The Week in Crypto –, Terra, and FTX

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This week in crypto we’ve got a crypto exchange CEO shrugging his shoulders over a $400 million accidental fund transfer, revelations of just how much Terra spent on trying (and failing) to protect the TerraUSD cap in May, and, of course, more FTX fallout. 

No. 3 –’s Accidental $400 Million Transfer CEO Kris Marszalek confirmed this week that the company accidentally sent $400 million worth of ETH to a fellow exchange when it was supposed to go to cold storage. Marszalek was forced to admit the mistake after eagle eyed blockchain sleuths spotted it, and the CEO didn’t seem too bothered that $400 million of user funds was sent to the wrong address.

Marszalek said that the funds were never at risk given that the address for the exchange was whitelisted, but didn’t seem to understand user concerns that THIS KIND OF SHIT SIMPLY SHOULD NOT HAPPEN!

No. 2 – Terra Businesses Spent $3.4 Billion on UST Peg

The two organizations backing the failed TerraUSD stablecoin, the Luna Foundational Guard and Terraform Labs, spent a combined $3.4 billion on trying to prop up UST as it was circling the drain back in May.

An independent audit this week revealed that the Luna Foundational Guard threw $2.8 billion at the ailing coin as its dollar peg began to fall, while the remaining $613 million was spent by Terraform Labs, with all their efforts eventually counting for nothing. Still, good to know it wasn’t wasted money…

No.1 – FTX Fallout Continues

Last week it was the shock of the collapse of FTX, this week it’s been about registering the fallout. Several firms admitted being affected by FTX’s collapse in the last seven days:

  • Salt lending halted withdrawals and deposits
  • Blockfi is considering bankruptcy
  • Ikigai had a “large majority” of funds on FTX
  • Genesis’ lending arm halted withdrawals, leading to Gemini Earn being unable to operate

We also had a whole other bunch of fallout stuff, including:

What will happen next week? God only knows.