The FTX saga continues, while a Caribbean island looks to BCH and Nike goes further into NFTs.
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A note from the editor...
What H A P P E N E D
One of the most unique things about this most recent near total collapse of a large crypto company is the fact that almost the entire drama has unfolded on Twitter.
Not only are the main actors in this place tweeting inappropriately (and potentially, libeling themselves), but past bad actors from other failed crypto companies are chiming in to crack inside jokes in the tweet threads. These now disgraced former crypto influencers are joined in the behavior by those like Elon Musk, Edward Snowden (that’s right, Edward Snowden) and even Martin Shkreli.
And, in the most bizarre turn of events so far, the main player in this drama — Sam Bankman-Fried, founder and former CEO of FTX — has taken to Twitter yet again even while multiple countries initiate investigations into his business dealings. After tweeting several “I’m really sorry” threads over the past week, SBF went a much more cryptic route over the past day, tweeting out singular letters every few hours to spell: What H A P P E N E D.
While there is some evidence that this is a crack at a former FTX employee, it’s just plain weird that the former head of a crypto exchange that allegedly lost over $10 billion in user funds is tweeting clues out of a Sherlock Holmes novel.
Even weirder is that SBF is still giving public interviews even on his tweet content, and told the New York Times just yesterday about his tweet puzzle: “I’m improvising. I think it’s time.”
Um. What?
Can you imagine these tweets in the eventual deposition: “Your honor, when my client tweeted ‘H,’ waited four hours, and then tweeted ‘A,’ followed by ‘NOT FINANCIAL ADVICE,’ he actually meant….”
Today's Top Stories
CFTC Chair: Our Oversight Made FTX US Derivatives Lone Survivor
Commodity Futures Trading Commission Chairman Rostin Behnam said that the reason there is one survivor still standing among Sam Bankman-Fried's empire is that it bought FTX US Derivatives after it was registered with his agency. “The reason is because — I believe pretty strongly — that they are very clearly regulated by the CFTC,” he said, adding that it shows "the benefit of having clear, transparent rules.” That firm has withdrawn a proposal that it be allowed to clear swaps without the traditional Clearinghouse intermediaries, which traditional exchanges had labeled dangerous. More broadly, FTX's collapse has strengthened the hand of legislators who want tough industry regulation
FTX Allegations Keep Growing As Details Emerge
Sam Bankman-Fried’s now-bankrupt FTX crypto exchange appears to have been frontrunning cryptocurrency listings on FTX, amassing large numbers of a variety of tokens before their listing was announced, a blockchain analytics firm alleged. "Given the timing of their market entrance shortly before listings, it seems not coincidental," Argus's CEO said. Meanwhile, Alameda Research CEO Caroline Ellison tearfully told staffers she, Sam Bankman-Fried and two executives knowingly borrowed FTX customer funds to cover debts, the New York Times said. Federal prosecutors in New York are investigating.
Nike Drives Web3 Game With Dot Swoosh NFT Platform
The sneaker giant is already by far the top seller of corporate branded NFTs, taking in more in virtual product sales than the rest of the top 10 brands combined. Now it’s looking to expand sales into the mainstream with a Polygon-based NFT experience and store, Dot Swoosh. "We’re not just targeting Web3 natives, we’re targeting a more Web3-curious audience, people afraid to [buy NFTs] because it’s too confusing or hard,” Nike's web3 and metaverse head said. Interactivity will be a key focus, with visitors able to vote on design choices and even have a chance to design and earn royalties on designs.
EU Proposal Calls for Privacy Coin Ban
A proposal making rounds in the European Commission would forbid financial institutions from handling privacy coins as part of a larger crackdown on anonymous financial transactions. The move to ban privacy coins like Monero, Dash and Zcash is part of a larger anti-money-laundering (AML) bill, according to reports. Crypto exchanges and service providers would also have to collect customer ID for any transaction, not just those over €1,000. They would also have to vet non-EU counterparties for licensing and AML controls.
St. Kitts and Nevis Consider Adopting Bitcoin Cash as Legal Tender
The tiny Caribbean nation of St. Kitts and Nevis is considering adopting Bitcoin Cash as a legal tender, its prime minister said at a conference on Saturday. Terrance Drew said that he welcomes “the opportunity to dialog further with a view to exploring future opportunities to engage in Bitcoin Cash mining and making Bitcoin Cash legal tender here in St. Kitts and Nevis by March 2023." However, that could bring up opposition from the eight-member Eastern Caribbean Currency Union (ECCU), which supplies its current currency and the EC dollar. It also launched a central bank digital currency this year, DCash, so it may well view BCH as potential competitor.
