{"id":22916,"date":"2022-05-29T20:52:51","date_gmt":"2022-05-29T20:52:51","guid":{"rendered":"https:\/\/davidgerard.co.uk\/blockchain\/?p=22916"},"modified":"2022-05-31T16:54:25","modified_gmt":"2022-05-31T16:54:25","slug":"news-quebec-pension-fund-that-invested-in-celsius-terras-tax-troubles-anchor-pass-through-ponzis-wright-v-mccormack-goes-to-trial","status":"publish","type":"post","link":"https:\/\/davidgerard.co.uk\/blockchain\/2022\/05\/29\/news-quebec-pension-fund-that-invested-in-celsius-terras-tax-troubles-anchor-pass-through-ponzis-wright-v-mccormack-goes-to-trial\/","title":{"rendered":"News: Qu\u00e9bec pension fund invested in Celsius, Terra&#8217;s tax troubles, Anchor pass-through Ponzis, Wright v. McCormack trial"},"content":{"rendered":"<ul>\n<li>If you like my work, please do sign up for the Patreon \u2014 your $5 or $20 a month really helps. Patrons also get a couple of \u201cBitcoin: It Can\u2019t Be That Stupid\u201d stickers \u2014 just send me your postal address. [<a href=\"https:\/\/www.patreon.com\/posts\/for-patrons-free-63317340\"><em>Patreon<\/em><\/a>]<\/li>\n<li>If you\u2019d like to get the books signed by the author (with stickers, even), I have both in stock \u2014 <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2020\/11\/26\/get-signed-copies-of-libra-shrugged-and-attack-of-the-50-foot-blockchain\/\">go to this post.<\/a> \u00a325 the pair, plus postage \u00a36 UK, \u00a312 Europe or \u00a314 rest of the world.<\/li>\n<li>You and everyone you know should sign up to get this newsletter sent to you by email \u2014 each post as it goes up! [<a href=\"#byemail\"><i>scroll down, or click here<\/i><\/a>]<\/li>\n<li>It looks like the <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2022\/05\/27\/filming-for-60-minutes-australia-on-sunday-evening\/\">60 Minutes Australia crypto segment<\/a> with me in it got bumped. Bah! Maybe it&#8217;ll show up somewhere later &#8230;<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-19236\" src=\"https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2021\/04\/9pm-edict.jpg\" alt=\"\" width=\"340\" height=\"210\" srcset=\"https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2021\/04\/9pm-edict.jpg 680w, https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2021\/04\/9pm-edict-300x185.jpg 300w, https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2021\/04\/9pm-edict-348x215.jpg 348w\" sizes=\"auto, (max-width: 340px) 100vw, 340px\" \/><\/p>\n<p>&nbsp;<\/p>\n<h3>104 degrees with a head full of steam<\/h3>\n<p>The <a href=\"https:\/\/en.wikipedia.org\/wiki\/Caisse_de_d%C3%A9p%C3%B4t_et_placement_du_Qu%C3%A9bec\">Caisse de d\u00e9p\u00f4t et placement du Qu\u00e9bec<\/a> (CDPQ) manages several public pension funds in Qu\u00e9bec, Canada. In October 2021, CDPQ put US$150 million of its members\u2019 pension funds into a US$400 million equity investment round in &#8230; the Celsius Network! [<a href=\"https:\/\/www.cdpq.com\/en\/news\/pressreleases\/celsius-network-announces-investment-led-westcap-cdpq-valuation-more-us-3b\"><i>CDPQ press release<\/i><\/a>]<\/p>\n<p>The returns on stablecoin lending were just too good to pass up, you see: &#8220;Blockchain technology has disruptive potential for many sectors of the traditional economy,&#8221; said Caisse chief technology officer Alexandre Synnett. [<a href=\"https:\/\/montreal.ctvnews.ca\/the-caisse-invests-in-a-cryptocurrency-lender-targeted-by-market-authorities-in-the-united-states-1.5619989\"><i>CTV News<\/i><\/a>]<\/p>\n<p>The trivial details that Celsius had already been thrown out of Texas and New Jersey for issuing unregistered securities were of no concern to CDPQ \u2014 those American regulators clearly just didn\u2019t understand blockchain technology.<\/p>\n<p>&#8220;Celsius is the world&#8217;s leading cryptocurrency lender and has a strong management team that puts transparency and customer protection at the heart of its business,&#8221; said Synnett.<\/p>\n<p>Unfortunately, Celsius had \u201ctransparency\u201d mostly in that the rest of us could see right through them.<\/p>\n<p>Blockchain technology really came through on its disruptive potential in May 2022, when Celsius\u2019 funds allegedly under management had dropped from $27 billion to $12 billion \u2014 $6 billion of that being lost in just two weeks \u2014 as customers desperately try to get their money out while it\u2019s still there.