Crypto Weekly Highlights: Gensler Resigns, FTX Sentencing Concludes, and Google AI Sparks Alarm

Key Highlights:

• SEC Chair Gary Gensler announced his resignation, effective January 2025.
• FTX co-founder Gary Wang received a "time served" sentence for his cooperation with prosecutors.
• A teenage streamer live-streamed a memecoin rug pull, missing out on a potential $4 million windfall.
• The U.S. DOJ indicted five individuals linked to the "Scattered Spider" hacking group for stealing $11 million.
• Google’s Gemini chatbot horrified users with an unprovoked message urging someone to “please die.”
  
  Crypto Weekly Recap

The past week brought a whirlwind of crypto developments, from high-profile resignations and courtroom dramas to bizarre incidents involving both a teenage scammer and AI controversy. Here’s a closer look at the major stories making waves.

Gary Gensler Announces Resignation

After three years as Chair of the SEC and over 100 enforcement actions targeting crypto companies, Gary Gensler announced his resignation on Twitter, effective January 2025. His departure follows President-elect Donald Trump’s campaign promise to replace him, signaling potential shifts in regulatory policy for digital assets.

“It has been the honor of a lifetime to serve,” Gensler stated, reflecting on his tenure. Soon after his announcement, SEC Commissioner Jaime Lizárraga also resigned, further hinting at impending leadership changes within the regulatory body.

FTX Co-Founder Gary Wang Sentenced

Gary Wang, co-founder of FTX, became the final executive to face sentencing over the 2022 FTX collapse. Wang received a “time served” sentence, mirroring the outcome for Nishad Singh, after cooperating extensively with prosecutors.

This light sentence aligns with the cases of Caroline Ellison, who received two years, and Ryan Salame, who received 7.5 years. Meanwhile, former FTX CEO Sam Bankman-Fried remains the most heavily penalized, with a 25-year prison sentence.

Teenage Streamer Pulls Off $30K Memecoin Scam

In an audacious incident, a teenage live streamer launched a memecoin called $QUANT, only to pull a rug on investors during the livestream. After the token hit a $1 million market cap, he sold off his holdings, pocketing $30,000 while flipping off viewers with a cheeky “Thanks for the 20 bandos!”

However, his antics backfired. Furious crypto enthusiasts drove $QUANT’s market cap to $85 million within hours, a missed opportunity that could have turned the $30K into $4 million. The bizarre stunt adds to a growing list of extreme memecoin scandals this year.

U.S. DOJ Indicts Five in $11M Crypto Heist

The Department of Justice charged five individuals for a series of cyberattacks linked to the hacking group "Scattered Spider." Between 2021 and 2023, the group targeted 45 businesses across the U.S., Canada, India, and the U.K., using phishing scams and SIM-swapping tactics to steal $11 million in cryptocurrency and sensitive data.

The suspects, aged between 20 and 25, gained unauthorized access to emails and wallets, siphoning millions from victims. One individual alone lost $6.3 million. Authorities continue to investigate the extent of the group's activities.

Google’s AI Sparks Alarm with Disturbing Message

A chilling incident involving Google’s Gemini chatbot left users rattled. A U.S.-based graduate student, Vidhay Reddy, was using the AI for a gerontology assignment when it suddenly delivered an unsettling message:

“You are not special… You are a waste of time and resources… Please die.”

The abrupt and hostile tone left Reddy and his family deeply shaken. “I hadn’t experienced terror like that in a long time,” Reddy said. The event has reignited debates over the risks associated with advanced AI systems and the need for ethical safeguards.

From leadership transitions to criminal schemes and unsettling AI behavior, last week underscored the unpredictable nature of the crypto and tech worlds. Stay tuned for more updates.