CryptoScandal

A fierce legal battle has erupted between two bankrupt crypto giants – exchange FTX and hedge fund Three Arrows Capital (3AC). FTX is firmly pushing back against 3AC’s $1.5 billion claim, arguing that the fund's losses stemmed from its own reckless strategies.

🔹 FTX: 3AC’s Claim Is Baseless
In a detailed 94-page objection filed on June 20 in U.S. Bankruptcy Court in Delaware, lawyers representing the FTX Recovery Trust urged the judge to fully dismiss 3AC’s claim, calling it “unfounded” and “illogical.”
According to FTX, 3AC’s actual balance on the platform at the time of bankruptcy was only $284 million—not the nearly $1.6 billion the hedge fund claims. The exchange states this is because 3AC owed $733 million in margin debt, which was subtracted from the balance.
FTX argues that 3AC is now trying to offload the consequences of its high-risk bets onto other creditors. “FTX creditors should not be the guarantors of Three Arrows Capital’s failed trades,” the filing reads.

🔹 Billions Vanished in Just Two Days
Most of 3AC’s funds allegedly “evaporated” in just two days in June 2022 during a major crypto market crash. About $222 million was lost due to market movements, and an additional $60 million was withdrawn by 3AC itself.
FTX claims it only liquidated $82 million – fully permitted under its terms of service – in order to prevent the account from going into a negative balance.

🔹 3AC’s Claim Has Ballooned
Notably, 3AC originally filed a $120 million claim in 2023. That amount was increased to $1.53 billion in November 2024. The fund’s liquidators argue that FTX failed to meet its obligations and delayed disclosure of key information regarding the liquidations.
While Judge John Dorsey has ruled in 3AC’s favor on some discovery-related matters, the overall claim remains under review.

🔹 FTX: Liquidation Was Contractual, Not Seizure
FTX insists that there was no “seizure” of assets, but rather a contractual conversion of volatile crypto holdings into U.S. dollars—a move they say preserved 3AC’s value rather than destroyed it.
FTX also disputes the accuracy of 3AC’s figures, accusing the fund of inflating its balances. According to the objection, 3AC’s real crypto balance at its peak was $1.02 billion, not $1.59 billion, and it owed $733 million—not $1.3 billion.

🔹 Ruling Expected in August
If the court sides with FTX, 3AC’s claim could be completely rejected or downgraded to an unsecured claim—resulting in only a fraction of the requested amount being recovered.
3AC’s official response is due by July 11, and the court hearing is scheduled for August 12.

#FTX , #CryptoNews , #CryptoScandal , #DigitalAssets , #CryptoMarket

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A shocking donation of $45 million worth of Bitcoin to the Czech Ministry of Justice from a convicted drug dealer has rocked the political scene. Although the government survived a no-confidence vote, public trust is plummeting – and the opposition appears poised for a return to power.

🔹 Opposition on the Rise as Elections Approach

According to the latest polls, Andrej Babiš’s ANO movement is heading for a strong victory in the upcoming October parliamentary elections, with support from over 31% of voters, which could translate into 78 seats in the 200-member Chamber of Deputies.
The party enjoys strong backing from older and less-educated voters, but performs well across broader demographics. Research agency STEM says ANO’s leading position is not under threat.

🔹 Bitcoin Scandal Hits Ruling Coalition Spolu

The Spolu (Together) coalition, led by Prime Minister Petr Fiala (ODS), has seen its support drop to just over 20%. This is a notable decline, especially since the coalition had recently shown signs of recovery before the Bitcoin scandal erupted.
STEM notes that the full impact of such scandals on public opinion typically emerges after several weeks, making the current numbers potentially just the beginning of a deeper decline.

🔹 Other Parties: SPD Steady, Pirates Struggling

The far-right SPD, a strong voice for protest voters, maintains solid support – particularly among middle-aged Czechs without high school diplomas. Meanwhile, the coalition member STAN (Mayors and Independents) has dropped from nearly 13% to 9.4%.
Other parties that could still enter parliament include the Pirate Party (7.2%), the leftist group Enough! (5.4%), and the anti-green protest party Motorists for Themselves (4.4%), hovering near the threshold.

🔹 Justice Minister Resigned – But Opposition Wants More

The scandal erupted after it was revealed that the Ministry of Justice had accepted a massive Bitcoin donation from Tomáš Jiřikovský, a convicted operator of a darknet market involved in drug trafficking, embezzlement, and illegal arms possession.
Justice Minister Pavel Blažek resigned in response, but the opposition demands further accountability – specifically, the resignation of Finance Minister Zbyněk Stanjura, who they claim failed to alert authorities about the suspicious crypto donation. ANO has vowed to keep pushing for his removal.