<\/p>\n<p>Celsius\u2019 CEL token has gone through the floor. The company has halted withdrawals for many customers. [<a href=\"https:\/\/newmoneyreview.com\/index.php\/2022\/05\/27\/crypto-lender-celsius-under-pressure\/\"><i>New Money Review<\/i><\/a><i>; <a href=\"https:\/\/twitter.com\/Bitfinexed\/status\/1530916726208077825\">Twitter<\/a><\/i>]<\/p>\n<p>Canadian media is now asking just what on earth CDPQ was thinking. [<a href=\"https:\/\/ici.radio-canada.ca\/recit-numerique\/4095\/caisse-depot-cryptomonnaie-celsius-quebec\"><i>Radio Canada<\/i><\/a><i>, in French<\/i>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Crypto currency is a lottery where the price for winning the lottery is more lottery tickets.  The only way to exchange lottery tickets for something of value is by tricking somebody else into buying your lottery tickets.<\/p>\n<p>&mdash; Michael Westergaard (@klafbang) <a href=\"https:\/\/twitter.com\/klafbang\/status\/1529192353407422466?ref_src=twsrc%5Etfw\">May 24, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<h3>Containers, and their drivers<\/h3>\n<p>Venture capital has <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2022\/04\/11\/web3-a-vc-funded-gig-economy-of-securities-violations\/\">a habit of funding Web3 shenanigans.<\/a> We now have venture-funded pass-through Ponzis.<\/p>\n<p>Paul Graham&#8217;s Y Combinator has funded, not one, but <i>two<\/i> shadow bank fintechs to do stablecoin lending.<\/p>\n<p>Stablegains (YC 22) took customers\u2019 USDC and actual dollars, and promised to pay 15% on a variety of investments. What Stablegains actually did was just put it all into Terra\u2019s Anchor protocol, which paid out in the <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2022\/05\/10\/terras-stablecoin-does-a-2008-crisis-ust-crashes-and-takes-bitcoin-with-it\/\">now-defunct UST stablecoin.<\/a><\/p>\n<p>Anchor paid 20%, and Stablegains skimmed a bit off the top. The customers\u2019 accounts were denominated in dollars, but only contained UST.<\/p>\n<p>How did Stablegains deal with UST\u2019s collapse? They changed the denominations in the app from USD to UST! And removed the old terms and conditions. [<a href=\"https:\/\/twitter.com\/FatManTerra\/status\/1527153694218797058\"><i>Twitter<\/i><\/a>]<\/p>\n<p>Stablegains lost about $42 million, from 4,878 customers. Stablegains blames the UST crash, and not their own judgement in going all-in on UST and Anchor. [<a href=\"https:\/\/twitter.com\/stablegains\/status\/1523874916206059525\"><i>Twitter<\/i><\/a>]<\/p>\n<p>Back in 2012, Pirateat40\u2019s Bitcoin Ponzi scheme, Bitcoin Savings and Trust (BTCST), had a pile of pass-through Ponzis \u2014 which invested only in BTCST. (See <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/book\/\"><i>Attack<\/i>, chapter 4.<\/a>) Back in the 1990s and 2000s, Bernard L. Madoff Investments also had a pile of feeder funds.<\/p>\n<p>Crypto has now gone beyond replaying old scams from the history of finance, and is now just replaying old scams from the history of crypto. But now they&#8217;re VC-funded. Y Combinator\u2019s Hacker News site is unimpressed. [<a href=\"https:\/\/news.ycombinator.com\/item?id=31431224\"><i>Hacker News<\/i><\/a>]<\/p>\n<p>Another Anchor pass-through fund, Stader, also went down with the, ah, anchor. [<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-05-19\/crypto-startup-tries-to-claw-its-way-back-from-luna-disaster\"><i>Bloomberg<\/i><\/a>]<\/p>\n<p>Meanwhile, a TechCrunch headline says \u201cFounder alleges that YC-backed fintech startup is \u2018copy-and-pasting\u2019 its business\u201d \u2014 and the business is <i>another<\/i> stablecoin bank, Pebble (YC 22), paying implausible rates of interest. Y Combinator sure is picking \u2018em. [<a href=\"https:\/\/techcrunch.com\/2022\/05\/23\/ceo-of-fintech-app-eco-alleges-that-y-combinator-backed-pebble-copied-its-business-model-materials\/\"><i>TechCrunch<\/i><\/a><i>; <\/i><a href=\"https:\/\/twitter.com\/andy_bromberg\/status\/1528817375541350404\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/web.archive.org\/web\/20220523192051\/https:\/\/twitter.com\/andy_bromberg\/status\/1528817375541350404\"><i>archive<\/i><\/a><i>; <\/i><a