Illustration by Mitchell Preffer for Decrypt
The week was truly a mixed bag.
Leading cryptocurrencies recaptured lost ground after weeks of general declines, but on the business side of things, Vauld and Voyager became the latest crypto lenders to battle insolvency after Celsius and BlockFi.
Along those lines, former leading crypto hedge fund Three Arrows Capital (3AC) recently filed for Chapter 15 bankruptcy, and now the company’s lawyers, according to that filing, can’t locate the founders, Su Zhu and Kyle Davies.
3AC’s lawyer and liquidation representatives… don’t know where co-founders Su Zhu and Kyle Davies are. From the Friday bankruptcy filing: pic.twitter.com/oy8jHMYHFg
— Lucinda Shen (@ShenLucinda) July 5, 2022
So, the crypto bailouts have begun, with billionaire Sam Bankman-Fried leading the vanguard. His exchange, FTX, extended a $250 million line of credit to battered crypto lender BlockFi last month. The following day, Alameda Research, another SBF company, gave Voyager Digital a $500 million line of credit. Two weeks later, FTX reached a deal to acquire BlockFi outright. Now, Alameda already owed Voyager $377 million, so this was a borrower bailing out its lender.
Binance CEO Changpeng “CZ” Zhao criticized the deal in an interview for Decrypt’s gm podcast. CZ also said he’s looking to do a few bailouts of his own: “Some of them are actually good deals. So I think you will see that we will be investing, bailing out, saving multiple projects.”
happy to return the Voyager loan and get our collateral back whenever works for voyager
— Alameda Research (@AlamedaResearch) July 8, 2022
TRON’s Justin Sun also made clear that he stands at the ready.
Worst. Breach. Ever.
News broke at the beginning of the week that the personal data of more than a billion people had been acquired from a Shanghai police database and offered up for 10 Bitcoin (at the time worth $202,000).
#Shanghai has suffered the largest breach of user privacy yet:
1B+ Chinese national residents. Data includes:✅ Name✅ Address✅ Birthplace✅ National ID #✅ Mobile #✅ All crime/case details💰 All for 10 BTC
Web3 must (and still can) be better.https://t.co/c3xo1NE9GE
— 🤓Kenny 🦇🔊 (ETHcc Paris | DM me to meet up!) (@superanonymousk) July 3, 2022
According to Bloomberg, the data included everything from names and national ID numbers to mobile phone numbers and food orders. And there were timestamps for when the details were recorded.
CZ offered a technical explanation.
Billionaire CEOs and crypto HODLers Michael Saylor and Elon Musk both shilled their favorite coins this week. Saylor tweeted about how much value Bitcoin has gained since his company, MicroStrategy, first announced its plan to buy and HODL. (He neglected to mention he’s still down on his investment.)
On August 11, 2020, @MicroStrategy embarked on its #Bitcoin Strategy, acquiring 21,454 bitcoins at an aggregate purchase price of $250 million.
Performance since that time of BTC is +83%, $MSTR is +79%, S&P is +16%, Nasdaq is +6%, Gold is -14%, Bonds is -16%, and Silver is -33%.
— Michael Saylor⚡️ (@saylor) July 8, 2022
And CNN Business reported that another of Elon Musk’s firms, The Boring Company, will accept Dogecoin for rides on a new underground transit system in Las Vegas that allows passengers to zip around town in Teslas at about 35 mph.
Supporting Doge wherever possible
— Elon Musk (@elonmusk) July 6, 2022
A major outage of mobile and internet networks across Canada prompted TrustSwap CEO and Bitcoin advocate Jeff Kirdeikis to reflect on his favorite cryptocurrency.
The banking system, including all debit cards, are currently down in Canada. No one can make payments for anything.
Maybe this Bitcoin thing has utility after all.
— Jeff Kirdeikis 🔁 (@JeffKirdeikis) July 8, 2022
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