Unchained - Fat Man Terra Speaks: Do Kwon Is a ‘Sociopath’ and a ‘Charismatic Manipulator’ - Ep. 410

Episode Date: October 21, 2022

Fat Man Terra, the anonymous Twitter account dedicated to bringing Do Kwon to justice, reacts to my recent interview with Do Kwon and says what he thinks it revealed about his personality.  Show highlights: why Fat Man Terra created the Twitter account whether Terra was used to enrich insiders how Fat Man believes Do Kwon evaded questions in the interview with Laura whether Do lied about Chai to misrepresent the success of UST and LUNA why Fat Man believes some people will never admit wrongdoing what he thinks of Do’s response to the stories of people losing everything and whether he is actually sorry what he calls Do’s lack of transparency about his history what he believes is the need to make an example out of the collapse of Terra and Do’s failure Thank you to our sponsors! Crypto.com Fat Man Terra Twitter  Laura’s Interview with Do Kwon Other Coverage of Unchained on Do Kwon and Terra: How Will the Legal Case Against Do Kwon Play Out in South Korea? Do Kwon Is Backing UST With Bitcoin – And Here’s What Else He Is Building The Legal and Regulatory Fallout From Terra’s Collapse: Who Will Pay? The Chopping Block: Does the New Terra Have Any Chance? Hester Peirce’s Former Counsel on Terra 2.0, XRP and a Bitcoin Spot ETF Why Terra Collapsed and Whether an Algo Stablecoin Can Ever Succeed Fat Man Terra’s thread with several devastating stories related to the collapse of Terra SDT pre-mine CoinDesk Korea article Chai  WSJ article Do’s tweets about Chai: 2.5 million users Tweet in May 2021 Tweet in May 2021 #2 Tweet in January 2021 Abracadabra Degenbox $2.7 billion cash out TFL Exit Liquidity dashboard on Dune Basis Cash CoinDesk article Luna Foundation Guard Ergo-BTC on-chain evidence of more than 313 BTC Dumps BTC LFG postpones compensation Allegations against Do Kwon SBS news reporting Do moved funds to the Virgin Islands Seoul Police Probe Allegation of Embezzlement by Terraform Staff South Korea Launches Investigation into Company Behind Luna Crypto Crash Class action against Do Kwon Korean prosecutors are looking into Terra Red Notice “Not on the run” Kwon’s Passport Learn more about your ad choices. Visit megaphone.fm/adchoices

Hey everyone. In this episode, I talked with Fat Man Tara about his response to my interview with Doe Kwan of Terraform Labs. Throughout the interview, Fat Man makes a number of allegations against Doe. I reached out to Doe to get his response to these allegations. He wasn't able to respond by press time, but he offered to do another interview with me in the near future based on ongoing developments. So stay tuned. Now, here's my conversation with Fat Man, Tara. Everyone, welcome to Unchained, your no hype resource for all things crypto. I'm your host, Laura Shin, author of The Cryptopians. I started covering crypto seven years ago, and as a senior editor at Forbes was the first mainstream media reporter to cover cryptocurrency full-time. This is the October 21st, 2022 episode of Unchained. Who would play Vitolic on the small screen? In case you missed it, I'm working with Playground Entertainment, who've optioned the rights to adapt my book The Cryptopians into a TV drama series. For more info, check up. the show notes and stay tuned. With the crypto.com app, you can buy, earn, and spend crypto in one place.

Download and get $25 with the code Laura. Link in the description. Today's guest is Fat Man Tara, the anonymous Twitter account dedicated to bringing Doquan to justice. Welcome, Fat Man. Hi, Laura. Thanks for having me on. In case you guys can't tell, Fat Man is using a voice anonymizer. And for those of you who are familiar with him on Twitter, there is where he runs an anonymous Twitter account. Fatman, for those people in the audience who aren't familiar with you, why don't you explain how it is that you came to create the Fat Man Terra account and what your goal is with that account? So the Fat Man Terra account was created after I posted a proposal on the Terra Research Forum. It was a proposition on how to redistribute the Luna Foundation Guard funds. My proposal seemed to strike a chord with both UST victims and people in the crypto community.