href=\"https:\/\/techcrunch.com\/2022\/05\/23\/pebble-crypto-stablecoins-gift-cards-yield-traditional-banks-finance\/\"><i>TechCrunch<\/i><\/a>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">HONEY GET IN HERE THE LIBERTARIANS ARE DISCOVERING THE BASIS OF FINANCIAL REGULATIONS AGAIN <a href=\"https:\/\/t.co\/vh30UJkvSA\">pic.twitter.com\/vh30UJkvSA<\/a><\/p>\n<p>&mdash; The Call is Coming from Inside the Nash (@Nash076) <a href=\"https:\/\/twitter.com\/Nash076\/status\/1526190005789642752?ref_src=twsrc%5Etfw\">May 16, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<h3>The man whose head diminished<\/h3>\n<p>After the <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2022\/05\/10\/terras-stablecoin-does-a-2008-crisis-ust-crashes-and-takes-bitcoin-with-it\/\">collapse<\/a> comes &#8230; the tax man. Do Kwon owns 92% of Terra\u2019s Singapore entity and he\u2019s a Korean resident, so South Korea&#8217;s National Tax Service views Terra as an indirect Korean entity.<\/p>\n<p>The National Tax Service says that Terraform Labs needs to pay more than 100 billion KRW (about $35 million) in taxes. South Korea also wants 4.66 billion KRW from subsidiary Terra Virgin, Do Kwon, company chairman Shin and company CEO Han, and an additional corporate tax of 44,478 billion KRW on Terra Virgin.<\/p>\n<p>There\u2019s also a $790 million tax bill for the company\u2019s transfer of &#8220;$3.5 billion&#8221; in bitcoins to Luna Foundation Guard \u2014 which is considered a gift for tax purposes. [<a href=\"https:\/\/www.hankyung.com\/finance\/article\/2022051854711\"><i>Hankyung<\/i><\/a><i>, in Korean<\/i>]<\/p>\n<p>Terraform Labs\u2019 legal team all resigned after the collapse of UST. [<a href=\"https:\/\/www.theblockcrypto.com\/post\/147390\/terraform-labs-legal-team-resigns-after-ust-collapse\"><i>The Block<\/i><\/a>]<\/p>\n<p>Seoul Southern District Prosecutors&#8217; Office of the Financial and Securities Crime Joint Investigation Team is looking into the collapse of the Terra stablecoin. [<a href=\"https:\/\/www.yna.co.kr\/view\/AKR20220520065500004\"><i>Yonhap<\/i><\/a><i>, in Korean<\/i>]<\/p>\n<p>It turns out that the large pile of bitcoins held in reserve by Luna Foundation Guard to support the price of UST was used to buy insiders\u2019 bags of UST at $1.00 each \u2014 while the rest of the UST hodlers had a cryptocurrency experience. [<a href=\"https:\/\/newmoneyreview.com\/index.php\/2022\/05\/16\/terra-operators-bailed-out-crypto-whales\/\"><i>New Money Review<\/i><\/a>]<\/p>\n<p>South Korean police want to freeze the remaining assets of Luna Foundation Guard. [<a href=\"https:\/\/www.theblockcrypto.com\/linked\/148253\/korean-police-seek-freeze-on-luna-foundation-guard-assets-kbs\"><i>The Block<\/i><\/a>]<\/p>\n<p>Luna 2 was launched! And the price promptly fell through the floor. It\u2019s possible that Terrra has lost some investor confidence. [<a href=\"https:\/\/web3isgoinggreat.com\/?id=luna-20-airdrop-sends-21-million-luna-to-mirror-protocol-thief\"><i>Web 3 Is Going Great<\/i><\/a>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">I propose we call this sort of thing, in lieu of a black swan, event a \u201cpink flamingo\u201d event.<\/p>\n<p>It\u2019s big, it\u2019s hideous, it\u2019s been on the lawn the entire time, the neighbors hate it, everyone wants it gone, and it\u2019s weird to act surprised when it falls over.<\/p>\n<p>The pink flamingo. <a href=\"https:\/\/t.co\/XZ6GBbLW67\">https:\/\/t.co\/XZ6GBbLW67<\/a><\/p>\n<p>&mdash; Travis.web1 (@coloradotravis) <a href=\"https:\/\/twitter.com\/coloradotravis\/status\/1525890354636914690?ref_src=twsrc%5Etfw\">May 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<h3>My anaconda don\u2019t want none unless you got coins, hon<\/h3>\n<p>Ex-IMF economist Natasha \u201cTascha\u201d Che\u2019s Twitter avatar is an NFT of her own face. Tascha\u2019s previous moment of Twitter fame came in November 2021, when she (supposedly) burnt a diamond to sell it as an NFT. [<i>Tascha Labs, <\/i><a href=\"https:\/\/web.archive.org\/web\/20210828195142\/https:\/\/taschalabs.com\/nft-is-better-than-diamond-heres-why\/\"><i>archive<\/i><\/a>]<\/p>\n<p>Tascha\u2019s latest eyebrow-raising Twitter thread tells the story of how, back in her disenchanted graduate student days, she went on a journey of spiritual enlightenment to Peru, drank ayahuasca, and saw a hallucination of an anaconda that told her the secrets of reality:<\/p>\n<blockquote><p>if I wanted, I could create \u2018time\u2019, \u2018space\u2019, &amp; define everything in it right there, in whatever way I wanted. The consciousness I embodied could make that all happen.