The 5 strangest stories of the industry in 2022

December 25, 2022 CryptoExpert Blockchain


From Terra to FTX, 2022 has given us many bizarre crypto stories. While buyers have been enduring a bear market that noticed the crypto industry sink beneath the $1 trillion market capitalization mark, adoption in the house has been rising, and previous mysteries had been lastly solved.

From the unbelievable brief squeeze of a bankrupt firm’s token to previous anti-crypto arguments utilized by a serious central financial institution, we’re getting bizarre with 5 stories the greatest fiction writers couldn’t dream up.

“Comedic rapper” charged over Bitfinex hack

Back in 2016, common cryptocurrency change Bitfinex suffered a serious safety breach that noticed attackers steal 119,756 Bitcoin (BTC), value roughly $72 million at the time. It was one of the largest crypto hacks in historical past, and though Bitfinex continued working, its popularity was broken for years to come back.

This 12 months, Heather Morgan, identified by her rap title “Razzlekhan,” and her husband Ilya Lichtenstein had been arrested by the Federal Bureau of Investigation for allegedly conspiring to launder crypto related to the Bitfinex hack.

During a court docket look in New York, the pair proclaimed their innocence and had been launched on multimillion-dollar bonds. The bizarre half of this story is the particulars surrounding Morgan’s work as a “comedic rapper” and social media influencer. One of her songs even says it’s devoted to “the entrepreneurs and hackers, all the misfits and smart slackers.”

Morgan, who calls herself the “crocodile of Wall Street,” was labeled a grasp of “deceit and deception” by federal authorities. While her dwelling was being searched, Morgan allegedly requested federal brokers for permission to retrieve her cat from below the mattress and, whereas doing so, tried to lock her cellphone.

Morgan and Lichtenstein reportedly traveled to Ukraine in 2019 to achieve false identities and create pretend passports, and have “established financial accounts” in Ukraine and Russia.

She was an everyday contributor to Forbes. The day earlier than the Bitfinex hack, she posted an image subsequent to Lichtenstein with a caption saying she’s going to “always love getting into trouble w/ this crazy guy.”

Commenting on Morgan and Lichtenstein’s arrest, Dymtro Volkov, head of world improvements at crypto change CEX.io, instructed Cointelegraph that with the correct technical sources, “it is possible to track the flow of most funds moving on a blockchain network” and that “hiding a huge amount of stolen funds is actually quite a complex task.”

Notably, the pair isn’t being charged with the hack however laundering the stolen funds. The sordid particulars of the story have even caught the curiosity of filmmakers. Hulu is producing a true-crime restricted sequence about Morgan’s life, and Netflix has ordered a docuseries on the story.

Bankrupt Celsius Network’s CEL token surges 4,000%

Shortly after cryptocurrency lending platform Celsius Network filed for chapter, the worth of its native utility token, CEL (CEL), jumped by greater than 4,100%. In solely two months, the worth climbed from a backside of $0.093 to a close to $4 excessive.

The surge got here amid rumors that Ripple, an organization engaged in a authorized battle with the United States Securities and Exchange Commission, might take over Celsius’ property. Other rumors recommended Goldman Sachs deliberate to amass Celsius for $2 billion.

Traders organized an enormous brief squeeze. Short squeezes happen when an asset’s worth rises abruptly, forcing brief sellers to purchase again the asset at the next worth to shut their positions.

The brief squeeze was potential as a result of a freeze on Celsius token transfers considerably diminished the circulating provide of CEL.

Click “Collect” beneath the illustration at the high of the web page or observe this hyperlink.

At the time of the brief squeeze, Cointelegraph reported that FTX had about 5.1 million CEL tokens, amounting to 90% of the complete circulating provide on exchanges.

It’s at present believed merchants on FTX pulled off the brief squeeze, however deleted tweets counsel that the origins of the motion will not be absolutely understood, and a few consider Alameda Research was straight concerned. We do know that no less than some merchants are nonetheless making an attempt to get a CEL brief squeeze going once more, even after the token dropped to $0.50.

Binance’s letter of intent

Binance’s shocking letter of intent to amass the collapsing FTX change is one other bizarre story of 2022. At the time, many in crypto believed FTX was a solvent, well-run firm. When Binance introduced its intent to liquidate its holdings of FTX Token (FTT) following hypothesis relating to the solvency of FTX, what was seen as a rivalry between Binance and FTX quickly changed into a possible buyout nobody was anticipating.

