{"id":39120,"date":"2022-12-24T15:30:00","date_gmt":"2022-12-24T15:30:00","guid":{"rendered":"http:\/\/egrowonline.com\/?p=39120"},"modified":"2022-12-24T15:30:00","modified_gmt":"2022-12-24T15:30:00","slug":"the-5-strangest-stories-of-the-industry-in-2022","status":"publish","type":"post","link":"http:\/\/egrowonline.com\/?p=39120","title":{"rendered":"The 5 strangest stories of the industry in 2022"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div data-v-71d2d00b=\"\">\n<p>From Terra to FTX, 2022 has given us many weird crypto stories. While investors have been enduring a bear market that saw the crypto industry sink below the $1 trillion market capitalization mark, adoption in the space has been growing, and old mysteries were finally solved.<\/p>\n<p>From the incredible short squeeze of a bankrupt company\u2019s token to old anti-crypto arguments used by a major central bank, we\u2019re getting weird with five stories the best fiction writers couldn\u2019t dream up.<\/p>\n<h2>\u201cComedic rapper\u201d charged over Bitfinex hack<\/h2>\n<p>Back in 2016, popular cryptocurrency exchange Bitfinex suffered a major security breach that saw attackers steal 119,756 Bitcoin (<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/bitcoin-price\" rel=\"noopener\">BTC<\/a>), worth approximately $72 million at the time. It was one of the largest crypto hacks in history, and although Bitfinex continued operating, its reputation was damaged for years to come.<\/p>\n<p>This year, Heather Morgan, known by her rap name \u201cRazzlekhan,\u201d and her husband Ilya Lichtenstein were arrested by the Federal Bureau of Investigation for allegedly conspiring to launder crypto connected to the Bitfinex hack.<\/p>\n<p>During a court appearance in New York, the pair proclaimed their innocence and were released on multimillion-dollar bonds. The weird part of this story is the details surrounding<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/comedic-rapper-charged-with-involvement-in-bitfinex-hack-out-on-bail\" rel=\"noopener\"> Morgan\u2019s work as a \u201ccomedic rapper\u201d<\/a> and social media influencer. One of her songs even says it is dedicated to \u201cthe entrepreneurs and hackers, all the misfits and smart slackers.\u201d<\/p>\n<div class=\"jeg_video_container jeg_video_content\"><iframe loading=\"lazy\" title=\"Razzlekhan - VERSACE BEDOUIN (official music video) - rap anthem for misfits\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/_DIuPPmY9mw?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/div>\n<p>Morgan, who calls herself the \u201ccrocodile of Wall Street,\u201d was <a target=\"_blank\" href=\"https:\/\/fingfx.thomsonreuters.com\/gfx\/legaldocs\/xmvjojyexpr\/Microsoft%20Word%20-%20Lichtenstein%20Detention%20Rply_20220210_v3.pdf\" rel=\"noopener nofollow\">labeled<\/a> a master of \u201cdeceit and deception\u201d by federal authorities. While her home was being searched, Morgan allegedly asked federal agents for permission to retrieve her cat from under the bed and, while doing so, tried to lock her phone.<\/p>\n<p>Morgan and Lichtenstein reportedly traveled to Ukraine in 2019 to attain false identities and create fake passports, and have \u201cestablished financial accounts\u201d in Ukraine and Russia.<\/p>\n<p>She was a regular contributor to Forbes. The day before the Bitfinex hack, she posted a picture next to Lichtenstein with a caption saying she will \u201calways love getting into trouble w\/ this crazy guy.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Bitfinex announced it had been hacked on August 2, 2016. <a target=\"_blank\" href=\"https:\/\/t.co\/Y7sJ7ZUrKB\" rel=\"noopener\">https:\/\/t.co\/Y7sJ7ZUrKB<\/a> On Aug. 1, 2016, Heather Morgan posted a photo with Ilya Lichtenstein and the caption: &#8220;I will always love getting into trouble w\/ this crazy guy.&#8221; <a target=\"_blank\" href=\"https:\/\/t.co\/EjVmRtiYof\" rel=\"noopener\">pic.twitter.com\/EjVmRtiYof<\/a><\/p>\n<p>\u2014 Jack Morse (@jmorse_) <a target=\"_blank\" href=\"https:\/\/twitter.com\/jmorse_\/status\/1491220892634185729?ref_src=twsrc%5Etfw\" rel=\"noopener\">February 9, 2022<\/a><\/p><\/blockquote>\n<p>Commenting on Morgan and Lichtenstein\u2019s arrest, Dymtro Volkov, head of global innovations at crypto exchange CEX.io, told Cointelegraph that with the proper technical resources, \u201cit is possible to track the flow of most funds moving on a blockchain network\u201d and that \u201chiding a huge amount of stolen funds is actually quite a complex task.\u201d<\/p>\n<p>Notably, the pair isn\u2019t being charged with the hack but laundering the stolen funds. The sordid details of the story have even caught the interest of filmmakers. Hulu is producing a true-crime limited series about Morgan\u2019s life, and Netflix has ordered a docuseries on the story.