<\/p><\/blockquote>\n<p>What did Tascha use her newfound nigh-godlike powers for? To become a Web3 promoter, and tell you to sign up for her newsletter.<\/p>\n<p>\u201cThe anaconda was right,&#8221; wrote Che. &#8220;I wasn\u2019t ready for the truth.\u201d [<a href=\"https:\/\/twitter.com\/TaschaLabs\/status\/1528813027746668545\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/web.archive.org\/web\/20220523190053\/https:\/\/twitter.com\/TaschaLabs\/status\/1528813027746668545\"><i>archive<\/i><\/a><i>, <\/i><a href=\"https:\/\/archive.ph\/46Dhn\"><i>archive<\/i><\/a>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">&quot;I never thought *I&#39;d* be left holding the bag,&quot; explains man who participated in The Plan Is To Leave Someone Holding The Bag scheme<\/p>\n<p>&mdash; Jules Glegg \ud83c\udff3\ufe0f\u200d\u26a7\ufe0f (@heyjulesfern) <a href=\"https:\/\/twitter.com\/heyjulesfern\/status\/1525202181426585600?ref_src=twsrc%5Etfw\">May 13, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<h3>Odeon sky. Uncanny. Bushes are in disagreement with the heat<\/h3>\n<p>MiamiCoin, the flagship for <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2022\/02\/11\/citycoins-free-magical-money-for-your-city-maybe\/\">CityCoins,<\/a> is pretty much a dead <i>minor altcoin<\/i> now, and is hovering around $0.002 a coin. Its ticker is MIA. [<a href=\"https:\/\/www.coingecko.com\/en\/coins\/miamicoin\"><i>CoinGecko<\/i><\/a>]<\/p>\n<p>The City of Miami\u2019s PR people desperately tried to get Mayor Francis Suarez to shut up about MiamiCoin. The city worried that the coin might constitute a security, and the SEC would force CityCoins and the city of Miami to give investors their money back. [<a href=\"https:\/\/qz.com\/2165639\/miamis-mayor-backed-miamicoin-then-its-price-dropped-95-percent\/\"><i>Quartz<\/i><\/a>]<\/p>\n<p>The city claimed it had done its due diligence on CityCoins before proceeding with MiamiCoin. Paul Butler sent a freedom-of-information request concerning this due diligence. He\u2019s had no response as yet.\u00a0 [<a href=\"https:\/\/miami.nextrequest.com\/requests\/22-2\"><i>City of Miami<\/i><\/a>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"nl\" dir=\"ltr\">Woke: Pronouns in bio<br \/>Broke: Ponzis in bio<\/p>\n<p>&mdash; Concoda \ud83c\udf3b (@concodanomics) <a href=\"https:\/\/twitter.com\/concodanomics\/status\/1527634002894540800?ref_src=twsrc%5Etfw\">May 20, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<h3>Craigness<\/h3>\n<p>Craig Wright, who claims to have invented Bitcoin, <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2019\/08\/14\/peter-mccormack-responds-to-craig-wrights-defamation-claim-and-its-blistering\/\">is suing podcaster Peter McCormack for defamation.<\/a> The case finally reached trial last week. The trial was just before a judge, Mr Justice <a href=\"https:\/\/en.wikipedia.org\/wiki\/Martin_Chamberlain\">Martin Chamberlain,<\/a> with no jury.<\/p>\n<p>McCormack has withdrawn his attempt to prove his claims about Wright were true, as this would have been too expensive. Instead, McCormack is attempting to show that Wright\u2019s reputation was not seriously damaged by McCormack&#8217;s tweets, nor by an appearance by McCormack on another podcast. Wright also withdrew some of his claims of defamation a month before the trial.<\/p>\n<p>There are several independent Twitter threads liveblogging days one and two of the trial, and so far I\u2019ve only found a CoinGeek article on day three \u2014 though that\u2019s the site owned by Wright\u2019s employer, Calvin Ayre, and should be taken with a grain of salt.