Was Javier Milei a Victim or a Partner? 👀

Why Would Argentine President Javier Milei Protect Kelsier's Hayden Davis?

Javier Milei and Hayden Davis are reportedly having secret phone calls, and the Argentine president even promised to protect Davis from punishment. Just how close are they?

What started as another scammy memecoin launch has spiraled into one of Argentina’s biggest political scandals.

The $LIBRA token, promoted by President Javier Milei and tied to Hayden Davis of Kelsier Ventures, is now at the center of multiple investigations—with allegations of bribery, insider trading, and political corruption. Some are calling it “CryptoGate.”

Did Davis really have influence over Milei? Was the president’s sister involved in pay-to-play politics? Could Davis and Milei face legal action?

This week, Danny Nelson, managing editor for data & tokens at CoinDesk, joins to reveal what his reporting uncovered, from secret deals to political fallout—and why this scandal could change how people see memecoins forever.

Listen to the episode on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Now, let’s get into this week’s news! In today’s edition:

• 🔥 Ethereum user burns $1.6M claiming “mind control” threats in on-chain messages.

• 💰 FTX begins $1.2B payouts to creditors, but some say it’s not enough.

• ⚖️ SEC drops DeFi rule appeal, leaving a major crypto regulation overturned.

• 🕵️ Jack Dorsey as Satoshi? A VanEck analyst stirs up fresh speculation.

• 🔍 SEC launches new task force to crack down on AI and crypto fraud.

• 🔗 Ethereum unveils Open Intents Framework to improve blockchain transactions.

• 🐶 CZ’s wallet gets flooded with $828K in memecoins after sharing his address.

• ⚔️ Aptos and Monad clash over tech plagiarism accusations.

• 🏦 ECB moves toward blockchain payments, hinting at a future CBDC.

• 😂 Dave Portnoy buys wrong LIBRA token and accidentally pumps it 3,000%.

Ethereum User Burns Millions to Warn of ‘Mind Control’

A Chinese Ethereum user has burned over 600 ETH worth around $1.6 million in a series of transactions embedded with cryptic messages warning about alleged brain-machine control technologies. Identifying himself as Hu Lezhi, the individual claims to have been monitored and manipulated since birth by a mysterious organization.

Blockchain data reveals that Hu sent 500 ETH to a burn address on February 17, making the funds permanently inaccessible. His messages, written in Chinese, accused executives at Kuande Investment, also known as WizardQuant, of using “brain-computer weapons” to control employees.

Hu also made donations totaling 711.5 ETH to WikiLeaks, funding the organization in multiple transactions.

FTX Begins First Round of Customer Repayments

FTX has started its initial distribution of funds to customers, marking a key milestone in the exchange’s ongoing bankruptcy proceedings.

According to FTX Recovery Trust administrator John J. Ray III, customers with claims under $50,000—classified as “Convenience Class” creditors—will receive payouts within the next three business days through BitGo and Kraken. The total value of this first distribution is approximately $1.2 billion, with the next round of payments set for April 11.

FTX’s broader bankruptcy plan, approved in October 2024, outlines that 98% of creditors will receive at least 118% of their original claims in cash. However, some creditors have expressed frustration, as repayments are based on November 2022 valuations, when Bitcoin was significantly lower than today’s prices.

Larger claims exceeding $50,000 are expected to be addressed in the second quarter of 2025, as FTX continues its efforts to return an estimated $16 billion to former users.

SEC Drops Appeal in Crypto Rulemaking Case

The U.S. Securities and Exchange Commission (SEC) has voluntarily dismissed its appeal in a high-profile case over crypto regulations, marking a significant shift under the agency’s new leadership.

The case stemmed from a November ruling by a federal judge in Texas, which found that the SEC’s attempt to redefine “dealers” to include DeFi protocols and liquidity providers exceeded its authority. Crypto advocacy groups, including the Blockchain Association and Crypto Freedom Alliance of Texas, challenged the rule, arguing it placed unworkable compliance demands on decentralized platforms.

With the SEC’s dismissal, the decision now stands, effectively blocking the agency’s expanded oversight of DeFi projects.

“Complete and total victory today in our case against the SEC,” said Blockchain Association CEO Kristin Smith.

Under new Acting Chair Mark Uyeda, the SEC has also paused enforcement actions against major crypto firms and established a Crypto Task Force, signaling a more collaborative regulatory approach moving forward.

SEC Forms New Unit to Combat Crypto and AI Fraud

Meanwhile, the SEC also launched a new division this week, the Cyber and Emerging Technologies Unit (CETU), to protect investors from fraud in cryptocurrency and artificial intelligence.

Announced on Thursday, CETU replaces the Crypto Assets and Cyber Unit, which was created in 2022. Laura D’Allaird, a longtime SEC enforcement official, will lead the unit.

“The unit will not only protect investors but will also facilitate capital formation and market efficiency by clearing the way for innovation to grow,” said SEC Acting Chair Mark Uyeda.

CETU’s role will align with Commissioner Hester Peirce’s Crypto Task Force, which is working to classify certain digital assets as non-securities. The unit will focus on fraud involving AI, machine learning, and blockchain technology as part of the agency’s broader shift in regulatory strategy under the new administration.

