The Los Angeles wildfires have caused damage to certain cryptocurrency companies and users' wallets, sparking controversy over related bets on prediction markets.
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The Los Angeles wildfires have caused damage to certain cryptocurrency companies and users' wallets, sparking controversy over related bets on prediction markets.
Cryptocurrency companies and users in Southern California suffer losses, nonprofit organizations are accepting cryptocurrency donations, and a prediction market faces criticism over ethical concerns related to related forecasts.
Navigating Web3 tides with focused insightsCompiled by: Felix, PANews
On January 8 local time, severe wildfires broke out in Los Angeles and surrounding areas in the United States, destroying thousands of homes and burning over tens of thousands of hectares. So far, the fires have scorched more than 15,000 acres, forcing nearly 180,000 residents to evacuate, with another 200,000 already under evacuation orders.
The rapidly spreading wildfires threaten not only millions of California residents but also several cryptocurrency companies and members of the crypto community. In fact, many have already lost their homes and belongings, including hardware wallets.
Crypto Companies and Users in Southern California Affected
The wildfires have burned over 15,000 acres across southern California, including major areas such as Pacific Palisades, Malibu, and Pasadena. Besides residential properties, multiple cryptocurrency firms have also been impacted.
Staff from the Bitcoin Office in Santa Monica are located directly south of the raging Palisades and Sunset fires. Several employees from Swan Bitcoin, who were hosting the Pacific Bitcoin conference in Santa Monica, are also situated just south of the fire zones.
BlockDaemon, a blockchain services provider, has its headquarters in Los Angeles, as does blockchain gaming developer SuperVerse. Spring Labs, a blockchain-based ID and tokenization company, is headquartered in nearby Marina del Rey. These companies have reported significant losses, including destruction of hardware wallets containing cryptocurrency assets.
Some companies were luckier. So far, the Crypto.com Arena in downtown Los Angeles—a cultural landmark—has remained unscathed. Crypto entertainment venues DaBank (Hawthorne) and Jungla (North Hollywood) also escaped the wildfires.
However, the impact extends beyond crypto companies to individual users, some of whom lost their crypto wallets during evacuations. Crypto influencer Monty stated on X that his 70-year-old aunt lost her apartment in the Los Angeles fires. Most of her savings were held in cryptocurrency, but she lost both her wallet and recovery phrase, with no backup. According to comments, her wallet primarily contained Bitcoin.
Nonprofits Accepting Cryptocurrency Donations
To assist those affected, several local charities and nonprofit organizations are now accepting donations in cryptocurrency and stocks.
The Giving Block, a cryptocurrency donation platform, launched an "Emergency Response Fundraising Campaign" to support nonprofits actively aiding wildfire relief efforts in Los Angeles. The campaign allows the public to choose from seven nonprofit organizations to which they can donate cryptocurrency.
These include the Los Angeles Fire Department Foundation, Los Angeles Regional Food Bank, Children's Burn Foundation, Global Empowerment Mission, San Diego Humane Society, All Hands and Hearts, and Direct Relief.
The platform encourages the public to help in any way possible by donating cryptocurrency, stocks, DAFs (Donor-Advised Funds—accounts through which donors gain immediate tax benefits while retaining advisory rights over fund distribution), or cards to organizations providing food, shelter, and medical services.
Another crypto-focused donation platform, Givepact, shared detailed information about foundations accepting crypto asset donations.
These include Baby2Baby (a charity providing diapers and clothing for children in low-income families), Wildland Firefighter Foundation, California Fire Foundation, Los Angeles County Animal Care Foundation, and California Community Foundation.
The platform states that the public can donate over 30 types of cryptocurrencies to these charities and nonprofits, including Bitcoin, Ethereum, Avax, and Dogecoin.
Prediction Markets Criticized as "Morbid"
Notably, a prediction platform has come under scrutiny for hosting what some users describe as "morbid" markets related to the wildfires. Multiple users created prediction markets on the platform regarding the fire’s spread, when it might be contained, and potential political resignations. One X user commented, "Betting on wildfires is morbid," while another called wagering on such tragedies "outright shameless." Some users even expressed concern that gamblers might be incentivized to start additional fires to win their bets.
In response, the platform issued a disclaimer stating: "The devastating Palisades fire is exactly the kind of event where our platform can provide valuable real-time insights for those directly affected—something traditional media cannot offer."
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