The Week in Crypto – FTX, QuadrigaCX and Core Scientific

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This week in crypto we’ve seen more shenanigans from FTX with guilty pleas flying around like private jets, millions in QuadrigaCX bitcoin moving after almost four years and Core Scientific entering bankruptcy in an industry-first. Let’s see how the crypto world surprised us again this week.

No. 3 – QuadrigaCX Bitcoin on the Move

The $1.7 million in bitcoin moved from old QuadrigaCX wallets this week has turned out to be the bitcoin thought lost forever when it was sent there in 2019. 103 was sent from QuadrigaCX hot wallets to several cold wallets in February 2019, cold wallets that had been inaccessible since founder Gerald Cotten died the prior year with the private keys.

Some were suspicious of the activity at the time, and the fact that the bitcoin has now moved to a mixer reinforces the thought that it was a nefarious act, with some names already being thrown about as to who could have done it.

No. 2 – Core Scientific Enters Bankruptcy

Core Scientific, one of the largest bitcoin mining companies, this week filed for bankruptcy after it couldn’t afford to keep operating at profit. Core Scientific, which owns about 5% of the global Bitcoin hashrate, plans to continue mining bitcoin during the bankruptcy process, suggesting it believes it can find its way back to solvency. The news marks the first time a publicly listed company in the industry has declared bankruptcy.

On Thursday a U.S. bankruptcy court granted Bitcoin Core Scientific interim approval to access a $37.5 million loan from existing creditors to fund it amid liquidity issues, although how much this will help in the long term is unclear.

No. 1 – More FTX Shenanigans

This week saw more FTX developments, with Sam Bankman-Fried arriving in the U.S. after being extradited to face multiple charges of financial fuckery and two former execs pleading guilty to their parts in the scam.

Bankman-Fried had threatened to fight extradition but eventually relented, arriving in the U.S. on the day that Caroline Ellison and Gary Wang pleaded guilty for a litany of financial crimes associated with FTX and Alameda. The fate of former Alameda Research co-CEO Sam Trabucco is unknown, with some suggesting that he is next on the list for arrest and others suggesting he is collecting tens of millions of dollars as a whistleblower.