BitGo & Kraken Begin $5B FTX Payouts

Trump Media $2.3B Bitcoin | James Wynn $100M Liquidation

Marco Manoppo & Karon Pangestu
June 02, 2025

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Good Morning.

The tariff war is back in play as Trump and China seemingly can’t fall into a durable agreement. It’s also not helpful that Scott Bessent has to publicly state that the US will never default on its debt. More big beautiful bill please!

Check out our latest podcast episode with Initia.

In Today's Email:

What Matters: BitGo & Kraken Begin $5B FTX Payouts 🤑
Product of the Week: EulerSwap: DEX with Lending and JIT Liquidity 🔎
Charts: James Wynn BTC Position, Trump Media Bitcoin Treasury 📊

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Narratives: Still hype trenches, KTA, and XRP yield.

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WHAT MATTERS

BitGo & Kraken Begin $5B FTX Payouts

(1/3) FTX today announced that it has commenced the Second Distribution of more than $5 billion to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements.
— FTX (@FTX_Official)
4:41 PM • May 30, 2025

State of play: FTX has started the second round of payouts, distributing about $5B to creditors as part of its bankruptcy reorganization plan. BitGo and Kraken are handling these distributions.

The plan aims to repay customers ~74% of their account values initially, with additional payments later.
Small claim holders may receive over 100%, including interest.
Thanks to valuable FTX estate assets like stakes in Anthropic and Robinhood, many users will get the dollar value of their accounts back.
Though some would have preferred crypto payouts given market gains since the 2022 collapse.
This liquidity release is seen by some as a potential catalyst for a new altcoin season.

Our take:

For builders and investors:

PRODUCT OF THE WEEK

EulerSwap: DEX with Lending and JIT Liquidity

Euler just introduced EulerSwap, a DEX built on Euler’s lending infrastructure and compatible with Uniswap v4.

It combines trading, lending, and borrowing by routing liquidity through Euler lending vaults.
EulerSwap allows liquidity providers to earn yield, use assets as collateral, and support capital-efficient trades with just-in-time liquidity.
Features include customizable AMM curves, operator control of pools, native collateral use for LP positions, and options for hedging impermanent loss.

Other cool products:

L2Pass, an omni-chain super app.
Puush.fun, a meme coin launcher on Cronos.
HEX, a high-interest blockchain certificate of deposit.
ZEROBASE, a zk-powered staking product on stablecoins.
Eddy Finance, a DEX enabling easy cross-chain asset swaps.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

CHARTS OF THE WEEK

Trump Media’s $2.32B Bitcoin Treasury

Source: The Block

State of play: Trump Media completed a private placement offering of 55.8M shares at $25.72 each and $1B in 0.0% convertible senior secured notes at a $34.72 conversion price, totaling $2.44B gross proceeds.

After expenses, it nets about $2.32B to establish a Bitcoin treasury and fund corporate purposes.
Trump Media plans to hold Bitcoin alongside $759M in cash and short-term investments, aiming to become one of the largest public Bitcoin holders.
CEO Devin Nunes emphasized this deal supports the company’s growth and offers shareholders Bitcoin exposure.

Our take: Trump’s crypto move is actually so smart I wish he’s doing the same thing with the tariffs.

James Wynn Loses $110M on Bitcoin

Source: Hypurrscan

State of play: James Wynn, a high-leverage trader on Hyperliquid, suffered over $110M in losses after long BTC positions were liquidated amid Bitcoin’s price drop below $105,000.

Wynn had built a massive $1.25B long position but faced multiple liquidations totaling around 1,044 BTC.
He still holds a 40x leveraged long position of about 944 BTC valued at $99M, with liquidation near $104,580.
Wynn criticized market corruption and suggested spot holding as a safer strategy.

Our take: Risk management trumps all, don’t forget that these happen much more often, just not publicly.

QUICK BITES

BitMEX thwarts supposed Lazarus attack.
Stablecoin market cap surpasses $250 billion.
Ross Ulbricht’s raises $1.3M in BTC from prison mementos.
BlackRock's IBIT breaks 34-day streak with $430M in outflows.
Wintermute warns Pectra upgrade leaves Ethereum users at risk.
South Korea sees first institution sell crypto holdings since ban lift.
Uphold teases XRP yield and relaunching crypto debit card in the US.
BitoPro likely exploited as ZachXBT flags suspicious $11.5M outflows.
DEXs hit a record 25% share of spot trading volume against CEXs in May.
Metaplanet buys 1,088 more bitcoin, pushing total holdings to 8,888 BTC.
Singapore orders local crypto firms to cease overseas activity by June 30.
Ethereum leads $286M weekly crypto fund inflows, strongest since 2024.

NOTEWORTHY READS & MEME

Monad’s read on what’s next in crypto x AI.
Goodalexander’s read on the 4 horsemen of the crypto bull.
0xren’s read on intuition for leverage and path dependence for perps.

celestia guy unironically asking why there’s demand for a useful product is chef’s kiss
— smac (@0xsmac)
9:09 PM • May 31, 2025

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.