Binance Execs Race for the Exits

Meanwhile, the FBI raided former Kraken CEO

Author

Nathaniel Whittemore
July 07, 2023

The Breakdown First Five - Friday July 7, 2023

Welcome back to The Breakdown First Five — the 5 most interesting and/or important stories in bitcoin, crypto, and markets to start your day.

/imagine prompt: a cartoon of a bunch of businessmen racing to get out of a door at the same time —ar 16:9

5. JesPow Raided in March

The New York Times has dug up more dirt on former Kraken CEO Jesse Powell, reporting that his home was raided by the FBI in March. The raid was unrelated to his Crypto business, instead dealing with allegations of cyberstalking by a non-profit founded by the Crypto magnate. JesPow was unconcerned by another round of NYT muckraking, saying he’s been too busy with Diablo 4 since he left the top job at Kraken.

4. Multichain drained again

Tens of millions of dollars were withdrawn from the Multichain bridge on the Fantom network, raising concerns that the protocol had been exploited again. Wintermute head of research said the movement looked suspicious, with asset burning non-functional on the Fantom side. Multichain has had issues for months after its CEO was rumored to have been arrested in China. Fantom foundation said they were “actively evaluating the circumstances”.

3. Everyone hates the BlockFi plan

FTX, 3AC and the SEC have joined creditors in panning the BlockFi bankruptcy plan. The Crypto firms disputed monies owed, suggesting BlockFi were abusing the process. The SEC said executive protections were overly vague and broad. Creditors called the plan an elaborate way to avoid legal consequences for executives and asked the Court to just order a liquidation. Matter will be heard next Thursday.

2. Bond Blowout

A string of hot economic data releases in the US transformed into a global bond rout yesterday. The US 10-year treasury broke through 4% after ADP payrolls, jobless claims and JOLTS painted the picture of a tight labor market. Highest level since 2007. UK gilts are back to levels that deposed the brief Truss government. Higher for longer could be morphing into higher forever as Central Banks fail to break stubborn inflation.

1. Execs out at Binance

Fortune reports an exodus of leadership at Binance over CZ’s handling of a Justice Department investigation. Three executives have resigned, adding to two others in the last month. Chief Strategist and Comms expert Patrick Hillman pushed back on Fortune’s reporting, saying he was stepping aside to be with his growing family. CZ called the resignations normal turnover.

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Thanks for reading -NLW