Gary Wang, co-founder and former chief technology officer of FTX, has been sentenced to time served for his role in the cryptocurrency exchange’s collapse. The sentencing, delivered on Nov. 20, follows Wang’s extensive cooperation with federal prosecutors during their investigation into one of the largest fraud cases in crypto history. He also received a $200 fine and will face supervised release for an unspecified period.

Wang, who pleaded guilty to multiple charges of fraud in December 2022, admitted to knowingly misusing customer funds alongside FTX’s founder, Sam Bankman-Fried. Prosecutors credited Wang for providing crucial evidence that supported their case against Bankman-Fried, who was convicted earlier this month on seven counts of fraud and conspiracy. Wang’s cooperation was described as pivotal in unraveling the complexities of the FTX scandal.

Despite his cooperation, Wang expressed remorse for his actions during the sentencing hearing, acknowledging the harm caused to FTX’s customers and investors. The court took his remorse and assistance into account, resulting in the relatively lenient sentence. Legal experts noted that Wang’s collaboration likely spared him a much harsher punishment, which could have included several years in prison.

The fallout from FTX’s collapse continues to ripple through the cryptocurrency industry, with investigations and lawsuits targeting other executives and entities involved in the exchange. Wang’s sentencing marks a significant milestone in the legal proceedings, shedding light on the inner workings of the fraudulent scheme. As regulators and lawmakers push for stricter oversight, the case serves as a stark reminder of the risks associated with poorly governed crypto platforms.

Japan’s government has approved a new economic stimulus package that includes significant commitments to cryptocurrency tax reform, signaling its intent to foster innovation in the digital asset space. Announced on Nov. 20, the reforms aim to simplify the tax filing process and reduce barriers for businesses and investors engaged in the crypto industry. This move aligns with Japan’s broader strategy to enhance its position as a global hub for blockchain and Web3 technologies.

A key component of the tax reform is the elimination of year-end tax obligations for unrealized gains on cryptocurrency holdings by companies. This change addresses a longstanding concern among businesses that were previously taxed on crypto assets they held but had not sold, potentially freeing up capital for reinvestment. The new framework is expected to encourage more companies to explore blockchain-based innovations without fear of punitive tax obligations.

In addition to the crypto-specific measures, the stimulus package includes broader initiatives to stabilize Japan’s economy amid global uncertainties. The package outlines increased support for small and medium-sized enterprises, digital transformation projects, and renewable energy investments. Experts view the integration of crypto-friendly policies as a forward-looking step that aligns with Japan’s push to remain competitive in the rapidly evolving global tech landscape.

Japan’s proactive stance on cryptocurrency regulation contrasts with the cautious approaches of many other countries. By reducing tax burdens and fostering a more favorable environment for blockchain development, Japan aims to attract international talent and investment. The reforms are set to take effect in 2024, and industry leaders are optimistic that they will bolster the country’s reputation as a leader in technological innovation.

Grayscale Investments has announced its intention to implement reverse share splits for two of its flagship exchange-traded funds (ETFs), the Grayscale Bitcoin and Ethereum Futures ETFs. The move, aimed at optimizing share prices, is set to take effect on Dec. 14, 2023. Shareholders will see the splits adjust the number of shares while increasing their value proportionally, ensuring no change in overall investment worth.

The reverse splits will be executed at a 1-for-10 ratio for the Bitcoin ETF (ticker: GBTC) and a 1-for-5 ratio for the Ethereum ETF (ticker: ETHE). Grayscale stated that the adjustment is designed to align the ETFs with industry norms and improve their appeal to institutional investors. Post-split, the number of outstanding shares will decrease while their value per share increases, maintaining total shareholder equity.

This announcement comes as Grayscale continues to push for further acceptance of its crypto ETFs. The company has been at the forefront of advocating for cryptocurrency-related investment products, including its ongoing pursuit of converting its Bitcoin Trust into a spot Bitcoin ETF. These efforts reflect the growing competition in the ETF space as more institutional players recognize the potential of digital assets.

Market analysts have noted that reverse share splits are not uncommon in the ETF industry, often used to attract higher-value investors or to enhance trading efficiency. For Grayscale, the move underscores its commitment to staying competitive and ensuring its products remain relevant in an evolving market. The planned adjustments are anticipated to bolster investor confidence and support the broader adoption of cryptocurrency ETFs.