People sort of rallied around the idea of a fair distribution to small holders and trying to prioritize making them whole rather than deploying it back into the market. And over time, I've tried to use my history as a crypto and financial researcher. to inform research behind Terra. And I'm trying to understand what Terra was and how it was used as a scheme to enrich certain insiders. So as that info comes out, as research progresses around Terra and various other crypto developments, my goal is to try and bring those things to light. And I think ultimately I'm quite interested in getting justice for UST victims and allowing them to gain restitution for the crimes that ParaFarm Labs and DoCon committed.

Before we get to that, what was your involvement with Tara before the collapse? So before the collapse, I was quite a big Tara fan. So I was a passionate member of the Mirror and Anchor community. I was involved with some background terror research. But I was never a big name. I was never involved in crypto Twitter much. I was just sort of in the background as a passionate community member, you could say. I only really came to prominence after the crash after I got more involved into the research side of things

and trying to understand exactly what happened, both based on more in-depth research, as well as some insiders who came out and spoke to me about certain things that were going on behind the scenes. So earlier when you said that you felt that Doquan and Terraform labs had committed crimes, what are those crimes? So there's really a wide gamut of things we can speak about. But I guess it boils down to manipulation. It boils down to lying to the public. It boils down to unfairly enriching themselves through mechanisms that were not made public. And I, I've tried to use my account as a place that all of this is documented more neatly, but it's really just, it's several months of various things that we can talk about.

Okay. And yeah, and when I asked my question, I should have said alleged crimes, because obviously just everything is being hashed out at this moment and there's nothing definitive. So let's now talk about the interview that I conducted with, so that was released earlier this week. you, you know, as you mentioned, just have been steeped in all things, Terraluna ever since the collapse. And when you either watched or listened to that interview, what were your thoughts about what Doe was saying? So, first off, I'd like to say that you did a really incredible job with the interview, I think. You asked all the right questions. You stuck to the facts and you pressed on when necessary. So I think in general, it was nice to see a more human side to Doe because I know that

online emotions can run high. So it was nice to see a civil sit-down conversation. But that being said, I was disappointed to see that some aspects of his behavior haven't really changed. He's still attempting to use obfuscation, misdirection, and embellishment, and trying to rewrite history. I find that he's very good at using many, many words to say not much at all. If that makes sense. It's something I'm familiar with. So, but were there any particular parts of the interview that you felt were just further from certain facts that you had uncovered?

Yeah, for sure. I feel like there was a lot of dancing around questions, a lot of not answering things directly. There were a few untruths. And there were some interesting revelations that I like to talk about, especially when it comes to things like, like chai and other stuff he mentioned. Well, okay, so why don't we just start with that? What were some of the revelations? When we get down to his financial explanations of things that he was talking about, I noticed that he has this habit of gaslighting and misdirecting people,

essentially when he goes, what people don't understand is as a preceding phrase before explanations. So he expresses this condescension and making the viewer feel dumb. And I feel like you asked some very solved and straightforward questions, and he tries to take it into a completely different tangent to mislead the conversation. And at times, you had to explicitly bring it back on topic. So when it comes to Chai, I found his explanation for lying about Chai was honestly quite ridiculous. He went, I misremembered, I didn't have visibility into the figures. I should have fact checked. Like, here's a deal.

When you're handling a multi-billion dollar ecosystem, people cling on to your every word, right? Especially when you're disclosing specific financial figures crucial to the business. I've had multiple people tell me that the only reason they were interested in UST was because of the real world by pressure coming from the Chai use case. So you cannot just misremember these things and then lie about them in a podcast. It literally led to tens of millions in inflows, even hundreds of millions. So these false statements that he made, which he now calls mistakes in your episode, directly ruined several lives. So when you combine these mistakes and this misremembering with the fact that he was cashing out massive amounts of UST into the ensuing liquidity, you get a pretty bleak picture. So you can call me cynical, but I believe Dole was intentionally lying about these figures to misrepresent the success of UST and Luna.

