- "Evidence of Insider Trading at Coinbase", FullyCrypto
On February 2, some Twitter users were confused to find themselves suddenly following the Twitter account of an NFT operation, as BJP had taken its existing 250,000-follower Twitter account and rebranded it to "ART3.io" and begun promoting various NFTs with posts of "gm". The primary BJP organization started a new Twitter account, @bjp1854, which had a total of around 1,500 followers. On February 8, investors received an email from BJP announcing the company had been sold, and that they would be paying back shareholders £50,000 of the £1.8 million, a 92% loss.
News of the arrest came only a week after 20,000 BTC from the Bitfinex hack was observed being moved. Although the DOJ didn't explicitly say that this movement led to the arrest, it seems like a safe bet.
The discovery of the withdrawal caused panic, with some community members believing it was a sign that the team was rug pulling. Some also questioned the team members' choice to send the funds to a cryptocurrency tumbler, believing this meant they were trying to hide the cash-out from community members. One might understand why they would try to hide it: after the withdrawals became public, the value of the native $LOOKS token crashed around 15%.
More broadly, the fear around the team cashing out illustrates a common belief among some crypto project communities: that if you cash out even some of your holdings, you're not a true believer. A LooksRare team member explained that the team behind the project had "been grinding night and day for 6+ months" without payment and had collectively fronted "more than 7 figures in costs" before the platform launch (reassuring!), and the withdrawal was simply 10+ team members finally receiving payment. Apparently unsatisfied with this explanation, the community tried to demand the team use their wETH to repurchase $LOOKS, though it doesn't appear this has happened.
SuperRare parts ways with its community manager over racist tweets, she hosts a disastrous "apology" Twitter Space
However, as the Space continued and amassed several thousand listeners, several Black women stepped up to express that her apologies didn't seem genuine or self-reflective, and that the Space appeared to be little more than an opportunity for other white people in the web3 community to "forgive" her and pat her on the back, as she gained followers throughout. The women who spoke up immediately began to receive extraordinarily racist and threatening mentions and direct messages on Twitter from various people in the Space.
As the Space was ongoing, more of Christenson's past tweets surfaced, several considerably more recent than 2011, and none involving song lyrics: several that were racist towards Mexicans and one that appeared to be questioning the experiences of rape survivors. When one speaker asked how old Christenson had been when she made the 2016 tweets about Mexicans, Christenson initially dodged. When another listener repeated the question she answered that she had been 26, but that research shows that your frontal lobe isn't fully developed until you're 25... or something. As the Space continued, Black web3 community member mec. kindly suggested that Christenson end the Space and take some time to genuinely reflect. As more Black speakers expressed that they felt hurt by Christenson's actions, the Space abruptly ended. Although the Space was being recorded, Christenson took down the recording shortly after.
Also like HitPiece, NFT Music Stream claimed to be doing artists a favor, tweeting, "We are on YOUR SIDE and are going to flip the industry on it's[sic] head by cutting out the middle man & giving control back to you profit wise." They also wrote, "I think a lot of people are missing the point of the project", apparently not understanding why musicians might be less than thrilled to see their work resold without permission.