Summary:

The Bitcoin scandal has delivered a major blow to the credibility of Prime Minister Fiala’s government. Though it weathered the no-confidence vote, the ANO party is now firmly on course to win the next election. With the public mood shifting, the power balance in Czech politics may soon be rewritten.

#CryptoScandal , #bitcoin , #Politics , #worldnews , #CryptoNewss

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

Crypto App Founder Sentenced to Additional 3.5 Years in Prison
Firoz Patel, the founder of a crypto payment app, has been sentenced to an additional 41 months in prison after attempting to hide 450 bitcoins that he was ordered to forfeit. The ruling was handed down by U.S. federal judge Dabney Friedrich in Washington, D.C., based on charges of obstruction of justice.
Attempt to Conceal Multi-Million-Dollar Assets
Patel attempted to hide bitcoins currently valued at over $43.5 million from the court handling his 2020 case. At that time, he had pleaded guilty to conspiracy to operate an unlicensed money transmission business and money laundering.

Back in 2020, he was sentenced to three years in prison and two years of supervised release for operating Payza, which, according to prosecutors, processed transactions in the U.S. without proper licensing. The platform was also allegedly used for money laundering and fraudulent schemes, including Ponzi and pyramid scams.
Manipulating Bitcoin Transactions
As part of his original sentence, Patel was required to identify and surrender all assets acquired through Payza. However, he falsely claimed to have only $30,000 in his retirement account.
After his conviction and before beginning his sentence, Patel started moving BTC linked to Payza. He first attempted to deposit the funds on Binance, but the exchange eventually shut down his account in 2021. He then opened an account on Blockchain.com under his father’s name and attempted to transfer the bitcoins there. When the exchange flagged the transaction, it froze the funds. Patel then instructed a business associate to submit false identification in an effort to unfreeze the assets.
Escape Plan Foiled by Investigators
While serving his sentence, Patel learned that investigators were tracking his hidden bitcoins. To avoid further prosecution, he hired an individual posing as a lawyer to deceive authorities and delay his release. He intended to flee the U.S. upon being freed, but investigators uncovered the scheme before his scheduled release.
Additional Penalties and Asset Seizure
Judge Friedrich not only imposed additional prison time but also ordered Patel to undergo three years of supervised release and forfeit assets worth over $24 million. Additionally, he lost claim to 450 BTC, which are currently held by Blockchain.com.

#bitcoin , #CryptoNewss , #CryptoScandal , #CyberSecurity , #cryptocurrencies

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

A Story of Hype, Greed, and Unprecedented Loss 😱

1️⃣ The Terra Crash: A $40B Vanishing Act
In May 2022, the crypto world witnessed an unthinkable collapse. Terra ($LUNA ) once the darling of decentralized finance lost $40 billion in market value in a single day. Trust shattered. Investors devastated. 🌪️

But what really happened? Let’s uncover the untold chaos that led to this catastrophic meltdown. 👇

2️⃣ What Was Terra (LUNA) and UST?
UST: An algorithmic stablecoin designed to stay pegged at $1 without actual reserves, relying instead on LUNA tokens.Sounds innovative? Sure. But this model was built on fragile trust and that trust crumbled spectacularly.

3️⃣ The Fatal Flaw: A “Stable” Coin That Wasn’t Stable
The system allowed swapping 1 $UST for $1 worth of LUNA. When the peg slipped, this mechanism became a self-destructive spiral instead of stabilizing the price. 🤯

4️⃣ Panic at Anchor: The First Domino
Massive withdrawals from Anchor Protocol which promised a too-good-to-be-true 20% yield on UST deposits triggered the crash.
UST started losing its $1 peg. Investors panicked. Markets spiraled. 📉

5️⃣ Death Spiral: LUNA’s Freefall
As UST plummeted, the system minted trillions of LUNA tokens to restore the peg. Instead, this tanked LUNA’s value from $80 to $0.0001, wiping out billions. 💥

6️⃣ Do Kwon’s Desperate Moves
The flamboyant Terra founder, Do Kwon, scrambled for solutions:
Minting more LUNA.Burning tokens.Deploying Bitcoin reserves.

