Hey there, PoI readers! 💫

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From presidential pardon requests and billion-dollar talent raids to international investigations and bankruptcy settlements, we've got a lot to unpack. So, buckle up and get ready for a wild ride through the wonderland of digital assets and tech drama!

INTEL BRIEF

🟧 Bitzlato co-founder Anatoly Legkodymov has reportedly requested a presidential pardon from Trump after pleading guilty to running an unlicensed money transmitting business and serving 18 months in prison.

🟧 Google DeepMind hired Windsurf's CEO and co-founder in a $2.4 billion reverse-acquihire deal, leaving OpenAI's acquisition plans in the dust and Windsurf's future uncertain.

🟧 France has launched a criminal investigation into X (formerly Twitter) over alleged algorithm manipulation for foreign interference, with prosecutors examining potential data processing violations by the platform.

🟧 BlockFi's bankruptcy administrator and the DOJ have settled a $35 million lawsuit over crypto asset transfers, with the case dismissed and both parties bearing their own legal costs.

Russian Crypto Boss Shoots His Shot for Trump Pardon After Serving Prison Time

Anatoly Legkodymov, the Russian mastermind behind the now-infamous Bitzlato exchange, has allegedly thrown his hat into the presidential pardon lottery after already serving his 18-month prison sentence.

For those keeping score at home, Legkodymov pleaded guilty back in December 2023 to operating an unlicensed money transmitting business – basically the financial equivalent of running a lemonade stand without a permit, except this lemonade stand allegedly handled hundreds of millions of dollars flowing to the dark web's Hydra Marketplace.

According to his legal team (as reported by Russian state media TASS), poor Anatoly became a "target in a political campaign against the crypto market and talented Russian programmers." His supporters are speculated to believe that Trump's administration might bring a "more balanced and fair approach to digital finance."

The timing is particularly interesting since Trump has been on a pardon spree lately, issuing at least 58 presidential pardons since taking office in January.

French authorities are reportedly still trying to extradite him for similar charges.

Trump will actually consider this request remains to be seen. The White House hasn't responded to requests for comment, leaving us all in suspense like the season finale of a particularly dramatic crypto soap opera.

Bitzlato co-founder Legkodymov requests Trump pardon after serving 18 months for unlicensed money transmission

His exchange allegedly facilitated hundreds of millions in illicit funds to dark web markets

Trump has already pardoned several crypto figures including Ross Ulbricht and BitMEX executives

Google Swoops In With $2.4B to Poach Windsurf's Top Talent While OpenAI Watches

Google DeepMind just pulled off what can only be described as the corporate equivalent of a heist movie, snatching up Windsurf's CEO Varun Mohan, co-founder Douglas Chen, and their top researchers for a cool $2.4 billion.

Google gets the brains, a nonexclusive license to Windsurf's tech, and bragging rights, while Windsurf gets to keep existing as an independent entity.

OpenAI had been circling Windsurf like a hungry shark, but their exclusivity period expired on Friday – and Google apparently didn't waste a single second swooping in. The deal reportedly became a major tension point between OpenAI and Microsoft, with OpenAI not wanting their biggest backer to get their hands on Windsurf's coding magic.

What makes this particularly spicy is that Windsurf has been absolutely crushing it lately. Their ARR rocketed from $40 million to $100 million in just a few months – the kind of growth that makes VCs weep tears of joy. No wonder everyone wanted a piece of this AI coding pie!

While Google celebrates their new acquisitions, Windsurf is left in a precarious position. History shows us that startups losing their leadership often struggle to maintain momentum. Just ask Scale AI or Inflection – both faced significant challenges after similar deals.

Jeff Wang, Windsurf's head of business, is now stepping up as interim CEO to lead the remaining 250-person team. Whether he can keep the magic alive while serving enterprise customers remains to be seen.

Google paid $2.4B to hire Windsurf's CEO and co-founder in a reverse-acquihire, blocking OpenAI's acquisition

Windsurf's ARR grew from $40M to $100M in months, making it a hot target for AI giants

The startup's future looks uncertain as similar deals have historically hurt remaining companies

France Launches Criminal Investigation Into X Over Alleged Algorithm Manipulation

Elon Musk's X platform has found itself in some serious legal hot water across the pond. French prosecutors have officially launched a criminal investigation into the social media giant over alleged algorithm manipulation for foreign interference purposes.

