Qrafty wonders if China is behind Ethereum and Tron, knows about XRP's win against SEC and Starbucks is selling pumpkin spice NFTs!

***Qrafty smiling the biggest smile*** Aloha, crypto curious! I am Qrafty - the crypto lovin’ honey badger 🦡 !

Welcome to Coinqraft – the daily crypto newsletter for busy but curious people who don’t have time for the crypto drama!🌟

🦡   Qrafty has fresh bits from the crypto jungle, so let’s dive in: 📰 🌟

1. SEC’s Motion Against XRP Denied

2. CCP And Drug Cartels Behind Ethereum and Tron?

3. Former BlackRock Says ETFs Approved In 3-6 Months

Bonus: Starbucks Selling Pumpkin Spice Latte NFT's

FTX and Alameda's Peculiar Pas de Deux

In crypto, there's never a dull moment. And when it comes to the saga of FTX and Alameda Research, it's more like a gripping retarded thriller than a financial report.

Nansen analysts, couldn't help but notice some rather unusual transactions between FTX and Alameda leading up to FTX's epic face-plant into bankruptcy. And we're talking big money here: $4.1 billion worth of FTT tokens changing hands. 🤑

A Match Made in Crypto Heaven

What makes this even juicier is the fact that both these crypto lovebirds were founded by the enigmatic Sam Bankman-Fried. It's like a crypto Romeo and Juliet, but with more money and fewer tragic endings (hopefully). And guess what? Bankman-Fried is now in court, facing a barrage of charges related to the spectacular nosedive of FTX. Love can be complicated, especially when billions are involved. 💔💰

So, what triggered the collapse of FTX? Well, it all started with whispers about Alameda holding a massive 40% of its $14.6 billion assets in FTT tokens back in September 2022. Yes, you heard that right, 40%! It's like putting all your eggs in one very fragile crypto basket.

Suspicious Shenanigans

But wait, there's more! Before the whole world got wind of Alameda's token trove, Nansen analysts had their eyes peeled for some curious on-chain shenanigans. They caught wind of Alameda sending billions in FTT tokens to FTX and tossing around millions in good old stablecoins. You know, just a regular day in the crypto neighborhood.

Let's not forget the FTT token supply, which was mostly locked in a three-year vesting contract. Surprise, surprise—the only beneficiary of this contract was none other than an Alameda-controlled wallet. Keeping it in the family, as the old saying goes!

Mutual Support

With both FTX and Alameda holding the strings to around 90% of the FTT token supply, it's safe to say they were like two peas in a crypto pod. They propped each other up, balancing on a precarious crypto seesaw. What could possibly go wrong?

Now, here's where it gets even more riveting. The report hints at Alameda probably selling FTT tokens over-the-counter and using them as collateral for crypto loans. It's like pawning your crypto crown jewels. And remember the collapse of the Terra ecosystem and Three Arrows Capital's epic bankruptcy? It seems Alameda felt the pinch, and they had to resort to a covert $4 billion FTT-backed loan from FTX.

But here's the kicker: the $4 billion transaction happened to coincide with a figure casually dropped by Bankman-Fried's inner circle during an interview with Reuters.

Binance's Unrequited Love

Oh, remember Binance? They made an offer to buy FTT tokens at $22. Sounds like a sweet deal, right? Well, not for Alameda. They couldn't make good on the offer, thanks to some unflattering reports about their balance sheet. It's like a crypto soap opera—love, betrayal, and financial drama all rolled into one. 💔

In the world of crypto, nothing is as it seems. Behind the scenes, there are intrigues, secrets and a lot of fraud and manipulation. The tale of FTX and Alameda is just another reminder that crypto is just TradFi, but a much much more vicious and perverted animal.

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️

SEC’s Motion To Appeal XRP Ruling Rejected

A federal judge just gave the U.S. Securities and Exchange Commission a little reality check. They tried to appeal a ruling involving Ripple Labs, but the judge wasn't having it. It's like trying to argue with a cat about nap time - you're just not going to win.

So, back in July, Judge Analisa Torres dropped the mic with a ruling that said selling Ripple's XRP on public exchanges was A-OK in the eyes of federal securities laws. Why? Because buyers weren't expecting a golden ticket to profitville based on Ripple's efforts.

But hold on, the SEC wanted to play the appeal card, claiming it was vital to a "large number" of lawsuits. It's like they were trying to pull a rabbit out of a hat, but the judge wasn't impressed. She basically said, "Nice try, but no dice."

In her eyes, there was no grand canyon-sized difference of opinion about her findings, and she wasn't buying the idea that an appeal would fast-track this case to a resolution.

So, there you have it: the SEC's attempt to turn the tide in this Ripple saga hit a little road bump. The judge laid down the law with a touch of "sorry, not sorry" vibes.

