• The U.S. Securities and Exchange Commission (SEC) has called FTX’s FTT exchange token a security.
• Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to criminal fraud charges tied to FTX’s collapse.
• Twitter has integrated cryptocurrency prices into search results using a plug-in from charting platform TradingView.

The cryptocurrency industry was rocked late Wednesday when the U.S. Securities and Exchange Commission (SEC) issued a complaint that FTX’s FTT exchange token was a security. This is the first time the SEC has declared a cryptocurrency token to be a security. The SEC stated that because the FTT was sold as an investment contract, it is a security. The SEC also noted that if demand for trading on the FTX platform increased, the demand for the FTT token could increase and any price increase in FTT would benefit holders of FTT equally and in direct proportion to their FTT holdings.

In addition to the SEC complaint, the U.S. Attorney for the Southern District of New York announced that Former Alameda Research CEO Caroline Ellison and FTX co-founder Gary Wang have pleaded guilty to criminal fraud charges tied to FTX’s collapse. The SEC and Commodity Futures Trading Commission also announced charges against the two, saying Ellison manipulated the price of FTT. The duo are cooperating with investigators and the U.S. Attorney did not specify what they were being charged with.

The news of the SEC complaint and the criminal charges against Ellison and Wang sent shockwaves through the crypto industry. Meanwhile, Twitter has also announced that it has integrated cryptocurrency prices into search results using a plug-in from charting platform TradingView. This integration allows users to type crypto or stock tickers into the search bar to generate the current value and a price chart. The result also includes a link to trading app Robinhood. The social media giant has had several ties to the crypto industry over the past few years, adding a tipping feature in September 2021 while the company was under the management of Jack Dorsey. Since then, Twitter has been taken over by Elon Musk.

The news of the SEC’s complaint and the criminal charges against Ellison and Wang has cast a pall over the crypto industry. The SEC’s action could have far-reaching implications for the industry as a whole, as it sets a precedent for how crypto tokens are viewed by the law. In addition, the criminal charges against Ellison and Wang could have a chilling effect on the industry, as investors may be wary of investing in projects that could be considered illegal. The integration of cryptocurrency prices into Twitter search results, however, is a sign that the industry is still growing and that there is still interest in cryptocurrencies.

• The CFP Board’s “Notice to CFP Professionals Regarding Financial Advice about Cryptocurrency-related Assets” outlines a series of risks associated with cryptocurrency investment and lays out some standards that financial advisors can adhere to in their decision to provide, or not provide, advice on cryptocurrency investment.
• The report emphasizes that financial advisors must adhere to Fiduciary Duty when giving advice on crypto by fully taking into account the goals, risk tolerances and personal/financial circumstances of the client.
• The CFP Board’s precaution on advice giving should be interpreted to mean that crypto-uneducated financial advisors should not give advice on cryptocurrency investment.

The Certified Financial Planner (CFP) Board recently issued a 14-page report entitled “Notice to CFP Professionals Regarding Financial Advice about Cryptocurrency-related Assets”, which outlines a series of risks associated with cryptocurrency investment and suggests standards that financial advisors can adhere to in their decision to provide, or not provide, advice on cryptocurrency investment.

The report starts off by defining “Financial Advice”, which is defined as “communications that, based on their content, context and presentation, would reasonably be viewed as a recommendation to take or refrain from taking a particular course of action”. This covers a wide range of services offered by financial advisors, from offering advice on a certain asset to creating a retirement plan.

The CFP Board then goes on to emphasize that financial advisors must adhere to Fiduciary Duty when giving advice on cryptocurrency. This includes fully taking into account the goals, risk tolerances and personal/financial circumstances of the client. Additionally, the report underscores the standards of competency necessary in giving crypto-related advice, such as understanding the intricacies of the cryptocurrency market, being able to identify risks and properly constructing a portfolio.

The CFP Board also states that it does not require a CFP professional to offer Financial Advice to a Client on every Financial Asset that is available in the marketplace. However, the board’s precaution on advice giving should be interpreted to mean that crypto-uneducated financial advisors should not give advice on cryptocurrency investment.

Ultimately, the CFP Board’s report provides important information for financial advisors who are considering giving advice on cryptocurrency investment. By adhering to the board’s standards of Fiduciary Duty and competency, financial advisors can ensure that they are providing their clients with the best possible advice.

• Paul Hastings LLP has been chosen to represent FTX creditors in the crypto exchange’s bankruptcy proceedings.
• A creditor committee chose Paul Hastings from among a number of firms that pitched for the role.
• At a meeting of FTX creditors held Tuesday, U.S. Trustee Juliet Sarkessian urged creditors to reach out to the committee’s counsel once formally in place.