<\/p>\n<h2>Bankrupt Celsius Network\u2019s CEL token surges 4,000%<\/h2>\n<p>Shortly after cryptocurrency lending platform Celsius Network filed for bankruptcy, the price of its native utility token, CEL (<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/celsius-cel-price-index\" rel=\"noopener\">CEL<\/a>), <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/celsius-network-is-bankrupt-so-why-is-cel-price-is-up-4-000-in-two-months\" rel=\"noopener\">jumped by more than 4,100%<\/a>. In only two months, the price climbed from a bottom of $0.093 to a near $4 high.<\/p>\n<p>The surge came amid rumors that Ripple, a company engaged in a legal battle with the United States Securities and Exchange Commission, could take over Celsius\u2019 assets. Other rumors suggested Goldman Sachs planned to acquire Celsius for $2 billion. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">FTX is still sucking up CEL liquidity.<\/p>\n<p>550k CEL moved from OkeX to FTX 25min ago.<a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CelShortSqueeze?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#CelShortSqueeze<\/a> is quietly doing its thing behind the scenes. <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/celsius?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#celsius<\/a> <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CelsiusNetwork?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#CelsiusNetwork<\/a> <a target=\"_blank\" href=\"https:\/\/t.co\/T2l4pbrUfO\" rel=\"noopener\">pic.twitter.com\/T2l4pbrUfO<\/a><\/p>\n<p>\u2014 CryptoChris (@Chris52508387) <a target=\"_blank\" href=\"https:\/\/twitter.com\/Chris52508387\/status\/1548511376788041728?ref_src=twsrc%5Etfw\" rel=\"noopener\">July 17, 2022<\/a><\/p><\/blockquote>\n<p>Traders organized a massive short squeeze. Short squeezes occur when an asset\u2019s price rises suddenly, forcing short sellers to buy back the asset at a higher price to close their positions.<\/p>\n<p>The short squeeze was possible because a freeze on Celsius token transfers significantly reduced the circulating supply of CEL.<\/p>\n<figure><img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2022-12\/bd53ebe7-c791-4c32-bbe5-d97ca812db80.jpg\" alt=\"https:\/\/cointelegraph.com\/historical\/?utm_source=CT&amp;utm_medium=link&amp;utm_campaign=navigation\" title=\"New article\" \/><figcaption style=\"text-align: center\"><strong>Click \u201cCollect\u201d below the illustration at the top of the page or <\/strong><strong><a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/historical\/?utm_source=CT&amp;utm_medium=link&amp;utm_campaign=navigation\" rel=\"noopener\">follow this link<\/a><\/strong><strong>.<\/strong><\/figcaption><\/figure>\n<p>At the time of the short squeeze, <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/celsius-network-is-bankrupt-so-why-is-cel-price-is-up-4-000-in-two-months\" rel=\"noopener\">Cointelegraph reported that<\/a> FTX had about 5.1 million CEL tokens, amounting to 90% of the total circulating supply on exchanges.<\/p>\n<p>It\u2019s currently believed traders on FTX pulled off the short squeeze, but deleted tweets suggest that the origins of the movement may not be fully understood, and some believe Alameda Research was directly involved. We do know that at least some traders are still <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CELShortSqueeze\" rel=\"noopener nofollow\">trying<\/a> to get a CEL short squeeze going again, even after the token dropped to $0.50.<\/p>\n<h2>Binance\u2019s letter of intent<\/h2>\n<p>Binance\u2019s surprising letter of intent to acquire the collapsing FTX exchange is another weird story of 2022. At the time, many in crypto believed FTX was a solvent, well-run company. When Binance announced its intent to liquidate its holdings of FTX Token (<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/ftx-token-ftt-price-index\" rel=\"noopener\">FTT<\/a>) following speculation regarding the solvency of FTX, what was seen as a rivalry between Binance and FTX soon turned into a potential buyout no one was expecting.<\/p>\n<p>As FTX\u2019s solvency was hardly being questioned, CEO Sam Bankman-Fried announced an \u201cagreement on a strategic transaction\u201d with Binance. It was a<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/binance-ceo-announces-intent-to-acquire-ftx-to-help-cover-the-liquidity-crunch\" rel=\"noopener\"> weird and unexpected revelation<\/a> because, until that point, Bankman-Fried had dismissed concerns about the solvency of FTX.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">This afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire <a target=\"_blank\" href=\"https:\/\/t.co\/BGtFlCmLXB\" rel=\"noopener\">https:\/\/t.co\/BGtFlCmLXB<\/a> and help cover the liquidity crunch. We will be conducting a full DD in the coming days.