And regardless of whether you think he intentionally lied or truly misremembered, making completely false and fraudulent financial declarations to investors that cause losses can and should be punished. Either way, I think. Okay. But just from what you said, it sounds like you don't actually have hard proof that he definitely knew that the partnership with Shai had ended when he made those claims about how it was bringing 2.6 million users to Tara. Right. So, I mean, there's no way to look into state of mind and actually know whether or not he actually knew. But he goes on to these podcasts and he's making these sweeping declarations about millions of users, tons of chai demand, real world, and all this. And the onus is on him. The responsibility is on him to make sure that these things are real. Because people are investing based on these words. So I highly doubt, I highly doubt it when he says that he misremise. remembered or he didn't know, I believe that he was well aware what he was doing. But regardless of whether he knew or he didn't know, it's still a crime and it's still wrong with him to declare these things. And when he finds out that the facts are fake, he should at least come out with clarifications and

explain what the real numbers are. So I feel like many of his declarations, his public declarations about UST were heavily mishandled. And then one other thing that you said was that he cashed out a ton of money. What evidence do you have for that? So as far as the curve cashouts go, there is a lot of on-chain blockchain data. And you even in your episode, you directly asked about the $2.7 billion that was cashed out through curve. And we have blockchain evidence of that.

And he has provided no explanation on Twitter, and he offhandedly described it as arbitrage after a long-winded technical explanation intended to misdirect. In my view, if it's really that innocent, why doesn't he just release the trade logs of where the money specifically went? We have all this blockchain data proving that FL cashed out billions from UST. Why doesn't we just provide a breakdown, just say, okay, $1 billion went to LFG, $1 billion was for arbitrage. should be fairly simple to show this evidence. And when you combine this with the fact that insiders are coming out and declaring that TFL has hundreds of millions dashed away, it all paints a picture of lots of liquidity being siphoned out into his own personal offers. All right. So in a moment, we're going to talk about additional issues surrounding dose,

such as his legal case and the personal impact that the collapse of, Terra has had on a number of people. But first a quick word from the sponsors who make this show possible. Join over 10 million people using crypto.com. The easiest place to buy, earn, and spend over 150 cryptocurrencies. Spend your crypto anywhere using the crypto.com visa card. Get up to 8% cash back instantly. Plus 100% rebates for your Netflix, Spotify, and Amazon Prime subscriptions. Download the crypto.com app now and get $25 with the code Laura. Link in the description. Back to my conversation with Fat Man. One correction, actually, that I'd like to make for the Doe interview is that at that time, I interviewed him, I said that there

was a PDF of the arrest warrant, but it was a PDF of the notice that his passport would be revoked. But regardless, Fat Man, when you were listening to Doe's response to all the legal questions that he faces, in particular, his opinion that the charge was against him are legitimate. I was curious for your thoughts on that. Okay. So when it comes to enforcement, I feel like there's been a lot of goalpost moving, especially from the die-hard Luna community. So it started off with, you know, there was an attack and there's no proof of fraud. Then when we gather insider testimony from people involved with terror becomes, oh, they're just lying. Then we get blockchain evidence confirming TFL cashed down billions. It becomes, oh, fat man is just spreading fud. Then we hear the SEC is investigating

tariff. Oh, it doesn't matter because there are no charges. And finally, we end up at literal arrest warrants being issued. And the excuse predictably is something like, oh, the government must be wrong. So ultimately, there's a faction of people deeply married to their bags, or in this case, their reputation. And they will never concede no matter what, because they'll never admit wrongdoing. They know that doing so puts them in a lot of hot water. And in your episode, Doe mentioned Korean authorities coming after him for crypto laws. So he wants people to believe that all cryptocurrencies fall into the same basket and that the government attacking Luna is an attack on coins like Bitcoin. But it's really not the same at all because Luna and UST,

