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the crypto industry sink under the $1 trillion market capitalization mark, adoption in the area has been rising, and outdated mysteries had been lastly solved.

From the unbelievable quick squeeze of a bankrupt firm’s token to outdated anti-crypto arguments utilized by a serious central financial institution, we’re getting bizarre with 5 stories the greatest fiction writers couldn’t dream up.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, well-liked cryptocurrency alternate 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 fame was broken for years to return.

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 courtroom 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 residence was being searched, Morgan allegedly requested federal brokers for permission to retrieve her cat from underneath the mattress and, whereas doing so, tried to lock her cellphone.

Morgan and Lichtenstein reportedly traveled to Ukraine in 2019 to realize false identities and create faux 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 is going to “always love getting into trouble w/ this crazy guy.”

Bitfinex introduced it had been hacked on August 2, 2016. https://t.co/Y7sJ7ZUrKB On Aug. 1, 2016, Heather Morgan posted a photograph with Ilya Lichtenstein and the caption: “I will always love getting into trouble w/ this crazy guy.” pic.twitter.com/EjVmRtiYof

— Jack Morse (@jmorse_) February 9, 2022

Commenting on Morgan and Lichtenstein’s arrest, Dymtro Volkov, head of international improvements at crypto alternate CEX.io, informed Cointelegraph that with the correct technical assets, “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 value of its native utility token, CEL (CEL), jumped by greater than 4,100%. In solely two months, the value 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, may take over Celsius’ property. Other rumors prompt Goldman Sachs deliberate to amass Celsius for $2 billion.

FTX continues to be sucking up CEL liquidity.

550k CEL moved from OkeX to FTX 25min in the past.#CelShortSqueeze is quietly doing its factor behind the scenes. #celsius #CelsiusNetwork pic.twitter.com/T2l4pbrUfO

— CryptoChris (@Chris52508387) July 17, 2022

Traders organized a large quick squeeze. Short squeezes happen when an asset’s value rises instantly, forcing quick sellers to purchase again the asset at a better value to shut their positions.

The quick squeeze was attainable as a result of a freeze on Celsius token transfers considerably lowered the circulating provide of CEL.

Click “Collect” under the illustration at the prime of the web page or comply with this hyperlink.

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

It’s at the moment believed merchants on FTX pulled off the quick squeeze, however deleted tweets counsel that the origins of the motion might not be totally understood, and a few imagine Alameda Research was instantly concerned. We do know that not less than some merchants are nonetheless making an attempt to get a CEL quick 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 alternate 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 become 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 surprising revelation as a result of, till that time, Bankman-Fried had dismissed issues about the solvency of FTX.

This afternoon, FTX requested for our assist. There is a major liquidity crunch. To defend customers, we signed a non-binding LOI, intending to totally purchase https://t.co/BGtFlCmLXB and assist cowl the liquidity crunch. We shall be conducting a full DD in the coming days.

— CZ Binance (@cz_binance) November 8, 2022

Binance CEO Changpeng Zhao added to these issues 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 via the subsequent day after Binance performed its due diligence, with the causes turning into clear quickly after.

European Central Bank spreads FUD

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

The ECB mentioned 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 stream 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 prompt that cryptocurrency promotion bears a “reputational risk for banks.”

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

I clicked on this text with an open thoughts, keen to have my thoughts modified

But it opens with a provable lie

The overwhelming majority of Bitcoin utilization is for authorized spending, for-profit hypothesis, and playing – not “illegal transactions”

It’s not 2012 anymore… This is a joke. pic.twitter.com/037aehMyEN

— FatMan (@FatManTerra) November 30, 2022

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 take into account CBDCs to be competing with cryptocurrencies, which are sometimes seen as a strategy to exit the shortcomings of fiat forex techniques.

Speaking to Cointelegraph, Anton Bukov, co-founder of 1inch Network, mentioned the ECB’s publish was good for the cryptocurrency group, 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) turned 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 group initially celebrated the transfer, the bizarre facet of this quickly turned obvious.

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

More to comply with.

Vires in Numeris. #Bitcoin #BTC

Unité, Dignité, Travail#RCA #CAR #crypto #Cryptomonnaies

— Faustin-Archange Touadéra (@FA_Touadperiod) May 21, 2022

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 may have a devoted Bitcoin reserve and permit residents to have a “voice and chance to shape the future” via a governance system. Citizenship will be acquired by locking fastened collateral in Sango. Other advantages embody e-residency, land possession and 0% earnings 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 informed Cointelegraph that cryptocurrencies are (*5*) and will assist join home monetary techniques to international 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 mentioned cryptocurrencies can have a “hugely positive effect on countries with developing financial systems looking to participate in the global economy.”

The stories coated in this text make it clear how unpredictable the cryptocurrency area 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.

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