such as proof-of-reserve reports. SEC acting chief accountant Paul Munter said that such reports are “not enough information for an investor to assess whether the company has sufficient assets to cover its liabilities.”
In other news, one of the richest figures in crypto, Justin Sun, has reportedly been a top client of crypto asset manager Valkyrie Investments. A private financial document obtained by CoinDesk shows that Sun had more than $580 million of bitcoin stored with Valkyrie Digital Assets LLC at one point in August. This constituted over 90% of the money managed by this particular division of Valkyrie.