Riding The Wave News Summary 96

‘In Huge Trouble’—Leak Reveals $10 Billion Earthquake Could Be About To Cause Bitcoin And Ethereum Price Chaos, FTX Exploiter Converts Millions in Ether to Alameda-Linked Ren Bitcoin Tokens, & more

Nov 20, 2022

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Dylan LeClair 🟠 @DylanLeClair_

Silvergate -46% over the last month. $SI

state @statelayer

ah sweet man-made horrors beyond my comprehension

Ari Paul ⛓️ @AriDavidPaul

An update on Silvergate - we've done some more analysis and are confident it's solvent w/large margin for error (as confident as we can be as non-bank experts performing superficial financial analysis). It's critical and valuable infrastructure to the industry and /1

Financelot @FinanceLancelot

Something broke in the global financial system. U.S. banks are pulling liquidity out of Reverse Repo which means there's a sudden spike in credit stress and lending is ceasing up. The Fed pumped $2.5 trillion into RRP to mask any need for Repo interventions.

Wall Street Silver @WallStreetSilv

This headline is just another nail in the coffin of the MSM credibility. $40 million buys a lot of protection from corporate media. It's weird, because the money train is definitely over, but they are still covering for SBF and his crew.

DonAlt @CryptoDonAlt

FTX imploded and we made a new low that was barely 10% below the previous one At this rate, if we wanna go down 50% Satoshi has to come back and start selling, Coinbase has to burn down and CZ has to go to jail

Alexander Pack @alpackaP

I was the first VC to try to invest in SBF, 4 years ago, well before FTX had even launched. I shared some of my story with CNBC, but there is more - a lot more. Here's what I learned, and why I passed on investing based on suspicion of deception and reckless risk-taking.

CNBC @CNBC

Cryptocurrency investor says he saw 'serious red flags' with FTX founder Sam Bankman-Fried https://t.co/s2DQVeUGjc

Benjamin Cowen @intocryptoverse

Never forget that #BTC creates the bull market, not the Altcoins. They just tag along for the ride.

frxresearch 🔶 @frxresearch

In case u don’t know what this means, because if binance were to sell the FTTs it would mean dumping on binance’s users, cz doesn’t do that, that’s why he is just holding to 0

The Kobeissi Letter @KobeissiLetter

Tech Layoffs by Month (2022): 1. January: 1,000 2. February: 3,600 3. March: 5,700 4. April: 4,100 5. May: 17,000 6. June: 17,600 7. July: 16,200 8. August: 13,000 9. September: 5,700 10. October: 12,500 11. November: 24,000 We have now seen more layoffs this year than 2001.

Genevieve Roch-Decter, CFA @GRDecter

Many are calling FTX a “Lehman Moment” for crypto. But how similar is the collapse of FTX to Lehman? Here’s a breakdown 🧵

alfa (aka Aj) @alphaketchum

𝟏)𝐖𝐇𝐀𝐓 𝟐) 𝐇𝐀𝐏𝐏𝐄𝐍𝐄𝐃

Wick @ZeroHedge_

Remember when everyone said that there is no ways BTC can drop anymore before FTX went bankrupt? I was posting charts of 2018 when it dropped another -50% after being 6 months into bear market? Bear market brings bad news. Worst thing you can do is trade bullish in bear market

Bearica Wall @ercwl

This actually looks accurate. So the data was known and visible this whole the time?

Dylan LeClair 🟠 @DylanLeClair_

Why couldn’t multi-billion dollar firm @chainalysis identify that FTX user deposits were being commingled with Alameda trading wallets while randoms on Twitter could? What exactly is the point of your service again?

Satoshi Stacker @StackerSatoshi

BREAKING: The FTX Hacker is dumping $ETH !

Aylo @alpha_pls

The FTX hacker is doing things... They sent 25k ETH to another wallet and have been actively selling into RenBTC over the last few hours. They sold another 3k ETH a few minutes ago. And have sold 18K ETH ($21.7M) of the 25k so far. Can't we just chill on a Sunday?

‘In Huge Trouble’—Leak Reveals $10 Billion Earthquake Could Be About To Cause Bitcoin And Ethereum Price Chaos

Now, fears are swirling that $10 billion bitcoin and crypto giant Digital Currency Group (DCG) could be in trouble after its crypto lender Genesis was forced to pause withdrawals and reports emerged it's seeking an emergency $1 billion loan.

This week, Genesis, one of the biggest crypto lenders that makes up part of DCG's sprawling crypto empire, suspended customer redemptions in its lending business, blaming the sudden FTX meltdown. DCG, last year reportedly valued at $10 billion, also owns bitcoin and crypto miner Foundry, asset manager Grayscale, crypto exchange Luno and news outlet Coindesk.
Ahead of the withdrawal suspension, Genesis requested an emergency loan of $1 billion from investors, it was reported by the Wall Street Journal, citing a leaked fundraising document that described a "liquidity crunch due to certain illiquid assets on [Genesis'] balance sheet."
"There has been a target on Genesis's back for days," Joseph Edwards, an investment partner at Securitize Capital, told Reuters, adding it's "a signal of worse outcomes" for the crypto market due to Genesis' close links with brokers, family offices and money managers.
FTX's sudden collapse this month was partly triggered by reports that a significant portion of its balance sheet was made up of illiquid cryptocurrencies it had created. Just last week, FTX filed for bankruptcy protection in the U.S. and its founder Sam Bankman-Fried (SBF) resigned as chief executive.

Full Article

FTX Exploiter Converts Millions in Ether to Alameda-Linked Ren Bitcoin Tokens

Whoever was behind the $600 million exploit of crypto exchange FTX started exchanging millions of dollars worth of ether to Ren Bitcoin (renBTC), a token that represents bitcoin on other blockchains, early on Sunday.

The use of renBTC may surprise some in the crypto space: In 2021, Alameda Research – the Sam Bankman-Fried-owned trading arm at the center of a multibillion-dollar scandal – said Ren’s development team was “joining” Alameda and would work on expanding Ren’s usage to several blockchains.

Data cited by security firm PeckShield shows the exploiter used the Ren bridge to transfer out thousands of renBTC. Bridges are blockchain-based tools that allow users to exchange tokens between different networks.
As per a study by blockchain analysis firm Elliptic, the Ren bridge has been previously used to launder stolen funds to the tune of at least $540 million – as it obfuscates addresses and provides privacy to users.

Full Article

Cardano Is Launching New Privacy Blockchain and Token

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