<\/p>\n<p>Day one was cross-examination of Wright. Pat McCat thinks that \u201cthe main planks of Wright&#8217;s factual case on serious harm were dismantled convincingly: by the testimony of third parties who don&#8217;t have a dog in this fight. Wright&#8217;s responses were weak to me.\u201d<\/p>\n<p>The second day was cross-examination of McCormack, mostly about his Twitter analytics.<\/p>\n<p>Day three was closing arguments. I\u2019m not sure how long a verdict will take.<\/p>\n<p>Trivia: McCormack \u201cbought\u201d Bedford FC, now Real Bedford, a 10th-league football club, <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2021\/12\/23\/news-dead-mans-switch-broadcast-australian-regulation-gaming-nfts-jean-louis-van-der-velde-of-tether\/\">in December 2021.<\/a> Apparently McCormack acquired Bedford for nothing; he says the club has ten spectators at a typical match, and is funded by about \u00a3700,000 in sponsorship so far secured. [<a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529194651651039232\"><i>Twitter<\/i><\/a>]<\/p>\n<p>Now we await the verdict. The case number is QB-2019-001430. [<i>Day one: <\/i><a href=\"https:\/\/twitter.com\/btckershi\/status\/1528665196939595776\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1528776555643777026\"><i>Twitter<\/i><\/a><i>; day two (Pat McCat kept breaking his thread): <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529116420931473409\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529120921918885888\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529163804046675969\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529163851140411395\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529164673936936962\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529167191794495488\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529168042353205252\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529168783088173058\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529170702250786817\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529171335380869124\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529174638512701442\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529175000984477697\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529175906769575936\"><i>Twitter<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/Pat_McCat\/status\/1529187648862134276\"><i>Twitter<\/i><\/a><i>; day three: <\/i><a href=\"https:\/\/coingeek.com\/wright-v-mccormack-concludes-on-day-3-as-both-sides-make-closing-arguments\/\"><i>CoinGeek<\/i><\/a><i>; <\/i><a href=\"http:\/\/cswarchive.info\/#Sues%20Peter%20McCormack%20for%20Libel\"><i>index<\/i><\/a><i> of legal documents<\/i>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"und\" dir=\"ltr\"><a href=\"https:\/\/t.co\/dp9ygbyuRd\">pic.twitter.com\/dp9ygbyuRd<\/a><\/p>\n<p>&mdash; SpacePootler (@SpacePootler) <a href=\"https:\/\/twitter.com\/SpacePootler\/status\/1526529478024908800?ref_src=twsrc%5Etfw\">May 17, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<h3>New facts emerge<\/h3>\n<p>The Bank of Zambia, the country&#8217;s central bank, was infected with ransomware. The bank didn\u2019t lose any data \u2014 so instead of sending the attackers crypto, they sent them penis pictures. \u201cSuck this dick and stop locking bank networks thinking that you will monetize something, learn to monetize,\u201d this august institution wrote to the hackers. [<a href=\"https:\/\/www.bleepingcomputer.com\/news\/security\/national-bank-hit-by-ransomware-trolls-hackers-with-dick-pics\/\"><i>Bleeping Computer<\/i><\/a><i>; <\/i><a href=\"https:\/\/www.boz.zm\/Disruption_IT_Services.pdf\"><i>Bank of Zambia<\/i><\/a><i>, PDF<\/i>]<\/p>\n<p>Tech journalist Kara Swisher promotes cryptos for your retirement, compares crypto to the early internet, and fails to disclose her own crypto holdings at any step of the way. And apparently lost $300,000 in bitcoins in a box somewhere, and didn\u2019t bother looking for it. But then, who even worries about change that small? Her podcast co-host, Professor Scott Galloway, has qualms about promoting crypto retirement funds on their pod \u2014 but not enough qualms to turn down the money. By Amy Castor, with assistance from me. [<a href=\"https:\/\/amycastor.com\/2022\/05\/23\/kara-swisher-promotes-cryptos-for-your-retirement-compares-it-to-early-internet\/\"><i>Amy Castor<\/i><\/a>]<\/p>\n<p>JPMorgan thinks the only thing keeping the crypto market afloat at present is massive infusions of cash from venture capitalists \u2014 which ultimately comes from hedge funds and the family offices of the super-rich, who are buying lottery tickets in the desperate hope for investments that offer any returns. [<a href=\"https:\/\/www.theblockcrypto.com\/post\/148746\/vc-funding-to-help-crypto-avoid-a-long-winter-post-terras-collapse-jp-morgan\"><i>The Block<\/i><\/a>]<\/p>\n<p>Wall Street Journal: Crypto Might Have an Insider Trading Problem. <b><i>MIGHT,<\/i><\/b> you say? <b><i>MIGHT?