<\/p>\n<p>\u2014 CZ  Binance (@cz_binance) <a target=\"_blank\" href=\"https:\/\/twitter.com\/cz_binance\/status\/1590013613586411520?ref_src=twsrc%5Etfw\" rel=\"noopener\">November 8, 2022<\/a><\/p><\/blockquote>\n<p>Binance CEO Changpeng Zhao added to those concerns when he tweeted, \u201cThis afternoon, FTX asked for our help. There is a significant liquidity crunch. To protect users, we signed a non-binding LOI, intending to fully acquire FTX.com and help cover the liquidity crunch. We will be conducting a full DD in the coming days\u201d.<\/p>\n<p>The deal fell through the next day after Binance conducted its due diligence, with the reasons becoming clear soon after.<\/p>\n<h2>European Central Bank spreads FUD<\/h2>\n<p>In late November, the European Central Bank (ECB) published a blog post in which it <a target=\"_blank\" href=\"https:\/\/www.ecb.europa.eu\/press\/blog\/date\/2022\/html\/ecb.blog221130~5301eecd19.en.html\" rel=\"noopener nofollow\">argued<\/a> that Bitcoin\u2019s recovery from $17,000 to $20,000 was likely an \u201cartificially induced last gasp before the road to irrelevance.\u201d<\/p>\n<p>The ECB said that Bitcoin is \u201crarely used for legal transactions\u201d and that \u201creal Bitcoin transactions are cumbersome, slow and expensive.\u201d The central bank daringly wrote that Bitcoin has never been used \u201cto any significant extent for real-world legal transactions.\u201d<\/p>\n<p><strong><em>Related:\u00a0<a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/the-most-eco-friendly-blockchain-networks-in-2022\" rel=\"noopener\">The most eco-friendly blockchain networks in 2022<\/a><\/em><\/strong><\/p>\n<p>According to the ECB, Bitcoin has benefited from \u201cwaves of new investors\u201d while not being suitable as an investment. It doesn\u2019t generate cash flow or dividends, nor can it be productively used or \u201cprovide social benefits.\u201d<\/p>\n<p>The statement argues that blockchain technology has \u201ccreated limited value for society\u201d and that the \u201cBitcoin system is an unprecedented polluter.\u201d It also suggested that cryptocurrency promotion bears a \u201creputational risk for banks.\u201d<\/p>\n<p>Every point the ECB brought up has been used to attack the cryptocurrency community, and every single point has been rebuffed.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">I clicked on this article with an open mind, willing to have my mind changed<\/p>\n<p>But it opens with a provable lie<\/p>\n<p>The vast majority of Bitcoin usage is for legal spending, for-profit speculation, and gambling &#8211; not &#8220;illegal transactions&#8221;<\/p>\n<p>It&#8217;s not 2012 anymore&#8230; This is a joke. <a target=\"_blank\" href=\"https:\/\/t.co\/037aehMyEN\" rel=\"noopener\">pic.twitter.com\/037aehMyEN<\/a><\/p>\n<p>\u2014 FatMan (@FatManTerra) <a target=\"_blank\" href=\"https:\/\/twitter.com\/FatManTerra\/status\/1597931880300830721?ref_src=twsrc%5Etfw\" rel=\"noopener\">November 30, 2022<\/a><\/p><\/blockquote>\n<p>The ECB has recycled several crypto myths that have been <a target=\"_blank\" href=\"https:\/\/cointelegraph.com\/news\/6-myths-about-bitcoin-and-how-to-bust-them-expert-take\" rel=\"noopener\">used to hold the industry back<\/a>. The post comes as the ECB accelerates progress on developing a digital euro. One of the post\u2019s authors, Ulrich Bindseil, has authored numerous posts on central bank digital currencies.<\/p>\n<p>Besides the recycled myths, what\u2019s weird is the ECB\u2019s unclear angle, as many don\u2019t consider CBDCs to be competing with cryptocurrencies, which are often seen as a way to exit the shortcomings of fiat currency systems.<\/p>\n<p>Speaking to Cointelegraph, Anton Bukov, co-founder of 1inch Network, said the ECB\u2019s post was good for the cryptocurrency community, as it means the \u201cgovernment came to the second or even third stage of Gandhi\u2019s thought: First they ignore you, then they laugh at you, then they fight you, then you win.\u201d <\/p>\n<h2>Central African Republic\u2019s crypto plan<\/h2>\n<p>The Central African Republic (CAR) became the second country to adopt Bitcoin as a legal tender earlier this year, allowing around 5 million residents to use the flagship cryptocurrency alongside the country\u2019s fiat currency, the Central African CFA franc.<\/p>\n<p>The move came after Central African Republic President Faustin-Archange Touad\u00e9ra signed a bill into law establishing a regulatory framework for Bitcoin as legal tender. While the crypto community initially celebrated the move, the weird side of this soon became apparent.<\/p>\n<p>Although the CAR is a mineral-rich nation, its people are among the poorest in the world. It has been devastated by a decade-long civil war, and it is estimated that nine out of 10 residents don\u2019t even have access to the internet.\u00a0CAR\u2019s decision was accompanied by little to no explanation, with President Touad\u00e9ra tweeting a simple \u201cmore to follow.