- The markets have had a wild ride this year, with swings of ups and downs punctuated with moments of sheer absurdity.
- A college student making millions at Bed Bath & Beyond and Kardashian’s run-in with the SEC were some of the highlights.
- Here are seven of the wildest, most absurd and most shocking moments in the markets in 2022.
- Do you already know our Instagram account? follow us
Financial markets were also marked by bizarre events in 2022, amid forecasts of volatility, inflation and recession.
Meme stocks died a slow death, but at least one of them winded up with a lucky $110 million profit for one lucky college student.
A man calling himself Rajlekhan was accused of helping execute a massive cryptocurrency heist.
Elon Musk surprised us all with his Twitter spat, which culminated in his eventful acquisition.
These are some of the oddities that happened in the markets this 2022.
1. A college kid just won $110 million in Bed Bath & Beyond stock
College student Jake Freeman made a $110 million profit on Bed Bath Beyond after that meme stock tripled in value over the summer.
Freeman bought a $25 million stake in the troubled home goods retailer, then sold his shares for $130 million on the markets in 2022.
Shortly after Freeman liquidated his stake, Gamestop CEO Ryan Cohen sold his stock, causing the stock to drop 19%.
although it is not a merchant Run-of-the-mill – he’s a financial whiz kid who made his first investment when he was 13 – it was an operation that generated an impressive profit.
2. Razjlekhan and Dutch were accused of misappropriating $4.5 billion in cryptocurrencies
Ilya Lichtenstein (aka Dutch) and Heather Morgan (aka Razzlekhan and the Wall Street Crocodile) were accused of laundering $4.5 billion in bitcoin.
Apart from hacking the Bitfinex cryptocurrency exchange, this was the biggest cryptocurrency heist in the markets till 2022.
The New York couple attracted attention for their social media posts, especially Morgan rapping under the TikTok pseudonym Razzlekhan.
Earlier she also contributed forbesWhere he once wrote an article on protection from cyber crime.
Following the arrest, authorities found a hardware wallet and a bag labeled “throwaway phone” at their home, leading them to suspect that the couple planned to assume new identities in Ukraine and Russia.
They have been called the Bonnie and Clyde of cryptography.
Hulu and Netflix are already working on series based on the story, while Lichtenstein and Morgan await trial.
3. The ‘Big Shot’ on the LME and the failure of nickel
Nickel prices rallied 111% in one day and briefly topped $100.00 per ton as the precious metal was depleted by Western sanctions on Russia.
Nickel is one of Russia’s top exports and is used in a range of high-tech lithium.
As prices soared to atmospheric heights, the London Metal Exchange canceled all nickel trading for the day, prompting a reaction from angry traders.
The suspension blocked $3.9 billion worth of nickel transactions, prompting investigations by the Financial Conduct Authority and the Bank of England.
A single Chinese metals magnate, known as “Big Shot”, is later revealed to be a character at the center of the episode.
Jiang Guangda is the founder and chairman of Tsingshan Holding Group, a large producer of big shot nickel alloy products.
The company built up a huge short position that was reportedly down about $8 billion by the end of the entire trading fiasco.
4. Kim Kardashian Paid $1.26 Million For Illegal Crypto Ads On Instagram
The Securities and Exchange Commission charged Star keeping up with the Kardashians To promote EMAX Token on his Instagram this year.
Securities legislation dating back to the 1930s requires promoters of a security to disclose whether, how and how much it is paid.
The star’s post included “#ad”, a hashtag used to indicate that a post is an advertisement.
But the SEC said it found that Kardashian failed to disclose that she was paid $250,000 to post about the EMAX token.
The regulator said that his post contained a link to the EthereumMax website, which had instructions for potential investors to buy the token.
Kardashian paid $1.3 million to the SEC, although a class action lawsuit against Kardashian and other celebrity promoters was later dismissed.
5. The whole Elon Musk-Twitter saga
It started with the announcement that Elon Musk wanted a stake in Twitter and formally launched its journey to acquire the popular social network in mid-April.
Musk spent months trying to get out of the deal, declaring that the site was overrun by bots and should be allowed to opt out of the purchase agreement.
Twitter executives would not budge, and Saga sent the stock on a rollercoaster ride, frequently running below $54.20, the price Musk and Twitter agreed upon to close the deal.
Musk closed the deal before the two sides began a nasty legal battle. But Musk took over the reins of Twitter in October.
It has since begun a controversial reform, which includes cutting 70% of its staff and not paying rent on Twitter’s offices.
This month, users voted for Musk to step down as CEO of the company in a poll conducted on the site.
Although he said he would follow through with the result, he has not yet taken any formal steps to name a successor.
6. Unprecedented Western sanctions against Russia’s economy
Russia shocked the world with its invasion of Ukraine in February. As the West struggled to respond, leaders took some extreme steps that Russian President Vladimir Putin probably did not anticipate.
The United States and its allies put sanctions on Russia’s central bank and freeze billions of its assets.
It also cut off some Russian banks from the SWIFT messaging system, the backbone of the global banking network, leaving Russian financial institutions isolated and unable to conduct normal business.
Measures were taken to ban anyone in the United States from engaging in transactions with Russian entities, a move intended to create high inflation, erode Russia’s purchasing power, and hinder investment.
And this was all before the latest round of energy sanctions banning Russian oil imports by sea into the EU, capped the price of Russian oil at $60 and restricted Russian natural gas export flows.
President Vladimir Putin has criticized the sanctions and has not acknowledged any negative impact on the economy.
He also called the Russian oil price cap “silly”, while former President Dmitry Medvedev warned that the West would “face the wrath of God” for punishing Russia.
But economic isolation and limited trade with allies have already begun to weigh on Russia’s economy, with the country’s GDP likely to contract by nearly 3% this year, according to its central bank.
7. The Surprising Fall of Sam Bankman-Fried
This year saw the crash of the second largest cryptocurrency exchange, FTX, in the markets.
During bankruptcy reorganization proceedings, the exchange was found to have no in-house accounting department, spent millions on vacation properties in the Bahamas, and mixed client funds with Alameda Research, the trading arm of the bankerman’s crypto empire. —Fried .
The disgraced founder went on a bizarre months-long apology tour, often making inconsistent, contradictory, and possibly self-incriminating statements about the exchange’s activities and how he failed to intentionally defraud anyone.
In late December, Sam Bankman-Fried was arrested in the Bahamas, extradited to the United States and faced charges of fraud, money laundering and conspiracy.
now read: The 9 Most Surprising Crypto World Stories of 2022
Read also: 7 Cryptocurrency and Web 3 Trends for 2023, According to Venture Capital