<\/i><\/b> The Journal looks at blockchain data to reveal insiders buying up big on DeFi tokens just before they get listed on an exchange. [<a href=\"https:\/\/www.wsj.com\/articles\/crypto-might-have-an-insider-trading-problem-11653084398\"><i>WSJ<\/i><\/a><i>, paywalled<\/i>]<\/p>\n<p>The price of Bitcoin tends to go down specifically while the US stock markets are open \u2014 which suggests that those investors who are burnt by stock markets dumps make sure to dump their frivolous rubbish like Bitcoin first. [<a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2022-05-24\/maybe-the-stock-market-is-to-fault-for-bitcoin-s-recent-doldrums\"><i>Bloomberg<\/i><\/a>]<\/p>\n<p>Bitcoin is green, actually: crypto miners in the US have been putting mining rigs into shipping containers, then taking these and a generator to a gas well head. They burn the gas, then they leave. The miners tell egregious lies about using only \u201cwaste\u201d gas, but that\u2019s not what\u2019s happening here \u2014 these gas wells are being reopened to mine bitcoins. The gas would have stayed in the ground absent the mining. [<a href=\"https:\/\/thebulletin.org\/2022\/05\/this-gas-would-have-stayed-in-the-ground-if-it-wasnt-for-bitcoin\/\"><i>Bulletin of the Atomic Scientists<\/i><\/a>]<\/p>\n<p>The problem with Bitcoin miners \u2014 an interesting article from Paul Butler about mining companies&#8217; shonky accounting, and not about the more general problems with proof-of-work crypto mining. [<a href=\"https:\/\/paulbutler.org\/2022\/the-problem-with-bitcoin-miners\/\"><i>blog post<\/i><\/a>]<\/p>\n<p>Remember those great gains you made in 2021? It\u2019s 2022, and the IRS is calling. Yeah, you\u2019re screwed. [<a href=\"https:\/\/www.thedailybeast.com\/these-crypto-investors-lost-major-coin-and-now-the-tax-bill-is-due\"><i>Daily Beast<\/i><\/a>]<\/p>\n<p>If you <i>must<\/i> get into crypto, use an ad blocker. Third-party trackers on websites log anything you type before you submit it \u2014 and this would include private keys and seed phrases. [<a href=\"https:\/\/www.bleepingcomputer.com\/news\/security\/third-party-web-trackers-log-what-you-type-before-submitting\/\"><i>Bleeping Computer<\/i><\/a>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">SEC headquarters:<\/p>\n<p>\u201cYeah I have no idea what to do here, there\u2019s too many of them.  Maybe we just ignore it for now and say we didn\u2019t know.\u201d<\/p>\n<p>\u201cSir he described the Ponzi in detail on a  popular podcast.\u201d<\/p>\n<p>\u201cHe what?\u201d<\/p>\n<p>\u201cAnd then again on Twitter.\u201d<\/p>\n<p>\u201cGoddammit.\u201d<\/p>\n<p>&mdash; Travis.web1 (@coloradotravis) <a href=\"https:\/\/twitter.com\/coloradotravis\/status\/1525708836060835842?ref_src=twsrc%5Etfw\">May 15, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<h3>Guest informant<\/h3>\n<p>Jackson Palmer, the regretful co-creator of Dogecoin, is back, with his new podcast Griftonomics! \u201cAs snake oil increasingly becomes our new currency, regulators and lawmakers are asleep at the wheel while pay-to-play journalists pump out puff pieces from their slurp juice-induced hangovers.