Weekly News Highlights | Musk Withdraws Offer to Acquire Twitter; 0xb1 Reveals True Identity and Exposes Celsius Collapse Insider Information

Organizer: Linqi, Chain Catcher

Important News

1. 0xb1 Officially Reveals True Identity, Formerly Managed Hundreds of Millions in Assets for Celsius and Faced Legal Disputes

On July 8, it was reported that the well-known Twitter account 0xb1 announced its true identity today, named Jason Stone. The company he founded, KeyFi, worked for Celsius for a long time after being acquired by them. 0xb1 was also created by Celsius and once managed hundreds of millions in customer deposits. However, due to the company's failure to hedge risks, it incurred losses and refused to pay profit-sharing, leading to a legal lawsuit against Celsius.

Jason Stone stated that from August 2020 to April 2021, he led a talented group managing the 0xb1 address. Before leading 0xb1, Jason Stone spent several years creating yield optimization strategies in the PoS field. In 2019, he founded a company called KeyFi, which developed MPC staking software and strategies. In 2020, the company was acquired by Celsius, after which Jason Stone shifted KeyFi to stake and deploy DeFi strategies for Celsius. In August of that year, Celsius created the 0xb1 address and transferred hundreds of millions in customer deposits to that address for investment, subsequently sharing the private key with Jason Stone for management.

"They assured me that their trading team fully hedged any potential impermanent losses caused by our activities in the liquidity pool. They also assured me that they managed risks and hedged against token price fluctuations," Jason Stone said. "But in late February 2021, we discovered that Celsius had deceived us. They did not hedge our activities or hedge against the volatility of crypto asset prices."

Jason Stone claimed that Celsius refused to acknowledge the truth or their failures in risk management and accounting, attempting to shift the blame onto him, while also owing KeyFi a significant amount of money. "Given the public speculation about the company's solvency and my observations of Celsius's loose relationship with the truth, I believe it is wise to clarify the facts. I have filed a lawsuit against Celsius to resolve this issue once and for all." (Source link)

2. SBF: The Worst Crypto Crisis is Over

On July 7, it was reported that FTX CEO Sam Bankman-Fried believes that the worst period of liquidity tightening is over, and cryptocurrency prices may be close to bottoming out, but broader economic factors will continue to impact the industry. "I don't think this poses a threat to the survival of the industry, but it is indeed worse than I expected."
Sam Bankman-Fried stated that bailouts and financial assistance are crucial for the health and longevity of the entire industry, and FTX still has "billions of dollars" available to stabilize other financially troubled cryptocurrency companies. (Reuters)

3. Zhao Changpeng: We Don't Boast About Numbers, But Binance Has the Largest Reserves in the Industry

On July 7, it was reported that Zhao Changpeng responded on Twitter to the question of whether Binance's newly launched zero-fee Bitcoin trading would affect Binance's reserves, stating that Binance has the largest reserves in the industry, and zero fees are just a way to take care of users in a difficult market.

Previously, SBF also stated that bailouts and financial assistance are crucial for the health and longevity of the entire industry, and FTX still has "billions of dollars" available to stabilize other financially troubled cryptocurrency companies. (Source link)

4. Central African Republic Officially Launches National Cryptocurrency Sango

On July 4, it was reported that the Central African Republic officially launched the Sango token during the Sango genesis event, which serves as the country's national cryptocurrency. Central African Republic President Faustin Archange Touadéra outlined plans for the use of Bitcoin and cryptocurrencies during the event, stating that the Sango token will become "a gateway to the natural resources of the Central African Republic." The government previously announced plans to tokenize the country's natural resources, including oil, diamonds, and copper.

Earlier reports indicated that the Central African Republic announced the adoption of Bitcoin as legal tender in April of this year and planned to launch the Sango project to create a "crypto center" on July 3. (The Block)

5. Musk Officially Withdraws Twitter Acquisition Offer Due to Failure to Provide Information on Fake Accounts

On July 9, it was reported that according to SEC documents, Musk has withdrawn his offer to acquire Twitter, "because Twitter has materially breached multiple terms of the agreement, seemingly making false and misleading statements relied upon by Mr. Musk when entering into the merger agreement, and may have a significant adverse effect on the company," the document stated.
"For the past two months, Mr. Musk has been seeking the necessary data and information to 'independently assess the prevalence of fake or spam accounts on the Twitter platform,'" the document also stated, "Twitter has failed or refused to provide this information."