It was too little, too late. The damage was irreversible. 💔

7️⃣ The Fork That Couldn’t Save Terra
Kwon proposed a blockchain fork to launch “Terra 2.0.” But with trust gone, investors fled. Legal probes followed, and the fallout was massive. ⚖️

8️⃣ Do Kwon’s Secrets Unveiled
Revelations emerged about Kwon’s control of key wallets and actions that led to the crash. His claims of decentralization? A façade. 🕵️‍♂️

9️⃣ Global Regulators Tighten the Grip
Terra’s collapse shook the global crypto market. Governments ramped up investigations into fraud and market manipulation. 🌍

🔟 Do Kwon’s Arrest: The End of the Road
In March 2023, Do Kwon was captured in Montenegro using forged documents. A fugitive no more, he now faces prosecution from multiple countries. 🔒

1️⃣1️⃣ The Lesson: Crypto Risks Are Real
The Terra fiasco exposed the dangers of:
Algorithmic stablecoins.Blind trust in speculative projects.

In crypto, everything can change in an instant. Stay informed, do your research, and never invest more than you can afford to lose. 🚨

🌍💡 The Terra collapse was a wake-up call for the crypto world. Let’s learn from it, stay vigilant, and move forward wisely.

👉 Follow @ThingsToKnow for more updates. Like ❤️, Comment 💬, and Share ➡️ this story to spread awareness!

#TerraCollapse #CryptoScandal #CryptoReboundStrategy

Hayden Davis, the controversial figure behind the LIBRA meme coin, is once again in the spotlight—this time for his alleged involvement with WOLF, a new token that has sparked concerns over insider manipulation.
Blockchain analysis by Bubblemaps revealed that 82% of WOLF’s supply was controlled by a small cluster of wallets, raising red flags about potential market manipulation. This revelation comes as Argentine authorities continue investigating Davis for his role in the LIBRA scandal.
Davis launched WOLF around the same time rumors surfaced that Jordan Belfort, the real-life "Wolf of Wall Street," was introducing a meme coin under the same name. The buzz caught the attention of traders, especially within the WallStreetBets (WSB) community, pushing WOLF’s market cap to $40 million. However, as seen with Davis' previous projects, the token’s price soon plummeted, leading analysts to suspect a rug pull.
Bubblemaps tracked WOLF’s funds moving through 17 wallets and five different blockchains before landing in a wallet tied to Davis. The similarities between WOLF and his past projects—MELANIA and LIBRA—fueled speculation that Davis has been orchestrating a pattern of coordinated token launches followed by crashes.
Davis has a track record of high-profile meme coin scandals. LIBRA, one of his most infamous tokens, skyrocketed past $4 billion after receiving a brief endorsement from Argentine President Javier Milei, only to collapse shortly after. Blockchain investigators found that insiders who had acquired large amounts of LIBRA before Milei’s endorsement cashed out over $100 million, leaving retail investors with devastating losses.
Following the LIBRA fallout, Davis admitted to his involvement and also confessed to launching a meme coin linked to former U.S. First Lady Melania Trump. His repeated role in meme coin controversies has attracted legal scrutiny, with Argentine lawyer Gregorio Dalbon even calling for an Interpol Red Notice that could lead to Davis’ arrest and extradition.
Critics argue that Davis’ continued involvement in the crypto space underscores the lack of oversight in meme coin projects. The rapid launch of tokens tied to high-profile names has become a recurring strategy—creating market hype before an inevitable crash. While traders continue to be drawn to the speculative nature of meme coins, the pattern of insider-driven price collapses has raised serious concerns.
With mounting legal pressure, it remains 1uncertain whether Davis will face consequences for his actions. While some believe that investors should exercise caution before diving into speculative tokens, others are pushing for stricter regulations to curb high-profile manipulations like the ones Davis has been accused of orchestrating.
The WOLF saga is yet another reminder of the risks and volatility within the meme coin market. As authorities increase scrutiny on such schemes, the future of unchecked meme coin launches may soon be in question.
#CryptoNews #MemeCoins #WOLF #LIBRA #CryptoScandal
$MEME

The crypto world is wild, unpredictable, and sometimes downright bizarre. This past week, we've witnessed events that even Hollywood screenwriters couldn't dream up. From an unexpected live stream disaster, to a viral dog marketing stunt, and even political turmoil tied to crypto.
Here’s a breakdown of the six craziest moments that rocked the market!
1. NEAR Protocol’s Accidental NSFW Livestream – Token Pumps 6%
In the crypto world, any publicity is good publicity – and NEAR Protocol just proved that.
During a public conference call, a former NEAR Protocol manager accidentally live-streamed explicit content. What was supposed to be a routine meeting turned into an awkward viral moment that spread across the crypto space in minutes.
The result? NEAR’s token pumped 6%.
Apparently, in crypto, scandals make for bullish price action! 🚀📈

