The Los Angeles wildfire incident has caused damage to some cryptocurrency companies and user wallets, and predictions related to market bets are controversial
Cryptocurrency companies and users in Southern California are affected, a nonprofit organization is accepting cryptocurrency donations, and a prediction market is being questioned for unethical practices due to related predictions.Author: Felix, PANews
On January 8 local time, severe wildfires broke out in Los Angeles and surrounding areas, destroying thousands of homes and burning over ten thousand hectares. So far, the fire has consumed more than 15,000 acres of land, forcing nearly 180,000 residents to evacuate, with another 200,000 receiving evacuation orders.
The rapidly spreading fire not only threatens millions of California residents but also several cryptocurrency companies and members of the crypto community. In fact, many have lost their homes and belongings, including hardware wallets.
Southern California Cryptocurrency Companies and Users Affected
The wildfires have burned over 15,000 acres of land in Southern California, including major areas such as Pacific Palisades, Malibu, and Pasadena. In addition to residential properties, several cryptocurrency companies have also been impacted.
Staff at the Bitcoin office in Santa Monica are located just south of the ravaged Palisades and Sunset. Several Swan Bitcoin employees, who hosted the Pacific Bitcoin conference in Santa Monica, are also situated just south of the fire.
Blockchain service provider BlockDaemon is headquartered in Los Angeles, as is another crypto game developer, SuperVerse. The blockchain-based ID and tokenization company Spring Labs is based in nearby Marina del Rey. These companies have reported significant losses, including the destruction of hardware wallets containing cryptocurrency assets.
Some companies have been luckier. So far, the Crypto.com Arena (a cultural landmark in Los Angeles) has not caught fire. Crypto venues DaBank (Hawthorne) and Jungla (North Hollywood) have also been spared from the wildfires.
However, the impact of the wildfires extends beyond crypto companies to cryptocurrency users, with some residents losing their crypto wallets in the blaze. Crypto KOL Monty stated on the X platform that his 70-year-old aunt lost her apartment in the Los Angeles fire. Most of her savings were in cryptocurrency, but she lost her wallet and recovery phrase, with no backups. According to comments, her wallet primarily held Bitcoin.
Nonprofits Accepting Cryptocurrency Donations
To provide assistance to those affected, some local charities and nonprofits are accepting cryptocurrency and stock donations.
The cryptocurrency donation platform The Giving Block has launched an "Emergency Response Fundraising Campaign" to donate to nonprofits actively assisting with Los Angeles wildfire relief efforts. This fundraising campaign allows the public to choose from seven nonprofits to donate cryptocurrency.
These include the Los Angeles Fire Department Foundation, Los Angeles Regional Food Bank, First Responders Children’s Foundation, Global Empowerment Mission, San Diego Humane Society, All Hands and Hearts, and Direct Relief.
During the donation campaign, the platform encourages the public to help as much as they can by donating cryptocurrency, stocks, DAFs (Donor-Advised Funds, which allow donors to receive immediate tax benefits and have advisory privileges over the use of funds), or cards to organizations providing food, shelter, and medical services.
Another cryptocurrency-focused donation site, Givepact, shared details of foundations accepting donations of crypto assets.
These include Baby2Baby (a charity providing diapers and clothing for children in low-income families), Wildland Firefighter Foundation, California Fire Foundation, Los Angeles County Animal Care Foundation, and California Community Foundation.
The platform stated that the public can donate over 30 types of cryptocurrencies to these charities and nonprofits, including Bitcoin, Ethereum, Avax, Dogecoin, and more.
Prediction Platform Betting Criticized as "Morbid"
Notably, a prediction platform faced scrutiny for "morbid" predictions during the wildfire incident, as several users created various prediction markets regarding the spread of the fire, when it would be controlled, and potential resignations of political figures. One X user claimed, "Betting on wildfires is morbid," while another user stated that betting on such tragedies is "undoubtedly shameless." Some users even expressed concern that betting success might encourage gamblers to start more fires.
In response, the platform issued a disclaimer stating, "The devastating Palisades fire is exactly the type of event where the platform can provide valuable real-time answers for those directly affected, something traditional media cannot do."