they had special characteristics, I'd say, making it completely different from most token models. For one, most stable coins don't have a Bitcoin backing. reserve sitting in one dude's wallet. And Vitalik or Satoshi, they don't have control over an advertised reserve to keep their coins price stable. It's really quite different. And it's no surprise that regulators are specifically coming after Terra. And at this point, instead of running or making up excuses, I think Doe should face his reckoning and attend trial so that fair verdicts can be made. Oh, yeah. And I also wanted to talk about his location. Because there's a lot of manipulative double speak going on on that front.

So on Twitter, he goes, I'm not on the run. I have nothing to hide. I go on walks. I'm sure people from crypto Twitter see me all the time. And in the interview, he's like, no, sorry, I don't want to review my location due to personal security reasons. So to me, it's a classic sign of a liar. He's not able to stick to one story. He just has like enough stories to write an anthology.

The refusal to disclose his city is quite odd to me because there's no risk of some psycho trying to break down your door, like he claims. If he knows you're in Singapore or Dubai, whatever, as long as your actual address isn't out there, I think you're safe. The only legitimate reason for not revealing your broad, like your broad city or general region is if you're trying to evade law enforcement. Because if you mention a city, Interpol might attempt to activate law enforcement in that region. and then, you know, go on the hunt through their databases or whatever. But it makes no difference to public facing security issues unless you know you've done something wrong. So in my view, he's definitely on the run, and that part is an outright lie on his part. I asked him about the people who had lost huge sums of money, and at least in the case of one man,

someone who commended suicide due to the collapse of terror, what did you think of Dove's response? Hmm. So as far as remorse is concerned, this is opinion-based. It's subjective, but personally, I strongly believe he's putting up a persona. Because I've spoken to several people who have known Doe in a personal capacity, and they know him as a sociopath who has little regard for people's feelings. And he's also known as a charismatic manipulator when he wants to be. And I think the same thing's happening here. Because in my view, it comes down to follow the money. You asked about his net worth now compared to before the collapse, and he refused to answer. You asked him about getting rich while his followers lost everything, and he dodged a question. Ultimately, I think owning up to responsibility verbally, that's great, sure.

It really doesn't do anything. As we know, as you mentioned, people lost their livelihoods over his fraudulent promises, their savings or families, in some cases, their lives. And really, the only fair remedy for that is to return a portion of his ill-gotten gains to the savers who lost it off. And he has yet to pledge a single dollar of his own money for restitution efforts. Personally, I'm going to start believing he's sorry when he starts paying people back the money he scanned from his own pocket.

Until then, it's all just posturing to me. I asked a number of questions of Doe concerning the operations of Terra. Some of these actions showed, I guess, a tendency to perhaps not really disclose things that go against the ethos of crypto. For instance, there was a pre-mine that was worth $1.4 billion. There was a Dow-like hard fork that reimbursed a VC that had lost some private keys to its money. and that was not proactively disclosed and discussed with the community beforehand.

As you mentioned, also, he made a number of misstatements about Chai, but whether or not he actually knew that the partnership with Chai had ended is an open question. But I was curious, you know, just amongst the various different, I mean, there were so many of these things

that these weren't all of them, you know, as we talked about, there was the $2.7 billion that perhaps got cashed out. But were there any other questions that I either didn't ask him that you'd be curious to know, or were there questions that you had based on his answers? Like they raised additional questions for you? I think in general, like I said,

he managed to use a lot of words and not say much at all. And there was a lot of dancing around questions, a lot of post-talk representations of things that they really don't add up. And in general, I don't think he added any massively new info. But he did give us some interesting insights into his thought process. You definitely raise a good point about transparency and how it doesn't match up with the crypto ethos. And the whole thing about decentralization doesn't really add up if you have the coin's entire backing sitting in a single guy's Bitcoin wallet. And I feel like he certainly downplay some of the aspect of his involvement.

