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CoinMarketCap News, Jan 13: Is Sam Bankman-Fried's Substack Worth Giving the Time of Day?

Also today, Bitcoin's bullish momentum is showing no signs of slowing down — with the world's biggest cryptocurrency briefly cracking $19,000 on Thursday.

CoinMarketCap News, Jan 13: Is Sam Bankman-Fried's Substack Worth Giving the Time of Day?

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Editor's Note: Everyone Wants the Last Word

Molly Jane Zuckerman writes...

By now, you've probably seen or at least heard of Sam Bankman-Fried's new Substack.

We've written about SBF's seeming inability to stop being online for even one second many, many times before — at first, his tweets after the FTX collapse were horrifying yet fascinating to read, then his interviews with big newspapers shocked the world, then he showed up on Twitter Spaces, and then gave more interviews, more live chats, and more and more and more. The crypto world (and the wider world) was oversaturated with Sam "I'm Sorry" content and it stopped being interesting. He had nothing new to say.

Then came the arrest, the deportation to the U.S., the not-guilty plea and the house arrest, along with a partial period of silence broken only by a few tweets here and there and just one tiny interview with Tiffany Wong.

But now — a Substack has emerged, with many more words than a tweet thread can hold, and many more coherent words in logical order as compared to his public appearances.

But does he say anything new? Not really. Yes, there are a few nuggets in there about how the actual Chapter 11 was filed and why… and then it's the same old story.

If SBF ever decided to take responsibility in a real way for Alameda and FTX's commingled funds — not just his oft-repeated "I f*****d up" and "I am a bad accountant" — that could be something real and newsworthy and deserving of the spotlight.

We've written about SBF's seeming inability to stop being online for even one second many, many times before — at first, his tweets after the FTX collapse were horrifying yet fascinating to read, then his interviews with big newspapers shocked the world, then he showed up on Twitter Spaces, and then gave more interviews, more live chats, and more and more and more. The crypto world (and the wider world) was oversaturated with Sam "I'm Sorry" content and it stopped being interesting. He had nothing new to say.

Then came the arrest, the deportation to the U.S., the not-guilty plea and the house arrest, along with a partial period of silence broken only by a few tweets here and there and just one tiny interview with Tiffany Wong.

But now — a Substack has emerged, with many more words than a tweet thread can hold, and many more coherent words in logical order as compared to his public appearances.

But does he say anything new? Not really. Yes, there are a few nuggets in there about how the actual Chapter 11 was filed and why… and then it's the same old story.

If SBF ever decided to take responsibility in a real way for Alameda and FTX's commingled funds — not just his oft-repeated "I f*****d up" and "I am a bad accountant" — that could be something real and newsworthy and deserving of the spotlight.

Genesis and Gemini are sued by the SEC 🚨

In yet another blow for 340,000 customers who are frozen out of $900 million, the U.S. Securities and Exchange Commission have announced they're suing Genesis and Gemini — accusing them of selling unregistered securities. SEC chair Gary Gensler claims they bypassed disclosure rules designed to protect investors, adding: "Crypto lending platforms and other intermediaries need to comply with our time-tested securities laws. Doing so best protects investors. It promotes trust in markets. It's not optional. It's the law." Officials have suggested that the crisis engulfing Genesis may be partly responsible for the Earn program being targeted. Gemini is threatening to sue Genesis as it attempts to recoup customer funds.

Sam Bankman-Fried launches a Substack… 😬

SBF just can't help himself. Under house arrest in California, he's launched a Substack — writing a lengthy post about the collapse of FTX. The 30-year-old has insisted that he could have saved the exchange if he had been given a few more weeks, but that doesn't explain the alleged misuse of customer funds by sister trading firm Alameda Research. The fallen entrepreneur went on to deny stashing billions away — and said his personal Robinhood shares, which have been seized by the Feds, should be used to help make customers whole. He once again questioned why FTX U.S. customers haven't had payouts, arguing this exchange has always been solvent. As we're about to find out, he used the blog post to attack several others.

