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⌐◪-◪ → A bankruptcy judge just approved FTX’s reorganization plan. The plan constitutes $16B in repayments, worth a minimum of 118% of creditors’ claim values.

While I’m glad the creditors aren’t getting 100% rugged, the outcome is not ideal given that payouts are denominated in cash at the time of loss (not Bitcoin).

To make this point painfully clear, when FTX collapsed, the price of Bitcoin was $16k. So, creditors who lost 1 Bitcoin will receive ~$18,880 in cash (16k * 118%), which is less than 30% of 1 Bitcoin today ($63,126).

To make matters worse, it looks like creditors will face a hefty tax bill for receiving their payout in cash instead of in-kind. Yikes.

And it only took two whole years.

⌐◪-◪ → The US Supreme Court just rejected Battle Born Investment’s case over the $4.4B Bitcoin seized from the Silk Road.

For context, in 2022 a federal court in CA ruled against Battle Born Investments, who claimed to have purchased the rights to the seized Bitcoin.

Now, with the Supreme Court out of the way, the government is free to dump the $4.4B Bitcoin on the market — which I’m pretty sure they plan to do.

Meanwhile, Trump wants to build a “strategic Bitcoin stockpile” and says that he would keep “100% of all the Bitcoin the U.S. government currently holds or acquires into the future.”

Basically, if Trump wins, our strategic stockpile will be seeded with drug money.

⌐◪-◪ → The SEC just issued a Wells Notice to Crypto.com, who swiftly responded by filing a lawsuit against the SEC.

If you recall, this is exactly what Consensys did — filed a lawsuit as a counterattack to the Wells Notice they received.

Crypto.com’s lawsuit says the SEC has “unilaterally expanded its jurisdiction beyond statutory limits” and “established an unlawful rule that trades in nearly all crypto assets are securities transactions, no matter how they are sold.”

While it’s too early to say how this will pan out, it’s par for the course for the SEC’s current enforcement regime. At this rate, it’s unlikely Gary has a job next year, regardless of who wins. Robinhood’s CLO is allegedly being considered by Trump.

I wonder where Gary’s head is at with all this. If he believes he’s getting replaced no matter who wins, then he sort of has nothing to lose — which is scary.

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