From the erratic ups and downs in bitcoin and ethereum value, to the explosion in initial coin offerings, and the unstoppable demand for mining-ready GPUs, cryptocurrency has become an inescapable story. It’s also become increasingly difficult to make sense of — as the industry expands, new currencies sprout up, and companies form overnight. Check here for the complete coverage of bitcoin, ethereum, litecoin, monero, Venezuela’s petro, cryptocurrencies at large, and the ways that ICOs and the underlying blockchain technology are helping shape a burgeoning industry and giving life to a new wave of startups and entrepreneurs.
Kraken founder Jesse Powell wanted to contribute to a recall campaign for Gavin Newsom without having his identity exposed. It didn’t work out that way, and he was publicly listed as one of the top donors to the recall. Now he’s suing, saying he was deceived.
While Do Kwon remains in Montenegro awaiting extradition, the SEC’s lawsuit against him and Terraform Labs has concluded, with the jury ruling (PDF) they acted recklessly and are liable following the UST stablecoin’s collapse in 2022. Reuters reports the agency is seeking civil financial penalties and bans on both Kwon and Terraform.
With crypto prices high, it’s apparently time for Ripple — while battling an SEC lawsuit — to launch its own stablecoin in the US. If you’re not familiar with stablecoins, we have an explanation about these financial instruments that help crypto transactions flow.
Ripple says that, unlike the algorithmic UST coin that crashed, its stablecoin will be “backed by a 1:1 reserve of cash and cash equivalents” and that it “will publish monthly attestations of the assets.”
As Inner City Press notes, not only did the prosecution bring up Bankman-Fried’s “fuck regulators” DM sent to Vox reporter Kelsey Piper during the trial, the judge hasn’t forgotten either and mentioned it as evidence that SBF was only acting like he wanted regulation for the crypto industry.
Paraphrased courtroom updates from Inner City Press on X capture SBF’s reflections on working with Gary Wang, Nishad Singh, and Caroline Ellison.
These former friends are now felons who testified against Bankman-Fried during his trial.
Sam Bankman-Fried is being represented by new lawyers during today’s hearing, but their statements on his behalf sound familiar. The jury heard those and reached a guilty verdict in just a few hours; now, we’ll see how the judge responds.
The FTX founder is in court now, waiting to see whether Judge Kaplan hands the 40 to 50 years in prison prosecutors recommend — or if his decision is closer to the more lenient five- to six-year sentence that Bankman-Fried’s lawyers are pushing for.
Matt Novak has a banger of a new entry for the Internet of Shit. Over at Gizmodo, he’s discovered a YouTube scam that doesn’t just drain your crypto wallet — it also scams the actors hired to read bullshit testimonials about how they make money while they sleep.
Who needs AI when you can get a real, live human to legitimize your scheme on camera?
Soundside, a daily broadcast program from Seattle’s NPR news station KUOW, breaks it down in this episode. Catch my interview about the energy and environmental costs of Bitcoin mining in the US, and the legal battle that killed the Department of Energy’s survey of miners’ electricity consumption.
[KUOW Public Radio]
Binance executives Nadeem Anjarwalla and Tigran Gambaryan were detained in Nigeria last month after visiting the country amid concerns about crypto’s effect on local currency.
However, Binance tells CNBC it has been “made aware” that Anjarwalla is no longer in Nigerian authorities’ custody. The Nigerian government has since accused Binance of four counts of tax evasion, including failure to file tax returns.
Two years ago, Starbucks announced a web3 NFT project that was supposed to expand its Rewards loyalty program by using the blockchain... somehow.
One year ago, Starbucks delivered the first paid Odyssey NFTs, selling 2,000 in twenty minutes during the same week Facebook and Instagram quit NFTs.
Now, Starbucks says the Odyssey Beta will shut down on March 31st, and I’m wondering which big brand’s NFT project will last through March 2025.
The former crypto billionaire was found guilty on all seven charges he faced in November, and the judge is scheduled to deliver a sentence on March 28th. Bankman-Fried’s lawyers suggested a five- to six-year prison sentence, but a filing submitted by the prosecution on Friday disagrees:
While a Guidelines sentence – which would exceed 100 years, effectively a life sentence – is not necessary, the Government urges the Court to impose a sentence that underscores the remarkably serious nature of the harm to thousands of victims; prevents the defendant from ever again committing fraud; and sends a powerful signal to others who might be tempted to engage in financial misconduct that the consequences will be severe.
A sentence of 40 to 50 years is necessary to serve such purposes.
Almost eight years after Wright publicly claimed to be the digital currency’s enigmatic inventor, UK Judge James Mellor has said the “overwhelming” evidence is that this isn’t the case. In a post on X Jack Dorsey, one of the backers of the organization that brought the legal challenge against Wright, quoted the judge’s verdict:
According to Fortune, the crowdfunding platform got a $100 million investment from the VC firm’s crypto fund — and the 2021 deal was meant to get Kickstarter into the Web3 hype cycle.
