Binance is transitioning UAE resident accounts to its new regulated local entity, Binance FZE, following a Virtual Asset Service Provider license from Dubai’s regulator. This change will allow UAE users to access various virtual asset services locally, including AED bank deposits and withdrawals. Binance’s Local Exchange in UAE Now Licensed Crypto exchange Binance announced on […]
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US Prosecutors Seek 36-Month Sentence for Binance’s Changpeng Zhao Over Legal Violations
Federal prosecutors have recommended a 36-month prison sentence for Changpeng Zhao (CZ), the cryptocurrency exchange Binance’s former CEO, for U.S. law violations. Prosecutors contend Zhao’s deliberate non-compliance facilitated massive unlawful transactions, impacting national security and financial systems. CZ’s Legal Woes Deepen With Proposed Three-Year Prison Term Changpeng Zhao, referred to as “CZ” and the brain […]
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US District Judge Sanctions Binance’s $4.3 Billion Plea Deal
Binance Holdings is set to pay .3 billion in fines following the approval of its plea agreement with prosecutors by U.S. District Judge Richard Jones on Friday. Beyond the financial settlement, a third party will oversee Binance’s operations for a duration of five years. Historic .3 Billion Binance Settlement Approved by Seattle Judge Binance, the […]
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Aave Joins Binance’s BNB Chain Ecosystem – Here’s How Users Benefit
In a significant development for the Binance Smart Chain (BSC) ecosystem, Aave (AAVE), one of the largest decentralized finance (DeFi) market protocols, has announced its integration with BNB Smart Chain. Aave joins prominent projects such as Uniswap, Ambit Finance, PancakeSwap, and Lista DAO.
BNB Chain Welcomes Aave
According to the announcement, this latest development opens up new opportunities for BNB Chain users, giving them access to what the protocol calls “top-tier lending platforms” and enhanced liquidity.
With the launch of First Digital USD (FDUSD), users can now leverage “robust” liquidity, allowing them to explore different applications and opportunities in the Binance ecosystem.
On the other hand, Aave users can now benefit from BNB Chain’s fees and the ability to integrate with one of the largest DeFi ecosystems, fostering increased collaboration between the two communities. The announcement also noted the following about the Aave integration:
This not only complements but strategically aligns with BNB Chain’s 2024 outlook. Focused on mass adoption, high-frequency DeFi applications, and network efficiency improvements, the ecosystem is set for an exciting evolution.
2024 Goals
Looking ahead, BNB Chain has set numerous goals for 2024. The introduction of opBNB – the Layer 2 (L2) scaling solution for the BNB Smart Chain – aims to achieve a transaction processing capacity of 10,000 transactions per second (TPS) by doubling the gas limit to 200 M/s.
Enhanced security measures accompany this increase in capacity through multi-proof mechanisms. In addition, implementing Ethereum’s EIP4844 and Greenfield’s data availability upgrades will reduce gas fees by 5-10 times, providing users with a more cost-effective experience.
In a move called “BNB Chain Fusion,” the BNB Beacon Chain will be merged with the BSC, further enhancing the efficiency and security of the network. The expansion of the number of validators, which will increase from 40 to 100 by 2024, is also expected to contribute to the stability of the network.
Market Cap And Token Holders On The Rise
According to Token Terminal data, the BNB chain has experienced significant growth, evidenced by several key metrics.
One notable metric is the fully diluted market cap, which stands at .71 billion, representing a significant increase of 23.9% over the past 30 days, highlighting the confidence in the protocol.
The circulating market cap, another crucial indicator, currently sits at .73 billion, showing a solid 11.6% growth over the same 30-day period.
On the other hand, the number of BNB token holders has shown a positive trend, reaching 113.51 million, with a significant increase of 3.5% in the last 30 days, demonstrating interest in the ecosystem.
