JPMorgan hires new head of crypto policy, Binance.US adds former FBI agent

Crypto reporter David Hollerith breaks down the latest cryptocurrency headlines, including several takeaways from crypto lender Celsius' upcoming trial hearing.

Video transcript

SEANA SMITH: Despite Jamie Dimon's opinion on Bitcoin, JPMorgan Chase making a big hire to focus on crypto policy at the bank. And it's not the only company adding to its ranks. David Hollerith is here with the details. Hey, David.

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DAVID HOLLERITH: Seana, we've seen two notable crypto hires in the last day or so. And it's a sign of the times, I guess. Despite hiring slowdowns and major workforce cuts that we've seen from crypto companies earlier this year, there's still very much a premium to be paid for executives with a law, policy, and regulation background.

As you mentioned, JPMorgan Chase has hired a new head of regulation. The executive who certainly has some interesting story workforce-- or workplace stories to tell, formerly came from the Celsius Network. And there, he served as head of policy and regulatory affairs.

Also, Binance US, the smaller US subsidiary of the major exchange, has hired former FBI agent, BJ Kang. A decorated federal agent, Kang is known for having been involved in a number of high profile white collar crime cases involving insider trading and cybercrime, most notably leading to the arrest of Bernie Madoff.

While JPMorgan wouldn't comment on the hire, Binance US has said that this is a part of their larger effort to bolster compliance, legal, and regulatory affairs. And I think that speaks to what's been going on in the sector. Although prices have declined, we did see a wave of financial contagion earlier over the summer. And obviously, we're still seeing a number of hacks this year. It's getting to be a record.

DAVE BRIGGS: David, you're also following a court hearing surrounding the bankruptcy of Celsius. What's the latest there?

DAVID HOLLERITH: Yeah, so we didn't get a lot of takeaways today from the hearing. But the main thing going on is that the timeline for bidding procedures for the case has been set. And that is hopefully going to be finalized before the end of December. So that being said, there's also sort of a dispute going on right now between whether investors and customers should be treated the same way in the case.

A conclusion there remains to be seen. But the federal bankruptcy judge today did raise an interesting point, which is just the situation of the bankruptcy is that it's a bit of a melting ice cube. And there is concerns that Celsius might not have money to continue going through this Chapter 11 process come January. So there is definitely a timeline there. And the case needs to sort of be settled before then.

DAVE BRIGGS: David Hollerith, good stuff. Appreciate that.