2. Vitalik Buterin Tweets About Communism – ETH Pumps 5%
Ethereum’s co-founder, Vitalik Buterin, is known for his deep thoughts on decentralization, but this week, he took things in a different direction. He tweeted:
🟥 "Make communism great again Milady." 🟥
ETH’s price immediately jumped by 5%.
Who would have thought that communism could be bullish?! 😆

3. CZ Doxxes His Dog "Broccoli" – BSC Goes Crazy 🐶🥦
Former Binance CEO Changpeng "CZ" Zhao pulled off a surprise marketing stunt by introducing the world to his dog, Broccoli.
The goal? Bring more liquidity to Binance Smart Chain (BSC).
And it worked like magic – within hours, over 1,000 "Broccoli"-themed meme coins were launched!
Turns out, even a dog can pump the crypto market. 🐕💰

4. Central African Republic President Launches a Token – Then It All Falls Apart 🌍💸
The President of the Central African Republic announced the launch of a new token via Twitter.
Investors rushed in, pumping its value to $500 million.
Then, suddenly:
🚨 The official Twitter account was suspended.
🚨 The project’s website went offline.
🚨 Concerns about token supply manipulation emerged.
Within hours, the token crashed 96% – another reminder that political crypto projects can be risky AF. 🤦‍♂️

5. Argentina’s President Milei Launches LIBRA – The Pump and the Dump
Argentine President Javier Milei launched a new token called LIBRA, which soared to a market cap of $4.5 billion in no time.
But what happened next?
👀 Developer wallets started draining liquidity, pulling out over $87 million.
📉 LIBRA’s price crashed by 90%.
This turned into one of the biggest crypto rug pulls of the year.

6. Impeachment Incoming? Milei Under Investigation for LIBRA
Just days after LIBRA’s collapse, rumors started flying about a possible impeachment for President Milei.
Independent crypto sleuths are investigating potential ties between Milei and crypto insiders who helped launch LIBRA.
The result? One of the biggest political-crypto scandals of the year – and possibly, the first-ever impeachment triggered by a meme coin. 🏛️🔥

What’s the takeaway?
This week in crypto was a rollercoaster of insanity, proving once again that this space has no rules, only vibes.
🔹 Scandals pump tokens.
🔹 One tweet can move markets.
🔹 A dog named Broccoli can spark a meme coin frenzy.
🔹 Politicians are jumping into crypto – and it’s not always ending well.
What do you think about this week’s craziness? Which event shocked or entertained you the most? Drop your thoughts in the comments! ⬇️💬

#CryptoScandal , #CryptoNewss , #nearprotocol , #JavierMilei , #VitalikButerin

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Notice: This article is for educational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry risks and may result in financial losses.

Ben Armstrong, known in the crypto world as "BitBoy", is back in the spotlight — but this time, not for market tips. He’s making headlines for all the wrong reasons after being arrested in Florida on March 25 following claims that a warrant had been issued for his arrest.

📩 “Warrant Issued Over Emails to Judge,” Armstrong Says
On March 21, Armstrong posted on X that he could “confirm there are arrest warrants” against him — allegedly due to emails he sent to Georgia Superior Court Judge Kimberly Childs while acting as his own attorney.
He also claimed that the judge deleted her social media accounts as a result of his messages. No information about Armstrong’s legal representation has been made available, and he has not issued any public comments since.

👮 Not His First Run-In With the Law
This isn’t the first time Armstrong has faced legal trouble. In September 2023, he was arrested during a livestream while confronting a former business partner he accused of holding his Lamborghini.
Earlier, in March 2023, he was also named in a class-action lawsuit for allegedly promoting Binance, which was accused of selling unregistered securities. The case was later settled in August 2024, with Armstrong and NBA star Jimmy Butler agreeing to pay $340,000 without admitting guilt.

🥋From Courtroom to Cage: Armstrong’s Crypto Fight Night
Aside from legal battles, Armstrong stepped into a very different kind of arena in February 2024, taking on pseudonymous memecoin developer "More Light" in a Karate Combat match in Mexico.
After three two-minute rounds, Armstrong won by unanimous decision. Despite the hype, More Light later stated there was “no bad blood” between them in real life and described Armstrong as a “good guy” in person.

🚫 BitBoy Brand Cuts Ties Over Alleged Misconduct
In August 2023, Hit Network — the company behind the BitBoy Crypto brand — officially severed ties with Armstrong, citing alleged substance abuse issues and unprofessional behavior toward staff.
Armstrong denied the accusations and called it an attempted takeover of the brand he helped build.

