Also today, why Yuga Labs could be slapped with a class action lawsuit about Bored Ape NFTs and ApeCoin.
The embattled co-founders of bankrupt Three Arrows Capital have admitted that mistakes were made before the firm's collapse. Speaking to Bloomberg, Kyle Davies and Zhu Su said the collapse of LUNA took them by surprise. They also conceded their ties to Terra's founder Do Kwon may have been too close for comfort. Terra's implosion had other ramifications — hitting the value of staked ETH, where 3AC had also invested heavily. But inevitably, all roads lead back to the spot market. Zhu said: "After that day, when, you know, Bitcoin went from $30,000 to $20,000, that was extremely painful for us. And that ended up being kind of the nail in the coffin."
Voyager Digital has announced that it's rejected a takeover proposal from FTX — dismissing it as "a low-ball bid dressed up as a white knight rescue." The crypto lender halted customer withdrawals earlier this month and filed for bankruptcy. It's currently owed $650 million by Three Arrows. FTX had proposed giving Voyager users a new account that would immediately allow them to access some of their funds. But Voyager has accused FTX of attempting to generate publicity instead of working in the interests of its users. Lawyers also expressed concern that customers would end up taking a tax hit because their funds would be converted into U.S. dollars.
It seems FTX CEO Sam Bankman-Fried isn't happy about Voyager's rejection. In a Twitter thread, he criticized the company's handling of its bankruptcy process. He claims Voyager still has most customer funds left — and they should be distributed to users now while they wait for the rest to be recovered from Three Arrows Capital. SBF went on to warn that a bankruptcy can take years — pointing to Mt. Gox, which went bust in 2014 — as an example. The billionaire suggested his plan could get Voyager users up to 75% of their funds back immediately, adding: "In the end, we think Voyager's customers should have the right to quickly claim their remaining assets if they want, without rent seeking in the middle. They've been through enough already."
A class action lawsuit has been proposed against Yuga Labs, the company behind Bored Ape Yacht Club. The Scott+Scott law firm is currently inviting individual investors who want to "seek restitution for losses" related to the firm's tokens and NFTs. Attorneys claim investors were "inappropriately induced" to buy financial products — including Bored Apes, and an offshoot token called ApeCoin. The company has been accused of using "celebrity promoters and endorsements" to inflate prices. The proposed class action has been criticized on Crypto Twitter. Some have dismissed it as "extremely ridiculous" — adding that investors need to take responsibility for their own actions.
Chipotle has announced that it's giving away $200,000 in free crypto through an online game called "Buy the Dip." The premise is fairly simple: Players are presented with a crypto trading chart, and watch as prices rise and fall. They need to hit stop whenever they believe the market is bottoming out. Bitcoin, Ether, Solana, Avalanche and Dogecoin prizes are on offer every day until July 31. Not everyone is a fan of Chipotle's latest promotion — including The Verge's Elizabeth Lopatto. She argues that this game is "irresponsible at best" because of how it's difficult to time the market, and this could result in everyday consumers losing money through crypto investments.