If you recall, the pivot was a disaster: after public outrage, Kickstarter formed a community advisory council, and the company ultimately decided to shift its attention away from the blockchain.
Correction March 12th 10:56AM ET: The Web3 pivot wasn’t a formal stipulation of the deal, as initially stated.
In 2022, Coachella sold thousands of NFTs, including 10 digital “lifetime passes.” But it partnered with FTX US, Sam Bankman-Fried’s fall took the tokens with it, and owners were left chasing their promised benefits. Now Bitcoin is back, and Coachella’s trying NFTs again.
Each $1,499 NFT in the initial collection comes with a 2024 VIP Festival Pass and access to an exclusive bar.
Of 1,024 NFTs offered, three have been minted so far.
That’s the highest it’s been since 2021, before the long, cold crypto winter brought that price crashing down to less than $20,000.
A friendly reminder: the higher that price gets, the more energy Bitcoin mining typically burns through and the greater its greenhouse gas emissions.
The DOE reached a settlement with crypto miners who sued to block data collection. The agency tried to make companies disclose their energy use through an emergency data request. But a federal judge placed a temporary restraining order on it in February, saying the situation probably didn’t warrant emergency authorization. On Friday, the DOE agreed to destroy information it’s already collected. It can start over without emergency authorization, but would have to propose a new survey and give the public 60 days to comment.
Warren has been urging federal agencies to scrutinize energy-hungry Bitcoin mines. But crypto groups secured a temporary pause on the Department of Energy’s survey of their electricity consumption.
“The Department is asking cryptominers to report basic information about their energy usage—like other industries have done for decades—so the public and lawmakers better understand how cryptomining’s electricity use and carbon emissions affect the power grid and environment,” Warren said in a statement to The Verge after the news came out.
He might even arrive in time for the SEC’s fraud lawsuit, which is scheduled to begin jury selection in March. He’s also facing eight criminal counts.
That’s Su Zhu; Kyle Davies is still on the lam. But their woes may not yet be over:
Among the most incriminating evidence brought forward against Zhu and Davies is a document they sent to at least one creditor as crypto markets were collapsing in May 2022, claiming 3AC had nearly $2.4 billion under management. Both lenders and people close to the liquidators now believe this number was false, grossly overstating the fund’s assets. “We firmly believe they committed fraud.”
👀
[Intelligencer]
Yuga Labs, the group behind Bored Apes, is purchasing Kevin Rose’s NFT group, Proof. Yuga previously bought CyrptoPunks, too.
As Yuga scoops up more of the NFT world, the question remains: who’s still buying? And is there anything worth doing with them?
That was the vibe when the Curb Your Enthusiasm star called himself “an idiot” during an interview with The Associated Press recently. He was part of the glut of FTX Super Bowl 2022 ads angled on FOMO the same year FTX collapsed, and we know how that story went.
Of course, there were no crypto ads during Super Bowl LVIII — unless you count Jack Dorsey wearing a Satoshi shirt again.
The Times marked it with a dagger, noting “institutional, special interest, group or bulk purchases” that may have helped it make the list.
Motherboard points out the label, and includes statements from Dixon’s firm a16z and a few crypto companies it invested in, all acknowledging purchasing multiple copies of a book that one reviewer said “fails to identify a single blockchain project that has successfully provided a non-speculative service at any kind of scale”
“The book is peppered with glowing references to companies a16z has backed, but is completely devoid of any disclosures.” There’s gotta be a more efficient way to hype your companies than a book, right?
Anyway this does seem like a problem for a 15-year-old technology: “Throughout the entire book, Dixon fails to identify a single blockchain project that has successfully provided a non-speculative service at any kind of scale.”
[Citation Needed]
Greenidge Generation, a gas-powered Bitcoin-mining operation, agreed to pay $105,000 to settle claims it violated the EPA’s coal ash program. This requires companies to follow certain groundwater monitoring rules, among other things.
Greenidge Generation started mining Bitcoin at a shuttered New York power plant that used to burn coal in 2020. It has faced pushback from state lawmakers due to concerns about its environmental impact.
Meet OnlyFakes, a quick and easy way to help bypass cryptocurrency Know Your Customer attempts — among other uses for fake IDs.
Lots of interesting stuff in this story, but here’s what stood out to me:
While OnlyFake says it uses “neural networks” to create its fake IDs, 404 Media has not seen evidence that the service uses generative AI tools.
If you want criminals to think you’re on the cutting-edge of criminality, sprinkle some AI on your marketing!
That’s how Gladys Anderson describes living with noise from a crypto mine that was built by her Arkansas home, in a story published today in The New York Times.
The noise prompted her and almost two dozen others to sue the site’s owners in July. The suit alleges they suffer issues like anxiety and high blood pressure because of noise from the cooling fans necessary for the power-hungry computing that crypto mining demands.
I mean yes, they don’t say that but come on: they are targeting high-volume traders — if you’re doing more than $500,000 monthly, I think you are maybe not a normal consumer.
Wonder if this is the beginning of a race to the bottom on fees... and who will be left standing.
[FinancialTimes]