Paris prosecutor Laure Beccuau announced that the national gendarmerie will be handling this investigation, which is examining both X as a legal entity and unnamed individuals for potential offenses. The charges they're looking at include "alteration of the operation" and "fraudulent extraction of data" of automated data processing systems "by an organized group." In layman's terms: they're allegedly suggesting someone's been messing with the digital plumbing for nefarious purposes.

The investigation kicked off after reports from two key whistleblowers – an unnamed senior official from a French public institution (described as a cybersecurity manager) and MP Éric Bothorel. Bothorel didn't mince words, stating he was "convinced that information bias, which is particularly strong on the X platform, was serving Elon Musk's political opinions."

The timing couldn't be more awkward for X, as their AI chatbot Grok recently went completely off the rails, pushing antisemitic narratives before being taken offline on July 9. Bothorel criticized the "new Grok update" for "tipping over to the dark side of the force, with a predominance of questionable, even nauseating, content."

The French MP positioned himself as defending democratic discourse, saying he filed his report "as a citizen who does not want Moscow, Silicon Valley, or anyone else to distort our democratic conversations."

This investigation comes under prosecutor Beccuau, who's no stranger to high-profile tech cases, having also overseen the ongoing Telegram investigation involving CEO Pavel Durov's dramatic arrest and subsequent release.

France launches criminal probe into X over alleged algorithm manipulation for foreign interference

Investigation targets both X as a company and unnamed individuals for data processing violations

Grok AI chatbot's recent antisemitic content adds fuel to concerns about platform bias

BlockFi and DOJ Finally Settle Their $35M Crypto Drama Like Adults

BlockFi's bankruptcy saga just got a little less dramatic. The crypto lender's bankruptcy administrator and the US Department of Justice have officially called it quits on their $35 million legal tussle, with both sides agreeing to dismiss the case and go their separate ways.

Judge Michael B. Kaplan of the US Bankruptcy Court for the District of New Jersey approved the settlement on Friday, bringing an end to this particular chapter of BlockFi's seemingly never-ending bankruptcy soap opera. The lawsuit, which was filed back in May 2023, centered around the DOJ's attempt to seize over $35 million in crypto assets from BlockFi accounts belonging to two Estonian citizens involved in a criminal fraud case.

The DOJ argued that the bankruptcy court didn't have the jurisdiction to prevent BlockFi from transferring these assets.

The case was dismissed "with prejudice" – legal speak for "this is over forever, don't even think about bringing it back." Both parties will be covering their own legal fees, which is probably a relief for everyone involved, considering how expensive lawyers can be (especially when they're dealing with crypto bankruptcy cases).

BlockFi's journey has been nothing short of a financial roller coaster. The company declared bankruptcy in November 2022 following the spectacular collapse of FTX, and has been winding down operations ever since. They've been working with Coinbase to help customers withdraw their remaining funds, though time ran out on April 28, 2024, for withdrawals.

The company hasn't been sitting idle during bankruptcy proceedings either. They reached an $875 million settlement with FTX and Alameda Research estates last March, resolving about $1 billion in claims. CEO Zac Prince didn't mince words, allegedly testifying that Sam Bankman-Fried actions directly caused BlockFi's bankruptcy.

BlockFi owes approximately $10 billion to more than 100,000 creditors. That's a lot of people waiting for their money back!

BlockFi bankruptcy administrator and DOJ settled $35M crypto asset transfer lawsuit with case dismissed

DOJ wanted to seize funds from Estonian citizens' accounts in unrelated criminal fraud case

BlockFi owes $10B to 100,000+ creditors and previously settled $875M with FTX estates

And that's a wrap, my lovely PoI readers! I hope this edition left you feeling informed, entertained, and maybe even a little bit richer (in knowledge, of course). From crypto CEOs seeking clemency to tech giants playing musical chairs with talent, it's been quite the adventure through today's digital landscape. Remember to stay curious, stay informed, and keep spreading the love. Until next time, this is Mochi, signing off with a virtual high-five!

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