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Binance tried to enlist Gary Gensler, Silvergate bear predicts end of bank, ETHDenver performances divide the cryptoverse

Binance tried to enlist Gary Gensler, Silvergate bear predicts end of bank, ETHDenver performances divide the cryptoverse
Multicoin's Kyle Samani has admitted to massive losses last year.

Binance tried to elude US authorities and enlist Gary Gensler

Binance tried to rope in Gary Gensler, the current Securities and Exchange Commission chair and known firebrand crypto-hawk, as an adviser in 2019 in an effort to neutralise US regulators.

That is according to a Wall Street Journal scoop published over the weekend. The story was based on a cache of messages and documents reviewed by the publication as well as interviews with former employees.

The article also claimed that while Binance set up Binance.US as a fully independent platform to neutralise regulators, these two entities were much more entwined than what the company let on.

Those claims piled on to accusations from an earlier Reuters report alleging that Binance.US transferred $400 million to its international sister firm, Binance Global, in 2021.

NOW READ: As DeFi partners clash over $32m in bad debt, depositors could lose everything

Short seller doesn’t think Silvergate will last the week

Veteran short seller Marc Cohodes said he “would be very surprised if [Silvergate Bank] is open next week” on Friday. His comments came as the crypto-friendly bank’s stock continued to take a beating.

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Cohodes is one of many who have bet against the ailing bank, which in recent weeks has suffered through analyst downgrades, fleeing clients and regulators knocking at the door.

He was an early critic of collapsed exchange FTX and based his Silvergate short – a short is a bet the company’s stock price will go down – on comments the disgraced FTX founder Sam Bankman-Fried made regarding the bank’s pivotal role in FTX’s success.

NOW READ: Hedge fund short seller says Silvergate crash may be a sign of the bottom

‘Cringe’ ETHDenver performances divide crypto community

A collection of esoteric performances of the ETHDenver conference over the weekend has divided the cryptoverse. The Ethereum community conference, which featured web3 personalities and hackers alike, marked a significant step up for the event, as last year’s ETHDenver was held in a “refurbished parking garage.”

The performances – such as Twitter crypto-couple Gabriel Haines and Lee Eller singing a cover from Disney’s Encanto, entitled We don’t talk about crypto – featured self-satire alongside genuine vitriol towards alleged 2022 scammers such as FTX’s Sam Bankman-Fried and Terra’s Do Kwon. Some on Twitter referred to the performances as “cringe” while others made the case that the Ethereum community, whether cringe or hype, is at the very least resilient.

Tether affiliates used falsified documents and shell companies

Stablecoin issuer Tether has joined the controversy dogpile, with accusations emerging that the company used falsified documents and other methods to access bank accounts, according to a Wall Street Journal report.

The story, based on emails seen by the publication, allege that Tether’s now-defunct sister company Crypto Capital Corp. held Tether funds, helping facilitate the opening of “at least nine” shell bank accounts in Asia in 2018.

Tether CTO Paolo Ardoino lashed back against the accusations in a Tweet. “As always ton of misinformation and inaccuracies,” he said.

Nonetheless, crypto-friendly banks and those who deal with them face increasing scrutiny as Silvergate Bank tangles with insolvency.

Prosecutors want SBF to use a ‘flip-phone’

Prosecutors want former FTX CEO Sam Bankman-Fried to be stuck using a dumb phone until his trial in October. The request to the judge is part of a wider effort by the prosecutors to limit and monitor the disgraced crypto personality’s internet usage. Prosecutors based their request on disclosure that Bankman-Fried had used a virtual private network to watch the Super Bowl in February, as well as contacted former employees using encrypted messaging apps.

Negotiations for Bankman-Fried’s bail are ongoing, with the proposed restrictions including a “whitelist” of approved websites Bankman-Fried may visit, including news outlets such as the New York Times, streaming services such as Netflix, and food delivery app Uber Eats.

Multicoin blames FTX for ‘worst’ year since inception

Hedge fund Multicoin Capital lost a whopping 91.4% in 2022, according to the firm’s annual letter to investors. It cited exchange FTX’s September collapse and “subsequent contagion” as reasons for the abysmal results.

The firm had up to 10% of the firm’s assets locked on FTX – which is currently frozen due to bankruptcy proceedings – as well as significant exposure to coins especially hard-hit by the November crash. This one-two punch contributed to Multicoin’s management referring to its performance in 2022 as “the worst since inception.”

Multicoin also announced new steps to reduce its risk exposure, such keeping trading assets on an exchange for 48 hours at a time, as well as adjusting “collateral management practices.”

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