Crypto Roundup: SBF Trial Week 2 Recap, Cramer’s Confusing Crypto Prediction…

Hey, crypto aficionados!

Another whirlwind week in the crypto world has passed, and it’s time to dive into the latest edition of Crypto Roundup.

The crypto realm is always buzzing with activity, whether it’s courtroom drama, machinations in Washington, new technological innovations, or mega price swings. And it can be a challenge to keep up with it all.

That’s where Crypto Roundup comes in. We’re here to sift through the noise and bring you the essentials, separating the wheat from the chaff, so to speak.

Whether you’re a seasoned pro or just dipping your toes in the water, the aim is to provide you with concise, clear-cut insights every week. Our mission is to ensure you’re always in the loop and feeling a tad wiser about the crypto world while enjoying the journey.

Let’s dive in!

But first, a word from SBF (the artist formerly known as Sam Bankman-Fried).

⚖️ SBF’s Scandalous Second Week

The trial of Sam Bankman-Fried (SBF), the former head honcho of FTX, entered its second week, and the sparks began to fly.

As I explained last week, Caroline Ellison is SBF’s ex-partner and former paramour. She was also this week’s star witness, and boy, did she drop some bombshells. She confessed to some shady dealings during her time as CEO of Alameda Research, the quant crypto trading firm backed by FTX. But according to her testimony, she was just following SBF’s playbook. The alleged scheme? A cool $14 billion was siphoned off from FTX customers. 💸 Ouch.

But that’s not all. SBF apparently had dreams bigger than just crypto. SBF’s hefty political contributions were also under the microscope, especially with hints of them being used for some personal perks.

💥 Ellison’s testimony included other bombshells, such as…

  • Under SBF’s direction, she set up systems that made it easy to siphon money from FTX.
  • SBF intended to raise funds by selling FTX equity to Saudi Crown Prince Mohammed bin Salman. (It’s ironic when you consider SBF was a champion of the “effective altruism” movement and the Saudi record on human rights.)
  • A note suggesting the deliberate manipulation of Bitcoin prices.

On the legal front, SBF’s defense is dancing a tightrope. Court rulings are limiting their moves, and there’s a tug-of-war over witness testimonies. Before the trial even began, the U.S. Department of Justice jumped in, trying to revoke SBF’s bail. The reason? Alleged witness tampering.

We’ll stay on top of things as the trial progresses. I’m sure we’ll have more juicy details to share next week.

🤔 Cramer’s Confusing Crypto Prediction

Getting paid to say things on TV is nice work if you can get it. But if you have any sense, you shouldn’t expect it to be a place for compelling intellectual discourse.

Case in point: Jim Cramer.

Cramer is a former hedge fund manager and CNBC’s “Mad Money” host. I’m sure you’ve seen him yelling on TV about the market a time or two. In a recent CNBC segment, Cramer voiced his bearish sentiments on Bitcoin.

For context, Cramer was weighing in on recent comments from billionaire hedge fund investor Paul Tudor Jones, who said he thought the U.S. was in its weakest fiscal position since WWII. Jones knows a thing or two about the market. The guy predicted the Black Monday crash in 1987. And let’s not forget that he’s worth about $8 billion.

Jones said this was a really challenging time in the market for investors, and he likes gold and bitcoin as hedges against geopolitical risk and rising U.S. government debt levels.

To which Cramer remarked, “I can’t go out with gold because gold is not good; I can’t go out with bitcoin (BTC) because I can’t be in something where Mr. Bitcoin is about to go down big.”


It remains ambiguous whether “Mr. Bitcoin” refers to the ongoing trial of Sam Bankman-Fried or Bitcoin itself. But what we do know is that Cramer’s skepticism is clear.

Cramer’s history with Bitcoin has been a rollercoaster. In June 2021, he revealed that he had offloaded most of his Bitcoin assets, attributing his decision to China’s stringent measures against crypto miners. He also expressed concerns about Bitcoin’s structural problems, predicting a further decline in its price.

Now, let’s add a pinch of salt to this story. Jim Cramer’s predictions haven’t always hit the mark:

  • 2008 Financial Crisis: Cramer famously assured viewers, “Bear Stearns is fine! Do not take your money out.” Just a week later, Bear Stearns crumbled, and the financial crisis kicked off.
  • Silicon Valley Bank Debacle: Earlier this year, Cramer defended Silicon Valley Bank, dismissing concerns about its stability. Fast forward a month, and SVB collapsed, marking the most significant banking failure since the 2008 crisis.

I could go on with a Walgreens-sized receipt of Cramer’s wrong calls, but you get the idea. (Plus, I don’t want to be mean.)

Interestingly, despite being far from its all-time high of $68,000 in 2021, Bitcoin has surged by 68% since the beginning of the year. Given Cramer’s track record, one might wonder: Is his bearish Bitcoin prediction a genuine concern or just another classic Cramer misfire waiting to happen? Only time will tell.

But for now, like anything Cramer says about the market, you should take it with a grain of salt. He gets paid to have an instant opinion about anything in the market. And after all, as the saying goes, “Even a broken clock is right twice a day.” 😉

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