This Week on Crypto Twitter: Michael Saylor Goads Elon Musk for Tesla’s Bitcoin Dump

Illustration by Mitchell Preffer for Decrypt

Prices can be in the green for the week, but Crypto Twitter remained focused on the sector’s current liquidity crisis.

This week, the Singaporean exchange Zipmex frozen withdrawalsand Legion Strategies, a hedge fund affiliated with Anthony Scaramucci’s Skybridge Capital, halted redemptions. Meanwhile, Blockchain.com has joined the ranks of Gemini, Coinbase, and OpenSea in announcing collective redundanciesand electric car maker Tesla cashed out 75% of his bitcoin for $936 million.

Michael Saylor, CEO of MicroStrategy and billionaire Bitcoin bull, was quick to point out the hard truths of selling Tesla.

At the heart of the bankruptcies, one company is stacking that cash: US law firm Kirkland & Ellis, previously hired by bankrupt crypto lenders Voyager and Celsius to help them restructure, was hired this week by Babel Finance. Last Sunday, Babel suspended withdrawals, citing “liquidity pressures.”

An affidavit from Kyle Davies, co-founder of recently bankrupt Three Arrows Capital, claims that the former crypto hedge fund owes his wife $65 million and $5 million to co-founder Su Zhu. Davies and Zhu, effectively silent for five weeks, said Bloomberg what they were do with investor funds before it all comes crashing down.

DeFi outlet The Defiant has compiled some of the most touching letters written to the judge by those affected by the Celsius bankruptcy. They really hammer home the human cost of the liquidity crisis.

On a more optimistic note, blockchain-based file-sharing network LBRY beat the US Securities and Exchange Commission in court. I guess all non bitcoin tokens on the blockchain are not security after all, eh Gary Gensler?

Minecraft

On Wednesday, the hit sandbox game Minecraft, published by Microsoft, announced that it block the use of NFTs and blockchain technology on its servers and prohibit the creation of NFTs based on its assets. Axie Infinity co-founder Jiho was bullish on the news.

The Minecraft-based NFT Worlds project tweeted a lengthy protest.

Others saw it coming a long time ago, including Decrypt own Kate Irwin, who called him five months ago.

Somewhere else

On Monday, there was speculation that a wallet owner purchased a certain domain on the Ethereum name service.

Popular NFT marketplace OpenSea has engaged in a sassy war of words with a Solana-based rival.

Twitter user @8892OS, who claims to be an “art dealer” and provider of “emergency liquidity aid”, allegedly scammed someone for a lot of Ethereum, and this person. .. sent more?

Russian-born Ethereum creator Vitalik Buterin has been thanked for his humanitarian efforts to help Ukraine repel Vladimir Putin’s ongoing invasion.

And finally, GameStop’s new NFT platform has come under fire for listing an NFT clearly inspired by Associated Press photographer Richard Drew’s world-famous image of a 9/11 victim known as ” The Falling Man”.

The NFT appears to have since been delisted.

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