GM Seedphrase Nation 👋 Sit back, relax, and let us take care of the hard stuff while you enjoy all the crypto-goodness.

Today’s Agenda: 📓

• 🔥 Headlines from the weekend

• 🙄 Genesis controversy explained like you're 5.

• 😔 Bad Day to be Huboi.

• 😂 Meme of the Day

🔥 US Authorities Investigate Binance

• Breaking: Hedge Funds that have dealt with Binance are being asked to cough up all documents related to their dealings with Binance.

• The crime? Binance U.S. is suspected of violating money laundering laws. For a period of time, Binance U.S. did not require identity verification to send funds.

• CZ, CEO of Binance, is working with the government in an effort to prove his legitimacy.

🔥  OpenSea adds support for Arbitrum 

• Arbitrum is an L2 that scales ETH. It has become one of the most popular L2s in the space.

• The partnership means faster and cheaper transactions on OpenSea.

 🔥 Polygon Paid y00ts $3M to Leave SOL

• The switch to Polygon was sooooo last week. But...no one really knew how much money money y00ts was paid for the chain switch.

• All details are now verified: here's Frank's tweet sharing a screenshot of exactly what he plans to do with the $3M

🔥 Judge Rules Celsius Customers Do Not Own Their Account Funds.

drum roll please. 🥁🥁🥁

• NOT YOUR KEYS. NOT YOUR DAMN CRYPTO.

• A Judge ruled customers who deposited their funds into the Celsius Earn program do not own those deposits. Celsius does.

• Celsius Earn customers are regarded as "unsecured creditors" because of the deposit and earn yield model.

• The bright(ish) side: $44M worth of crypto was ordered to be returned to customers last month with regular Celsius accounts.

⚜️ Golden Nugget: Ask yourself if the yield is worth potentially losing the deposit.

🔥 Mastercard partners w/ Polygon for Web3 Artist Accelerator. 🎸

• Mastercard's dive into Web3 gives back: The program will educate artists on how to offer their content as NFTs, build large communities, & represent themselves in the digital world.

• 5 Celebrity artists will be part of the team.

• Interested? The program will launch Spring 2023. More details to come.

• Follow here to stay updated.

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🙄 "I'm Sorry for Losing $900M But It's Not my Fault"

In case you missed it, Crypto lender Genesis, and its parent company Digital Currency Group (DCG), allegedly owe $900 million to Gemini’s clients.

The drama is plenty, and the rabbit hole is deep.

It took us hours to sort all the information available.

So, we made the most concise summary you will ever find on the internet:

1. Gemini, a crypto exchange, ran a program last year called Gemini Earn. (It went like this: give us your money, and for some reason, get a ridiculously high return back.)

2. Gemini then took Earn clients' deposits and loaned it to Genesis, expecting a huge return.

3. The surprise! Genesis did not generate huge returns. Now they say they don't have the money to pay Gemini back.

4. The Claim: Gemini claims that they are owed $900M from Genisis.

5. The Confusing Part: Genisis claims that they are owed $525M from their parent company, Digital Currency Group.

6. The Emergency Loan: Genisis tried (and failed) to raise $1B as an "emergency loan."

7. The Open Letter: the Winklevoss twins (founders of Gemini) wrote a public letter to Digital Currency Group's Barry Silbert demanding to know what happened to the $900M of Gemini Earn customer funds.

8. The Villains: Everyone involved here has robbed their clients. They are all the villain. That's why the Winklevoss twins are desperately trying to shift the narrative.

9. The Bottom Line: Gemini, Genisis, and DCG exploited customers to enrich themselves, and now have no intention on making their customers whole. The real victims are Gemini customers.

You're caught up now.

What This Means for Markets 👇

In the event that Digital Currency Group - as Cameron Winklevoss suggets in his letter - is “beyond comingled” with Genesis, that means that Digital Currency Group can (and very likely will) want to sell off holdings in the Grayscale’s various trusts.

Grayscale owns a great deal of crypto - 3 million Ethereum and 654,600 Bitcoin. Any attempt to sell enough to cover these debts will crater the market.

This could have a domino effect and make prices drop even more.

😔 Bad day at work for Huboi.

• Justin Sun moves $100 in stables to Huobi because of rapid withdrawals.

• Huobi Global lays off 20% of its staff.

Justin Sun moves $100 in stables to Huobi because of rapid withdrawals.💨

Huobi Exchange CEO Justin Sun moved lots of money in Stablecoins to Huobi to handle withdrawals. This caused FUD.

To be exact: The stables were taken from Binance and moved to Huobi. (USDT and USDC)

The chain reaction: If he didn't move money, the exchange would not have been able to honour customer withdrawals.

As a result: It caused lots of FUD regarding their reserves and status as an exchange.

This type of movement means Huobi needs more resources/reserves to honour customer withdrawals and might indicate they are the next exchange to fail.

And Tron being affiliated directly with Justin Sun, the token price dumped.

Huobi Global lays off 20% of its staff. ✌️

Huobi Global is joining the layoff party.

They just announced they're cutting 20% of their staff because of the ongoing bear market. They're not the only ones either - Coinbase and Kraken have also had to lay off employees due to the market downturn.

The crypto industry is facing some tough times right now. Even the big players are feeling the effects of the bear market.

It'll be interesting to see how Huobi handles this situation and how it could impact the overall value of cryptocurrencies.

Keep an eye out for updates here at Seedphrase.

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😂 Meme of the Day

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research