Welcome to GM, BFF, a newsletter hitting your inbox every week with key insights from Web3, crypto, our community and beyond. Have ideas of what you want to see in this send next week? Email us at hello@mybff.com
The crypto space has often been referred to as the “wild west.” For some, this is the appeal: a wide-open territory ripe for innovation and disruption. But for most, the unregulated nature of Web3 can be a red flag. There’s not much protection in place — often by design — and the ethos of prominent blockchain thought leaders promotes a rhetoric of “verify, don’t trust.”
That means there’s no dedicated authority looking out for Web3 consumers, as there is in some sectors. Crypto is borderless and permissionless; anybody can onboard with a crypto wallet and start buying, selling and trading from anywhere in the world. While this permissionless-ness is the beauty of Web3, it begs the question: What happens when bad actors commit crypto crimes? In a trustless ecosystem, must we all become detectives?
This week, BFF contributor Carlee Godlouski tackles this very question. She writes of Stephen Carr, a Canadian resident who lost his home and $498,000 over a period of four months to a fraudulent crypto YouTuber. We also witnessed this week the bankrupt crypto lending firm Celsius release names of customers who may soon be eligible to get their lost money back in a massive 1,419-page court filing.
When crime or fraud occurs on public blockchains, the process for solving it is somewhat straightforward, though sometimes incomplete. An investigator must simply pull a record of the blockchain data and map the history of transactions. Often, it’s possible to pinpoint suspicious crypto wallets, but unless a person’s off-chain or “doxxed” identity is connected to the wallet in question, it can be difficult to find and prosecute the bad actors.
This process of analyzing and deciphering transactions made across public blockchains in order to piece together a record of events is known as crypto forensics. Private crypto investigators, along with those working within governmental agencies, work with law enforcement to help track down victim funds and begin the process of potentially seeking some form of justice.
In some cases, the resolution ends with seizing the funds, as was the case in the high-profile ransomware attack on Colonial Pipeline. In other cases, crypto forensics can lead to arrests of individuals.
Want more? Read about crypto forensics on BFF Discover.
California to mint DMV records on Tezos. The California Department of Motor Vehicles (DMV) has built a proof-of-concept to digitize car titles and title transfers on a private Tezos-built blockchain.
ChatGPT offers premium subscription. The $20/month pilot plan gives users access to the language bot during peak times with faster response times.
ConsenSys launches educational initiative. MetaMask Learn is a free-to-use resource available in 10 languages. It provides an interactive MetaMask UI environment to help onboard crypto newcomers.
CryptoZoo lawsuit. YouTube star Logan Paul was named in a proposed class action lawsuit alleging the NFT project stole millions through a "fraudulent venture.
Deep-fake porn apology. A Twitch streamer admitted to buying and watching non-consensual AI-generated pornographic videos of his colleagues.
Mastercard NFT leader mints his goodbye. Satvik Sethi, Mastercard's former NFT product lead, resigned from his role, saying it "wasn't easy." He minted his resignation as an NFT.
NFT Open Editions are having a moment. Artists have mixed feelings about using open editions as a sales mechanic, despite the exceptional sales volumes they've brought in so far in 2023.
Nouns Comic Books are coming. Titan Comics — the company that brought us licensed comic books of “The Simpsons” and “Blade Runner" — is partnering with Nouns to release physical comic books starting in April.
🚙 Heading to SXSW? Keep an eye on our socials for an announcement in the coming week. 👀
Union Square Ventures General Partner Rebecca Kaden led an $8.5 million funding round to back the psychedelic medicine infrastructure company Journey Clinical.
Lux Capital General Partner Deena Shakir spoke to Barron’s about the growing interest in women’s health-focused startups.
BFF Cofounder Brit Morin and Founding BFFs Mariam Naficy and Brigette Romanek were featured in Surface discussing Tonic, a new fine art platform that provides “a safe and welcoming space” for both NFT art connoisseurs and newcomers.
Thanks for reading! We’d love to hear from you. Feel free to let us know what you think of this newsletter and what you’d like to see from it in the future by emailing hello@mybff.com.
🚨 This newsletter and all the information in it does not constitute financial advice. If you don’t want to invest money or time in Web3, you don’t have to. As always: Do your own research.