As FTX’s solvency was hardly being questioned, CEO Sam Bankman-Fried introduced an “agreement on a strategic transaction” with Binance. It was a bizarre and sudden revelation as a result of, till that time, Bankman-Fried had dismissed considerations about the solvency of FTX.

Binance CEO Changpeng Zhao added to these considerations when he tweeted, “This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days”.

The deal fell by way of the subsequent day after Binance carried out its due diligence, with the causes turning into clear quickly after.

European Central Bank spreads FUD

In late November, the European Central Bank (ECB) printed a weblog publish in which it argued that Bitcoin’s restoration from $17,000 to $20,000 was doubtless an “artificially induced last gasp before the road to irrelevance.”

The ECB stated that Bitcoin is “rarely used for legal transactions” and that “real Bitcoin transactions are cumbersome, slow and expensive.” The central financial institution daringly wrote that Bitcoin has by no means been used “to any significant extent for real-world legal transactions.”

Related: The most eco-friendly blockchain networks in 2022

According to the ECB, Bitcoin has benefited from “waves of new investors” whereas not being appropriate as an funding. It doesn’t generate money circulate or dividends, nor can or not it’s productively used or “provide social benefits.”

The assertion argues that blockchain know-how has “created limited value for society” and that the “Bitcoin system is an unprecedented polluter.” It additionally recommended that cryptocurrency promotion bears a “reputational risk for banks.”

Every level the ECB introduced up has been used to assault the cryptocurrency neighborhood, and each single level has been rebuffed.

The ECB has recycled a number of crypto myths which were used to carry the industry again. The publish comes as the ECB accelerates progress on growing a digital euro. One of the publish’s authors, Ulrich Bindseil, has authored quite a few posts on central financial institution digital currencies.

Besides the recycled myths, what’s bizarre is the ECB’s unclear angle, as many don’t contemplate CBDCs to be competing with cryptocurrencies, which are sometimes seen as a technique to exit the shortcomings of fiat forex techniques.

Speaking to Cointelegraph, Anton Bukov, co-founder of 1inch Network, stated the ECB’s publish was good for the cryptocurrency neighborhood, because it means the “government came to the second or even third stage of Gandhi’s thought: First they ignore you, then they laugh at you, then they fight you, then you win.”

Central African Republic’s crypto plan

The Central African Republic (CAR) grew to become the second nation to undertake Bitcoin as a authorized tender earlier this 12 months, permitting round 5 million residents to make use of the flagship cryptocurrency alongside the nation’s fiat forex, the Central African CFA franc.

The transfer got here after Central African Republic President Faustin-Archange Touadéra signed a invoice into regulation establishing a regulatory framework for Bitcoin as authorized tender. While the crypto neighborhood initially celebrated the transfer, the bizarre facet of this quickly grew to become obvious.

Although the CAR is a mineral-rich nation, its individuals are amongst the poorest in the world. It has been devastated by a decade-long civil battle, and it’s estimated that 9 out of 10 residents don’t even have entry to the web. CAR’s resolution was accompanied by little to no clarification, with President Touadéra tweeting a easy “more to follow.”

The tweet was referring to an anouncement about the nation’s “visionary” plan to create a “fantastic opportunity for anyone who believes in crypto investing.” That alternative is the Sango mission, which seems to now be an preliminary coin providing for the nation’s CBDC.

The mission claims that the nation’s treasury could have a devoted Bitcoin reserve and permit residents to have a “voice and chance to shape the future” by way of a governance system. Citizenship will be acquired by locking fastened collateral in Sango. Other advantages embrace e-residency, land possession and 0% revenue tax for digital property.

While attracting international funding is an clever transfer from CAR, a Bitcoin-based preliminary coin providing from a war-torn nation is a bizarre improvement. CEX.io’s Volkov instructed Cointelegraph that cryptocurrencies are “well positioned to help emerging economies fill gaps in the services their domestic financial systems are lacking” and will assist join home monetary techniques to world markets. Volkov added that the transfer might assist the nation’s economic system:

“Making crypto legal tender, or at least creating a legal framework that defines its usage, allows financial companies to introduce cheap and fast financial services that customers can access even with unreliable access to the internet.”

He additionally stated cryptocurrencies can have a “hugely positive effect on countries with developing financial systems looking to participate in the global economy.”

The stories lined in this text make it clear how unpredictable the cryptocurrency house will be throughout bear and bull markets. If something, anybody following what’s occurring is having fun with a rollercoaster experience they may always remember.





(*5*)

[adinserter block=”2″]