For example, you mentioned in the interview, Doe had been a part of failed stable coin basis. cash and he tried to heavily downplay his role in it. But here's the thing. It absolutely matters that you made a similar stable coin in the past. It absolutely matters that basis cash crashed and burned in a spectacular fashion. This is a critical disclosure because it gives investors a window into Terra's potential fate and past performance of your models and algorithms are crucial in understanding their viability. Loads of investors, Kong gone, also due to U.S.T.'s relatively stable history. But if they knew that one of those stable coins had failed before,

I firmly believe that many retail investors could have either bailed out early or would have never invested at all. So it's another example of where him not being transparent about everything he's done led to people directly losing money. At the end of the show, he said he would love to still contribute to the space and also led on that he's been building again, doing more coding. What did you think of his intentions? It's a tough one. It's a tough one.

Because those history isn't really the best. And look, look, when Doquan makes statements like, I truly believe in the stability of UST and all this, I want to believe him. I want to believe he's a good actor who can do good things for the space. I really do. He's an incredibly intelligent man. I'm always going to respect his technical acumen.

And personally, I do my best to try and see the good in everyone. And I thought for days, I've racked my brain to come up with any scenario where he's innocent, any world where he's not a liar. But it all comes down to one thing. If you really believed in UST, why did you cash out so much? Why were you simultaneously pulling out these hundreds of millions while filling its stability to retail investors? and why were there so many blatant lies intended to make USD stability in its surrounding economy look more, how do you say, robust to investors? If you really believed in it, why not let it stand on its honest merits and real achievements

inside these made-up statistics? Why would you intentionally inflate anchor borrow using your own wallets and lie about shy usage? Like all these things, when you grow through his history, it's literally just lie upon, lie upon line. Eventually, you come to a point where even his once ardent supporters, like myself, we have no choice but to come to the only rational conclusion, which is that Tara was a technically brilliant scheme. It was definitely technically brilliant, but it allowed Doquan to siphon to siphon to siphon money out of retail investors into his own pocket under the guise of a safe savings product. So, if I was to, who was to think about,

where we can go from here. Like, as I'm sure you can tell, I'm pretty passionate about cryptocurrencies, and the space has been my home for the better part of a decade. But now it's being invaded by leeches like dough, who seek to ruin and destroy for their own benefit.

And I think in the past year, there's been way too much damage and destruction in this space. Like, these people are predators, and they will come back again and again. So if you'll allow me to send the message, it would be we as a space. We need to come together and become more resilient if we ever want to succeed.

And this means calling out scammers when we see them. This means making sure that vultures like Doe Kwan aren't able to return after pulling off these massive heists. It means pushing on for justice no matter how hard it gets. And with all de-respected though, this talk of him coming back with new products designed for his own profit, I think it's pretty sickening. And I think he should take a step back and bow out of this space. If he had any morals, he would take the hundreds of millions he earned through his fraudulent lies and return it to his victims who were most impacted. Now, if he's too greedy to do that, that's fine. Then just let him come to court and let the law decide, I'd say.

I'd say let him face a fair trial where all of the evidence is laid bare and analyzed by a neutral third party. But whatever ends up happening, I think one thing is clear. I think we need to make an example of Doquan. We have to show scammers around the world that you cannot come into our space, take our money, run away and hide, and then try and come back later after everyone forgets. We're not going to forget. We're going to learn our lesson. We're going to build up new protections.

We're going to put in place fail-safe mechanisms. And we're going to come back stronger. and this is how the space will grow and become more successful. And like people like you, Laura, I really commend you and everyone else who tries to bring the truth to light. And honestly, even though all these things have been happening, I'm pretty optimistic about the future of the space because I see people becoming more aware over time. And I hope to continue my work and I hope you continue your work the best we can. And I want the world to fully understand what terror really was at every level, whether this is through more insiders coming out or court discovery, whatever it is. I really want to see the perpetrators of crypto's biggest fraud brought to justice.

