In 2023, the crypto industry witnessed the resignation of Binance founder Changpeng Zhao as CEO, the arrest and prosecution of notable names such as Do Kwon and Sam Bankman-Fried, and growing institutional interest, among several developments.
The year 2023 was a roller-coaster ride for the crypto industry, with many highs and lows, victories and defeats, and surprises and shocks. Here are some of the most notable events that shaped the crypto landscape in 2023:
XRP Secures Legal Clarity
In a landmark ruling on July 13, a U.S. judge dismissed the SEC’s case against Ripple and its executives, declaring that XRP is not a security. This paved the way for XRP to resume trading on major platforms like Coinbase, which had delisted it in 2020.
BlackRock Enters the Crypto Scene
The world’s largest asset manager, BlackRock, made a bold move into the crypto market by filing for a Spot Bitcoin ETF on June 15, 2023, and an Ethereum ETF on Nov. 15, which would track the prices of the two leading cryptocurrencies.
In July, BlackRock’s CEO, Larry Fink, praised crypto as a digital gold and an international asset, signaling a shift in the institutional attitude towards cryptocurrencies.
Sam Bankman-Fried Convicted of Fraud
The founder and former CEO of the bankrupt FTX, Sam Bankman-Fried, was found guilty of multiple charges of fraud by a jury on Nov. 2. Judge Lewis Kaplan will reveal Bankman-Fried’s fate on March 28 this year, with a possible sentence of up to 115 years.
Global De-Dollarization
In a major blow to the US dollar’s dominance, Russia announced in March 2023 that it supports the use of the Chinese yuan instead of the US dollar to settle trades with Latin American, Asian, and African countries.
Moreover, for the first time in history, the Chinese yuan overshadowed the US dollar to become the most used currency in cross-border settlements in China in 2023.
Saudi Arabia, the world’s largest oil exporter, joined a trade alliance with Russia, India, China, Pakistan, and four other nations, which aims to reduce the reliance on the US dollar and promote the use of local currencies and digital assets.
Powell Acknowledges Crypto’s Potential
The Federal Reserve Chair, Jerome Powell, made a surprising statement in late December, 2023, asserting that crypto appears to have staying power as an asset class and that the Federal Reserve is looking to sufficiently regulate stablecoins.
CZ Steps Down as Binance CEO
The founder of Binance, Changpeng “CZ” Zhao, agreed to resign as CEO of Binance as part of a settlement condition with U.S. authorities for violating international anti-money laundering provisions.
Argentina Adopts the Dollar
In a drastic measure to combat hyperinflation and economic crisis, Javier Milei, Bitcoin advocate and newly-elected president of Argentina, announced that he would replace the peso with the dollar as the official currency and shut down the central bank.
Turkish Crypto Exchange CEO Jailed for Life
Faruk Fatih Özer, the CEO of Thodex, a defunct Turkish exchange, was sentenced to 11,196 years on Sept. 7 for the theft of $2 billion in customers’ crypto assets. The court found him guilty of fraud, embezzlement, and money laundering.
Grayscale Wins Lawsuit Against SEC
Asset manager Grayscale came out victorious in its lawsuit against the U.S. SEC. The court upheld Grayscale’s argument that the regulatory agency has no reason to deny its move to transform the Grayscale Bitcoin Trust to a spot BTC ETF.
Coinbase sues the SEC
The largest US crypto exchange, Coinbase, filed a lawsuit against the SEC in an attempt to force the agency to provide regulatory clarity for the crypto industry. Coinbase claimed that the SEC had been hostile and inconsistent in its approach to crypto.
Hong Kong Recognizes Crypto as Property
In a landmark ruling in April last year, a Hong Kong court classified cryptocurrencies as property in a case involving the defunct exchange Gatecoin. This was the first case in Hong Kong that involved crypto as property, and it set a precedent for future cases and disputes involving crypto.
Terra Founder Arrested in Montenegro
On March 23, Filip Adzic, the Minister of Interior for Montenegro, revealed that the Montenegrin authorities had finally arrested Do Kwon, former crypto fugitive and founder of the imploded Terra ecosystem, at the Podgorica airport.
SafeMoon Founders Arrested in the US
On Nov. 1, the U.S. Department of Justice (DoJ) arrested Kyle Nagy, John Karony, and Thomas Smith, the founders of SafeMoon, a popular meme coin that promised high returns to its holders in the U.S.
They were charged with fraud, conspiracy, and money laundering for creating a Ponzi scheme that duped millions of investors. SafeMoon was one of the most hyped and controversial crypto projects in its prime.
BlackRock Partners with JPMorgan for Bitcoin ETF
BlackRock, the world’s largest asset manager, named JPMorgan, the largest US bank, as an authorized participant for its spot Bitcoin ETF amid the anticipation of approval from the SEC.
This meant that JPMorgan would be able to create and redeem shares of the ETF and provide liquidity and market-making services.
UK Plans to Become a Crypto Hub
In December last year, the U.K. government reaffirmed its plans to establish the country as a global cryptocurrency hub. The government plans to create a clear and comprehensive framework for regulating and promoting crypto.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
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