Stories about Cryptography in 2022
Budrigannews.com – Numerous bizarre crypto stories have been told since 2022, from Terra to FTX. Adoption in the space has been growing, and old mysteries have finally been solved, despite investors having to endure a bear market that saw the crypto industry fall below the $1 trillion mark in market capitalization.
We’re getting weird with five stories that even the best fiction writers couldn’t come up with, ranging from the incredible short squeeze of a token from a bankrupt company to old anti-crypto arguments used by a major central bank.
In 2016, a significant security breach at the popular cryptocurrency exchange Bitfinex resulted in the theft of 119,756 Bitcoin (BTC), which was worth approximately $72 million at the time. It was one of the largest crypto-related hacks ever, and though Bitfinex continued to operate, it suffered reputational damage that lasted for years.
The Federal Bureau of Investigation (FBI) arrested Heather Morgan, better known by her rap name “Razzlekhan,” and her husband, Ilya Lichtenstein, this year for allegedly conspiring to launder crypto in connection with the Bitfinex hack.
The two individuals declared their innocence during a court appearance in New York and were granted multimillion-dollar bail bonds. The specifics of Morgan’s work as a “comedic rapper” and social media influencer are the odd part of this story. Even the line “the entrepreneurs and hackers, all the misfits and smart slackers” appears in one of her songs.
Federal authorities referred to Morgan as a master of “deceit and deception,” calling her the “crocodile of Wall Street.” Morgan allegedly tried to lock her phone while asking federal agents for permission to retrieve her cat from under the bed during the search of her home.
Morgan and Lichtenstein are said to have “established financial accounts” in Ukraine and Russia and went to Ukraine in 2019 to create fake identities and passports.
Forbes received regular contributions from her. The day preceding the Bitfinex hack, she presented an image next on Lichtenstein with a subtitle saying she will “forever love causing problems w/this insane person.”
Bitfinex announced it had been hacked on August 2, 2016. On Aug. 1, 2016, Heather Morgan posted a photo 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
Dymtro Volkov, head of global innovations at crypto exchange CEX.io, told Cointelegraph about Morgan and Lichtenstein’s arrest, stating that “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” with the right technical resources.
Notably, the pair is not being accused of hacking, but rather of laundering stolen funds. Even filmmakers are interested in the dark details of the story. Hulu is delivering a genuine wrongdoing restricted series about Morgan’s life, and Netflix has requested a docuseries on the story.
The native utility token of cryptocurrency lending platform Celsius Network, CEL (CEL), saw a price increase of more than 4,100% shortly after the platform filed for bankruptcy. The price increased from a low of $0.093 to a high of close to $4 in just two months.
There were rumors that Ripple, a company fighting a lawsuit with the Securities and Exchange Commission of the United States, might acquire Celsius’s assets. Goldman Sachs wanted to buy Celsius for $2 billion, according to other rumors.
FTX is still sucking up CEL liquidity.
550k CEL moved from OkeX to FTX 25min ago.#CelShortSqueeze is quietly doing its thing behind the scenes. #celsius #CelsiusNetwork pic.twitter.com/T2l4pbrUfO
— CryptoChris (@Chris52508387) July 17, 2022
A massive short squeeze was planned out by traders. When the price of an asset rises abruptly, short squeezes occur, requiring short sellers to sell the asset at a higher price in order to close their positions.
Due to a significant decrease in the amount of CEL in circulation following the suspension of transfers of Celsius tokens, the short squeeze was possible.
At the time of the short squeeze, Cointelegraph reported that FTX had about 5.1 million CEL tokens, amounting to 90% of the total circulating supply on exchanges.
It’s currently believed traders on FTX pulled off the short squeeze, but deleted tweets suggest that the origins of the movement may not be fully understood, and some believe Alameda Research was directly involved. We do know that at least some traders are still trying to get a CEL short squeeze going again, even after the token dropped to $0.50.
Binance’s surprising letter of intent to acquire the collapsing FTX exchange is another weird story of 2022. At the time, many in crypto believed FTX was a solvent, well-run company. When Binance announced its intent to liquidate its holdings of FTX Token (FTT) following speculation regarding the solvency of FTX, what was seen as a rivalry between Binance and FTX soon turned into a potential buyout no one was expecting.
As FTX’s solvency was hardly being questioned, CEO Sam Bankman-Fried announced an “agreement on a strategic transaction” with Binance. It was a weird and unexpected revelation because, until that point, Bankman-Fried had dismissed concerns about the solvency of FTX.
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 and help cover the liquidity crunch. We will be conducting a full DD in the coming days.
