Decentral Block Post

FTX’s former primary counsel Fenwick & West LLP has been hit with a class action suit claiming it aided the crypto exchange’s alleged multi-billion dollar fraud.

An Aug. 7 filing by a group of FTX customers in a California District Court alleged the law firm set up several “shadowy entities” allowing FTX co-founder Sam Bankman-Fried and other executives to adopt “creative but illegal strategies” to perpetuate fraud.

The suit claims Fenwick & West provided services to FTX that “went well beyond those a law firm should and usually does provide” such as structuring acquisitions by FTX US in ways that circumvented regulatory scrutiny and supplying staff to execute strategies the law firm proposed.

The “shadowy entities” were named as North Dimension and North Wireless Dimension which the suit alleged siphoned misappropriated FTX customer funds.

The plaintiffs said Fenwick & West aided and abetted FTX’s alleged fraud by choosing not to intervene in a series of misrepresentations supposedly made by FTX to its customers.

Moon and Brick, two tokens created by users of social media platform Reddit, are up 48% and 443%, respectively, in the past week after being listed on cryptocurrency exchange Kraken.

In an Aug. 7 announcement, Kraken announced the listing of Moon and Brick for spot trading and perpetual futures. At the time of publication, users could only deposit the two tokens via the Arbitrum Nova network. 

Moon is a community token created for the r/CryptoCurrency subReddit. Tokens are given as rewards for users' comments and posts. Users can also exchange Moon for badges and emojis for use within in the subReddit. The token also grants voting rights for r/CryptoCurrency community polls.

Meanwhile, Brick is a community token created for the namesake Battle Royale Game's subReddit r/FortNiteBR. Bricks are stored in Reddit's native crypto wallet, Reddit Vault, and distributed to users based on their Karma, or reputation points, every four weeks. Bricks can then be exchanged for special memberships and unlock features within r/FortNiteBR.

At the time of publication, Moon has a fully diluted market cap of $44.3 million, while Brick has a fully diluted market cap of $17.0 million. The r/CryptoCurrency subReddit has 6.6 million members compared to 2.7 million for r/FortNiteBR.

The price of Cardano (ADA) risks falling by over 20% in August as it enters a breakdown stage of a classic technical pattern that could be offset by some promising fundamentals. 

ADA price risks falling to June lows

Dubbed Bump-and-Run-Reversal (BARR), the pattern develops when excessive speculation drives the prices higher quickly, eventually leading to a "bull trap" situation. As it forms, the price trend undergoes three stages — Lead-in, Bump, and Run — as shown below.

The Lead-in stage sees the price trending upward in an orderly fashion — without any excess speculation. But the Bump stage witnesses a sharp advance in prices, followed by a complete wipeout of the spike.

In the Run stage, the price breaks below the support from the Lead-in trendline. Currently, Cardano appears to have entered the Run phase of its BARR pattern, as shown below.

If the pattern is confirmed, BARR's downside target is measured after subtracting the breakdown point at the support line from the pattern's maximum height. That brings ADA's price target near $0.22 in August or early September, down 20% from current levels.