Platforms are expected to provide the pre-registration undertaking while working toward registration with Canadian regulators. Companies who don't comply with the new pre-registration requirements will have to close Canadian accounts and prohibit Canadian users from accessing their services.
After partnering with the renowned auction house Christies to sell nine early-access mint passes, the NFTs were launched in April 2022. Each one started minting at 3.33 ETH in a Dutch auction, which at the time was around $12,000. Now, the NFTs have been selling for around 0.01 ETH (~$17).
The project's social media accounts went dormant late in 2022. On February 21, 2023, the project announced that "As the project founders, we have decided that it would be best to put a pause on Friendsies and all future digital goods for the time being... However the volatility and challenges of the market have made it very difficult to move this project forward in a way we can be proud of. For now, we have decided that it's best to allow the space to further mature." Some who asked questions like "So no AI friendsies as promised in your roadmap? What's going on?" found themselves blocked, and shortly afterwards the project deleted its Twitter account.
After being called out by crypto sleuth zachxbt for rug-pulling, the Twitter account returned to insist that they were not rug-pulling, and that "we were overwhelmed with hate and threats". Some Friendsies holders also blamed crypto influencers who had promoted the project near the beginning.
Galois also sold its claim on FTX to a distressed buyer for around $0.16 on the dollar.
The attacker was able to swap their tokens for 931 ETH ($1.57 million), which they then laundered through Tornado Cash.
"There's no excuse for an exploit, but these things happen," the project wrote on Twitter.
Pierce had made posts on Twitter, including writing shortly after he was fired from ESPN that "ESPN I don't need you. I got EthereumMax. I made more money with this crypto in the past month than I did with y'all in a year. TRUTH shall set u Free". The SEC pointed out that although he had been given EMAX tokens prior to the post, they were priced at around $46,000, not nearly the more than $1 million he'd made at ESPN over the previous year. Pierce later made a post claiming that he held more than $2.5 million of EMAX tokens, but the SEC alleged in the lawsuit that "his own personal holdings were in fact far lower" and that Pierce had been provided the screenshot of another person's holdings.
In October 2022, Kim Kardashian paid $1.26 million to settle charges over touting the same cryptocurrency, a fairly unknown token that nevertheless splashed out heavily for influencer and celebrity promotion in what appears to be a pump-and-dump scheme.
- "SEC Charges NBA Hall of Famer Paul Pierce for Unlawfully Touting and Making Misleading Statements about Crypto Security", U.S. Securities and Exchange Commission
Although Loyalist had been largely inactive since October, shortly after zachxbt published his research in February 2023, Loyalist moved nearly $1 million in the DAI stablecoin out of one of the wallets identified by zachxbt.
According to the SEC, Kwon "repeatedly misled and deceived investors" about the characteristics and stability of Terra and Luna, and tricked investors into believing that a popular Korean mobile payments platform used the Terra blockchain.
Kwon has been on the run from the law since Korean authorities filed a warrant for his arrest in September 2022. An Interpol red notice followed soon after. He is reportedly hiding out in Serbia, and Korean authorities reportedly traveled there in early February to hunt for him.
- "SEC Charges Terraform and CEO Do Kwon with Defrauding Investors in Crypto Schemes", United States Securities and Exchange Commission
The exploit was a flash loan attack that allowed them to drain some protocol pools, also causing the stablecoin to lose its dollar peg and drop to around $0.48. A team member reported on the project's Discord that "all operations are paused until we get more clarity".
The following day, the project reported they had recovered $2.4 million of the stolen funds, and were working with crypto sleuth zachxbt, who had leads as to the hacker's identity. Later that month, Platypus announced that French police had arrested two suspects, who had tried to withdraw stolen funds through Binance — to whom they had submitted identification documents for KYC purposes.
Anyway, Bitcoin seems to be having its own little resurgence of NFT mania. On February 9, an "Ordinals Punk" — the Ordinals version of CryptoPunks — sold for 9.5 BTC (~$218,000). That record has now been broken by Inscription 2042, which is not an image but rather a 1-second-long audio recording of a fart sound. The NFT reportedly sold for 12.3 BTC (~$280,000), though it's tough to verify given the lack of any sort of Ordinals marketplace.
Many of these companies have taken the (true) statement that the company's insured depository accounts at various banking institutions are FDIC insured and presented it to customers in a misleading way, and the FDIC wants them to cut it out. The FDIC also demanded websites who published statements like "Is CEX.io Safe? Yes, Cex.io is a safe crypto exchange. Actually, one of the safest on the market since they are FDIC insured..." take them down.
CEX.io is a London-based cryptocurrency exchange with comparatively low trading volume compared to its larger competitors like Binance or Coinbase.
- "FDIC Demands Four Entities Cease Making False or Misleading Representations about Deposit Insurance", Federal Deposit Insurance Corporation