1/ I found evidence that FTX might have provided a massive bailout for Alameda in Q2 which now came back to haunt them.
40 days ago, 173 million FTT tokens worth over 4B USD became active on-chain.
A rabbit hole appeared 🧵👇
Lucas Nuzzi
1,898 posts
Lucas Nuzzi
@LucasNuzzi
Joined December 2009
- 1/ Over the past few weeks, my team at @coinmetrics has been obsessed with answering one question: How did Alameda manage to lose billions of dollars of FTX user funds? I think we've found some answers 👇🧵
- 1\ There is an alarming amount of misinformation (fueled by the media) on what exactly happened to Bitcoin yesterday, and whether funds were "double spent" Here's everything you need to know 👇
- The beginning of Public-key cryptography: "Can the reader say what two numbers multiplied together will produce the number 8616460799? I think it unlikely that anyone but myself will ever know" -William S Jevons, The Principles of Science, 1874
- How much does it cost to 51% attack Bitcoin and Ethereum? To find out, we simulated what an attack would look like. Our paper, Breaking BFT, was published today with some interesting results ⬇️ papers.ssrn.com/sol3/papers.cf…
- #Bitcoin is like the internet, but we're still in 1988. To remind myself of that, I built a Raspiblitz Bitcoin full node + Lightning using a @Raspberry_Pi and a 1988 television. We might be early, but the #LightningNetwork solves a real problem and Bitcoin is here to stay.
- 1/ FTX might have minted Serum (SRM) off thin air to prop up its balance sheet: Serum's total supply increased by 60% this year via 2 huge mints. These were not previously disclosed based on anything I could find. 1st mint: Feb 19, 50M SRM 2nd mint: May 25, 50M SRM
- BSV is going through a massive 51% attack. After an attempted attack yesterday, some serious hashing power was unleashed today at 11:46AM and attackers are succeeding. Over a dozen blocks are being reorgd & up to 3 versions of the chain being mined simultaneously across pools.
- Celsius calls itself a "network" or a "lender" But in reality, they operate more like a highly-leveraged hedge fund. Their business model consists of deploying user deposits across DeFi protocols with the goal of maximizing yield. 1\ A thread on what went wrong 🧵
- Replying to @LucasNuzzi5/ Here's what I think happened: - Alameda blew up in Q2 along with 3AC+ others. - It ONLY survived because it was able to secure funding from FTX using as "collateral" the 172M FTT that was guaranteed to vest 4 months later. Once vested, all tokens were sent back as repayment.
- Replying to @LucasNuzzi11/ Important to note that this is my own personal highly-speculative take on what happened based on these on-chain artifacts. A lot more is likely going to come out in the following days.
- Replying to @LucasNuzzi10/ Long and behold, Binance comes to FTX's rescue. Did CZ just walk out with one of his largest competitors at the expense of a relatively large FTT bag he was going to unwind anyways? Huge if true™️