\u201d It\u2019s going a lot wider than crypto grifts too. First episode features Molly White of Web 3 Is Going Great. [<i><a href=\"https:\/\/twitter.com\/griftonomics\">Twitter<\/a>; <a href=\"https:\/\/anchor.fm\/griftonomics\">Anchor FM<\/a>; <a href=\"https:\/\/www.youtube.com\/channel\/UC5HJ4xNOwCjKj0SEiMaCing\">YouTube<\/a><\/i>]<\/p>\n<p>M\u00fcnecat did a video with More Perfect Union on the crypto crash, comparing it to the 2008 financial crisis. [<a href=\"https:\/\/twitter.com\/MorePerfectUS\/status\/1527661935054962688\"><i>Twitter<\/i><\/a>]<\/p>\n<p>Here\u2019s a good new crypto-critical blog, from one of my esteemed readers: Web2 Boomer. He also did a podcast with Unchained (not the Laura Shin one). [<i><a href=\"https:\/\/webtwoboomer.com\">Web2 Boomer<\/a>; <a href=\"https:\/\/open.spotify.com\/episode\/1LgtqNPmpVTK0ZCxZGgqxZ?si=cf1135ba791146b3&amp;nd=1\">Spotify<\/a>; <a href=\"https:\/\/blockpit.io\/unchained\/should-web3-be-destroyed\/\">transcript<\/a><\/i>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Our perspective as non-ICT experts on social media is that it appears to be a technology designed to facilitate the theft of pictures of monkeys. Not sure how it would be relevant from an electoral standpoint.<\/p>\n<p>&mdash; AEC \u270f\ufe0f (@AusElectoralCom) <a href=\"https:\/\/twitter.com\/AusElectoralCom\/status\/1520173756802498560?ref_src=twsrc%5Etfw\">April 29, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<h3>Living on video<\/h3>\n<p>I did Stilgherrian\u2019s podcast The 9pm Edict <a href=\"https:\/\/davidgerard.co.uk\/blockchain\/2021\/04\/17\/stilgherrian-the-9pm-dumb-anarcho-capitalist-blockchain-scams-with-david-gerard\/\">last April.<\/a> I went on again just today \u2014 well, recorded yesterday \u2014 and it was a delight, as always: \u201cThe 9pm Heartwarming Schadenfreude of Popping Bubbles with David Gerard.\u201d It\u2019s 51 minutes. DNS for Stilgherrian\u2019s website hasn\u2019t propagated yet after downtime (he forgot to renew the domain <i>*cough*<\/i>), but you can play or download it from Player FM. [<a href=\"https:\/\/the9pmedict.com\/edict\/00173\/\"><i>The 9pm Edict<\/i><\/a><i>; <\/i><a href=\"https:\/\/player.fm\/series\/the-9pm-edict\/the-9pm-heartwarming-schadenfreude-of-popping-bubbles-with-david-gerard\"><i>Player FM<\/i><\/a>]<\/p>\n<p>Interview with me: Magic Doesn\u2019t Happen, Especially Not in Business, in Republik (Switzerland). There\u2019s also a translation into German. [<a href=\"https:\/\/www.republik.ch\/2022\/05\/26\/magic-doesn-t-happen-especially-not-in-business\"><i>Republik<\/i><\/a><i>; <\/i><a href=\"https:\/\/www.republik.ch\/2022\/05\/26\/magie-gibt-es-halt-nicht-schon-gar-nicht-wenns-ums-geschaeft-geht\"><i>Republik<\/i><\/a><i>, in German<\/i>]<\/p>\n<p>I&#8217;m interviewed in Wired about crypto. &#8220;In cryptocurrency, I&#8217;m quite serious about this, the backing reserve is gullibility.&#8221; There\u2019s a podcast version of this coming as well. [<a href=\"https:\/\/www.wired.com\/story\/bitcoin-ethereum-price-cryptocalypse-david-gerard\/\"><i>Wired<\/i><\/a>]<\/p>\n<p>Asia Financial: Stablecoin Crash That Shook Crypto: All You Need to Know \u2014 with quotes from me. [<a href=\"https:\/\/www.asiafinancial.com\/stablecoin-crash-that-shook-crypto-all-you-need-to-know\"><i>Asia Financial<\/i><\/a>]<\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Picked up <a href=\"https:\/\/twitter.com\/davidgerard?ref_src=twsrc%5Etfw\">@davidgerard<\/a>&#39;s 2017 takedown of the crypto world and it holds up incredibly well. Really informative, well written,  and very funny. Entertaining read for an afternoon or maybe two, highly recommend it. <a href=\"https:\/\/t.co\/Me4e2p9E2u\">pic.twitter.com\/Me4e2p9E2u<\/a><\/p>\n<p>&mdash; Matti Meeta (@matt_meeta) <a href=\"https:\/\/twitter.com\/matt_meeta\/status\/1528026518290677763?ref_src=twsrc%5Etfw\">May 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\"><a href=\"https:\/\/twitter.com\/davidgerard?ref_src=twsrc%5Etfw\">@davidgerard<\/a> \u201cdon\u2019t worry if you don\u2019t understand the ideology yet, just keep doing the things and you\u2019ll get rich for free\u201d <a href=\"https:\/\/t.co\/l5EVqYNvH5\">pic.twitter.com\/l5EVqYNvH5<\/a><\/p>\n<p>&mdash; Dean Magee (@d_j_magee) <a href=\"https:\/\/twitter.com\/d_j_magee\/status\/1528696647814787072?ref_src=twsrc%5Etfw\">May 23, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Look I don&#39;t have your crypto it&#39;s in Steve&#39;s Ape, Dylan&#39;s slurp juice and Madonna&#39;s tree pussy. Can&#39;t you see what&#39;s going on they want to destroy our community! <a href=\"https:\/\/t.co\/2OQE2PInf1\">pic.twitter.com\/2OQE2PInf1<\/a><\/p>\n<p>&mdash; Mr Skalastiks \ud83d\udef9 (@OJutel) <a href=\"https:\/\/twitter.com\/OJutel\/status\/1524867779458789377?ref_src=twsrc%5Etfw\">May 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">With crypto crashing, many apes will go without their slurp juice tonight. I have donated multiple slurp juices to a single ape. Will you match me?