Featured image from Shutterstock, chart from TradingView.com
US Judge Urged to Approve Binance’s $4.3 Billion Plea Deal
A U.S. Federal Judge has been urged to accept a plea deal from U.S. authorities with the cryptocurrency exchange, Binance. Prosecutors, in a memorandum, have asserted that the agreed-upon sanctions are commensurate with the extent of Binance’s deliberate law violations. Binance’s Alleged Refusal to Register as a Money Services Business U.S. prosecutors have reportedly urged […]
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Binance’s Derivatives Arm Launches Tesla Model Y and Bitcoin Voucher Challenge
Binance has announced a competition through its crypto derivatives arm, Binance Futures, offering participants the chance to win a Tesla Model Y. According to the crypto exchange, the contest will unfold over four weekly challenges spanning from Feb. 18 to Mar. 17, 2024. Binance Futures Unveils Tesla Model Y Challenge and Daily Crypto Rewards Beginning […]
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TUSD’s Stability Wavers — Value Fluctuates Below $1 Peg Amid Market Turbulence and Binance’s Dominant Hold
Market insights reveal that on January 15, 2024, the stablecoin TUSD deviated from its usual parity, dipping to .979 per coin the next day. By 10:00 a.m. Eastern Time (ET) on Tuesday, it managed to recover slightly, climbing above the .99 mark.
TUSD Faces Unsteady Ground, Drops Under
Recently, TUSD experienced fluctuations, slipping below its benchmark on Monday. That evening, its value lingered around .98, amid challenges linked to the company’s real-time attestations. As of January 16, 2024, TUSD’s circulating supply, as displayed on their website, stands at 1.92 billion tokens.
A significant portion of TUSD’s supply is in the hands of Binance, which owns the top five ERC20 wallets. Of the total supply, only 391.99 million TUSD tokens are issued on the Ethereum blockchain, while 1.48 billion are on the Tron network. Binance’s cold wallet holds approximately 1.4 billion of these tokens.
At 10:00 a.m. ET on Tuesday, TUSD temporarily reached .996 per coin. Yet, by 10:20 a.m., it fell to about .987. This instability has sparked considerable debate on social media, with many questioning the reasons behind TUSD’s fluctuating peg. Most of the trading activity for the coin is concentrated on Binance, with a significant portion of its volume originating from this exchange.
In the last 24 hours, TUSD’s global trade volume hit 5 million. Despite a hefty supply of 1.92 billion TUSD, its market valuation on Tuesday was slightly lower, at .89 billion. TUSD is now among several stablecoins that have dealt with parity issues, a trend that began with the Terra blockchain ecosystem’s collapse in May 2022.
What do you think about the issues TUSD has been facing dealing with holding its peg? Share your thoughts and opinions about this subject in the comments section below.
How Analysts Think Binance’s $4.3B Settlement Will Help Crypto Grow
While the recent settlement between Binance, its former CEO Changpeng Zhao, and the U.S. Department of Justice (DOJ) has shocked the entire crypto industry due to the supposed money laundering and terrorism-related financial implications it has, many analysts and execs believe this is ultimately a good outcome, considering that it will cause the crypto space to grow absent uncertainties related to one of its largest actors.
Analysts Argue Binance Settlement Signals Growth in the Industry
The landmark settlement between Binance, one of the largest cryptocurrency exchanges in the world, its former CEO Changpeng “CZ” Zhao, and the U.S. Department of Justice (DOJ) on the charges of money laundering and terrorism financing might bring a new era to the cryptocurrency industry, according to analysts and crypto executives.
Brian Armstrong, CEO of Coinbase, stressed that this action might open new roads for the industry, which will have to be built with compliance in focus. Armstrong stated:
Today’s news reinforces that doing it the hard way was the right decision. We now have an opportunity to start a new chapter for this industry. We took a lot of arrows operating here in the U.S. due to the lack of regulatory clarity, and my hope is that today’s news serves as a catalyst to finally achieve that.
Coinbase is also facing legal actions from the U.S. Securities and Exchange Commission (SEC), which alleges the exchange operates as an unregistered securities broker, evading U.S. regulations for years.
