- Markets are reacting favorably to signs of cooling inflation. This morning, the Commerce Department announced spending by US households decreased by 0.2% MoM, with PCE (Fed's current preferred gauge of inflation) rising 5% in December (vs. 5.5% in November). December Core PCE rose 4.4% (vs. 4.7% in November), growing at its slowest pace since October '21. $SPX and $NDAQ are trading 0.3% and 0.7% higher, while $QQQ is 0.8% higher than yesterday's close. $BTC (+0.6%) and $ETH (-0.3%) are mostly flat over the past day after having appreciated 9.7% and 2.5%, respectively, in the past week. $APT (+126%) and $BTSE (+63%) have been the top gainers in the past week. Aptos has benefitted from multiple short squeezes and high trading volumes on Korean exchange Upbit, while BTSE is a thinly-traded ($300k 24h volume) exchange token on $500m market cap.
- Late yesterday, a 116-page document was filed with the U.S. Bankruptcy Court District of Delaware that provides an extensive overview of FTX creditors. Notable companies appearing on the list include digital service providers such as Amazon Web Services, Apple, LinkedIn, Twitter, Netflix, and Adobe, as well as crypto industry players like Coinbase, Binance Capital Management, Chainalysis, Yuga Labs, Doodles, BlockFi, and Silvergate Bank. In addition to corporate entities, the creditor list includes individual creditors such as star athletes like Tampa Bay Buccaneers Quarterback Tom Brady and David Ortiz. The list also includes the Prime Minister of the Bahamas and other governmental offices for the island nation, as well as U.S. state tax, consumer affairs, and attorney general offices. While the document does not specify the exact amount owed to each creditor, FTX owes more than $3 billion to its top 50 creditors, many of whom are institutional investors.
- Decentralized lending protocol Aave eliminated 2.7m in $CRV bad debt from a botched attack that took place in November. Following a governance vote on Tuesday, the protocol purchased the tokens via Paraswap ahead of the Aave v3 upgrade. He attempted to orchestrate a short squeeze on CRV by forcing developers to buy back his positions at high slippage due to a lack of liquidity. Interestingly, the liquidator of the bad debt is up ~$1m from their CRV purchase due to anticipation of the crvUSD launch. The attack was described as a 'highly profitable trading strategy' by Avi Eisenberg, who previously drained Mango Markets and caused $47m in net damages. Following charges by the SEC and CFTC, Avi is now also being sued by Mango Markets for manipulating the $MNGO price and the exploit.
FTX Releases Creditor List, Aave Clears CRV Bad Debt
Jan 27, 2023
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