4. Why crypto is crashing

4. Why crypto is crashing
4. Why crypto is crashing
Crypto is crashing

  • Bitcoin that sank 10% on Tuesday and 12% on Wednesday has fallen to its two-year low below $16,500. Thursday marks a year to the day since its all-time peak of $69,000. Not a particularly happy anniversary.


  • The current fall in the crypto prices is a direct result of the collapse of one of the world’s largest crypto exchanges, FTX. The FTX situation is sending rumbles throughout the sector, causing the crypto market to tank.

The FTX story

  • FTX has gone from the most blue chip of crypto companies to the brink of disaster in a short period of time. Founded only in 2019, FTX had a bull run during the Covid-19 pandemic, becoming crypto royalty. Its revenue — not its value — went from nil to $1.2 billion in two years.
  • In January 2022, FTX was valued at $32 billion with its founder Sam Bankman-Fried noted as the richest under-30 person in the world (personal net worth of $26.5 billion).
  • The company acquired 15 other companies in the crypto sector during this period.

The crash

  • Troubles began when one of the early investors and stock holding company, Binance, alleged that FTX was feeding wrong information about it to the US regulators. Frustrated, Binance announced selling off stock worth $529 million.
  • The news of a massive dump on the market unnerved investors, who started running for exits. The FTX prices crashed, falling over 30% almost instantly.

The aftershocks

  • The FTX crash’s ripple effects are being felt across the cryptocurrency sector. According to CoinDesk, Bitcoin fell over 25% this week, taking its fall to almost 70% over the past year.
  • Among other major digital currencies, Ethereum has gone down 23% in five days. Even Binance’s own currency BNB fell over 18%. More here

PM Modi on 2-day visit to southern states; Data release – Industrial Production YoY Sept; US Treasury Secretary Janet Yellen to visit New Delhi; In SC: Nalini’s plea seeking premature release in Rajiv Gandhi assassination case; Centre’s environment panel likely to review anti-pollution measures in Delhi-NCR

1. India… down and out
1. India... down and out
  • Alex Hales and skipper Jos Buttler hammered magnificent unbeaten half-centuries at Adelaide on Thursday as England crushed India by 10 wickets to set up a T20 World Cup final with Pakistan.
  • Chasing 169 for victory, opening batter Hales smashed seven sixes in his 86 off 47 balls. The other opening batter, Buttler, who scored 80 off 49 balls, hit three sixes in a spellbinding batting performance to cruise into Sunday’s final at Melbourne. England achieved the target with four overs to spare.

A tale of two innings

  • Hardik Pandya’s 63 off 33 balls and Virat Kohli’s 50 off 40 balls helped India put 168 runs on the scoreboard for a loss of six wickets in 20 overs. India, which lost the toss and was put to bat first, had a disappointing start, losing opening batter K L Rahul’s wicket in the second over and eventually losing skipper Rohit Sharma’s wicket in the ninth over at a score of just 56. Chris Jordan took three crucial wickets – Sharma, Kohli and Pandya.
  • Buttler smashed Bhuvneshwar Kumar for three boundaries in the opening over of their chase and England never looked back as the match turned into a flurry of sixes and fours. Buttler fittingly ended the match with a six. Read more here.

Rohit breaks down

  • The loss left skipper Rohit Sharma teary-eyed. Coach Rahul Dravid was spotted talking to him at the dugout, where Sharma was sitting all by himself. At one point he was seen covering his face and wiping his eyes. Sharma later said, while the team’s batting recovered as the innings progressed, it was the bowling that left him disappointed.

The final match

  • In the first semi-final on Wednesday, Pakistan beat New Zealand. On Sunday, Pakistan will now face England. Both these teams have won the T20 World Cup once before – Pakistan in 2009 and England in 2010. So far, West Indies is the only team to have won the T20 World Cup twice.
2. A tragedy on the island
2. A tragedy on the island
  • Nine Indians among 10 people died early Thursday when a major fire broke out in the garage below a cramped living quarters that housed foreign workers in the Maldivian capital.
  • Helpline: The Indian High Commission said it is reaching out to the families of the affected Indian nationals. “For any assistance, HCI can be reached on the following numbers: +9607361452 ; +9607790701,” the mission added.
  • A deathtrap: The garage is located on the ground floor of a building in Male, while the first-floor housed migrant workers. There were several gas cylinders in the living quarters which had only a single window, according to local news outlets. Maldives National Disaster Authority (MNDA)’s chief Hisan Hassan said 28 people were rescued from the building.
  • Migrant workers: Foreign workers constitute about half of Male’s 250,000-strong population, who are mostly from Bangladesh, India, Nepal, Pakistan and Sri Lanka.
  • Poor living conditions: Their poor living conditions were brought to light during the Covid-19 pandemic when the infection spread three times faster among foreign workers compared with locals. More details here
3. ‘Energy sector vulnerable to cyber-attacks’
3. ‘Energy sector vulnerable to cyber-attacks’
Defence Minister Rajnath Singh on Thursday highlighted the threat of cyber warfare, saying it has increased the vulnerability of critical infrastructure.

