Nearly $10 Billion BTC From Mt. Gox Moved 🤯

Billions in BTC moved, SOL vote controversy, Epic Games Store has a Cardano game, and FTX exec sentenced.

Author

Jonathan Morgan
May 28, 2024

OVERVIEW

Nearly $10 Billion BTC From Mt. Gox Moved 🤯 

Lot’s of red out there - a combination of post-three-day weekend and strong fundamental FOMO is hitting the market hard today. 🔴 

In today’s Litepaper, we’re going to look at the crazy amount of Bitcoin moved by Mt. Gox’s custodians.

Also on deck: a controversial $SOL vote, an Unreal 5 game on Cardano on Epic Games Store, and the newest FTX exec sentenced. 📰

Before we dive in, here’s today’s crypto market heatmap:

And here’s a look at crypto’s total and altcoin market cap YTD:

NEWS
Mt. Gox BTC Moving ⛰️ 

Early Tuesday, Mt. Gox-linked wallets transferred a massive amount of $BTC in multiple transactions. This is the first significant movement from Mt. Gox's cold wallets in over five years. 😱 

The market didn't take it well, with Bitcoin dropping by -3.03% to as low as $67,243 after hitting a high of over $70,600 on Monday.

Mt. Gox, once the biggest Bitcoin exchange, shut down in 2014 after losing hundreds of thousands of BTC in a hack. Since then, creditors have been waiting for their repayments. 🫰 

Details of the Transfers

  • 34,138 BTC (~$2.32 billion)

  • 32,499 BTC (~$2.2 billion)

  • 32,137 BTC (~$2.18 billion)

  • 16,589 BTC (~$1.14 billion)

  • 14,057 BTC (~$966 million)

  • 8,239 BTC (~$565 million)

  • 3,999 BTC (~$277 million)

All these funds have been moved to a single address: 1JbezDVd9VsK9o1Ga9UqLydeuEvhKLAPs6

Alex Thorn, head of research at Galaxy, believes that the distribution to creditors could happen within days or weeks. He suggests that most of the transferred Bitcoin will likely be held by creditors rather than being sold immediately.

Alex Kuptsikevich, a senior market analyst at FxPro, noted that while the market is temporarily pressured, this move might finally resolve a longstanding issue, closing a chapter of uncertainty in the crypto world. 📕

SOLANA
Solana Validators to Receive All Priority Fees 💵 

The Solana ($SOL) community just decided to give 100% of priority fees to the network validators. On May 27, the proposal passed with a 77% majority. Let’s break it down. 📗 

What's the Deal with Solana’s Fees?

Previously, when you paid a priority fee on Solana to speed up your transactions, the fee was split 50/50. Half went to the validators (the folks keeping the network running), and the other half was burned (removed from circulation to help control inflation). Now, all those fees will go straight to the validators.

So why make the change?

The idea is simple: better incentives for validators to keep the network secure and efficient. The person behind the proposal, Tao Stones, pointed out that the old system wasn’t motivating validators in the right way. Giving them all the priority fees should help them focus on maintaining a strong network instead of looking for side deals.

In an interview with Decrypt, Orangefin Ventures, voted against this change. They wanted an additional proposal to pass alongside it, making distributing these fees to stakers (people who lock up their SOL to support the network) easier. Without it, validators have to manually distribute fees, which is more work. 🤦 

Concerns

Not everyone is happy. Some folks worry that not burning half the fees anymore will lead to higher inflation – basically, more SOL in circulation could decrease its value. However, others think the impact will be minor since normal network fees will still get burned.

Despite some hiccups, like network crashes and congestion, Solana remains one of the fastest blockchains, handling a record 1,504 transactions per second (TPS) on April 6. This speed blows Ethereum’s layer-1 out of the water - however, at a 70% failure rate, Solana still has some bigger problems to deal with. 🤔 

NEWS
Cardano Game on Epic 🤯 

I am absolutely freaking losing my mind. There is a Cardano ($ADA) based game on the Epic Games Store - Chains of War. ⚔️ 

Blockchain Shooter Looter Using Unreal 5? Yes Please.

Click to enlarge.

It's a PvPvE game - think Destiny 2, The Division, Sea of Thieves, Warframe, etc. And according to what's available on the site, the overall setup shouldn't be too different from other games: Start at level one, pew pew some things to level up - and so on.

The Economy of Chains of War

Click to enlarge.