<\/p>\n<p>&mdash; Rajat Suresh (@rajat_suresh) <a href=\"https:\/\/twitter.com\/rajat_suresh\/status\/1524769767676125184?ref_src=twsrc%5Etfw\">May 12, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Been thinking about this one all night. It\u2019s akin to, \u201cIf possums organized and attacked, how would you protect your family? This is why I am installing a phalanx of dog-sized autonomous tanks on my property.\u201d <a href=\"https:\/\/t.co\/FN1u797EUv\">https:\/\/t.co\/FN1u797EUv<\/a><\/p>\n<p>&mdash; Ian Bogost (@ibogost) <a href=\"https:\/\/twitter.com\/ibogost\/status\/1528007168229883906?ref_src=twsrc%5Etfw\">May 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">i have a pet crypto bro, i&#39;m morbidly fascinated with how things are going for him.<\/p>\n<p>his company site is down, so i messaged him. turns out he takes the website down whenever he needs to &quot;do banking stuff&quot;. otherwise his bank refuses to do business with him lol <a href=\"https:\/\/t.co\/v7NV6cSskx\">pic.twitter.com\/v7NV6cSskx<\/a><\/p>\n<p>&mdash; Kate (@thingskatedid) <a href=\"https:\/\/twitter.com\/thingskatedid\/status\/1528192021533294592?ref_src=twsrc%5Etfw\">May 22, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Monkeypox is God&#39;s punishment against humanity for using multiple slurp juices on a single ape.<\/p>\n<p>&mdash; Corbyn Dallas (@bablobiggins) <a href=\"https:\/\/twitter.com\/bablobiggins\/status\/1529107846427725824?ref_src=twsrc%5Etfw\">May 24, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>&nbsp;<\/p>\n<br><br><div align=\"center\"><p><a href=\"https:\/\/www.patreon.com\/bePatron?u=8420236\"><img src=\"https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2021\/10\/become_a_patron_button.svg\" alt=\"Become a Patron!\" title=\"Become a Patron!\" width=217 height=51><\/a><br><p style=\"align:center;\" class=\"patreon-badge\"><i>Your subscriptions keep this site going. <a href=\"https:\/\/www.patreon.com\/bePatron?u=8420236\">Sign up today!<\/a><\/i><\/p><\/div>","protected":false},"excerpt":{"rendered":"<p>And the central bank that sent its hacker dick pics.<\/p>\n","protected":false},"author":1,"featured_media":19236,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[2988,2993,951,2987,916,2721,146,2949,2724,7,1090,2997,6,2948,2722,1717,2999,2861,2994,2996,2991,1240,2992,1510,2986,2998,119,2990,2218,2995,2946,1080,3000,3001,2989,964],"class_list":["post-22916","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorised","tag-alexandre-synnett","tag-anchor","tag-canada","tag-cdpq","tag-celsius","tag-citycoins","tag-craig-wright","tag-do-kwon","tag-francis-suarez","tag-irs","tag-jackson-palmer","tag-kara-swisher","tag-links","tag-luna","tag-miamicoin","tag-mining","tag-more-perfect-union","tag-munecat","tag-natasha-che","tag-paul-butler","tag-pebble","tag-peter-mccormack","tag-pirateat40","tag-podcast","tag-quebec","tag-scott-galloway","tag-south-korea","tag-stablegains","tag-stilgherrian","tag-tascha","tag-terra","tag-trading","tag-web2-boomer","tag-wired","tag-y-combinator","tag-zambia"],"jetpack_featured_media_url":"https:\/\/davidgerard.co.uk\/blockchain\/wp-content\/uploads\/2021\/04\/9pm-edict.jpg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/22916","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/comments?post=22916"}],"version-history":[{"count":51,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/22916\/revisions"}],"predecessor-version":[{"id":22965,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/posts\/22916\/revisions\/22965"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/media\/19236"}],"wp:attachment":[{"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/media?parent=22916"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/categories?post=22916"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/davidgerard.co.uk\/blockchain\/wp-json\/wp\/v2\/tags?post=22916"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}