Binance Founder Sued by CTFC over US Regulatory Violations
The United States Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Binance, the world's largest cryptocurrency exchange, and its founder, Changpeng Zhao, for alleged trading and derivatives rule violations. The CFTC claims that Binance failed to meet regulatory obligations by not properly registering with the derivatives regulator and conducting transactions in Bitcoin for US persons since at least 2019 despite a policy of blocking or restricting US customers. The lawsuit also accuses Binance of intentionally violating US law and evading regulation. Binance is already under investigation by the Internal Revenue Service, federal prosecutors, and the Securities and Exchange Commission for other regulatory violations.
1/23
— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023
Oh boy https://t.co/2JnbfirRrp
Case is up and it's bad.
This is the CFTC attempting to strike \*fatal\* blow to Binance, and at first read through... I think they actually have really strong chances here of succeeding in toppling the Binance empire.
BTC Dips Below $27k Following CTFC Suit
Bitcoin (BTC) dropped below $27,000 after the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its founder over alleged regulatory violations. BTC's price fell 3.1% in the past 24 hours, and some analysts suggest it may fall further to its previous breakout level near $25,000. The lawsuit may have also caused traders who bet on a price gain to liquidate some $39 million worth of BTC's long positions. Other cryptocurrencies, including ether (ETH) and Binance Coin (BNB), also fell, and some crypto-related stocks, such as Coinbase and Marathon Digital Holdings, slid by 8% and 6%, respectively.
CTFC Seeks Permanent Trading and Registration Bans in Suit Against Binance
The U.S. Commodity Futures Trading Commission (CFTC) has filed a civil complaint against Binance, its founder Changpeng Zhao and executive Samuel Lim over allegations of unregistered commodities trading in the U.S. The CFTC is seeking injunctions that could bar Binance and its affiliates from the U.S. commodities industry, disgorgement of salaries, profits and other benefits or earnings made, and accuses Binance of violating several laws and regulations governing commodities in the U.S., including failure to combat money laundering on its platform. The CFTC cites private communications and company documents to support its argument.
US Crypto Firms Seek to Move Overseas Amid Ongoing Regulatory Crackdown
US crypto companies are considering moving overseas due to regulatory uncertainty and legal ambiguity. US Senator Cynthia Lummis has expressed frustration at the lack of regulatory clarity in the crypto space and believes it is driving the industry to other countries. Notable figures in the industry, such as the CEO of Ripple and Coinbase, have also suggested that US crypto companies are already moving overseas. Crypto-focused lawyer Jason Gottlieb says it is "absolutely true that people are leaving," and many young entrepreneurs are exploring options in Europe, Hong Kong, and Latin America. The threat of leaving is still rumours, but regulatory and banking concerns are adding to the trend of looking overseas.
First Citizens Bank Takeover Crippled Silicon Valley Bank
First Citizens Bank will acquire all deposits and loans of Silicon Valley Bank, according to a statement from the FDIC. 17 former branches of Silicon Valley Bank will open as First Citizens Bank and Trust Company. Silicon Valley Bank collapsed on March 10 after rumors of a severe liquidity crisis at the bank prompted a bank run. The North Carolina-based bank is the 30th largest commercial bank in the United States, with $167 billion in total assets and $119 billion in deposits as of March 10.
First Citizen Bank to buy Silicon Valley Bank
— Aditya Shah (@AdityaD_Shah) March 27, 2023
First Citizens Bank has
🏦$109 billion Assets and
🏦$89 Billion Deposits
Silicon Valley Bank had
🏦$209.0 billion Assets
🏦$175.4 billion deposits
A Bank half the size is buying Silicon Valley Bank😅
Happens only in a crisis
European DeFi Startups See 120% Increase in VC Investment Last Year
Venture capital investment in European crypto startups reached an all-time high of $5.7bn in 2022, despite a bear market and the collapse of high-profile players such as Terra and FTX. A study by investment firm RockawayX found that investment in European DeFi startups surged 120% to $1.2bn in 2022. Financial services-based startups made up 52% of all investments, with infrastructure and Web3 accounting for 32% and 16% respectively. Europe is also home to the highest number of crypto startups, with 3,977, but trails the US in the number of startups with over a million dollars of funding and companies with a value of over $1bn.
Terra Co-founder, Shin, in Hot Water for Illegal Token Sales
South Korean authorities are increasing efforts to track down and arrest Terraform Labs' co-founder, Shin Hyun-Seong, after the arrest of his partner, Do Kwon, in Montenegro on March 23, 2023. South Korean prosecutors have been suspicious of the involvement of numerous Terra colleagues in promoting unstable and uncertain investment opportunities with Terra and TerraUSD tokens. Authorities have previously alleged that Shin earned roughly $105 million in profits from illegal sales of LUNA tokens before Terra's collapse. Arrest warrants were sought for Shin, along with three investors and four engineers, for fraud, breach of duty, violation of capital markets law, and illegal fundraising.
Translation from Montenegro Minister of Interior Filip Adzic - “ONE OF THE WORLD'S MOST WANTED FUGITIVES WAS ARRESTED IN PODGORICA
— Simon Dixon (@SimonDixonTwitt) March 23, 2023
Montenegrin police have detained a person suspected of being one of the most wanted fugitives, South Korean citizen Do Kwon…” https://t.co/sCJ0FFrlEk
Subscribe to our newsletter