— CZ Binance (@cz_binance) November 8, 2022
When Binance CEO Changpeng Zhao tweeted, “This afternoon, FTX asked for our help,” he added to those worries. There is a significant shortage of liquidity. We signed a non-binding Letter of Intent to fully acquire FTX.com and assist in covering the liquidity crunch in order to safeguard users. In the coming days, we will carry out a comprehensive DD.
After Binance did its due diligence, the deal fell through the following day, and the reasons were made clear right away.
The European Central Bank (ECB) wrote in a blog post at the end of November that Bitcoin’s rise from $17,000 to $20,000 was probably an “artificially induced last gasp before the road to irrelevance.”
According to the ECB, “real Bitcoin transactions are cumbersome, slow, and expensive” and “rarely used for legal transactions.” Bitcoin has never been used “to any significant extent for real-world legal transactions,” the central bank boldly wrote.
The European Central Bank claims that Bitcoin is not suitable for investment, despite having benefited from “waves of new investors.” It cannot be utilized productively or “provide social benefits,” and neither does it produce dividends or cash flow.
The statement asserts that the “Bitcoin system is an unprecedented polluter” and that blockchain technology has “created limited value for society.” Additionally, it suggested that the promotion of cryptocurrencies poses a “reputational risk for banks.”
The cryptocurrency community has been attacked on every point the ECB raised, and every point has been rejected.
I clicked on this article with an open mind, willing to have my mind changed
But it opens with a provable lie
The vast majority of Bitcoin usage is for legal spending, for-profit speculation, and gambling – not “illegal transactions”
It’s not 2012 anymore… This is a joke. pic.twitter.com/037aehMyEN
— FatMan (@FatManTerra) November 30, 2022
The European Central Bank has revived a number of cryptomyths that have hampered the sector. The post comes at a time when the ECB is moving quickly to create a digital euro. Ulrich Bindseil, one of the post’s authors, has written a lot about central bank digital currencies.
In addition to the old myths, the ECB’s unclear approach is odd because many people do not see CBDCs as competing with cryptocurrencies, which are frequently viewed as a means of overcoming the drawbacks of fiat currency systems.
Addressing Cointelegraph, Anton Bukov, prime supporter of 1inch Organization, said the ECB’s post was really great for the digital currency local area, as it implies the “public authority came to the second or even third phase of Gandhi’s thought: They first ignore you, then laugh at you, then fight you, and finally you win.
This year, the Central African Republic (CAR) became the second nation to accept Bitcoin as legal tender. This allowed the country’s 5 million residents to use the flagship cryptocurrency in addition to the Central African CFA franc, which is the country’s fiat currency.
The move came after Focal African Republic President Faustin-Archange Touadéra marked a bill into regulation laying out an administrative structure for Bitcoin as lawful delicate. The odd side of the move quickly became apparent, despite the crypto community’s initial enthusiasm for it.
Despite having a lot of minerals, the CAR’s people are among the poorest in the world. A decade-long civil war has devastated it, and it is estimated that nine out of ten residents do not even have internet access. President Touadéra tweeted a straightforward “more to follow” in response to CAR’s decision, which was accompanied by little or no explanation.
More to follow.
Vires in Numeris. #Bitcoin #BTC
Unité, Dignité, Travail#RCA #CAR #crypto #Cryptomonnaies
— Faustin-Archange Touadéra (@FA_Touadera) May 21, 2022
The country’s “visionary” plan to create a “fantastic opportunity for anyone who believes in crypto investing” was the subject of the tweet. The Sango project, which appears to be an initial coin offering for the nation’s CBDC, is that opportunity.
The project asserts that citizens will have a “voice and chance to shape the future” through a governance system and that the nation’s treasury will have a dedicated Bitcoin reserve. By securing fixed collateral in Sango, citizenship can be obtained. E-residency, land ownership, and no income tax on digital assets are additional advantages.
A strange development is a Bitcoin-based initial coin offering from a war-torn nation, even though CAR is making an intelligent move to attract foreign investment. According to CEX.io’s Volkov, cryptocurrencies are “well positioned to help emerging economies fill gaps in the services their domestic financial systems are lacking,” and they may also assist in connecting domestic financial systems to global markets. Volkov went on to say that the move could benefit the country’s economy:
“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.”
Additionally, he asserted that cryptocurrencies may have the potential to have a “hugely positive effect on countries with developing financial systems looking to participate in the global economy.”
The examples presented in this article demonstrate the unpredictability of the cryptocurrency industry during both bull and bear markets. Anyone paying attention to the situation is, if anything, taking part in an unforgettable roller coaster ride.