Illustration by Mitchell Preffer for Decrypt
We’ve now passed the second full week of 2023 and crypto fans’ patience and resilience have been rewarded with the first big price leaps in a long time. Most of the top cryptocurrencies by market capitalization have blown up by double-digit percentages over the last seven days.
However, nobody is out of the woods yet. On Monday, Fox News journalist Charles Gasparino divulged the latest gossip from the wide-ranging and far-reaching FTX case.
BREAKING: Prosecutors are telling lawyers connected to @SBF_FTX fraud investigation the case is so sprawling that it could exhaust resources of the southern district since it includes potential bribery, campaign contribution violations, market manipulation on top of theft & fraud
— Charles Gasparino (@CGasparino) January 9, 2023
Security researcher and Forbes 30 Under 30 winner Jane Manchun Wong reported that day that Twitter wants in on the coin action and appears to be preparing a digital economy of its own—although Twitter Coins will probably not launch on the blockchain.
Minnesota Congressman Tom Emmer finally received a reply from the authorities after he sent a letter last fall criticizing the government’s decision to ban crypto privacy tool Tornado Cash. The treasury told Emmer it couldn’t comment on pending litigation, and Emmer said he’ll be happy to wait for to ask questions during a public House Committee on Financial Services hearing.
His Bitcoin buying habit may have caused multimillion dollar losses for his country, but El Salvador’s authoritarian President Nayib Bukele wanted everyone to know on Wednesday that he’s still sold on Bitcoin and he’s taking his legislation to the next level to prove it.
El Salvador’s Legislative Assembly has just approved, by an overwhelming majority, the new Digital Securities Law!
Forward, always forward…
More information on this thread👇🏼 https://t.co/8C21ZilyVP
— Nayib Bukele (@nayibbukele) January 11, 2023
The Twitter account for MetaMask Support warned users of a new style of exploit that day.
A new scam called ‘Address Poisoning’ is on the rise. Here’s how it works: after you send a normal transaction, the scammer sends a $0 token txn, ‘poisoning’ the txn history. (1/3)
— MetaMask Support (@MetaMaskSupport) January 11, 2023
On Friday, Crypto.com co-founder and CEO Kris Marszalek announced that the exchange is about to make its third round of job cuts since June, citing “negative economic developments.”
Today we announced the difficult decision to reduce our global workforce by about 20%.
— Kris | Crypto.com (@kris) January 13, 2023
Finally, Sam Bankman-Fried wants you to know he has a blog.
Gemini vs Genesis: Week 2
The aftershocks of FTX’s collapse are still reverberating around the industry, spreading contagion, as highlighted by the new feud last week between crypto exchange Gemini and its creditor, Genesis, who allegedly owes users of Gemini’s Earn product $900 million.
Gemini co-founder Cameron Winklevoss sent Digital Currency Group (DCG) chief Barry Silbert—who wholly owns Genesis—another open letter this week, throwing more accusations of fraud, lies and greed at him. The DCG account called his claims a “desperate and unconstructive publicity stunt.”
This is another desperate and unconstructive publicity stunt from @cameron to deflect blame from himself and Gemini, who are solely responsible for operating Gemini Earn and marketing the program to its customers.
— Digital Currency Group (@DCGco) January 10, 2023
Later in the week Silbert shared a “DCG Letter to Shareholders” in which he calls out “bad actors and blow-ups” that “have wreaked havoc on our industry.” He goes on to say that this year the industry’s “credibility and reputation” have almost been destroyed “by a wave of unprecedented fraud and criminal behavior.” Silbert published an abridged version of the letter in the ensuing thread.
I’ve been reflecting quite a bit about the past year, the state of the industry and where things go from here.
Here is an update to address those reflections, other developments and some speculation about @DCGco (1/10)https://t.co/xEohthubvD
— Barry Silbert (@BarrySilbert) January 10, 2023
On Thursday, the United States Securities and Exchange Commission (SEC) got involved and filed a new set of charges against both Gemini and Genesis alleging that Gemini’s Earn product was an unlicensed security.
Today we charged Genesis Global Capital, LLC and Gemini Trust Company, LLC for the unregistered offer and sale of securities to retail investors through the Gemini Earn crypto asset lending program.
For more:
— U.S. Securities and Exchange Commission (@SECGov) January 12, 2023
Gemini co-founder and CEO Tyler Winklevoss immediately reacted, calling it a “counterproductive” move by the SEC. Later in the thread, Winklevoss said Gemini looks forward to defending itself against this “manufactured parking ticket.”
4/ We look forward to defending ourselves against this manufactured parking ticket. And we will make sure this doesn’t distract us from the important recovery work we are doing.
— Tyler Winklevoss (@tyler) January 12, 2023
Republican Minnesota Congressman Tom Emmer heavily criticized the SEC’s approach.
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Source: https://decrypt.co/119256/this-week-on-crypto-twitter-gemini-genesis-sec-cameron-winklevoss-tom-emmer