Musk had previously stated in May that the deal was "on hold," and his legal team sent a letter to Twitter's general counsel in June claiming that the company had not met his data requests. (Decrypt)

6. Blockchain.com Faces $270 Million Loss for Loans to Three Arrows Capital

On July 8, it was reported that cryptocurrency trading platform Blockchain.com faces a $270 million loss due to loans provided to Three Arrows Capital. Blockchain.com CEO Peter Smith stated in a shareholder letter on June 24 that Blockchain.com remains liquid and solvent, and customers will not be affected.

According to previous reports, creditors of Three Arrows Capital, including Blockchain.com, stated on July 1 that they had applied for the liquidation of all assets of Three Arrows Capital and are cooperating with the court's investigation into the troubled crypto hedge fund. (Coindesk)

7. Voyager Files for Bankruptcy Protection, Plans to Repay User Assets Through Three Arrows Capital Repayment, New Stock Distribution, and Platform Tokens

On July 6, it was reported that cryptocurrency broker Voyager Digital has filed for bankruptcy protection in New York, with documents showing it has over 100,000 creditors and assets and liabilities between $1 billion and $10 billion. The documents indicate that Voyager Digital believes company funds can be allocated to unsecured creditors. Voyager Digital Holdings, Inc., Voyager Digital, LLC, and Voyager Digital Ltd. have all filed for bankruptcy protection.
According to the currently proposed plan, users with crypto assets in their accounts on the platform will be repaid through Three Arrows Capital's repayments (totaling $650 million), distribution of stock in the restructured new company, and Voyager tokens. Customers will have the opportunity to choose the ratio of common stock and cryptocurrency they receive. For users with cash in their accounts, their cash will be unlocked after Voyager completes reconciliation and anti-fraud processes with Metropolitan Commercial Bank. (PRNewswire)

8. Solana Web3 Phone Saga Partners with Dialect to Launch Open Source Chat Application Dial

On July 6, it was reported that the Solana-based Web3 smart messaging platform Dialect announced a partnership with the Solana Mobile team to build core messaging infrastructure and developer tools for Saga, an Android smartphone with a built-in Solana Mobile Stack (SMS) that the Solana team is developing, and will launch a consumer-grade open-source messaging application called Dial.

It is reported that Dialect has supported messaging for over 15 DApps on Solana. The Dial application allows users to send private messages and group chats directly from their wallets, and its smart messaging standard signs transactions in messages without involving any Web2 identity. According to data from Dune Analytics, the newly launched Web3 phone Saga by Solana Labs has currently received 2,571 pre-orders. (Source link)

9. Polygon Partners with Tech Startup Nothing to Integrate Blockchain Technology into Smartphones

On July 6, it was reported that Polygon has partnered with tech startup Nothing to integrate Polygon's technology into the company's smartphone, Nothing Phone (1), providing easy access to applications, games, and Polygon ID on the Android-based Nothing Phone (1).

Additionally, the two parties will launch an "NFT Membership Club," offering a series of NFTs based on the Polygon blockchain called "Nothing's Black Dot NFT" to those who crowdfund Nothing's release and pre-order Nothing Phone (1). (Decrypt)

10. DAO Lending Platform Porter Finance to Shut Down Its Bond Issuance Platform

On July 5, it was reported that the DAO lending platform Porter Finance announced on its official blog that it will shut down its bond issuance platform. Its founder, Jordan Meyer, stated: "We no longer believe that fixed-income DeFi products like those offered by Porter Finance will see significant lending demand. This is mainly due to the competitive rates offered by traditional finance and the lack of institutional adoption of fixed-income DeFi over the past year. We are also no longer willing to bear the legal risks associated with bond issuance. For these reasons, Porter has decided to abandon the bond issuance platform and explore better opportunities."

Moreover, this decision will not affect Ribbon DAO's obligations to its lenders. Ribbon DAO remains bound by its repayment commitments. The application will remain operational until all Ribbon DAO lenders redeem or convert their bonds. (Source link)

11. Chevrolet's First NFT Auction Ends with No Bids

On July 6, it was reported that Chevrolet held its first NFT auction on the NFT market SuperRare on June 20, featuring an NFT named "Own the Color," showcasing a lime green Corvette Z06, with a starting bid of 206 ETH (approximately $235,000), and promised to provide the winning bidder with a free 2023 Corvette Z06.