Say goodbye to loot boxes and hello to earning while playing. The Chains of War economy revolves around M-S3, a.k.a. $MIRA - the game's economic lifeblood.

MIRA is the in-game token for farming, whitelisting, raffles, and staking boosters. This means your in-game earnings have real-world value. Trade, sell, or use them as you see fit. Thanks to the Midnight blockchain integration, enjoy top-notch privacy and anti-cheat measures. 🔒️ 

Blockchain Integration and Minting Made Easy

Click to enlarge.

Chains of War seamlessly integrates blockchain tech, letting you mint and trade digital loot. Don't worry, you don't need to be a crypto wizard to play. Blockchain features are optional, and no external wallet is needed. It's accessible to everyone—from hardcore gamers to casual traders.

Upcoming Alpha Release

Currently in closed Alpha, Chains of War is prepping for a limited public Alpha release later this year. Developed with Unreal Engine 5 and the Cardano blockchain, expect stunning visuals and a solid ecosystem. Stay tuned. 🌎️ 

NEWS
FTX Executive Ryan Salame Sentenced to 90 Months 🚨

Former FTX under-boss Ryan Salame was just sentenced to 90 months in prison by Judge Lewis A. Kaplan. Salame had previously pled guilty to conspiracy charges related to illegal political contributions and operating an unlicensed money transmitting business. 👨‍⚖️ 

The Lowdown

  • Positions Held: Salame was a bigwig at Alameda Research, the crypto trading firm started by Samuel Bankman-Fried, from 2019 to 2021. By October 2021, he was co-CEO of FTX's Bahamian branch, FTX Digital Markets Ltd.

  • The Dirty Deeds:

    • Unlicensed Money Business: Salame, along with Bankman-Fried and other FTX employees, ran an unlicensed money transmitting business, using FTX, Alameda, and "North Dimension" to shuffle customer funds without a license. They also lied to U.S. banks to keep their scheme going.

    • Shady Political Contributions: Starting in 2020, Salame, Bankman-Fried, and FTX exec Nishad Singh cooked up a plan to hide Bankman-Fried's involvement in political donations. They threw millions at various campaigns to boost FTX's profile and sway legislation, using fake donors and corporate funds, causing campaigns to report false information to the Federal Election Commission.

Sentencing and Penalties

  • Prison Time: Salame, 30, from Potomac, Maryland, will be cooling his heels in prison for 90 months.

  • Supervised Release: After prison, he'll be under supervision for three years.

  • Financial Hit: Salame's also on the hook for over $6 million in forfeiture and more than $5 million in restitution.

Damian Williams summed it up: "Salame's shady deals helped FTX grow by breaking the law, undermining public trust in elections and the financial system. This sentence shows that there are serious consequences for such actions." 👮 

NEWS
Crypto News In Three Sentences 📰

🔄 Minswap Eyes Binance Listing

Cardano's top DEX, Minswap ($MIN), is hustling for a Binance listing to boost liquidity and visibility. They're aiming to join the big leagues of crypto trading. A Binance nod could be a game-changer for Minswap. DailyCoin has more.

💸 Uniswap Drops Financials Before Fee Vote

Uniswap ($UNI) Foundation just revealed its unaudited financials ahead of a crucial vote on a new fee mechanism. They’re pushing for transparency to win community trust. This vote could seriously shake up Uniswap’s revenue model. From DailyHODL.

📉 Grayscale's Ethereum ETF Faces Huge Outflows

Analysts say Grayscale’s Ethereum ETF could see $110 million in daily outflows right off the bat. This might put some short-term pressure on ETH prices. The crypto ETF game isn't for the faint-hearted. More from Cointelegraph.

💬 Crypto Execs Bet Bitcoin Beats Nvidia

Crypto bigwigs think Nvidia ($NVDA) won't outdo Bitcoin ($BTC) over the next decade. Bitcoin’s scarcity and rising adoption are their main arguments. Despite Nvidia's current hot streak, they're still betting on Bitcoin long-term. Full story at CryptoIntelligence.

💸 US Crypto Investment Inflows Surge 

US crypto investment products saw over $1 billion in weekly inflows, with Ethereum funds alone attracting $35 million. This marks the third consecutive week of strong inflows, driven by recent ETF approvals. Bitcoin ETPs led the charge, but Ethereum isn't far behind. CryptoBriefing has more.

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