BlockFi gets another suitor

Good morning. Today we've got updates on BlockFi's bailout, Goldman circling around Celsius' distressed assets, and a blockchain founder attempting to single-handedly avert catastrophe. All that and more today in the CT5!

Market Update (as of 8:14am ET):

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Top 5:

1. Morgan Creek is trying to counter FTX’s BlockFi bailout. The investment firm, co-founded by Anthony "Pomp" Pompliano, is working with other venture capital funds to raise $250 million in order to purchase a majority stake in BlockFi. According to details from a leaked Morgan Creek Digital investors call, the firm is concerned with the details of the existing $250 million credit proposal that FTX is offering to BlockFi. Mark Yusko, a Morgan Creek Digital managing partner, said on the call that there is an option in the credit line proposal that would allow FTX to purchase BlockFi "at essentially zero price" and wipe out existing shareholders, which includes Morgan Creek. On the call Yusko indicated he was open to an “in-between deal” with FTX but was not optimistic that a deal of any kind would get done.

2. Goldman Sachs leading investor group to buy Celsius assets. The Wall Street firm is looking to raise $2 billion from investors in order to purchase distressed assets from crypto lender Celsius. Goldman is speaking with web3 funds, firms specializing in distressed assets, and traditional financial institutions to gauge interest in Celsius' assets. Celsius for their part has hired a restructuring advisory firm, a restructuring law firm, and investment bank Citigroup to explore possible solutions.

3. Waves founder holding $500M debt to avoid USDN depeg. Sasha Ivanov, the founder of the Waves ecosystem, has taken over six bad loans from Vires Financial, the money market protocol built on the Waves blockchain. The loans, issued in the Waves native Neutrino (USDN) stablecoin, currently total more than $530 million and accrue half a million dollars in interest every day. Vires has limited withdrawals to $1,000 dollars per user per day, but users have reported struggling to withdraw any assets whatsoever. The company sporadically adds liquidity to the protocol that is withdrawn by users in minutes. Critics are skeptical that lenders will ever be made whole and Waves is actively seeking outside investors to provide liquidity back into Vires.

4. Nexo threatens legal action against anonymous Twitter account. The crypto lender has issued a cease and desist letter against the anonymous Twitter account @otteroooo. The account published a series of tweets (below) on Friday accusing Nexo's co-founders of stealing funds from a charity for their own personal use. Nexo replied by posting a cease and desist letter to their site along with a blog post that attempts to debunk some of the claims made by @otteroooo. The tweets and account remain active on Twitter for now.

5. Bitcoin Fear and Greed Index Snapshot.

Updates and other stories:
- Harmony offers $1M bounty after discovering $100M altcoin hack...Read More
- Australian crypto firm Banxa to cut staff by 30% citing ‘another Crypto winter’...Read More
- Yuga Labs files lawsuit claiming Bored Ape Yacht Club NFT 'copycats'...Read More

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.