…and literally blames everyone but himself 😑

Just some of the people who SBF blames for FTX's demise include his own lawyers, the man who replaced him as the exchange's CEO, and Binance's Changpeng Zhao. He claims he was "strong-armed" into declaring bankruptcy prematurely — and his legal team piled pressure on his friends and family. SBF again alleges CZ initiated a "quick, targeted crash" — but Binance's leader has long refuted this, and says FTX only has itself to blame. And he also warns that the crypto market also had a role in how things imploded — with countless projects collapsing and Bitcoin's price plummeting. The pitying post may lead to accusations that SBF is attempting to rewrite history ahead of his criminal trial in October.

BTC hits $19,000 for first time since FTX collapse 📈

Bitcoin's bullish momentum is showing no signs of slowing down — with the world's biggest cryptocurrency briefly cracking $19,000 on Thursday. This is a pretty significant milestone considering that BTC hasn't been above this level since FTX collapsed into bankruptcy back in November. It comes as U.S. inflation stood at 6.5% in December — the smallest increase in over a year. On Twitter, ​​crypto analyst Michaël van de Poppe expressed doubt that BTC can crack the psychologically significant threshold of $20,000. More than 10,000 people voted in his Twitter poll on Thursday that asked whether we were in a new bull market — and 64% said no. BTC has comfortably outperformed Ether, XRP and Cardano over the past 24 hours.

Wyre lifts 90% withdrawal limit 💰

When crypto projects freeze or limit withdrawals, it's normally a warning sign that a bankruptcy is imminent. However, a Twitter update from Wyre suggests that this isn't always the case. The crypto payments platform had spooked users by announcing that they would only be able to withdraw 90% of their balances — amid reports that a shutdown was imminent. But in a new update on Thursday, Wyre revealed that it has now received financing from a strategic partner — meaning that its operations can return to normal. Wyre hopes the new capital "will help us continue to deliver on our mission to simplify and revolutionize the global financial ecosystem" — but it remains unclear whether users will want to join them for the ride.

Nexo's offices are raided in Bulgaria 😱

Nexo's offices have been raided by Bulgarian authorities following some pretty serious allegations. There are accusations of tax and money laundering violations, the establishment of an organized crime group, and unlicensed banking. It's also claimed that the crypto lending platform has been used to transfer digital assets by someone financing terrorism. Nexo has denied wrongdoing, and has even suggested Bulgaria is "corrupt" — accusing regulators of adopting a "kick first, ask questions later" approach. The dramatic developments caused Nexo's token to slide by more than 5% — with on-chain intelligence showing "large outflows" worth millions of dollars as users pull their money from the platform.

Why value of crypto crime has surged 📈

The proceeds of crypto crime hit an all-time high last year — reaching a whopping $20 billion. But according to the Chainalysis 2023 Crypto Crime Report, that's because $8.8 billion involved sanctions violations following Russia's invasion of Ukraine. The overall percentage of illicit crypto transactions remains tiny — with a share of just 0.24%. Chainalysis said there was another big challenge as it crunched the numbers. Some in the industry feel transaction volumes from Celsius, Three Arrows Capital, FTX and others should have been included, with some of these bankrupt projects facing allegations of fraud. The blockchain intelligence firm has chosen not to — and said it was best to "leave questions of criminality to the legal system."

Bitcoin costume at Miss Universe pageant 👀

Miss Universe is currently underway in New Orleans — and El Salvador's contestant couldn't resist paying a tribute to Bitcoin during the costume pageant. Alejandra Guajardo's outfit presented a history of the country's currency, beginning with the cocoa beans on her back. There was also a nod to the Salvadoran colón, which was later replaced by the U.S. dollar in 2001. And last but by no means least, Guajardo smiled as she carried a glittering, golden staff that was adorned with Bitcoin's logo — reflecting Nayib Bukele's decision to make BTC legal tender back in September 2021. It's a pretty surreal clip, with an announcer approvingly declaring: "You don't need a sash to walk around dressed in cash."
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