On the same note, Ripple secured a Major Payments Institution (MPI) license from the Monetary Authority of Singapore, allowing them to provide regulated digital asset payment services in Singapore.

After these happy news, XRP showed some signs of life and its price jumped, but made sure to go back down to not have its fans get overly excited.

SBF’s trial has officially started

One sheetshow ended, another begins! There must always be some kind of low IQ entertainment for the masses, right? So here we are!

US Government opened the trial by stating that Sam Bankman-Fried's crypto empire was a "house of cards…built on a lie".

Federal prosecutors claim he's the brains behind one of the biggest financial scams in U.S. history. Bankman-Fried, once hailed as a crypto magnate, now stands accused of orchestrating a multibillion-dollar swindle. The charges against him span a spectrum, from wire fraud and securities fraud to money laundering, all tied to his digital currency exchange, FTX.

Just so that you understand the mentality of the crypto genius, Sam Bankman-Fried reportedly wanted to pay Donald Trump $5 billion to not run for President in 2024. Yeah… we will see how things evolve throughout the trial. Qrafty will keep you posted.

Crypto Investigator Shows Huge Criminal Cartel Using Tron and Ethereum

Twitter user BoringSleuth accused Tron in August that it’s essentially a big ponzi scheme under the control of one of the biggest drug cartels in the world and the CCP (Chinese Communist Party). All that he used is public blockchain data and a pair of eyes. Oh, and a brain, duh!

But seriously now, it’s worth following this Twitter account, because the implications are mindboggling. Just reading the whole investigation makes your head go boom. Even if 10% is true, the web of lies and deceit is incredible.

Just to have an idea, it seems that out of the top 20 Tron wallets, 17 were created and owned by this organization connected to the Party. The amount of Tron that they hold is almost the entire Tron supply. Cool, huh?

Also, by following the Filecoin rabbit hole, the Sleuth reached some nasty nasty nasty conclusions regarding Ethereum, as well. Seems like the CCP is heavily invested in the smart contract blockchain as well. It’s really, REALLY interesting to see how these events will unfold.

Former BlackRock Says ETFs Approved In 3-6 Months

In a surprising revelation, Steven Schoenfield, the former BlackRock general manager now at the helm of MarketVector Indexes, is foreseeing an approval for a spot Bitcoin ETF within the next 3 to 6 months. The clock is ticking, with the deadline for the third decision slated for January. Come the end of March, the SEC is set to unveil its final verdict, marking the culmination of this long-anticipated decision. Whether it's a thumbs-up or thumbs-down, we'll have our answer before March wraps up.

Hey hey 🙃 Qrafty hopes you are enjoying the experience here and would like to regularly get Qrafty’s letters!

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Tomorrow is like a surprise package waiting to be unwrapped, but the catch is, you don't get to choose the gift!

Qrafty’s thought of the day

Other stories

MEXC backs TON to make Telegram crypto’s super app

MEXC crypto exchange has exciting plans in store for TON-based projects on its platform. They're gearing up to offer marketing services and promotions. Additionally, they're rolling out a TON collateral lending service and a special treat: no trading fees for the TON token!

Hong Kong Stock Exchange launches settlement platform powered by smart contracts

The Hong Kong Exchanges and Clearing Limited (HKEX) has unveiled Synapse, an advanced integrated settlement acceleration platform that leverages smart contracts to boost market efficiency and transparency.

SEC asks judge to deny Coinbase motion to dismiss its lawsuit

The showdown between Coinbase and the U.S. Securities and Exchange Commission (SEC) keeps heating up, with regulators resisting Coinbase's efforts to get a lawsuit alleging securities law violations thrown out.

Starbucks Is Selling Pumpkin Spice Latte NFTs

Starbucks is set to unveil a collection of digital stamps for Pumpkin Spice Lattes on their Web3 rewards and loyalty platform, Starbucks Odyssey. These NFTs will come in four distinct varieties, each mirroring the unique characteristics of the actual drinks: Spiced, Whipped, Iced, and Steamed.

​Polygon’s Co-founder, Jaynti Kanani, steps down

“After kickstarting Polygon in 2017, around 6 months back, I decided to step back from the day-to-day grind.” Kanani said on X.

Market Whispers

Bitcoin is looking promising so far. It sweeped Monday’s low and got back above it pretty quick and if it manages to close today above $27.5k we might retest $28.4k.

There's the decision point, it makes a lower high and continues the trend to the downside, or gets acceptance above and we re-visit $30k.

Which side are you on, short or long? Looks like crypto Twitter is divided in half. I know I should use crypto X but it really doesn't sound right for Qrafty. Sorry X.

Qrafty ends channeling his inner trader.

Today is KINDNESS TO ANIMALS DAY!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

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