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Sued, doxxed ... but up for a fight 🤼♂️
Crypto community rallies for crypto sleuth ZachXBT. BlackRock’s Bitcoin ETF. Bitcoin Whale moves $1.2M after 13 years. Coinbase buys back $45.5M debt. Nike + Fortnite NFTs. Goose' NFT sold for $6.5M.
Hello, y'all. Dispatching on them days when you come to like the crypto community - standing behind the good men and helping them fight.
ZachXBT is getting sued for defamation, and we can TLDR the whole thing in a few tweets.
The $38M crypto theft saga👇
That’s how it all started
In June 2022 when ZachXBT accused Jeffrey Huang, a musician and tech executive known as Machi Big Brother, of embezzling a whopping 22,000 ETH (approximately $37.8 million). ZachXBT backed up his claims with solid on-chain data, putting the spotlight on Huang's alleged misdeeds.
Huang Strikes Back
Huang filed a federal lawsuit in the U.S. District Court, alleging that ZachXBT's accusations were false and demanding damages to his reputation. Threatens to expose the sleuth's true identity, which has been shrouded in mystery for years.
ZachXBT took to Twitter to rally his 403,000 followers and seek their support for his legal defense.
Donations pour in
He called upon his supporters to donate funds, anticipating costs that could exceed a whopping $1 million USD. Within a day, the donations soared beyond the million-dollar mark.
Stablecoin USDC: $650,000
Stablecoin Tether: Nearly $274,000
Crypto Titans chip in
ZachXBT has made a promise to the contributors of his legal defence fund. Any leftover funds will be returned on a pro-rata basis, ensuring fairness and transparency in the distribution process.
For years, ZachXBT has been the enigmatic voice uncovering scams, exposing bad actors, and shedding light on hacks in the crypto space. His pseudonymous persona added an air of mystery to his investigations. However, Huang's lawsuit pulled back the curtain, revealing ZachXBT's true identity.
Machi Big Brother is the online handle of Jeffrey Huang, a Taiwanese-American musician and tech executive. He gained fame as Machi, a member of the hip-hop group L.A. Boyz. "Big Brother" refers to his role as a mentor and leader in the entertainment industry. However, in the crypto world, he is known by this name.
Crypto startups have been knocking on the SEC's door for a decade, hoping for a shot at glory. Since 2013, countless investment firms have tried their luck, only to face rejection like a bad breakup. The SEC cited concerns about market manipulation, leaving these hopefuls in the dust. Even Grayscale Investments took the SEC to court when it turned down its application.
But now, brace yourselves because Wall Street's heavyweight champion is stepping into the ring.
BlackRock, the finance giant with $9.5 trillion under its belt, applied to the U.S. Securities and Exchange Commission for a Bitcoin exchange-traded fund (ETF).
Bloomberg's Senior ETF Analyst, Eric Balchunas, has vouched for it. He defended the "ETF" label with all his might on Twitter, reminding everyone that BlackRock has a jaw-dropping win record of 575-1 against the SEC.
But BlackRock's application brings something different to the table. BlackRock's record for ETF application approvals stands at a staggering 575-1. The one denial they faced was for a nontransparent ETF back in 2014, but that was a whole different ballgame.
The SEC has been throwing lawsuits left and right, making the crypto space feel about as welcome as a grumpy cat. Yet, here comes BlackRock, the kingpin of investment management, ready to make some magic happen.
BlackRock wants to team up with Coinbase, a reputable custodian company they've worked with before. Last week, the SEC even sued Coinbase for allegedly selling unregistered securities. So, BlackRock's timing couldn't be more curious.
So, could BlackRock be the one to take Bitcoin to the grandest dance of all? The current regulatory landscape might pose challenges, but the odds have never looked better.
Nate Geraci, president of the ETF Store, thinks BlackRock's filing could be a potential "game-changer."
"BlackRock typically isn't in the business of making unforced errors, and betting on a spot bitcoin ETF if they weren't confident in approval seems like an unnecessary gamble."
TTD Numbers 🔢
After more than a decade of snoozing, some long-term investors have decided to wake up their digital treasure troves and make some moves.
Over $1.2 million worth of Bitcoin, which had been enjoying a cozy slumber for 13 years, just sprang to life.
A mysterious whale transferred a hefty stash of 50 BTC to another wallet.
These coins were mined way back in June 2010, and since then, they've been as still as statues. But lately, we've been witnessing some action from previously untouched Bitcoin. In April, a holder who had been as quiet as a mouse for a whole decade decided to move $7.8 million worth of Bitcoin to shiny new wallets.
Not long after that, another long-term investor (or maybe a team of investors) moved a whopping $11 million in digital gold after an 11-year-long nap.
According to Kirill Kretov, the developer of trading tools, the Bitcoin mined way back in 2009-2010 mostly belonged to "IT geeks." However, he also speculates that some commercial entities might have acquired these wallets from individuals in later years, keeping their addresses a secret on the blockchain.
TTD NFT 🐝
Nike and Fortnite Collide
Nike and Fortnite have teamed up to create an exciting sneaker adventure in the metaverse. The announcement, made on June 16, features a brief video showing the logos of Fortnite and Nike's Air Max, with the name of the sneaker hunt, "Airphoria," revealed. While details are sparse, speculation suggests that Nike may have built an NFT-related game using Fortnite Creative 2.0. Nike's NFT unit has been ramping up its efforts to enter the traditional gaming space, with NFTs to be integrated into games developed by EA Sports.
The Goose Takes Flight
"The Goose" has soared to new heights. This generative artwork, created by the talented Dmitri Cherniak, has been making waves since the now-defunct Three Arrows Capital acquired it. After purchasing it for a whopping $5.66 million worth of ETH in 2021, Three Arrows Capital's prized possession recently fetched an astronomical sum of over $6.2 million at a Sotheby's auction. But who is the lucky collector behind this extraordinary purchase? None other than the pseudonymous NFT art connoisseur, Punk6529, and their legendary 6529 NFT Fund. Brace yourself for a wild ride through the thrilling world of blockchain art.
TTD Debt ☸️
Coinbase announced its $1.25 billion private debt offering back on May 17, 2021.
Now, Coinbase decided to make a grand debt repurchase of $45.5 million! They rolled up their sleeves, whipped out their wallets, and said, "Take that, debt!"
They didn't just stop at buying back a few measly notes. Coinbase had their eyes on the prize and snagged $64.5 million worth of Convertible Senior Notes. And get this, and they got them at a 29% discount.
With all that cash splashing around, Coinbase managed to whittle down their debt and now proudly struts around with a princely $1.37 billion in outstanding notes.
"We are always looking for the best opportunities to deploy capital to create shareholder value," says Alesia Haas, Coinbase's chief financial officer, in a company statement. "This opportunistic repurchase is a continuation of those efforts and reflects our confidence in our business, strong first-quarter financial performance, and improved competitive positioning.
TTD Surfer 🏄
Ether responds to controversy surrounding its deactivation of approx—29 accounts belonging to prominent crypto players in 2021.
Hong Kong's Cyberport has attracted registrations from over 150 Web 3.0-related companies in the past year.
Elon Musk denies owning Dogecoin wallets linked to insider trading amidst a $258 billion lawsuit alleging market manipulation and securities fraud.
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The Token Dispatch is a daily newsletter that takes you on a 4-5 minute drive through the wild west of the Crypto World. Daily in your email inbox @13:00 GMT. Almost always.