Paul Hastings LLP has been tapped to represent FTX creditors in the crypto exchange’s bankruptcy proceedings, the law firm told CoinDesk on Thursday. A court document filed on the same day shows the New York law firm, along with Delaware-based Young Conaway Stargatt & Taylor LLP, will be handling “all papers served or required to be served,” in the bankruptcy case on behalf of creditors.

The creditors’ committee, which was formed last Thursday, chose Paul Hastings from among a number of firms that pitched for the role, according to The Wall Street Journal, who spoke with people familiar with the matter. The process to select a financial adviser is ongoing.

At a meeting of FTX creditors held Tuesday, U.S. Trustee Juliet Sarkessian urged creditors looking to secure their representation in the case to reach out to the committee’s counsel once formally in place. Sarkessian, a U.S Department of Justice official charged with overseeing bankruptcy cases, told the creditors that the lawyers that were yet to be appointed “can be contacted” and “they may be able to provide some help though, and they may even create their own website potentially for information for creditors.”

The collapsed global crypto exchange is attempting to gather over $1 billion in cash assets scattered across the globe as the bankruptcy proceedings continue in the U.S. Meanwhile, FTX’s disgraced founder Sam Bankman-Fried was set to be extradited from the Bahamas to the U.S. to face criminal charges and two executives in his inner circle, Caroline Ellison and Gary Wang, agreed to a plea deal with the Justice Department.

Paul Hastings LLP is now in charge of representing FTX creditors in the crypto exchange’s bankruptcy proceedings. The creditors’ committee chose the New York law firm, along with Delaware-based Young Conaway Stargatt & Taylor LLP, to handle all papers served or required to be served in the case. At a meeting of creditors held Tuesday, U.S. Trustee Juliet Sarkessian urged creditors to reach out to the committee’s counsel once formally in place.

The creditors’ committee formed last Thursday chose Paul Hastings from among a number of firms that pitched for the role, as reported by The Wall Street Journal. The report added that the process to select a financial adviser is still ongoing. As the bankruptcy proceedings continue in the U.S., FTX is attempting to collect over $1 billion in cash assets scattered around the world.

The FTX case also involves the extradition of its founder Sam Bankman-Fried from the Bahamas to the U.S. to face criminal charges. Furthermore, two executives in his inner circle, Caroline Ellison and Gary Wang, agreed to a plea deal with the Justice Department.

Paul Hastings LLP and Young Conaway Stargatt & Taylor LLP are now in charge of representing FTX creditors in the crypto exchange’s bankruptcy proceedings. The two firms will be handling all papers served or required to be served in the case on behalf of creditors. U.S. Trustee Juliet Sarkessian has urged creditors to reach out to the committee’s counsel once formally in place, as FTX is attempting to gather over $1 billion in cash assets from around the world.

• British Columbia has become the third Canadian province to impose restrictions on crypto mining.
• The province has put in place an 18-month moratorium on new crypto mining connections to its power grid.
• The province wants to preserve electricity for electric vehicles, heat pumps, and businesses and industries that are undertaking electrification projects.

British Columbia has become the latest Canadian province to impose restrictions on crypto mining, joining Quebec and Manitoba in announcing a moratorium on new connections to its power grid. The province’s Minister of Energy, Mines and Low Carbon Innovation, Josie Osborne, announced the 18-month moratorium in a Wednesday post on the provincial government’s website.

The move is intended to preserve electricity for other uses, such as electric vehicles, heat pumps, and businesses and industries that are undertaking electrification projects that reduce carbon emissions and generate jobs and economic opportunities. Currently, 21 projects are requesting a total of 1,403 megawatts (MW) in the province, which is equivalent to the energy needed to power around 570,000 homes, or 2.1 million electric vehicles.

The province’s announcement comes amid a growing awareness of the environmental impact of crypto mining. Cryptocurrencies are created and maintained by computers solving complex mathematical equations, and the process consumes vast amounts of energy. In addition to the moratorium on new connections, the province is seeking to reduce the use of the grid for crypto mining operations, and is exploring measures to ensure that electricity is used effectively and efficiently.

The province is also looking into ways to incentivize the use of clean and renewable energy sources for crypto mining operations, and is working with stakeholders to develop a framework that will ensure that electricity is used responsibly and in a way that supports the growth of the industry.

The Canadian government has also taken steps to address the environmental impact of crypto mining, with the federal government announcing a plan in September to regulate the industry. The plan includes measures to ensure that crypto mining operations are held to the same environmental standards as other industries.

British Columbia’s announcement is yet another sign of the increased focus on the environmental impact of crypto mining and the need for regulation in the industry. As more provinces and countries move to regulate the industry, it is likely that further measures will be taken to ensure that electricity is used responsibly and in a way that supports the industry’s growth.