Energy sector

  • Key infrastructure like power generation and distribution is increasingly becoming more complex and there is a need for dealing with such challenges effectively, Singh said in his address at the National Defence College.
  • The energy sector, he added, is one of the main targets of cyber-attacks but it is not the only one; transport, public sector services, telecommunications and critical manufacturing industries are also vulnerable.

Chinese hackers

  • Earlier this year, a Bloomberg report said Chinese hackers targeted the power sector in India as part of an apparent cyber-espionage campaign.

Banking sector

  • Singh said the world’s increasingly interconnected financial systems are also at great risk.
  • “You all must be aware that in February 2016, hackers targeted the central bank of Bangladesh and tried to steal 1 billion dollars. While most transactions were blocked, 101 million dollars still disappeared.
  • “This was a wake-up call for the finance world that cyber risks in the financial system had been severely underestimated. Today, the assessment that a major cyber-attack poses a threat to financial stability is not a question of if, but when,” he said.

Information war

  • According to Singh, information warfare has the potential to threaten political stability. “The deployment of information war was most evident in the ongoing conflict between Russia and Ukraine. Throughout the conflict, social media has served as a battleground for both sides to spread competing narratives about the war and portray the conflict on their own terms.”
5. Who is this star cricketer of the Indian team?
Clue 1: The cricketer’s father was a watchman for a private security company
Clue 2: An all-rounder, he became the first Indian to score three first-class triple century
Clue 3: A left-hand spinner, he has been nicknamed “Sir” by his teammates

Scroll below for answer

6. A praise pregnant with possibilities
6. A praise pregnant with possibilities
The praise

  • Uddhav Thackeray’s key aide Sanjay Raut heaped praise on BJP leader and Maharashtra Deputy CM Devendra Fadnavis, saying, “There is a new government in Maharashtra, which has taken some good decisions too… Devendra Fadnavis has taken some good decisions”
  • The praise even included criticism of the previous Thackeray government: “Our government had taken away those rights [that Maharashtra Housing and Area Development Authority earlier had]. I did not like that. Fadnavis has done well to restore those rights.”

The timing

  • Raut spent 103 days in jail before being released on Wednesday for allegedly laundering money. Granting bail, the PMLA court said the money laundering law was misused in Raut’s case.
  • Last week, Uddhav’s son Aditya Thackeray kept everyone guessing on a question about Prime Minister Narendra Modi proposing reunion of the two Sena factions. He said, “I am not going to answer that because what is the point of going into hypothetical situations.”
  • In October end, Team Thackeray’s mouthpiece Saamana signalled a change in stand towards Fadnavis, praising him for attempting “to end bitterness” in Maharashtra politics.

Up next

  • Raut said he would meet with Fadnavis “regarding some public work”, and also PM Modi. He said, “I will also meet with Prime Minister Narendra Modi and Home Minister Amit Shah and tell them what is happening to me. I had read that Devendra Fadnavis said political bitterness should be reduced. I welcome his statement.”
  • He said he would also meet NCP chief Sharad Pawar but gave no clarity on meeting Thackeray’s other ally, the Congress.


