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- Arbitrum Foundation accused of fraud
Arbitrum Foundation accused of fraud
PLUS - Bittrex shuts down U.S. operations
Daniel Akpobare
April 03, 2023
GM, this is The Crypto Explorer reporting for duty with a freshly brewed cup of coffee and a whole lot of Monday morning swag!
Here’s what we got for you today:
😡 Arbitrum Foundation's credibility in question after a controversial move
🏢 Bittrex shuts down U.S. operations
🧱 Around the block: $258 billion lawsuit
😡 Arbitrum Foundation's Credibility in Question after a Controversial Move.
Arbitrum Foundation proposed to fund themselves with a whopping 750 million ARB tokens (worth around $1 billion), but the community gave them the cold shoulder and voted against it.
But guess what?
The foundation had already spent 50 million ARB tokens before the vote even took place! 😂
In their defense, the foundation said in a forum post that the proposal is just a "ratification”, not a proposal! (Can you believe that! 🤣)
It's like they're trying to break the record for the fastest way to lose trust in a community. 🤷♂️
So, what did they do with the 50M ARB tokens?
40M ARB tokens have been allocated as a loan, while 10M ARB tokens were converted to fiat currency for operational costs.
6/ Regarding the on-chain transfers of 50M $ARB tokens, 40M $ARB tokens have been allocated as a loan to a sophisticated actor in the financial markets space. The remaining 10 million has been converted to fiat and dedicated towards operational costs.
— Arbitrum (💙,🧡) (@arbitrum)
4:40 PM • Apr 2, 2023
Some Arbitrum community members are furious!
They're accusing the Arbitrum team of "dumping tokens," even though they were supposed to be locked, while others pointed out that their actions might be considered fraud under U.S. securities laws.
🏢 Bittrex Shuts Down U.S. Operations
Bittrex, a cryptocurrency exchange, is winding down its operations in the US due to a challenging regulatory and economic environment.
CEO Richie Lai said that regulatory requirements have become increasingly "unclear" and "enforced without appropriate discussion or input."
Bittrex will continue to operate globally, and US customers don't have to worry about the safety of their funds.
Trading will be permitted until April 14, 2023, and customers are advised to withdraw all funds by April 30, 2023.
Due to continued regulatory uncertainty, we have made the difficult decision to wind down our U.S. operations, effective April 30, 2023. All funds are safe and can be fully withdrawn immediately.
This does not affect customers of @BittrexGlobal
— Bittrex (@BittrexExchange)
7:07 PM • Mar 31, 2023
This move highlights the challenges cryptocurrency businesses face in an uncertain regulatory environment.
🧱 Around The Block: $258 Billion Lawsuit
Another SOL breakout: Solana options protocol Cega moves to Ethereum.
$258 Billion Lawsuit: Elon Musk seeks to end the $258 billion Dogecoin lawsuit, claiming he's just a fan, not the mastermind.
Yuga Labs has a new CEO: Former Activision blizzard executive Daniel Alegre joins Yuga Labs as CEO to help ramp up its metaverse efforts.
Trump NFT Sales Spikes: Trump NFT sales surge again with historic indictment, proving controversy can still fuel the market.
Bitcoin to Space: ZeroSync and Blockstream team up to broadcast Bitcoin zero-knowledge proofs from space.
That's all we have for today.
We'd love your feedback.
In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.
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