FTX legal team profits, Bitcoin ETF hype stalls, but massive potential inflows to come

A report suggests there might be huge Amounts of spot Bitcoin ETF inflows but They're locked behind due Diligence good morning you're listening To the ryzen crypto podcast by coin Telegraph with me Robert bags steering You through the crypto Cosmos with daily Dispatches from the digital Frontier if you want to stay ahead of The curving crypto make sure you click That follow button okay grab yourself a Coffee and let's get into It you could be fooled into thinking That was a quiet weekend for crypto but If you lift the lid you'll see there is Plenty I need to update you on firstly We have the Bloomberg report that Suggests that the spot Bitcoin ETF hype Stalled because of due diligence and we Have the crypto teacher who lost $1.2 Million worth of his students funds the Farcast protocal sees a huge spike in Daily active users and two significant Stories about FDX including new Questions on the legal team's Profits this weekend Anna Pala Pereira Published an article discussing the Notion that the spot bit coin etf's hype Might have been stalled by due diligence From certain companies The Prompt was a Report by Bloomberg on Saturday in which Companies such as LPL Financial Holdings One of the largest independent broker Dealers in the US are holding fire with

The spot Bitcoin ETFs until they have a Better understanding of how they perform Rob Petman vice president of Wealth Management Solutions for LPL Financial Said we just want to see how they work In the markets he added that it's Important to make sure that they the ETFs are durable over time that there is A good investment thesis that's Ultimately the position we normally come From when evaluating these LPL Financials due diligence is expected to Be complete within 3 months at which Point the spot Bitcoin ETS would be made Available to nearly 19,000 independent Financial advisors that are overseeing $1.4 trillion in assets Bloomberg's ETF Analyst James saart suggested that this Sort of due diligence isn't going to be Unusual saying a lot of these big Institutions these warehouses these Platforms where Brokers or advisors work They can't just buy anything they want There's like an approved list and a not Approved list saart also highlighted That the widespread adoption of the spot Bitcoin ETFs might be a little slower Than expected however he did predict 10 Billion in inflows in the first year Which still looks likely the big Question is if LPL Financial make the Spot Bitcoin ETFs available to those 19,000 independent financial advisors What sort of inflows will that result in

I don't often start by reading the Headline of an article but this one by Kieran Lions is just too good crypto Teacher loses students 1.2 million Investment in fake hedge fund Okay so We've all seen those crypto trading Courses they're usually offered by Someone barely old enough to drink while Loitering in a garage near a Supercar Perhaps there are some genuine articles Out there but I would rather let my 2-year-old son point at tokens he likes The logo of and invest in them Nevertheless they are popular and they Vary massively in quality well this Story might not be about the worst case But it certainly is one of the more Bizarre the US Securities and Exchange Commission alleges that from early 2018 To Mid 2019 Brian SE a crypto trading Course instructor and the founder of Rockwell Capital Management encouraged Investment from his students where his Hedge fund would use artificial Intelligence and machine learning Technology to maximize investors returns In crypto the statement published by the SEC reads the complaint alleges that se Who resided in Hurricane Utah before Relocating to Puerto Rico received Approximately $1.2 million from 15 Students but never launched the fund nor Executed the trading strategies he Advertise to investors the complaint

Alleges that se took his students Investments totaling $1.2 million he Stuck them in Bitcoin he left them in Bitcoin and then he had his crypto Wallet hacked and lost their entire Investment Seal's Rockwell Capital Management has agreed to return the 1.2 Million back to the investors along with Prejudgment interest of approximately $402,000 if the court approves this Settlement suul himself will pay a civil Penalty of $223,000 there have been some warnings Around this sort of thing from both the SEC and the Commodities and Futures Trading commission the cftc the SEC Warned whether it's AI crypto defi or Some other buzzword the SEC will Continue to hold accountable those who Claim to use attention grabbing Technologies to attract and defraud Investors it's just too early on a Monday to start picking that apart Meanwhile the cftc's warnings were more Specific highlighting trading Bots trade Signal algorithms and other AI assisted Technologies decentralized and web 3 Social media has been a strange Affair Thus far we have seen wild success but It has typically been shortlived the Buzz around friend. tech for example was Feverish last year but on a June Dashboard created by crypto coyo we can See that daily transactions have fallen