  • He said, “I do not blame any central probe agency either. When they get a chance to do good things, they should.”
  • He kept his praise limited to Fadnavis and did not mention former party colleague Eknath Shinde.
7. ED gets an earful over its ‘pick-and-choose’ policy
7. ED gets an earful over its ‘pick-and-choose’ policy
  • A rap: A Delhi court on Friday rapped the Enforcement Directorate (ED) for adopting a pick-and-choose policy, and asked why the agency had not arrested actor Jacqueline Fernandez in a Rs 200 crore money laundering case involving conman Sukesh Chandrashekar.
  • Bail plea: Special Judge Shailendra Malik, who had earlier granted Fernandez interim bail, reserved order for Friday on the bail plea of the actor after hearing arguments from the lawyers appearing for Fernandez as well as the ED.
  • A lookout circular: The agency told the court that it has issued a Lookout Circular (LOC) on airports to stop the actor from leaving the country. “Why haven’t you (ED) arrested Jacqueline yet during the investigation despite issuing an LOC? Other accused are in jail. Why adopt a pick-and-choose policy,” the court asked.
  • The case: On August 17, ED filed a supplementary charge sheet in the extortion case and named the Bollywood star as an accused. Apart from ED, the actress has also been grilled by other agencies including the Economic Offences Wing (EOW) of the Delhi Police.
  • Main accused: Chandrashekhar, the main accused in the matter, is currently in jail in Delhi. He is accused of cheating several people, including high-profile individuals.
8. Can mental health be a ground for mercy?
8. Can mental health be a ground for mercy?
  • The Supreme Court on Thursday stayed execution of a death row convict, found guilty of raping and murdering a three-year-old girl, and sought reports from the superintendent of Yerwada prison at Pune on his conduct and behaviour during incarceration period while ordering a medical probe to assess his mental health. The top court also asked the jail superintendent to share details about the nature of work assigned the convict in prison.
  • A bench of Chief Justice D Y Chandrachud, Justices Hima Kohli and J B Pardiwala also asked the Maharashtra government to submit reports of all probation officers who kept watch on the convict. It ordered the government hospital at Pune to constitute a medical team for psychological evaluation of the convict, who was found guilty of rape and murder in 2013. A Thane court had given him to death penalty and, in 2021,the Bombay high court upheld the death sentence.

Second recent case

  • Last week, taking into account the mental health condition of a death row prisoner, who was in solitary confinement for around 10 years, the Supreme Court commuted his death sentence to 30 years’ jail term without remission. A bench headed by then CJI U U Lalit allowed the plea of the convict seeking commutation of his sentence to life imprisonment citing how such prolonged solitary confinement violated the top court’s earlier rulings and highlighted its ill effects on the convict’s mental health. Read more here.

An old connection

  • Deliberations on possible links between mental health and death row is not new. There are studies that suggest how a majority of death row convicts suffer from at least one mental illness. As per a study by Project 39A, a criminal justice research programme at the National Law University in Delhi, one out of two death row convicts suffered abuse in childhood. Read more here.
9. Can states bring a law on UCC?
9. Can states bring a law on UCC?
  • Days ahead of polls in Himachal Pradesh, BJP seems to have scaled up its push for implementing Uniform Civil Code (UCC) in the state, even as differences of opinions, both among politicians and experts, evidently prevail over whether states can bring a law on UCC in the first place. The debate comes at a time when several BJP-ruled states – such as Uttarakhand, Uttar Pradesh, Assam and poll-bound Gujarat – have been strongly batting for UCC and announced formation of committees for the purpose.

Politicians divided

  • BJP president J P Nadda has said that UCC will be implemented through the state level and asserted that the party makes election promises after due diligence. However, Congress leader P Chidambaram has said that “even a child knows that states cannot implement it (UCC) and it can be done by the Parliament.”

Experts divided

  • Experts are divided on whether a state has the power to bring a law on UCC. Constitution expert and former Lok Sabha secretary general P D T Achary told PTI that both the Centre and the states are empowered to bring such a law as issues like marriage, divorce, inheritance and property rights come under the Concurrent List of the Constitution. But former Union Law Secretary P K Malhotra was of the view that only the central government can bring such a law by moving Parliament.

What Constitution says

  • UCC calls for the formulation of one law for India that would be applicable to all religious communities in matters of marriage, divorce, inheritance and adoption. It comes under Article 44 in Part IV of the Constitution, which says that the state “shall endeavour to secure” a Uniform Civil Code for citizens throughout India. Part IV of the Constitution outlines Directive Principles of State Policy, which, while not enforceable or justiciable in a court of law, are fundamental to the country’s governance.
Ravindra Jadeja. The BJP has named Rivaba Jadeja, Ravindra Jadeja’s wife, as its candidate from Jamnagar North in the Gujarat election, dropping sitting MLA Dharmendrasinh Jadeja. In the first list of 160 candidates released on Thursday, the BJP replaced 38 MLAs, including Morbi’s Brijesh Merja. The BJP nominated Kantilal Amrutia, the former MLA from Morbi, where a bridge collapse killed 135 people two weeks ago. The BJP also fielded Hardik Patel, the former Gujarat Congress chief who switched over to the BJP, from Viramgam. More here
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Written by: Rakesh Rai, Jayanta Kalita, Prabhash K Dutta, Abhishek Dey
Research: Rajesh Sharma

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