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welcome to Chain reaction.
Do you believe in second chances? Well, FTX’s new CEO, John J. Ray III, hopes so. A new report from the WSJ says the new head of the disgraced cryptocurrency exchange is open to the idea that it may reopen operations and revive the bankrupt firm. Only time will tell if it comes to fruition and works out for both FTX and the company’s customers and creditors.
In other news, if you haven’t heard about a tiny eight-letter cryptocurrency exchange called Bitzlato before Wednesday, you’re not alone. But apparently the U.S. Department of Justice knew what it was and tracked it down so closely that it had enough information to arrest founder Anatoly Legkodimov on suspicion of handling over $700 million in illicit funds. clarified.
The arrest caused a lot of jokes and confusion from members of the crypto community who didn’t know what Bitzlato was before the announcement, but the DOJ’s failure to take action against the larger players in the space. I also felt a little frustrated.
Events like the FTX bankruptcy rocked the crypto industry, but longtime crypto players apparently didn’t know what Bitzlato was before DOJ’s announcement. According to known wallet data from crypto intelligence tool Arkham, the wallets associated with Bitzlato contain him just over $11,000. In his prime he made over $6 million, making Bitzlato a very small player in the industry.
Overall, this arrest shows that the Department of Justice — and the U.S. government in general — is cracking down on the crypto space. As rapper Biggie Smalls once said, “It’s like the more money you come across, the more problems you have.”
See below for details.
web3 of the week
Solana co-founder believes developer could lead network in 2023 (TC+)
As the ecosystem of crypto developers expands, major ecosystems outside the top two cryptocurrencies (Bitcoin and Ethereum) are growing, according to a new report. Solana had the highest number of new developers contributing to the ecosystem, with an 83% increase in developer count, the fastest of the major blockchains. “2023 could be the year other developers already building on Solana collectively lead the direction of the network,” Solana co-founder Raj Gokal told TechCrunch. rice field.
DOJ indicts founder of cryptocurrency exchange Bitzlato for processing $700 million in illegal funds.
As mentioned earlier, the lesser-known cryptocurrency exchange Bitzlato is in the water. According to DOJ, Bitzlato allowed users to trade cryptocurrencies without verifying their identities.The Hong Kong-registered exchange said that “neither selfies nor passports [are] need. “The government says Bitzlato has become a breeding ground for criminal activity due to its lack of KYC procedures.
Ethereum’s Move to Proof-of-Stake Increases Institutional Interest (TC+)
Ethereum’s transition from Proof of Work (PoW) to Proof of Stake (PoS) in September 2022 has increased interest in staking among many parties, including institutions. The successful merge propelled Ethereum from “a lagging smart contract platform” to “one doing the right thing,” said Diogo Monica, co-founder and president of Anchorage Digital. increase. TechCrunch. “Investor interest has increased and appetite has changed dramatically.”
Crypto.com cuts 20% jobs amid ‘significant damage’ to industry from FTX
Cryptocurrency exchange Crypto.com announced on Friday that it will cut its global workforce by 20% as it weathers ongoing economic headwinds and “unpredictable” industry events. This is his second major job cut for his Singapore-based Crypto.com, where he cut 250 jobs mid-last year. The company didn’t say which positions would be eliminated in the new job cuts, but blamed it on the FTX collapse.
Investors say cryptocurrencies are heading into a ‘tumultuous year’ when capital is slow to deploy (TC+)
While some crypto-focused venture capitalists are bullish on 2023, others see it as a dangerous time. Many investors are leaving last year’s chaotic markets behind and looking forward to the future in a still investor-centric environment. However, as investors issue fewer checks and become more selective, the market will become more competitive.
latest pod
Last week, Chain Reaction kicked off season two, introducing an episode with Ryan Wyatt, president of Polygon Labs. Polygon Labs is the largest market shaker in the crypto space built on top of the Ethereum ecosystem and he is one of the layer 2 blockchains.
Next week we release our second episode with Mo Shaikh, co-founder and CEO of Aptos, a new layer-1 blockchain that has raised a total of $350 million in funding in 2022.
stay tuned.
apply Chain reaction upon apple podcast, Spotify Or check out the latest episodes on your favorite pod platform. If you like it, please leave us a review!
follow the money
- ZK proof-focused startup Ulvetanna raises $15 million in seed round
- Obol Labs Raises $12.5 Million in Series A Round
- =nil; foundation raises $22 million to build proof-based marketplace
- Metahood raises $3 million to build a Metaverse-based real estate portal
- Sleepagotchi Raises $3.5 Million
This list is compiled with information from Messari and TechCrunch’s own reports.
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