It's dark Tuesday, November 26, 2024.

We're taking a look at the dark side of crypto from Justin's Sun to prediction markets to shock videos.

This is CoinDust Daily. I'm your host, Christine Lee.

H.TX, the crypto exchange advised by shadowy crypto figure Justin's son, recently redeemed over 5,100 rep Bitcoin's worth about $500 million, even though HTX's proof of reserves don't include any WBTC at all.

Protas reporting that HTX's redemption was transferred within a few hours, whereas other transactions can take almost

two weeks, a red flag for front running, and it reignites Bitcoin-related concerns trailing Sun.

For instance, nearly half of all Bitcoin held at HTX is actually Bitcoin-on-Tron, offered by Sun-owned

Poloniacs. This tokenized form of Bitcoin has no disclosures on where it custody is the

Bitcoins and no proof of reserves.

Furthermore, Sun's algorithmic stablecoin, USDD, recently removed 12,000 Bitcoins from its reserves

without any approval from the so-called decentralized autonomous organization that is supposed to govern the

stable coin. Protas reporting these discrepancies highlight Sun's willingness to freely move assets

between entities he officially or unofficially controls. Meanwhile, Sun has been on a buying spree,

scooping up $30 million worth of Trump-backed World Liberty financial

tokens and a $6 million banana auctioned off by Sothebyes.

Top prediction markets, Cal She and Polly Market are in a mud-slinging war.

Late Friday, pirate wires documented how Calci, the U.S. regulated prediction market,

paid social media influencers to

disparage crypto-based offshore rival Polly Market and its CEO Shane Copeland after the FBI raided

Copeland's home this month. One screenshot showed Kalshi employees asking former NFL wide receiver

Antonio Brown to quote Tita post about Copeland with the comment,

this N-word seems guilty. Brown obliged. Another influencer who regularly tweets Calci-related content

...