El Salvador to buy 1 bitcoin per day + other stories for the week

Although the internet is still awash with different comments, remarks and reactions trailing the FTX saga which shook the crypto community to its roots in the past twelve days, there’s a bit of positive update to feed on this week. The president of El Salvador, Nayib Bukele, undeterred by the hefty losses incurred by his country’s investment in bitcoin, announced that the Central American country will begin accumulating the flagship digital asset at a pace of 1 BTC per day, starting today. 

Also, in yet another setback for FTX founder Sam Bankman-Fried, authorities in the United States are likely to take the legal route and prepare criminal charges against him. Just like we still haven’t gotten enough of the Terra drama, it doesn’t look like FTX’s going to end soon. 

Here are a few major stories from the crypto space this week.

Caribbean nation to accept Bitcoin Cash as legal tender next year 

According to an announcement earlier this week by the Prime Minister of St. Kitts and Nevis, Terrance Drew at the Bitcoin Cash 2022 conference, the Caribbean nation may declare Bitcoin Cash as legal tender by March 2023.

“Our nation has always been a forward-thinking nation and a leader in exploring new technologies that can advance our people. I can confirm that we are prepared to explore that possibility with the guidance of experts and professionals and after consultation with our regional banking system. […] I welcome the opportunity to dialog further with a view to exploring future opportunities to engage in Bitcoin Cash mining and making Bitcoin Cash legal tender here in St. Kitts and Nevis by March 2023, once safeguards to our country and our people are guaranteed.”

El Salvador to buy 1 btc per day 

Despite more than $60 million in value being wiped off the El Salvador bitcoin holdings, Nayib Bukele says the country is going to continue buying BTC. In a tweet on Thursday, the president explained that there is a new strategy for accumulating bitcoin for the country.

According to him, El Salvador is going to start buying 1 bitcoin a day. He explained that it will go into effect on today(Friday) but there was no timeline for how long this will run for in the tweet. Bukele received support from Tron founder, Justin Sun who said that TRON DAO would also follow El Salvador and buy 1 BTC every day starting from today. 

At such rates, the buying spree would quickly increase El Salvador’s bitcoin holdings which currently sit at 2,381 BTC at press time. Notably, the president dismissed rumors that it held its BTC on the now-bankrupt FTX exchange. 

SBF to face lawsuit in US

The Manhattan authorities are preparing criminal charges against Sam Bankman-Fried and FTX. Charles Gasparino, a Fox News Correspondent, quotes sources close to the office of Manhattan US attorney.

Apparently the attorney’s office is looking to prepare charges by the end of 2022. The case charges would likely be around the misuse of customer funds.

“Sources close to Manhattan US Attorney say office is looking to prepare charges by the end of the year over FTX scandal following further disclosures of Sam Bankman-Fried’s alleged misuse of customer funds and as authorities in Bahamas look to take lead on case.”

Also, the White House authorities recently said they were closely looking at the FTX situation. A White House press secretary said cryptocurrencies are harming the lives of average Americans. The White House views crypto oversight as an important issue, they added. 

Celebrities sued over FTX 

As FTX’s sudden collapse continues to make waves in the crypto community, celebrities that endorsed the exchange have also come under scrutiny. A group of investors has filed a class action lawsuit against individuals endorsing the exchange. The list includes high-profile names such as Tom Brady, Stephen Curry, Gisele Bundchen, Larry David, Naomi Osaka, and the Golden State Warriors. 

According to the lawsuit, the platform targeted gullible investors through celebrity endorsements, describing the exchange as a “Ponzi Scheme.” 

“FTX’s fraudulent scheme was designed to take advantage of unsophisticated investors from across the country, who utilize mobile apps to make their investments. As a result, American consumers collectively sustained over $11 billion in damages.”

The lawsuit accuses FTX and the celebrities associated with the exchange of violating Florida Securities and Consumer Protection laws and engaging in an illegal civil conspiracy.

BlockFi to file for bankruptcy 

According to a report by The Wall Street Journal on Tuesday, BlockFi is planning to lay off some of its employees. Recall that the lender is among firms that have had a difficult time dealing with the fallout of FTX’s bankruptcy. People familiar with the matter told WSJ that the crypto lender itself is now preparing to file for a potential bankruptcy. 

Notably, Technext reported that the crypto lender suspended withdrawals and limited activity on its platform last week. On Monday, the crypto lender revealed “significant exposure” to FTX and associated corporate entities including Alameda Research. The official statement read:

“While we will continue to work on recovering all obligations owed to BlockFi, we expect that the recovery of the obligations owed to us by FTX will be delayed as FTX works through the bankruptcy process.” 

That is all from us this week, see you same time next week!