However, between June 20 and June 24, the auction received zero bids. SuperRare stated that "the frenzy of the NFT.NYC event" may have caused users to miss the auction and extended the auction time by another 24 hours, but ultimately, no bids were placed, resulting in a failed auction. (Source link)

12. Aave Proposes to Create a Decentralized Stablecoin Named GHO, Minted Based on Over-Collateralization

On July 8, it was reported that Aave proposed to create a decentralized stablecoin named GHO, which will be over-collateralized, similar to the most popular decentralized stablecoin Dai in the Ethereum ecosystem. Aave users will be able to use assets provided to Aave as collateral to mint the stablecoin. These assets will continue to generate yield while also being used as collateral. The proposal is currently under discussion and requires governance voting for implementation. (The Block)

13. Nexo Plans to Acquire Crypto Lending Platform Vauld

On July 5, it was reported that crypto lending platform Nexo has signed a term sheet with competitor Vauld and plans to acquire up to 100% of Vauld's shares. The term sheet grants Nexo a 60-day exclusive exploration period, during which Nexo will begin due diligence. Nexo co-founder Antoni Trenchev stated, "Vauld has significant appeal in India and Southeast Asia, which are important markets for us."

It is reported that the crypto lending platform Vauld is headquartered in Singapore and was co-founded by PayPal founder Peter Thiel and others. In June of this year, Vauld announced a 30% workforce reduction and implemented measures to cut operational costs, such as reducing marketing expenses. Yesterday, Vauld suspended all withdrawals, trades, and deposits on its platform. (The Block)

14. Alameda Research: Has Repaid Voyager Loans and Retrieved Collateral

On July 8, it was reported that Alameda Research stated on Twitter that it has repaid loans at Voyager Digital and retrieved collateral.

It is reported that documents submitted by Voyager Digital to the New York bankruptcy court show that Alameda borrowed approximately $377 million from Voyager, with an outstanding balance that includes a $75 million unsecured loan. Alameda's debt makes it Voyager's second-largest borrower, following the already bankrupt Three Arrows Capital. (Source link)

Important Financing/Venture Capital News

1. DeFi Infrastructure IncrementFi Completes $1 Million Seed Round Financing, with Participation from Qiming Venture Partners and Others

On July 4, it was reported that DeFi infrastructure IncrementFi, based on the Flow blockchain ecosystem, announced the completion of a $1 million seed round financing, with participation from Dapper Labs, Lattice Capital, Qiming Venture Partners, Quiet Ventures, and several angel investors within the Flow ecosystem.

It is reported that IncrementFi primarily provides liquidity and yield solutions, with two main products: Increment Swap (a fully permissionless decentralized exchange) and Increment Earn (a decentralized lending protocol for homogeneous tokens). Increment's vision is to become the DeFi infrastructure and liquidity engine within the Flow ecosystem, driving DeFi applications and innovations on the Flow chain. (Source link)

2. Sources: Sequoia China Raises $9 Billion for Four New Funds

On July 5, it was reported that Sequoia Capital's China fund has raised $9 billion for its four new funds, exceeding the initial target of $8 billion, potentially making it the largest fund ever raised by a single venture capital firm for Chinese tech startups.

It is reported that the four new funds include a seed fund for early-stage companies, a venture fund for startups, and two funds for more mature companies—growth and expansion funds. Sources indicate that this fundraising received about 50% oversubscription and attracted global investors, including pension funds, university endowments, family offices, and others. (The Information)

3. Crypto Water Network Project H2O Securities Raises $150 Million from GEM Digital Investment Company through Token Sale

On July 5, it was reported that the South Africa-based crypto water network project H2O Securities raised $150 million from Bahama-based GEM Digital Investment Company through the sale of H2ON tokens, with the funds intended for financing global water projects and water infrastructure construction. (CNBC)

4. Mask Network Launches Venture Capital Fund Bonfire Union, with a Size of $42 Million

On July 6, it was reported that Mask Network announced the launch of a venture capital fund called Bonfire Union, with an initial size of $42 million. Mask Network is the largest cornerstone investor, with supporters including Digital Currency Group, Alameda Research, Binance, Animoca Brands, Dapper Labs, Protocol Labs, Arweave, FreeS, Y2Z, HashKey Group, Hash Global, SevenX, IOSG Ventures, SNZ, and Fundamental Labs, among others. Other investors include former and current executives from top companies and projects in the Web3 space, including Coinbase, Gitcoin, and DeBank.