By 97% from the all-time highs of last August well the farcaster protocol is Currently going parabolic faster is a Decentralized network work for social Media applications that was founded by The ex coinbase engineer Dan Romero and Verun Sharon back in 2020 now what makes This particular surge of use more Interesting is that according to data on June analytics the daily active users For the fast Caster network has been on A gentle incline for months and then Toward the end of January it started Picking up the pace on the 28th of January it reached a high of 5,000 daily Active users but this Saturday the 3rd Of February it was at 24,700 what's more the number of casts Which is similar to tweets shot up 1,000% in the same time frame there were 200,000 casts per day in the week Leading up to the 28th of January and More than 2 million casts per day as of The 3rd of February the influx of new Users and the consequent spike in Activity has been linked to a new Innovation called frames frames is an Innovative new feature on the social Media app warcast which is built on the Farcaster network that was a lot of new Words so just to be clear the farcaster Network has a social media app on it Called warcast which has a new feature Called frames frames allows users to

Engage with links read blog posts answer Surveys engage with applications mint Nfts claim tokens and make transactions All without leaving the warp Cast app This is done by using farcaster eddsa Authentication system which as founder Romero puts it means there is no wallet Drain risk for transactions made via a Frame yesterday Romero posted on X to Say that warp cast has seen such huge Traffic spikes that the team had to work On the network after it resulted in Degraded activity could this be the First web 3 social media to achieve Lasting Success I have two FTX stories to update You on and the second one is a real Talking point firstly FDX is seeking Court approval to sell its entire stake In the AI firm and thropic according to A court filing this weekend sandbank Monf freed invested $530 million in Anthropic in April 2022 and evidence Suggests that the money came from Customer deposits Alam research FTX Sister company held roughly 13.56% of anthropic after its series B Funding round which was diluted down to 7.8% as of January however in December Last year anthropic was valued at $18 Billion and almeida's stake was now Worth $1.4 billion up from the 530 Million initial investment FDX has Submitted the motion to to sell the

Entire stake to recover funds and fully Repay customers okay the second story is Really something during the hearing last Week in the US bankruptcy court for the District of Delaware FDX lawyer Andy Dietrich of Sullivan and Cromwell made It clear that despite extensive efforts There will be no FTX 2.0 that is the Idea to relaunch the crypto exchange was No longer being pursued now you might Remember from episodes a month or so ago That the legal bills around FTX is Bankruptcy are staggering from November 2022 to June 2023 the lawyers and Restructuring team build over $200 Million let me just quote amican cot's Article here in the quarter ending October 31st 2023 FTX spent around $53,000 per hour on legal and advisory Fees according to recent compensation Filings documents from December the 5th To December the 16th 2023 revealed that The bankruptcy legal team build at least 118.1 $1 million from August the 1st to October the 31st 2023 averaging $1.3 Million per day or 53,3 per hour over 92 Days so the scrapping of FTX 2.0 raises The question of how much time and Therefore money was spent on this Fruitless Endeavor the former SEC Official John Reed Stark took to X to Express his thoughts on it and frankly It's a fantastic read I'll link to it in The episode's description but here are

Some highlights from his rather long Post the FTX bankruptcy team's lawyers Should send thank you notes to All FDX Customers why because thanks to the FDX Customers each member of the FTX legal Bankruptcy team can now probably afford To buy a new beach house in 2024 on the Topic of this FTX 2.0 scrapping Stark Said Dare I ask this question how much Illegal and Consulting fees were Scavenged from the rotting corpse of FTX Before coming to this patently obvious Conclusion Stark ended the post with the Following piy Haymaker though he loses Points for making a pun out of his own Name he wrote no matter what the FTX Customers ultimately get back the Stark Reality is that this was highway robbery Of Highway Robbers that was a beautiful turn of Phrase to end the episode on and as You've heard even when it feels like It's a little bit quiet in crypto it Never really is the space is just so big Now there are always narratives brewing And in a way it's more important to Listen to this podcast when there aren't These major billboard headlines because You're almost exclusively getting the Stories that most will miss but that is Your Monday debrief done consider Yourself informed thank you for Listening to the ryzen crypto podcast by Coin Telegraph if you're enjoying these

Daily updates please make sure you let Us know by following subscribing or Leaving a review and as always if you Have any thoughts on these stories send Them on @ cointelegraph and @ Arc bags On X I've always got one eye on my Notifications okay have a great day Let's do this again [Music] Tomorrow [Music]