Evening News | Genesis seeks $1 billion emergency loan from investors; public chain Sui launches operator-focused testnet
Jump Crypto clarified that it has not shut down its business.Organizer: Nianqing, Chain Catcher
"What Important Events Happened in the Last 24 Hours"
1. Public Chain Sui Launches Operator-Focused Testnet, Emphasizing No Testnet Rewards
The public chain Sui announced the launch of Testnet Wave 1, which focuses on operators, particularly validators and full node operators. The official statement indicates that this testnet will run for about two to three weeks and will be shut down once its goals are achieved. This is the first instance of Sui Network collaborating with non-Mysten Labs operators and an important step towards decentralizing the Sui mainnet.
It is reported that the biggest advancement from Devnet to Testnet Wave 1 is the inclusion of independent validators. Under Devnet, Mysten Labs operated four validators to verify transactions on the network, while Testnet Wave 1 includes 20 third-party validators selected from the application process and over 500 full nodes operated jointly by Mysten Labs and selected community members. The official emphasized that there is currently no SUI airdrop plan, and interacting with the testnet will not provide any rewards. (Source Link)
2. Jump Crypto Clarifies It Has Not Shut Down and Is Actively Investing and Trading
Jump Crypto, the crypto trading division of Jump Capital, clarified that it has not shut down and is still actively investing and trading. Previously, Jump Crypto stated that its exposure to FTX was managed according to a risk framework and remains "well-capitalized." (Source Link)
3. Genesis Seeks $1 Billion Emergency Loan from Investors
According to the Wall Street Journal, crypto trading and lending institution Genesis was seeking a $1 billion emergency loan from investors before pausing redemptions this week, citing liquidity issues due to certain illiquid assets on its balance sheet.
Genesis's interim CEO Derar Islim stated during a conference call on Wednesday that its cryptocurrency lending division, Genesis Global Capital, has paused redemptions and new loan issuance. Derar Islim mentioned that Genesis is looking for solutions for its lending division, including seeking new sources of liquidity. He noted that Genesis's trading and custody businesses are still operating normally. (Source Link)
4. Bahamian Regulators Ordered SBF to Breach FTX Systems and Transfer Assets to Official Accounts
According to a lawsuit filed on Thursday, FTX's new CEO accused SBF of breaching FTX's systems under the supervision of Bahamian officials after the company filed for bankruptcy and obtaining digital assets belonging to FTX.
FTX's lawyers stated in documents submitted to the Delaware bankruptcy court on Thursday: "The Bahamian officials are responsible for guiding unauthorized access to the debtor's systems to obtain the debtor's digital assets." The documents also stated, "SBF and FTX co-founder Gary Wang indicated in recorded and verified texts that, at the direction of the 'Bahamian regulators,' certain transfers of debtor assets post-filing should be conducted by SBF and Gary Wang (who were effectively under the supervision of Bahamian officials), and these assets 'were stored on a digital asset platform controlled by Bahamian officials.'" (Source Link)
5. Electric Capital: Issues Found During Due Diligence on Serum, Limited Exposure to FTX
According to Blockworks, Electric Capital executives told their limited partners on Thursday that Electric had limited exposure to FTX during its collapse, thanks to the "yellow flags" identified during due diligence.
Electric had questioned the tokenomics of Serum's token SRM, which would account for about 10% of the total circulating supply at the time of issuance. All pre-sale, team, and contributor tokens would be unlocked over the next one to seven years. Electric believed that SRM lacked liquidity, and low circulation would limit supply, thereby driving up prices. Consequently, Electric abandoned its investment in SRM and later decided not to invest in FTT. Currently, the company has no equity in FTX and has not engaged with FTT, SRM, or Solana's SOL tokens. Electric has never had business dealings with Bankman-Fried's Alameda Research. (Blockworks)
6. Multicoin: Overconfidence in FTX Led to Excessive Asset Holdings, Still Believes in Solana
Crypto investment fund Multicoin's partners Kyle Samani and Tushar Jain released a letter to investors on Thursday, disclosing the fund's situation and their views on the market. Multicoin stated that the collapse of FTX and the resulting downturn have caused the fund's assets to drop by 55% this month. Due to overconfidence in their relationship with FTX, they held too many assets on the platform. Typically, Multicoin trades on FTX, Coinbase, and Binance, but now, aside from assets on FTX, 100% of their assets are on Coinbase or in self-custody wallets.
Additionally, Multicoin still believes in Solana, which has "one of the most active developer communities." Based on their experiences in 2018 and 2020, they believe that if the core thesis remains intact, it is unwise to sell assets during a short-term crisis. (Source Link)
7. Oscar-Nominated Director's Documentary on FTX Collapse Begins Filming in the Bahamas
According to Variety, renowned documentary studio XTR is set to release a documentary themed around the "FTX Collapse" and SBF, directed by Emmy Award winner and Oscar-nominated director David Darg, with the production team currently in the Bahamas to begin filming.
XTR executive producer Justin Lacob stated: "The collapse of FTX is one of the most sensational financial stories of recent times, exposing major flaws in the cryptocurrency space. Our team has secured exclusive access to gain insights into this event that has ensnared celebrities like Tom Brady." (Source Link)
8. Bloomberg: Tiger Global Forms New Fund After Writing Down FTX Investment, Plans to Raise $6 Billion
According to Bloomberg, citing informed sources, Tiger Global Management has established a new fund, "Tiger Global Private Investment Partners 16," and is in discussions with Morgan Stanley's wealth management division to raise $6 billion for the fund.
Reports indicate that Tiger Global is launching this fund because it had to write down previous private investment portfolio assets, including losses from its investment in FTX. PIP 16 will start investing within two years, and if it successfully raises $6 billion, it will become Tiger Global Management's third-largest investment fund. (Bloomberg)
"What Interesting Articles Are Worth Reading in the Last 24 Hours"
Four years ago, HackVC partner Alexander Pack was among the first venture capitalists to attempt to invest in SBF, even before FTX was launched. After several months of investigation at HackVC, Alameda began to incur rapid losses, and under pressure from investors, Sam casually mentioned that he was incubating a cryptocurrency exchange (the later FTX), which consumed all of his team's attention and resources. Alexander Pack stated: "Sam tried to use our investment in Alameda to launch FTX, an entity we neither knew nor owned."
This article is a letter from Maverick to its investors, covering: 1) Summarizing the impact of this incident on the Maverick portfolio, 2) Reflecting on our investment framework/process in light of this market stress test, 3) Looking ahead to views on the future cryptocurrency market and industry.
The Washington Post found through an examination of related lobbying disclosures, federal records, and other sources that since October 2021, SBF and his brother Gabe, along with their network, have spent at least $70 million on research projects and campaign donations aimed at improving biosecurity and preventing the next pandemic.
The Washington Post also discovered that in the months leading up to the FTX collapse, the SBF family and their network rapidly increased spending on pandemic prevention initiatives, including $12 million to support a California ballot initiative to strengthen public health programs and over $11 million invested in a congressional primary for a biosecurity expert from Oregon.
4. "Amazon Cloud's Hidden Business in China's Crypto Circle"
Under the so-called "three-horse carriage," according to individuals directly involved in related businesses, many blockchain projects entangled with virtual currencies are the true revenue pillars of AWS China today. Amazon China has concealed many projects that are strictly prohibited by Chinese law within the shadow of AWS.
According to several AWS China employees, 70% of its overall revenue last year came from overseas business. The local clients and foreign enterprise business that were prioritized in the "three-horse carriage" combined only accounted for 30% of total revenue. The severe imbalance in business structure has been obscured in this statement.