It is reported that Bonfire Union plans to invest in the social ecosystem of web3 and establish close relationships with startups building social services, infrastructure, and games for web3. Through this venture capital institution, Mask Network aims to become a venture capital giant in web3, similar to Tencent's role in web2. (Techcrunch)

5. Blockchain Security Company BlockSec Completes Nearly 50 Million RMB Angel+ Round Financing, Led by Oasis Capital and Matrix Partners

On July 6, it was reported that blockchain security company BlockSec completed nearly 50 million RMB in Angel+ round financing, led by Oasis Capital and Matrix Partners, with follow-on investments from Mirana Ventures (Bybit's investment partner), CoinSummer, and YM Capital. It is reported that BlockSec will expand its team and business in the future, converting new security technologies into products for clients and providing security infrastructure for blockchain. (Source link)

6. Game Launch Platform Enjinstarter Completes $5 Million Financing, Led by TGV

On July 6, it was reported that the metaverse and game launch platform Enjinstarter announced the completion of $5 million in financing, led by True Global Ventures (TGV). Enjinstarter helps creators and game developers develop their blockchain and digital asset strategies through IDO and NFT products.
It is reported that the leading investor TGV is a global Web3 investment institution that has invested in companies such as Animoca Brands and The Sandbox. In January of this year, TGV invested $3 million in Enjinstarter through its $100 million TGV 4 Plus fund. (Source link)

7. Layer 1 Blockchain Protocol Rubix Receives $100 Million Investment from LDA Capital

On July 6, it was reported that Layer 1 blockchain protocol Rubix Blockchain Pte Ltd (Rubix) announced that it has received a $100 million investment from LDA Capital. This round of financing will be used to optimize growth in the Web3 space, expand educational opportunities, policy-making, and complete the transition from Web2 to Web3, enabling partners to build various applications on the platform and enhance internal operations to expand the Rubix ecosystem.

It is reported that Rubix is a Layer 1 blockchain protocol for peer-to-peer data transmission and transactions, covering regions such as Singapore, India, the UK, the United Arab Emirates, and the United States. (Source link)

8. Game Company Klang Games Completes $41 Million Financing, Led by Animoca Brands and Kingsway Capital

On July 7, it was reported that Klang Games announced the successful completion of $41 million in financing, led by Animoca Brands and Kingsway Capital, with participation from Anthos, Novator, Supercell, Roosh Ventures, AngelHub, and New Life Ventures. The new financing will be used to build the virtual world "Seed."

Klang is headquartered in Berlin, Germany, and aims to elevate massively multiplayer online (MMO) gaming to a new level, with Klang developing an AI-driven space-based virtual universe called Seed. (NFTGator)

9. European Venture Capital Firm XAnge Raises €220 Million for New Fund, Focusing on DeFi and Web3

On July 7, it was reported that European venture capital firm XAnge announced the raising of €220 million for its new fund, which will focus on investing in digital health, DeFi, Web3, development tools, bio-resources, and bio-manufacturing, with expected investment sizes ranging from €300,000 to €10 million.

Previously, XAnge has invested in open banking platform Deposit Solutions and hardware wallet Ledger. It is reported that the venture capital firm is launching a Web3-specific fund called the Digital Ownership Fund, aiming to raise €80 million. (Source link)

10. NFT Valuation Platform DeepNFTValue Completes $4 Million Seed Round Financing, with Participation from 1Confirmation and Others

On July 9, it was reported that DeepNFTValue announced the completion of $4 million in seed round financing, led by Rockaway Blockchain Fund, with participation from 1Confirmation and Cygni Capital, with some of the funding allocated for the development of GPU hardware.

It is reported that DeepNFTValue is a crypto startup that estimates NFT values using machine learning technology, providing a "fair value estimate" for NFTs that buyers can use to compare with sale prices. Currently, it can estimate the price of CryptoPunk NFTs based on their attributes and transaction history. (The Block)