Top Stories This Week
Hyperbitcoinization coming, says Bitcoin OG as ‘wholecoiners’ hit 1 million
Bitcoin has crossed a significant threshold this month — there are over 1 million addresses that hold at least 1 BTC. Data from Glassnode shows an escalating pattern with regard to the amount of so-called Bitcoin “wholecoiners.” If the trend continues, Bitcoin price escalation could soon make buying it not only a luxury but something potentially unattainable altogether, according to Adam Back, co-founder and CEO of Bitcoin firm Blockstream. This hyperbitcoinization refers to the moment when the benefits of Bitcoin for financial transactions will eventually lead to the replacement of established financial institutions by a public-driven system, with Bitcoin becoming the world’s default value system.
FTX pursues $244M clawback from ‘wildly inflated’ Embed acquisition deal
FTX’s leadership is looking to claw back more than $240 million from insiders and executives that benefited from FTX’s “wildly inflated” acquisition of stock-clearing platform Embed in September. According to court filings, Embed’s own chief technology officer, Laurence Beal, was stunned that FTX paid so much for the company after one short meeting with its then-CEO, Michael Giles. Beal described FTX’s due diligence process with a cowboy emoji. Lawyers accused FTX insiders of disproportionate payouts to Embed shareholders, including $55 million paid to its CEO.
Robert F. Kennedy Jr. to accept campaign donations in Bitcoin
Robert F. Kennedy Jr. will be the first presidential candidate in United States history to accept campaign donations in Bitcoin, he announced during his first appearance as a presidential candidate at the Bitcoin 2023 conference. He praised the cryptocurrency as a “symbol of democracy and freedom” during the event. By having attended the Bitcoin event, RFK Jr. is not only targeting voters but also a potential source of millions of dollars in donations. The democratic candidate is incumbent President Joe Biden.
Voyager bankruptcy plan approved, customers may recover 35.7% of claims initially
Voyager’s bankruptcy plan was approved on May 17 and its customers could now expect to receive 35.72% of their claims initially, either in crypto via the Voyager app or in cash, after 30 days. According to Voyager, it had $1.33 billion of assets for recovery as of May 8, of which $629.8 million was available for initial recovery, on claims of $1.8 billion. If FTX/Alameda Research’s claim for preferential recovery is unsuccessful, creditors’ initial recovery could increase. For that claim, Voyager is holding back $445 million. Voyager may also be able to recover funds from bankrupt crypto hedge fund Three Arrows Capital.
Cryptocurrency trading platform Coin Cafe has been ordered to repay $4.3 million to its users after allegedly charging “exorbitant and undisclosed fees” for storing Bitcoin on the platform — leading to some accounts being drained entirely of their funds. One New York investor incurred fees exceeding $10,000 in a single month, while another investor was hit with fees amounting to $51,000 over a span of 13 months, said the office of the New York State Attorney General.