And as long as we as a community, you, me, everyone watching, everyone in crypto Twitter, as long as we don't lose our drive for the common good, I'd say, I think everything will be all right in the end. Yeah. All right. Well, thank you so much for sharing your thoughts. After most of the crypto community was following your tweets obsessively for the last few months, it's been a real pleasure to hear from you directly. Thanks so much for coming on Unchained. Thank you very much for having me. Don't forget. Next up is the weekly news recap.

Stick around for this week in crypto after this short break. The ScoreBet app here with the scorebed app here with Trusted stats in real-time sports news. Yeah, hey, who should I take in the Boston game? Well, statistically speaking. Nah, no more statistically speaking. I want hot takes. I want knee-jerk reactions. That's not really what I do.

Is that because you don't have any knees? Or... The score bet. Trusted sports content, seamless sports betting. Download today. 19 plus, Ontario only. If you have questions or concerns about your gambling or the gambling of someone close to you,

please go to conicsonterio.ca. With Amex Platinum, you have access to over 1,400 airport lounges worldwide. So your experience before takeoff is a taste of what's to come. That's the powerful backing of Amex. Conditions apply. Local news is in decline across Canada, and this is bad news for all of us. With less local news, noise, rumors, and misinformation fill the void,

and it gets harder to separate truth from fiction. That's why CBC News is putting more journalists in more places across Canada. Reporting on the ground from where you live, telling the stories that matter to all of us. Because local news is big news. Choose news, not noise. CBC News. Thanks for tuning in to this week's news recap. Vigilante Group sets out to find Doe Kwan.

The Financial Times reported that a group of Terra investors is trying to hunt down Doe Kwan. Members of the U.S.T Restitution Group, which has about 4,400 members, have named possible locations for Kwan, such as Dubai, Russia, Azerbaijan, the Seychelles, or Mauritius, amongst other locations. They plan to start looking for him in Dubai, since, as one member posted, Dubai is friendly to crypto, very international, he would not stand out, and has limited extradition treaties in place. This person added, it would seem like the best fit for the three to five-hour time zone shift apparent in the data. The group even claims to have people who are very, very close to Doe Kwan. Their expedition to Dubai starts in little over a week.

Aptos launches on mainnet but gets a negative reaction for its tokenomics. On Monday, Aptos Labs confirmed the launch of its main net, Aptos Autumn. Aptos is a layer one blockchain created by former meta employees that had raised as much as $400 million from investors like A16C, FtX ventures, jump crypto, multi-coin capital, finance labs, coinbase ventures, PayPal ventures, and others. Disclosure, I write a newsletter for Meta's bulletin product. The launch got a lot of criticism on crypto-twitter for not disclosing the token allocation scheme, especially considering that big exchanges like Binance and FTX listed the Aptos token on their platforms. The following day, Aptos posted an overview of its tokenomics, which said that only 51% of the tokens would

go to the community, raising a lot of concerns about the decentralization of the blockchain. Additionally, Aptus was accused of benefiting early venture capitalists way too much. Olaf Carlson Wee, the founder and CEO of Polychain Capital, a crypto VC firm that did not invest in Aptos, tweeted, Apto's token distribution scheme is among the worst designs I've ever seen, and I've seen a lot. Foundation, 67.5%, team 19%, investors, 13.5%. The only way coins get into the community, LOL, is through arbitrary foundation and distributions. So the entire supply is controlled by a bureaucracy which will grant the coins one by one. It's also proof of stake, so new coins cannot be earned by actors outside this distribution method.

