🔍 $114 million crypto exploit leads to dark discovery

GM blurtlers! We did it — we survived another weekend of nail-biting price action and busted stop-losses.

Bitcoin is sitting at around $26K and retail investors remain torn on which way the price will go. We’re still optimistic that price could break out of this multi-week range but whatever the outcome, we’ll be here to provide the news that matters most.

WHAT’S HAPPENING TODAY?

• US debt nearing $33 trillion — could this fuel a September crash?

• Analysts predict ETF opportunities for altcoins

• $114 million crypto exploit bust that led to sinister discovery

US debt sparking widespread concerns of market crash

The United States is nearing a whopping $33 trillion in national debt.

That’s right — trillion with a “T”.

Over the past month, the US Total Public Debt Outstanding increased by $306 billion bringing the total to around $32.91 trillion. This figure is quite alarming as it only surpassed the $32 trillion mark on June 15th.

What does this mean for investors?

The weight of this public debt can impact interest rates and economic growth — meaning that companies may earn less as people’s everyday expenses continue to climb. This would negatively impact speculative assets like stocks and cryptocurrencies as people would have less money to spend.

Luckily for you anon, there is bipartisan support for a commission to recommend strategies to reduce the debt so there may be a light at the end of the tunnel.

Could we see altcoin ETFs in the future?

The emergence of a Bitcoin ETF has been predicted by analysts for some time now, but with Grayscale’s recent victory, analysts have turned their heads to alternative currencies that could jump in the arena as well.

A report released by Bernstein predicts that the industry will launch its first spot Bitcoin ETF within the next six months. It suggests this will be followed by an Ethereum spot ETF and from there the industry may look at creating ETFs for other blockchains and decentralized finance assets.

It’s hard to say what may come after the Bitcoin and Ethereum ETF but here’s our top three candidates:

1. Solana (SOL)

2. Ripple (XRP)

3. Avalanche (AVAX)

How a crypto exploit led to a much darker discovery

Back in January, crypto trader Avraham Eisenberg found himself in hot water when he was arrested by federal prosecutors on a laundry list of charges, including commodities fraud, commodities market manipulation, and wire fraud.

The Department of Justice (DOJ) dropped the hammer, alleging that Eisenberg meddled with the decentralized crypto exchange 'Mango Markets,' leading to a staggering $114 million fraud affecting the exchange and its clients. The SEC also wanted beef with Eisenberg, accusing him of masterminding an attack on the crypto asset trading platform. They alleged he inflated the price of the Mango token (MNGO), a governance token marketed as a security, to borrow and drain most of Mango Markets' assets.

After his initial arrest in Puerto Rico, Eisenberg confessed to the exploit, asserting that his actions were within legal bounds and in line with the protocol's design. He stated that he aimed to safeguard other users from harm.

If found guilty, Eisenberg faces a hefty penalty, with each commodities-related charge carrying up to 10 years in prison and a maximum of 20 years for wire fraud. Both the DOJ and the SEC are in the ring, pursuing parallel civil proceedings.

However, the plot thickened when the FBI uncovered child pornography on Eisenberg's phone. This alarming discovery led to a second warrant for a more extensive investigation into these additional charges. If convicted, these offenses entail a mandatory five-year prison sentence.

Whatever the outcome, it’s going to make one hell of a movie!

Meme of the Day (MOTD)

– blurtl