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Bankruptcy for Monopoly Man, Told Ya So, Zebras, the Dev

J.W. Verret
Nov 23, 2022
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FTX went bankrupt

Sam Bankman-Fried was the legendary founder of FTX. Golden boy of crypto. Everyone seemed to think he had a special sauce as a trader and exchange operator. It turns out he was just a massive fraud.

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It’s also becoming apparent that his strategy in dealing with Washington was to donate massively, then convince Congress to pass a bill requiring most crypto trade through a CFTC licensed platform (a bill colloquially referred to as the DCCPA). FTX was the only crypto exchange with such a license. And then the hopeful Monopoly Man went bankrupt, and it came out that his internal controls were out of control.

Eric Voorhees had this guy’s number from the beginning, his response to Sam’s policy machinations is worth a read and he is worth a follow:

Twitter avatar for @ErikVoorhees
Erik Voorhees @ErikVoorhees
@SBF_FTX Hey @SBF_FTX I'd be honored if you'd read my response, and to know what you think of the conclusions. moneyandstate.com/blog/response-…
8:33 PM ∙ Oct 20, 2022
76Likes10Retweets

Check out my friend Gabe Shapiro, who leaked SBF’s secret bill, which led to the blowback, which led to a media leak of FTX’s broken balance sheet, and the dominoes all fell. Kinda legendary David v. Goliath story.

Twitter avatar for @lex_node
_gabrielShapir0 @lex_node
I have long been a believer in transparency and open discussion of the future of cryptolaw. Accordingly, I have obtained a copy of a draft of the notorious DCCPA circulating secretly in D.C. and am hereby making it available to the public.
github.comCrypto-CaseLaw/DCCPA Markup Latest 10.19.22.pdf at main · LeXpunK-Army/Crypto-CaseLawa repository of filings, opinions, etc for cryptolaw cases - Crypto-CaseLaw/DCCPA Markup Latest 10.19.22.pdf at main · LeXpunK-Army/Crypto-CaseLaw
7:23 PM ∙ Oct 19, 2022
823Likes281Retweets

The Pen Is Mightier Than The Urge to Procrastinate

I have a new regular bi-weekly column in Cointelegraph! Here’s my most recent missive. There is nothing sweeter than telling the SEC “I told you so!

Twitter avatar for @Cointelegraph
Cointelegraph @Cointelegraph
The SEC didn't listen to his advice on crypto custodians. FTX fell apart soon after. This is @JWVerret's story.
buff.lyMy story of telling the SEC ‘I told you so’ on FTXI asked the SEC to take public comments on issues related to cryptocurrency custodians and intermediary conflicts. The SEC declined to take my advice, and FTX fell apart soon after.
2:37 AM ∙ Nov 22, 2022
130Likes32Retweets

Zebras and Zcash

Readers of this newsletter know that the most important issue in crypto for me is privacy, and that my favorite privacy coin is Zcash (one of their symbols is a Zebra, who maintain privacy by being indistinguishable to non-Zebras).

Zcash was developed by the leading cryptographers in the country working with one of the founders, Zooko Wilcox, who was himself a member of the cypherpunk movement in the 90s to defend the right to encryption and who corresponded with the inventor(s) of Bitcoin.

Legit crypto project whose mission I believe in. That’s rare in these days of scams and bankruptcies. So when a spot on the Zcash Foundation Board opened up I ran for it. This week I won on a vote of 59-58! Not the first tight election this November. Can’t wait to work with a team I admire who are building to defend financial privacy. No more important fight than that.

Twitter avatar for @JWVerret
J.W. Verret, JD, CPA/CVA 🗡 🛡 🏴 @JWVerret
Poll for the Zcash foundation board race was close, 59-58, but I won! Thanks Zcash fam!
forum.zcashcommunity.comResults of the Nov 2022 ZCAP PollThe results are in! In response to the question “Which of the following candidates do you believe should be appointed to the Zcash Foundation board?”, ZCAP voted as follows: Jay Verret - 59 votes Kurt Opsahl - 58 votes There were 14 absentions, which means a total of 131 ZCAP members voted, out…
4:20 PM ∙ Nov 21, 2022
51Likes6Retweets

The Dev

I follow this account, hilarious parody yet insightful about crypto. You should follow The Dev too.

Twitter avatar for @HeyItsMeTheDev
The Dev @HeyItsMeTheDev
Stop playing dress up #crypto
9:57 PM ∙ Nov 16, 2022
856Likes227Retweets

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Jacob Robinson
Writes Law of Code
Nov 23, 2022Liked by J.W. Verret

Congrats on the zCash role JW!

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J.W. Verret
Nov 23, 2022Author

Attention to SBF from the policy debate was, I believe, the reason the Alameda balance sheet leak to Coin Desk happened when it did.

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