I would love to hear an explanation from any person who thinks the design is good. DC investor, a crypto influencer, wrote, the near categorical rejection of Aptos created by ex-Libra devs as a fairly blatant cash grab, and of course funded by the usual suspects who've extracted billions from the space, may be one of the most important social shifts we've seen in the space in a while. Voyager executives to settle on potential missteps. An investigation in the bankruptcy case of Voyager Digital recommended that the executives of the company settle on alleged mismanagement. Voyager CEO Stephen Erlik and previous CFO Evan Saropoulos lent

three arrows capital nearly $1 billion in crypto. But following the implosion of Terra and its stablecoin UST, the crypto hedge fund went bankrupt and failed to repay the loan to Voyager. The executives were under investigation to discover whether they had failed to perform proper due diligence on the loan. However, there was no clear evidence of mismanagement or fraud, making it very hard to prove it in court. The conclusion was that executives settled for an amount between $1.3 million and $3 million from their personal assets and up to $20 million through insurance. Only a few days before, a court filing revealed that the top executives of the company were seeking legal immunity, an idea which was received with a lot of contempt from Voyager's creditors' committee. Additionally, three-e-euroes capital is being probed by the CFTC and the SEC, as reported.

reported by Bloomberg. According to the media outlet, the agencies are trying to redefine whether the failed hedge fund misled investors by not disclosing the weakness of its balance sheet. The location of the company's founders, Sue Zhu and Kyle Davies, is still unknown. This week, it was revealed that the liquidators of 3AC are seeking to issue subpoenas to the company founders in alternative ways. Texas regulators investigate FTX and Sam Bankman-Fried. FTC and its founder and CEO, Sam Bankman-Fried, are under investigation by regulators in the the state of Texas. The inquiry has to do with FTC's yield-bearing accounts to U.S. customers. Regulators believe these may constitute securities and would-be in violation of securities law.

According to Joe Rotunda, the Texas State Securities Board Enforcement Director, Rotunda said that although he registered as a U.S. resident, the FTCS. app offered him a yield opportunity, which could be considered an investment contract. The probe may put in jeopardy bankment-Feed's acquisition of Voyager Digital's distressed assets after he won the auction and agreed to pay the bankrupt crypto lender $1.4 billion. New draft bill sparks concerns about financial freedom. Delphi Labs General Counsel Gabriel Shapiro revealed a secret new draft of the Digital Commodities Consumer Protection Act,

or DCCPA, which the Commodities Future Trading Commission would use to regulate the crypto industry. The language of the draft would exclude software developers from being counted as digital commodity brokers, which according to Shapiro could be a boon to defy slash crypto. Still, the draft raised some concerns about its potential impacts on crypto and financial freedom. On this issue, Congressman Tom Emmer wrote, Decentralization is the point. If we sacrifice D5 for legislation, we're throwing away the opportunity.

The DC CPA was introduced by Senators Debbie Stappano and John Boosman in August and has gained support from crypto giants such as Coinbase and FDX. However, the Blockchain Association tweeted that the bill needs to be changed or it would create a ban on decentralized finance. Additionally, SBF published a 3,800-word industry norms manual in which he proposed enforcing regulation, including sanctions on decentralized finance protocols via their front ends, and he got a very negative response from the crypto community. Ryan Adams, host of bankless, said to SBF, this absolutely sucks and would eliminate the U.S. from the crypto race. The blockchain association backs Grayscale in its case against the SEC.

Grayscale investments won another supporter in its case against the security. and Exchange Commission over the agency's rejection of a spot Bitcoin ETF. The Blockchain Association and advocacy group focused on blockchain policy submitted a brief in the gray scale suit, supporting the investment firms claim that a failure to approve a spot product constitutes uneven treatment. The blockchain association joined other big advocacy groups, Coin Center and the Chamber of Digital Commerce, and supporting the case. The SEC's unwillingness to approve a spot Bitcoin ETF has been a major concern in the crypto community. A spot ETF would help institutional investors put money into BTC, but until now, there have only been

futures ETFs. The Commission's use of a double standard to evaluate Bitcoin futures ETPs and spot ETPs is not only bad policy, but also in contravention of laws to the Blockchain Association filing. On a related note, another firm that is joining a lawsuit to show support is Paradigm, a crypto venture fund. Paradigm joined the Uki-Dow case, arguing that the Commodity Futures Trading Commission, or CFTC, should properly serve its members in the paradigm. instead of the Dow as a whole. To refresh your minds, the CFTC tried to serve Uki Dow members in its forum, a move widely rejected by the crypto-legal community, although a judge ruled that the members had been properly served. Paradigm added to the efforts of Lexpunk Army and the Defy Education