\u201d<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"fr\" dir=\"ltr\">More to follow. <\/p>\n<p>Vires in Numeris. <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#Bitcoin<\/a> <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/BTC?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#BTC<\/a> <\/p>\n<p>Unit\u00e9, Dignit\u00e9, Travail<a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/RCA?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#RCA<\/a> <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CAR?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#CAR<\/a> <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/crypto?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#crypto<\/a> <a target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/Cryptomonnaies?src=hash&amp;ref_src=twsrc%5Etfw\" rel=\"noopener\">#Cryptomonnaies<\/a><\/p>\n<p>\u2014 Faustin-Archange Touad\u00e9ra (@FA_Touadera) <a target=\"_blank\" href=\"https:\/\/twitter.com\/FA_Touadera\/status\/1528079796223324161?ref_src=twsrc%5Etfw\" rel=\"noopener\">May 21, 2022<\/a><\/p><\/blockquote>\n<p>The tweet was <a target=\"_blank\" href=\"https:\/\/www.bbc.co.uk\/news\/world-africa-61565485\" rel=\"noopener nofollow\">referring<\/a> to an anouncement about the country\u2019s \u201cvisionary\u201d plan to create a \u201cfantastic opportunity for anyone who believes in crypto investing.\u201d That opportunity is the Sango project, which appears to now be an initial coin offering for the country\u2019s CBDC.<\/p>\n<p>The project claims that the country\u2019s treasury will have a dedicated Bitcoin reserve and allow citizens to have a \u201cvoice and chance to shape the future\u201d through a governance system. Citizenship can be acquired by locking fixed collateral in Sango. Other benefits include e-residency, land ownership and 0% income tax for digital assets.<\/p>\n<p>While attracting foreign investment is an intelligent move from CAR, a Bitcoin-based initial coin offering from a war-torn country is a weird development.\u00a0CEX.io\u2019s Volkov told Cointelegraph that cryptocurrencies are \u201cwell positioned to help emerging economies fill gaps in the services their domestic financial systems are lacking\u201d and could help connect domestic financial systems to global markets.\u00a0Volkov added that the move may help the country\u2019s economy:<\/p>\n<blockquote><p>\u201cMaking crypto legal tender, or at least creating a legal framework that defines its usage, allows financial companies to introduce cheap and fast financial services that customers can access even with unreliable access to the internet.\u201d<\/p><\/blockquote>\n<p>He also said cryptocurrencies can have a \u201chugely positive effect on countries with developing financial systems looking to participate in the global economy.\u201d<\/p>\n<p>The stories covered in this article make it clear how unpredictable the cryptocurrency space can be during bear and bull markets. If anything, anyone following what\u2019s going on is enjoying a rollercoaster ride they will never forget.<\/p>\n<\/div>\n<p><br \/>\n<br \/><a href=\"https:\/\/news.google.com\/__i\/rss\/rd\/articles\/CBMiY2h0dHBzOi8vY29pbnRlbGVncmFwaC5jb20vbmV3cy9jcnlwdG8tY2FuLWdldC13ZWlyZC10aGUtNS1zdHJhbmdlc3Qtc3Rvcmllcy1vZi10aGUtaW5kdXN0cnktaW4tMjAyMtIBAA?oc=5\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>From Terra to FTX, 2022 has given us many weird crypto stories. While investors have been enduring a bear market that saw the crypto industry sink below the $1 trillion market capitalization mark, adoption in the space has been growing, and old mysteries were finally solved. From the incredible short squeeze of a bankrupt company\u2019s [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":39121,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[39],"tags":[1632,2418,13019],"class_list":["post-39120","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ico","tag-industry","tag-stories","tag-strangest"],"jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"http:\/\/egrowonline.com\/wp-content\/uploads\/2022\/12\/00d96b0c-68db-49ce-96df-444c8db1bdd3.jpg","_links":{"self":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/39120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=39120"}],"version-history":[{"count":1,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/39120\/revisions"}],"predecessor-version":[{"id":39122,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/posts\/39120\/revisions\/39122"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=\/wp\/v2\/media\/39121"}],"wp:attachment":[{"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=39120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=39120"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/egrowonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=39120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}