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Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: If you've made it this far and enjoyed the thread, please consider:
✅ Following this account if you haven't already
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Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 7/7 - Voyager filed Chapter 11 on July 5. Customers recovered 50-70 cents on the dollar. BlockFi & @CelsiusNetwork fell in the same wave. What held through all of it was Bitcoin itself. The protocol kept producing blocks. Every trusted custodian failed but the base layer didn't.
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 6/7 - The founders had vanished. They had bought a $50M yacht and two Singapore mansions before going dark. Liquidators couldn't locate them. In September 2023, Zhu was caught at Changi Airport on a one-way ticket, sentenced to four months. Davies remains a fugitive.
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 5/7 - That same day, Voyager drew $75M from a $200M credit line provided by Alameda Research, FTX's trading arm. @CoinDesk documented both moves in real time. Six months later, Alameda would collapse, taking FTX with it.
https://www.coindesk.com/business/2022/06/27/voyager-digital-issues-default-notice-to-3ac-draws-down-75m-of-alameda-revolver
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 4/7 - That position was LUNA. 3AC had put up to $600M into Terra's Luna token. In May 2022, Luna collapsed from $80 to near zero in 72 hours. Margin calls arrived in mid-June. 3AC went silent. On June 27, a British Virgin Islands court ordered the fund into liquidation.
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 3/7 - The mechanism was leverage. 3AC borrowed from @BlockFi, Genesis, Blockchain<dot>com, and Voyager, using each loan to buy more Bitcoin as collateral for the next. A compounding loop that worked until one major position moved the wrong way.
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 2/7 - Su Zhu and Kyle Davies were prep school classmates, and both Credit Suisse FX traders, who started 3AC in 2012. By early 2022, they managed $10 billion on the Bitcoin Supercycle thesis: macro had shifted permanently and every dip was a buying opportunity, forever.
Today in Bitcoin History / @daily_btc_lore:
June 27, 2022 (4 years ago)
Voyager's $670 Million Default Notice
Voyager said 3AC owed them 15,250 Bitcoin and $350M USDC, roughly $670 million. When the repayment deadline arrived, nothing came. What followed pulled down lenders across the space.
Brief thread... 🧵👇
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: If you've made it this far and enjoyed the thread, please consider:
✅ Following this account if you haven't already
❤️ Liking and/or reposting this thread to help others find it
🙏 Dropping me a tip at daily_btc_lore@walletofsatoshi.com
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 8/9 - The auction did something no conference could: it made the US government a Bitcoin seller. Two more Marshals auctions followed through 2015, liquidating over 100,000 additional BTC. Each sale was a government stamp that Bitcoin was real, sellable property.
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 7/9 - Draper didn't buy to hold. He partnered with Vaurum, a Bitcoin exchange, to deploy the coins as liquidity in developing economies where weak currencies made Bitcoin inaccessible. His words: "Bitcoin frees people from trying to operate with weak currencies."
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 6/9 - The Marshals wouldn't name the winner. For five days, Bitcoin Twitter speculated. On July 2, @TimDraper confirmed he had claimed every block. Draper was already the first VC to back a Bitcoin startup, having led a $500K check into CoinLab back in 2012.
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 5/9 - When bidding closed, the Marshals confirmed something no one had anticipated: a single bidder had won all 10 blocks. No splitting, no partial wins. One entity had outbid everyone on every lot simultaneously, and declined to identify themselves.
Today in Bitcoin History / @daily_btc_lore:
R to @daily_btc_lore: 4/9 - Bidding opened June 27, 2014 at 8 AM ET. Forty-five registered bidders submitted 63 bids across 10 blocks. Some blocks held roughly 2,000 BTC, others more. The auction ran for 12 hours. Total value at the day's Bitcoin price: approximately $19 million.
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