In a surprising turn of events, former U.S. President Donald Trump’s media company is reportedly in advanced discussions to acquire the struggling crypto trading platform Bakkt. This potential all-stock deal would significantly expand Trump’s foothold in the digital assets industry, following his recent promotion of World Liberty Financial. As the crypto world braces for the impact of this acquisition, the infamous Razzlekhan, Heather Morgan, has been sentenced to 18 months in prison for her role in laundering proceeds from the 2016 Bitfinex hack.
Trump’s Media Firm Sets Sights on Crypto Trading Platform Bakkt
According to a report by the Financial Times, Trump Media and Technology Group (TMTG), which owns the Truth Social platform, is in advanced talks to acquire Bakkt, a crypto trading venue owned by Intercontinental Exchange. The potential all-stock deal would see TMTG absorb Bakkt, which has recently struggled to secure sufficient funding for its operations. This move demonstrates Trump’s growing interest in the crypto market and could potentially deepen his involvement in digital assets.
The news of the potential acquisition sent BKKT stock soaring, with the company’s shares extending daily gains on Tuesday after jumping over 160% the previous afternoon. This sudden surge in interest highlights the significance of Trump’s influence on the crypto market and the potential impact of the acquisition on Bakkt’s future.
Robinhood Upgraded Amid Expectations of Crypto-Friendly Regulations
In related news, ratings firm Needham has upgraded Robinhood from neutral to buy, setting a $40 price target. Analysts believe that Donald Trump’s election win could materially benefit the company, primarily through an anticipated overhaul of the Securities and Exchange Commission (SEC). This regulatory shift is expected to allow the trading app to list more cryptocurrencies without the threat of enforcement actions.
Last week, Robinhood added several popular cryptocurrencies to its platform, including Solana, Pepe, Cardano, and XRP. The move comes as the crypto industry anticipates a more welcoming regulatory environment under the Trump administration, which has promised to foster innovation in the digital assets space.
Razzlekhan Sentenced to 18 Months for Bitfinex Hack Laundering
In a separate development, Heather Morgan, better known by her rapper alias “Razzlekhan,” has been sentenced to 18 months in prison for her role in laundering the proceeds of the 2016 Bitfinex hack. Morgan and her husband, Ilya Lichtenstein, were accused of laundering as much as one-fifth of the nearly 120,000 bitcoins stolen from the exchange.
I am extremely sorry and deeply regret the choices I made. I used my time and energy to do harm instead of good, and I’m ashamed of that.
– Heather Morgan, during her sentencing hearing
Despite Morgan’s tearful apology in court, the judge emphasized the severity of her offenses, stating that her actions were deliberate and involved extensive planning. The judge granted Morgan until the end of January to report to prison, after which she took to social media to announce her intention to share her story and thoughts on the case.
The Future of Crypto Under Trump’s Influence
As Trump’s media company prepares to acquire Bakkt and Razzlekhan faces the consequences of her actions, the crypto industry is left to ponder the future of digital assets under the former president’s growing influence. With the promise of a more crypto-friendly regulatory environment and the potential for increased mainstream adoption, the coming months and years could prove to be a pivotal time for the industry.
However, concerns remain about the potential risks associated with a more permissive regulatory approach and the impact of high-profile criminal cases on public perception of cryptocurrencies. As the crypto world navigates these challenges and opportunities, it will be crucial for industry leaders and policymakers to strike a balance between fostering innovation and ensuring the integrity and stability of the digital assets market.