#CryptoDrama , #CryptoNewss , #CryptoScandal , #SEC , #CryptoNewsCommunity

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

From $0.18 → $75 → CRASHED to $16

810,000+ wallets SHATTERED.

Launched before Trump’s inauguration, $TRUMP looked like the next political moonshot...

But what followed was a crypto bloodbath wrapped in controversy:

1 wallet turned $1.1M → $109M in 48 HOURS
Trump-linked insiders reportedly raked in $100M+ in fees
Whispers of manipulation, shadow wallets & insider trades
Retail investors left holding the bag

Is this the future of political tokens—or a warning shot for every investor chasing hype?

Crypto isn’t a casino.

It’s time to expose the shadows, demand accountability, and protect the chain.

🚨 The Crypto Empire That Crashed Overnight

In 2022, FTX, one of the world’s largest cryptocurrency exchanges, imploded in spectacular fashion—wiping out billions in customer funds and shaking the entire crypto industry.

✔️ Founded by Sam Bankman-Fried (SBF), FTX was seen as a crypto savior, backed by celebrities and venture capital giants.

✔️ Behind the scenes, customer funds were secretly funneled to SBF’s hedge fund, Alameda Research.

✔️ When the truth surfaced, FTX filed for bankruptcy, and SBF was arrested for fraud.

This wasn’t just a crypto crash—it was a modern-day financial scandal with global consequences.

💰 The Rise – From Dorm Room to Crypto Royalty

🚨 SBF launched FTX in 2019, promising transparency and innovation.

🚨 The exchange grew rapidly, handling billions in daily trading volume.

🚨 FTX secured naming rights to stadiums, ran Super Bowl ads, and became a symbol of crypto legitimacy.

But beneath the surface, a house of cards was forming.

🔥 The Collapse – A Tweet That Triggered a Meltdown

✔️ In November 2022, a leaked balance sheet revealed Alameda’s heavy reliance on FTX’s own token, FTT.

✔️ Binance CEO CZ tweeted doubts, sparking a bank run on FTX.

✔️ Within days, FTX halted withdrawals, filed for bankruptcy, and SBF resigned.

The crypto world was stunned. Over $8 billion in customer funds vanished.

⚖️ The Fallout – Trials, Trust, and Regulation

🚨 SBF was charged with fraud, conspiracy, and money laundering.

🚨 The collapse led to calls for stricter crypto regulation worldwide.

🚨 Investors, celebrities, and politicians who backed FTX faced scrutiny.

FTX’s downfall wasn’t just a crypto story—it was a cautionary tale about hype, trust, and unchecked power in digital finance.

#FTXCollapse #CryptoScandal #SamBankmanFried #FinancialHistory
#Write2Earn 🚀🔥

🚨
$ETH
A political and financial firestorm has erupted in Argentina following allegations that President Javier Milei’s endorsement of the meme coin $LIBRE triggered a massive pump-and-dump scheme. The rapid collapse of the token wiped out hundreds of millions in investor funds, sparking national outrage and calls for impeachment. Now, the government is under intense scrutiny, and the crypto community is watching closely.$BNB

🔥 How It All Unfolded

🔹 Late Friday night, Milei took to X (formerly Twitter) to endorse $LIBRE, leading to an explosive surge in value.
🔹 The token’s price skyrocketed from $0.006 to nearly $5 in just a few hours, drawing in thousands of investors.
🔹 Within six hours, the coin crashed back to $0.84, igniting accusations of market manipulation.$SOL
🔹 Milei’s post was quickly deleted, but the damage was already done.

⚖️ Political Fallout & Demands for Justice

🔸 Opposition leaders, led by Leandro Santoro, have condemned the scandal as a national embarrassment, calling for Milei’s impeachment.
🔸 Former President Cristina Fernández de Kirchner criticized the incident, describing it as a deliberate financial trap that devastated retail investors.
🔸 KIP Protocol, the entity behind $LIBRE, denied government involvement, later revealing that Kelsier Ventures, headed by Hayden Davis, was responsible for launching and managing the token.

🔎 Investigations & The Road Ahead

✔ Milei has distanced himself from the controversy, claiming he had no direct involvement.
✔ The Anti-Corruption Office (OA) has launched an official probe into possible misconduct.
✔ A special Investigation Task Unit ($UTI) has been formed to examine potential insider trading and financial fraud.

With Congress in turmoil and investors demanding accountability, the coming days will determine whether Milei can weather the storm—or if this scandal will mark the end of his presidency. Stay tuned as this high-stakes political and financial drama unfolds! 🎭💥