The biggest crypto news and ideas of the day |
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Hello and welcome to The Node. This is Daniel Kuhn, here to take you through the latest in crypto news and why it matters. In today’s newsletter: |
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Alameda Had ‘Secret Exemption’ From FTX Liquidation Protocols: FTX’s new CEO John Ray III said trading firm Alameda Research had a backdoor into its sister company, in court documents. The allegations are part of a litany of poor management practices highlighted by former Enron lawyer Ray, who said FTX was the worst failure of internal controls and record-keeping he has seen in his 40-year career. Binance and OKX Suspend, Then Reinstated, USDC, USDT on Solana: Crypto exchanges Binance and OKX suspended support for the Solana versions of the two largest stablecoins – Circle’s USDC and Tether’s USDT – according to separate blog posts on Thursday. - Binance has since resumed deposits for USDT on Solana while OKX has since clarified it has only “halted support” for, not delisted, the tokens. The unexplained move caused confusion in crypto markets.
- Jeremy Allaire, CEO of USDC issuer Circle, tweeted that USDC on Solana – which is natively issued by Circle – is functioning fine. “[It’s] not clear what the motivations are for exchange actions, which are disappointing.”
- Meanwhile, a Cardano-based stablecoin called USDA will be launched in “early 2023,” according to Emurgo, a Cardano development unit, which designed the “regulated” token.
Sui Network Launches Its Testnet: The new Layer 1 blockchain created by ex-Meta engineers got a step closer to going live. The testnet “Wave 1” will be used for validators and full nodes to test coordination and decentralization among validators for the chain that’s often seen as a possible competitor to Solana and recently-launched Aptos Network. |
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Putting the news into perspective |
'A Complete Failure of Corporate Controls' University of Pennsylvania professorFrancine McKenna wrote in CoinDesk about all the “red flags” in FTX’s audited financial statements, seemingly missed by Deloitte and PwC. This includes signs of accounting fraud and tax avoidance. Read the full article here. |
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As the fallout from FTX's collapse cascades across crypto markets, how can you minimize your crypto tax burden and stay above water? For Tax Week presented by Koinly, CoinDesk presents a series of guides, features and interviews covering practical tax questions.
If You Lost Money on FTX, You May See Some Tax Relief
Tax expert Victoria J. Haneman compares Sam Bankman-Fried's crypto trading empire to Bernie Madoff's Ponzi scheme, to glean what the FTX fallout could mean for tax filers. The Pitfalls of Being Paid in Crypto Between marginal rates, excise tax and the potential for foreign tax credit mismatch, crypto income could be taxed at an 80% or higher, Sullivan & Worcester's Amy Sheridan and Natalie Lederman write.
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Overheard on CoinDesk TV... |
"If people funded their account by ACH direct deposit or credit card, there is almost a 100% chance they can get it back if they funded the money in the last 60 days." – DoNotPay CEO Joshua Browder, discussing how users can recover their funds stuck on FTX, on CoinDesk TV's "First Mover" |
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- Crypto Lender Genesis Had Sought Emergency Loan of $1 Billion (WSJ)
- Grayscale’s Bitcoin Trust Hits Record-Low 43% Discount (Decrypt)
- A look at Jump Crypto and its shady past (Protos)
- Audit Shows Terra Groups Spent $3.4B to Defend Dollar Peg in UST (The Defiant)
- MakerDAO Releases Speedy DAI Transfers and Tightens Controls on Vaults (The Defiant)
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