Fund, which previously asked for permission to add similar amicus reefs. NFT royalties. Who can solve this problem? After Magic Eden, the largest NFT marketplace on the Thelana blockchain announced it would not enforce royalties on this platform, the debate. about NFT royalties spiced up again. Magic Eden's decision to move to optional royalties was not taken lightly, according to the team, which argues it was the best business decision at the time. Over the weekend, I teamed up with Lee Jin to debate with Haseeb Qureshi and Joshin Yin about NF2 royalties in a special episode of the chopping block, special emergency episode you could say. Basically, Lee and I argued that cutting royalties constitutes short-term thinking, whereas Haseeb and

Ocean said that as royalties are not enforceable on chain, it was inevitable that marketplaces would start moving to this model. Generative NFT artist Tyler Hobbs told DeCrypt that losing NFT artist's royalties would be a tragedy. Also, speaking of NFTs, the U.S. Internal Revenue Service revealed a tax guide that put stablecoins, cryptocurrencies, and NFTs under the same rules, requiring sales of them to be taxed as capital gains. Finance holds great power on Uniswap by accident. Bynancholyne, unintentionally became the second largest voting entity by voting power in Uniswap Dow after A16C. Uniswap is a multi-chain, decentralized exchange with a total value locked of $3.5.5 billion.

Binance delegated 13 million unitokens and was able to accumulate 1.3% of governance voting power, according to Uniswap founder Hayden Adams. However, another user pointed out that Binance could have as much as 5.92% of the total voting power. Hayden called this a very unique situation as the uni technically belongs to its users. To this point, Binance responded. Binance doesn't vote with users' tokens. In this instance, about 16 hours ago, 4.6 million uni was transferred between internal Binance wallets, causing the uni to be instantly automatically delegated. This was not our intention. Mango Markets Hacker reveals his identity. The drama around the Mango Markets Hack continues. This week, the hacker revealed his identity

and claimed his actions were legal and open market conditions. Avraham Eisenberg confirmed he was the person behind the attack and said, I was involved with a team that operated a highly profitable trading strategy last week. Following the confession, Mingo markets announced that Eisenberg had given back to the Dow crypto assets worth $67 million, as was agreed in a governance vote. It looks like Eisenberg has some experience in hacking defy protocols. Earlier this year, Eisenberg was accused of being responsible for an exploit on Fortress Dow, worth $14 million.

On a related note, this week, a hacker stole $8.4 million worth of tokens from defy lending protocol, Mula Market. However, they later returned 93% of the funds, keeping approximately $500,000 as a bounty reward. Time for fun bits. The wildest conspiracy theory about me. Covering crypto, I've definitely been the subject of some off-the-wall conspiracy theories. Hey there, XRP Army, wrapped Luna Gang, Cardano, Fund.

folks. But the funniest conspiracy theory I've ever seen is this one, which was a reply to Kondesk, who tweeted out an interview they did with me, asked me questions about my chat with Doe. In it, I said that until we have definitive evidence of malfeasance, we can't yet conclude whether or not Tara was a fraud. Elifaga responded, she falling in love with D.K. Same way reporter, Christy Smyth fell in love with Martin Scrolling before he went to. prison. We all know what happens next. Uh, no, we don't. By the way, question for my male crypto reporter colleagues. Has anyone ever tweeted anything even remotely similar to you? Uh, please let me know. All right. Thanks so much for joining us today to learn more about fat man,

Tara, Do Kwan, and the Collapse of Tara. Check on the show notes for this episode. Unchained is produced by me, Laura Shin, with help from Anthony Youne, Matt Pillars, Wilcher Juan Oranavanovich, Pamma Jimdar, Shashonk, and CLK transcription. Thanks for listening.