Everyone Who Got Rekt This Week in the Cryptocurrency World: A Recap

This week has been eventful, to say the least, for the cryptocurrency industry. As trader Josh Olszewicz writes on Twitter, every day there seemed to be a new major story. Coincidentally, most of them were about entities or individuals getting rekt.

MON
– Quadriga Widow Rekt
– BFX $1T Class-Action Lawsuit

TUES
– Tipjar Rekt
– NYAG/BFX appeal Rekt

WED
– Bitwise ETF Rekt
– Litecoin Foundation Rekt
– IRS Rekts US Citizens

THUR
– Alipay Rekts CZ

FRI
– IRS Rekts US Citizens again
– Telegram ICO Rekt
– LIBRA Rekt

— Josh Olszewicz (@CarpeNoctom) October 11, 2019

The Week in a Nutshell

Monday

Monday saw two major stories hit the media. You may remember the failed QuadrigaCX exchange which saw its founder and CEO Gerland Cotton pass away, thus making the exchange completely unaccessible. The end result as been some 115,000 customers effectively locked out of C$260M in funds. On Monday, it was announced that his widow would be forced to return $9M of assets as part of a voluntary settlement. Then, BeInCrypto reported Monday that a class-action suit is being brought against Bitfinex for $1.4T in damages. The plaintiffs claim that the exchange was using Tether (USDT) to illegally and illegitimately prop up Bitcoin.

Tuesday

On Tuesday, we found out, sadly, that Reddit-based tipping service TipJar would be closing its doors. We also found out that Bitfinex was appealing the New York court over demands by the Attorney General to compile documents during its appeal. It claimed this was too costly and the judge ruled in Bitfinex’s favor. 

Wednesday

Wednesday was another day of the cryptocurrency industry getting rekt. The Bitwise Bitcoin ETF was rejected, once again. The Internal Revenue Service also announced new tax guidelines for cryptocurrencies —which ended up causing more confusion than it solved. 

Thursday

On Thursday, the entire cryptocurrency news day was dominated by Alipay completely shutting down any suggestion that it would be supporting P2P trading on Binance. Previously, Binance CEO Changpeng Zhao unequivocally said that WeChat and AliPay would be supported as payment options.

NO, you cannot. https://t.co/J0YMTz3FZW

— Alipay (@Alipay) October 10, 2019

Oh, and we also found out that the Litecoin Foundation is running out of money entirely. They even lost -$80,000 on merchandise.

Friday

Then, on Friday, we found out that the Telegram ICO tokens ‘GRM’ is security, according to the SEC. If the GRM tokens are not delivered to investors by end of October, the company will be forced to foreit the $1.7B it raised. The Libra also took a massive blow on Friday after major sponsors like eBay, MasterCard, Visa, and others officially withdrew from the idea.  What do you think of the events of this week? Let us know your thoughts in the comments below.