This Week on Crypto Twitter: Michael Saylor Goads Elon Musk for Teslas Bitcoin Dump

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Illustration by Mitchell Preffer for Decrypt

Prices may be in the green for the week, but Crypto Twitter remained focused on the sectors ongoing liquidity crisis.

This week, Singaporean exchange Zipmex froze withdrawals, and Legion Strategies, a hedge fund affiliated with Anthony Scaramuccis Skybridge Capital, halted redemptions. Meanwhile, Blockchain.com joined the ranks of Gemini, Coinbase, and OpenSea by announcing mass layoffs, and electric car manufacturer Tesla cashed out 75% of its Bitcoin for $936 million.

MicroStrategy CEO and billionaire Bitcoin bull Michael Saylor quickly pointed out the hard truths of Teslas sale.

If you sell 75% of your bitcoin, you will only have 25% of your #bitcoin left.

Michael Saylor (@saylor) July 20, 2022

In the thick of bankruptcies, one firm is stacking that cash: US law firm Kirkland & Ellis, previously hired by bankrupt crypto lenders Voyager and Celsius to help them restructure, was this week hired by Babel Finance. Last Sunday, Babel paused withdrawals, citing liquidity pressures.

An affidavit from Kyle Davies, a co-founder of the newly bankrupt Three Arrows Capital, claims that the former crypto hedge fund owes $65 million to his wife and $5 million to co-founder Su Zhu. Davies and Zhu, effectively radio silent for five weeks, told Bloomberg what they were doing with investors funds before it all collapsed.

Zhu Su is seeking $5 million from 3AC bankruptcy, and 3AC co-founder Kyle Davies wife is seeking $65 million.

hilarious

Frank Chaparro (@fintechfrank) July 18, 2022

DeFi news outlet The Defiant compiled some of the most affecting letters written to the judge by those affected by the Celsius bankruptcy. They really hammer home the human cost of the liquidity crisis.

Many of those affected by the Celsius bankruptcy wrote letters to the judge…

Some are absolutely heartbreaking

The Defiant (@DefiantNews) July 23, 2022

On a more optimistic note, blockchain-based file-sharing network LBRY beats the US Securities and Exchange Commission in court. Guess not every non-Bitcoin token on the blockchain is a security after all, huh Gary Gensler?

We’re free!

Judge was skeptical of many SEC claims.

SEC was forced to admit that substantial usage of LBRY was non-speculative.

Ruling in 4-8 weeks on summary judgment, trial seems unlikely

More later and live on @CryptoLawUS at 7pm

Thanks to all who came, many not pictured pic.twitter.com/HjA2yx1eqc

Jeremy Kauffman (@jeremykauffman) July 20, 2022

Minecraft

On Wednesday, the Microsoft-published hit sandbox game Minecraft announced it will block the use of NFTs and blockchain technology on its servers and prohibit the creation of NFTs based on its assets. Axie Infinity co-founder Jiho was bullish on the news.

Minecraft has banned NFTs.

This is a big sign of adoption. Just like banning books makes them more popular, so too will the Web2 backlash against NFTs pave the way for viral growth. https://t.co/2bkb7PznOF

The Jiho.eth (@Jihoz_Axie) July 20, 2022

The Minecraft-based project NFT Worlds tweeted a lengthy protest.

innovation, player experience and creators. We believe an open, free, evolved version of what Minecraft brought to the world will be a better future for creators, developers and ultimately gamers.

NFT Worlds (@nftworldsNFT) July 22, 2022

Others saw it coming a long time ago, including Decrypts own Kate Irwin, who called it five months ago.

I called it back in February that there was a very good chance that Minecraft would shut them down, and their fanboy army got so mad https://t.co/VngEFTXEE8

Kate Irwin (@pixiekate13) July 23, 2022

Elsewhere

On Monday, there was some speculation as to who owned a wallet that purchased a certain domain on the Ethereum Name Service.

$1,000,000 USDC bid on amazon.eth right now from a fresh wallet

DANIEL GOT HITS | 260.eth (@danielgothits) July 18, 2022

Popular NFT marketplace OpenSea got into a sassy war of words with a Solana-based rival.

Twitter user @8892OS, who claims to be a fine art dealer and a purveyor of emergency liquidity assistance, allegedly ripped someone off for a lot of Ethereum, and that person … sent more?

Russian-born Ethereum creator Vitalik Buterin was thanked for his humanitarian efforts to help Ukraine repel Vladimir Putins ongoing invasion.

And finally, GameStops new NFT platform drew criticism for listing an NFT clearly inspired by Associated Press photographer Richard Drews world-famous image of a 9/11 victim, known as The Falling Man.

The NFT appears to have since been delisted.

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