GM, this is The Crypto Xplorer. Our mission is to make you laugh while explaining what's happening in crypto.

Here's what we got for you today:

• Yuga Labs' TwelveFold Bitcoin NFT collection breaks records

• SEC Shuts Down '$100 Million Crypto Fraud' in Miami

• Alameda Research sues Grayscale, DCG, and CEO Barry Silbert

Yuga Labs’ First Bitcoin NFT Auction Nets $16.5M in 24 hours!

Yuga Labs' TwelveFold Bitcoin NFT collection sold like hotcakes, raising a whopping $16.5 million in just 24 hours!

That's enough money to buy a small island or at least a lifetime supply of avocado toast. 🥑

However, the auction process is causing quite a stir in the crypto community.

Unlike Ethereum-based NFT, Bitcoin doesn’t have an open NFT marketplace.

So, to bid on one of the limited 300 generative pieces, interested participants had to transfer their entire bid amount in Bitcoin to Yuga Labs' unique BTC address. Yuga labs held onto it until the auction ended. (Talk about hodling your Bitcoin hostage! 🤣 )

Everyone who didn’t win the auction gets their BTC back within 24 hours (Unless they're feeling a little greedy, then it's bye-bye Bitcoin).

In a world where any marketing move Yuga Lab makes is often seen as the ultimate strategy, you can understand why a lot of people weren’t exactly happy with this process.

It sets a bad precedent. (as the user behind an ordinals-focused Twitter account “ordinally” puts it).

In any way, A total of 288 bidders won one of the Bitcoin NFTs from the collection, with the highest bidder paying just over 7 BTC or $161,000 for one of the pieces.

SEC Shuts Down $100 Million "Crypto Fraud” in Miami

The SEC is on a roll with its enforcement efforts in the crypto sector!

This time, they're busting a Miami-based investment adviser that allegedly ran a fraud scheme and raised $100 million from at least 55 investors to invest in crypto assets.

What did they do with the money? 💸

According to the SEC, BKCoin Management and its principal, Kevin Kang used $3.6 million to make Ponzi-like payments.

While Kang allegedly used at least $371,000 of investor money to treat himself to some fancy vacations, sporting events, and even a New York City apartment.

But the SEC is not having it - they've frozen the assets and appointed a receiver to manage the company's affairs.

Alameda Sues Grayscale, DCG, Silbert Over Fee Structure

Alameda is claiming that Grayscale's fees and refusal to let investors redeem their shares in its trust products have caused Alameda’s shares to lose 90% of their value.

Alameda is seeking to unlock $9 billion or more in value for shareholders of the Grayscale Bitcoin and Ethereum Trusts and if they play their cards well, they’ll be walking away with over $250 million in asset value.

Meanwhile, Grayscale is saying "Hold on a minute, that’s misguided! We've been transparent about our efforts to convert GBTC into an ETF.”

Yeah, because that's definitely going to make Alameda forget about their money! 🙄

The Crypto Xplorer's Take: Alameda is just looking for ways to recover every dollar it can to pay back its customers and creditors. (AKA FTX customer's funds because FTX sent their money to Alameda to trade it away).

That's all we have for today. See you on Twitter if you're there: @danielakpobare

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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.