How Psychics Predicted Crypto: The Top Tweets of 2023 .. No, Really !!!

Bonjour Tweeters 💙!!

A portion of the bad apples from the bear market were pulled out in 2023, which hurt the cryptocurrency industry's reputation. Thankfully, as the half approaches, the market has turned into what some may refer to as a true bull market.

1. Stake or Steak? The SEC accuses Kraken of unregistered staking.

In an effort to exert pressure on the cryptocurrency market, United States Securities and Exchange Commission Chair Gary Gensler sued cryptocurrency exchange Kraken to start off 2023.

Kraken was accused by the SEC of neglecting to register its staking-as-a-service scheme for cryptocurrency assets. Kraken consented to remove its staking services from the US market and pay a punishment of $30 million.

A crypto meme-worthy video explanation was given by Gensler.                              

He said, "S-T-A-K-E, not S-T-E-A-K," as if he were talking to a five-year-old.

This case was significant because it raised questions about the legality of staking in the US among cryptocurrency users and businesses, raising issues that stretched beyond Kraken and its products.

The SEC still hadn't released official standards for this type of product for services linked to cryptocurrencies, despite the news being rife with confusion and unfavorable opinion.

By year's end, Kraken was accused by the SEC of operating as an unlicensed exchange and combining its own assets with those of its customers, upping the ante. Jesse Powell, a co-founder of Kraken, voiced his shock, labeling the SEC "masochists" for not appearing to be satisfied with the previous $30 million penalties. Even while there are indications that the SEC may lose, the litigation is still pending.

2.Catch me if you can, Do Kwon.

The last bear market was sparked by the collapse of stablecoin TerraUSD (UST) and Luna.

Midway through 2022, the stablecoin collapsed, leaving retail victims all over the world and having an impact on several businesses, including Three Arrows, Voyager, Celsius, Digital Currency Group, and many more.

Do Kwon, the developer of Luna, was soon summoned by the Republic of Korea authorities to clarify the events that transpired at Congress. The phone rang, but the message went to voicemail. On the run, Kwon rose to prominence as the most sought-after cryptofugitive in history.

Similar to the movie Catch Me If You Can, a number of criminal groups made an effort to track him down in an apparent impossible mission to apprehend him. On March 23, the interior minister of Montenegro finally put an end to the ordeal when he declared Kwon's arrest for allegedly using forged travel credentials.

Kwon has managed to elude law enforcement from many countries in the Balkan region, South Korea, Singapore, Dubai, Interpol, and several other countries. The co-founder of Terraform Labs will spend Christmas in a jail in Montenegro while he awaits his potential extradition to either South Korea or the United States, neither of which seems likely for the Korean.

3.The magic of Crypto Twitter: Cobie's private encrypted tweet

A well-known alias on Crypto Twitter is Cobie. Many historic occurrences in the cryptocurrency world have been covered by his podcast UpOnly, like the time businessman Martin Shkreli told Kwon on a livestream that "jail is not that bad."

Because Cobie understands the attitude of the cryptocurrency community, his tweets are taken very seriously and have a significant impact.

At one point, Binance's BNB BNB lost more over $50 million in liquidation.

tickers down to $297 as well as Bitcoin BTC ticks lower at $43,849, Prices temporarily fell. After Cobie tweeted a hash prediction, there was a media frenzy.

A message encrypted by the SHA256 hash is called a hash prediction. An unreadable string should be produced by the encryption. One-way functions known as hashes can be formed, but they cannot be reversed (without brute forcing). Consequently, this method is ideal for verifying a public forecast without disclosing the message. The owner can decode it and display it to the public when the time comes.

Regretfully for Cobie, someone managed to breach the post and disseminate the information. "Interpol Red Notice for CZ," the abbreviation for Changpeng Zhao, the founder and former CEO of Binance, was written in the encrypted communication.

After several hours, Patrick Hillmann, the former chief strategy officer of Binance, attempted to defuse the situation but instead fanned the flames even more.

Hillmann explained the deciphered message in two ways. The second choice made it possible for law enforcement to file an open case against Binance.

After disclosing what may have occurred to the public, Cobie reduced the number of people he trusted:

This specific instance illustrated the erratic nature of the cryptocurrency market and the influence of Crypto Twitter.

4.Binance's Changpeng Zhao resigns

The resignation of Changpeng "CZ" Zhao, the founder and former CEO of Binance, from the business he founded from the ground up, could be one of the most unexpected developments of the year. In terms of volume activity, Binance was the leading cryptocurrency exchange in the world at the time of his departure.

A number of US officials have strongly accused Binance and CZ of willfully breaking anti-money laundering (AML) regulations while dealing with US clients. A complaint was filed against Binance because the regulator claimed that Binance had operated unlawfully in the US and had neglected to register as a securities exchange.

Boom followed Binance's examination of the matter. Binance agreed to pay $4.3 billion in fines to the U.S. Justice Department in exchange for being allowed to do compliant business in the country. According to the agreement, CZ could be charged with a crime in connection with an inquiry into "alleged money laundering, bank fraud, and sanctions violations."

Richard Teng will take over as Binance's worldwide CEO, CZ stated, adding that he will be taking a long leave of absence.

In December, Rostin Behnam, the chair of the Commodity Futures Trading Commission, predicted to CNBC that CZ would wind himself behind bars. This was difficult prior to the case because he was a citizen of the United Arab Emirates, a nation without an extradition treaty with the United States. This might now occur because, upon entering the United States after entering a guilty plea, a court barred him from leaving the nation.

5.Sam Bankman-Fried has been given a 115-year prison term.

The much-awaited moment came on November 3, when Sam "SBF" Bankman-Fried's crimes were dubbed one of the worst financial frauds in American history and described as "a multibillion-dollar scheme designed to make him the king of crypto" by U.S. Attorney Damian Williams.

SBF was regarded as one of the year's most significant figures in 2022. He is considered a white-collar criminal one year later.

With his contacts and effective altruism ideology, he was able to enchant a number of politicians, investors, and celebrities. SBF turned into the faker of the cryptocurrency craze. His self-importance and marketing staff encouraged him to portray himself as the industry hero.

The growth and collapse of SBF produced a soap opera that ended. For crypto to truly advance, this chapter has to be closed. Finally, the cryptocurrency community could breathe a sigh of relief, believing that the ordeal would end the bad market.