Ethereum Developers Launch Interoperability Solution

The Ethereum Foundation, alongside industry partners Hyperlane and Bootnode, has introduced the Open Intents Framework (OIF)—a new initiative designed to standardize and simplify intent-based transactions across blockchain networks and solve some of the longstanding interoperability problems in the Ethereum ecosystem. 

Unlike traditional blockchain transactions that require users to specify every step—such as gas fees and contract interactions—“intents” allow users to simply state what they want to achieve, like swapping one cryptocurrency for another, while third-party services handle the execution. This approach simplifies transactions, particularly across different blockchain networks.

The framework builds upon ERC-7683, a proposal co-authored by Uniswap and Across, which laid the groundwork for a unified approach to cross-chain intents. Leading layer 2 solutions, including Arbitrum, Optimism, ZKsync, and Scroll, are supporting the initiative from launch.

By providing a modular infrastructure, OIF aims to enhance efficiency, improve accessibility, and accelerate adoption of intent-based transactions, making blockchain interactions smoother across the Ethereum ecosystem.

Is Jack Dorsey Bitcoin’s Creator?

A fresh wave of speculation about the identity of Satoshi Nakamoto, Bitcoin’s elusive creator, has emerged after VanEck’s head of digital assets, Matthew Sigel, voiced his belief that Twitter co-founder and Block CEO Jack Dorsey could be the person behind the pseudonym.

Sigel’s theory, based on research by deBanked CEO Sean Murray, highlights a series of alleged connections, including Dorsey’s deep ties to cryptography, his past interactions with Bitcoin pioneers, and coincidental timestamps on key Bitcoin-related events. Among the claims is that Bitcoin’s first transaction was sent on Dorsey’s mother’s birthday, and that Satoshi mined their last block on his father’s birthday.

While Sigel insists his stance is a personal opinion, critics have dismissed the theory as speculation, with some arguing that publicizing such claims could put a target on Dorsey’s back. The debate continues, but as with past Satoshi theories, conclusive proof remains elusive.

CZ Flooded With Memecoins After Revealing Wallet Address

Former Binance CEO Changpeng “CZ” Zhao unintentionally became the target of a memecoin frenzy after publicly sharing his wallet address while donating to a student fundraiser.

Zhao had sent 150 BNB, worth around $100,000 to help compensate traders who lost money on LIBRA, but his transaction post on X exposed his wallet, prompting crypto users to flood it with $828,000 worth of memecoins within 24 hours.

The largest holding? “Broccoli”, a token inspired by his pet dog that CZ had jokingly encouraged users to create.

Acknowledging the situation, CZ remarked, “Funny things in crypto,” and pledged to donate the funds to those affected by trading losses.

Meanwhile, Nigeria is suing Binance for $81 billion, alleging the exchange caused massive economic losses and evaded $2 billion in taxes. The country previously jailed two Binance executives as part of its inquiry into the crypto giant.

Moreover, Binance.US reinstated fiat deposits and withdrawals nearly two years after suspending them due to an SEC lawsuit.

Aptos and Monad Clash Over Technology Allegations

A public dispute has erupted between Aptos Research Director Alexander Spiegelman and Monad co-founder James Hunsaker over claims of plagiarism in blockchain technology.

Spiegelman accused Monad of copying Aptos’ innovations, stating on X that the team should “just copy directly” instead of attempting to conceal it.

Hunsaker fired back, dismissing the accusations and emphasizing that optimistic concurrency control—a key component of both platforms’ transaction processing—predates both projects by decades. He added, “I’ve never looked at any Aptos code” and only thinks about the company when it posts “nonsense.”

Both Monad and Aptos leverage parallel execution to enhance blockchain scalability, with Monad boasting 10,000 transactions per second and low gas fees, while Aptos employs dynamic parallelism for efficient processing.

European Central Bank Plans Blockchain-Based Payment System

The European Central Bank (ECB) announced plans to develop a blockchain-based payment system that would enable financial institutions to settle transactions using central bank money—a move that could lay the groundwork for a wholesale central bank digital currency (CBDC).

“This is an important contribution to enhancing European financial market efficiency through innovation,” said ECB Executive Board member Piero Cipollone in a statement.

The project will be rolled out in two phases. Initially, the ECB plans to link a blockchain platform to its existing Target settlement system. The long-term goal is to create a more integrated solution that would also support foreign exchange operations.

Fun Bits: Dave Portnoy Buys Wrong LIBRA Token

Oops, he did it again. Barstool Sports founder Dave Portnoy accidentally invested $170,000 in the wrong LIBRA token—sending its price soaring over 3,000%.

Realizing his mistake, Portnoy took to X, warning: “Anybody wanna buy some fake LIBRA? It will eventually go to zero!” Despite his candid disclaimer, the token’s price spiked before crashing back down—leaving Portnoy with a hefty paper loss of over $100,000.

The mix-up? He bought a similarly named token instead of the controversial LIBRA linked to Argentinian President Javier Milei. Moral of the story? Always double-check the contract address—or just stick to sports betting.

Watch the weekly recap on YouTube!