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Analysts at JPMorgan, led by Managing Director Nikolaos Panigirtzoglou, also believe the settlement is significant for the cryptocurrency environment, eliminating future uncertainties related to the largest crypto actor. In statements offered to The Block, JPMorgan analysts declared:
We see the prospect of settlement as positive as uncertainty around Binance itself would subside and its trading and BNB Smart Chain business would benefit.
Furthermore, the .3 billion deal helps to dispel the potential “systemic risk” of a hypothetical collapse of Binance, according to JPMorgan.
Other analysts believe that with Binance under the DOJ’s surveillance and being forced to exit the U.S. completely, the opportunity for finally greenlighting a spot Bitcoin ETF is upon the crypto market. Michael Rinko, research analyst at Delphi Digital, told CNBC:
If you’re actively investigating the company and the CEO who’s telling everyone the price of these assets, how are you then going to greenlight an ETF? Having this settlement behind us could be the final big, big step needed for this ETF.
What do you think about the state of the crypto industry after Binance’s plea deal? Tell us in the comments section below.
US Prosecutors Urge Court to Keep Binance’s Ex-CEO in the Country Amid Flight Risk Concerns
In the wake of the settlement between the U.S. Department of Justice and Binance, the world’s largest crypto exchange, federal authorities are insisting that the exchange’s former CEO, Changpeng Zhao (CZ), remain stateside until his sentencing in February 2024.
Justice Department Seeks to Restrict Ex-Binance CEO’s Travel Before Sentencing
A recent court filing reveals that U.S. prosecutors have petitioned Magistrate Judge Brian Tsuchida to ensure Changpeng Zhao’s (CZ) continued presence in the U.S. This request, lodged on Wednesday, aims to reassess the bond conditions set on November 21, 2023. The U.S. government articulates concerns about CZ being a “substantial risk of flight.”
The filed document explicitly states:
[The Government] requests that the court order that Zhao should not be permitted to return to the UAE before sentencing.
Currently residing in Dubai, United Arab Emirates (UAE), CZ lives with his three children and partner. The prosecutors argue that the prospect of an 18-month jail term might tempt CZ to remain in the UAE with his family. The lack of an extradition treaty between the UAE and the U.S. complicates matters, making it challenging to secure his return in case of non-compliance with court directives.
Despite an initial agreement on a 5 million bail bond, prosecutors are now questioning its sufficiency. Under the proposed arrangement, “three responsible persons” were to secure million in cash for the bail. While CZ faces potential imprisonment, there remains a possibility of avoiding it, akin to Bitmex’s former CEO Arthur Hayes.
Hayes, who breached the Bank Secrecy Act (BSA) by neglecting to establish an anti-money laundering (AML) protocol at Bitmex, faced a potential five-year prison term. However, as a first-time offender, he was granted two years of probation instead of prison time. Hayes concluded his legal troubles by paying a million fine for his offenses.
What do you think about the prosecutor’s concerns about CZ posing a flight risk? Share your thoughts and opinions about this subject in the comments section below.
Binance’s American VIPs: A Revealing Look at High-Net-Worth Influence Amid DOJ Settlement
On Tuesday, charges against crypto exchange titan Binance Holdings Limited were revealed by the U.S. Department of Justice (DOJ), which reached a significant .316 billion settlement with the world’s largest crypto exchange for noncompliance with anti-money laundering (AML) laws. Despite Binance’s 2019 claims to bar U.S. users, prosecutors asserted the firm persisted in providing market access to elite, VIP American patrons, who supplied roughly “one-third” of company trading revenue.
The Whales of Binance Decoded in DOJ Court Filing
Shockwaves continue rippling through the crypto sphere following the seismic DOJ, U.S. Treasury and Commodity Futures Trading Commission (CFTC) .3 billion settlement with Binance over allegations of knowingly shirking registration as a money services business. As alleged within the unsealed court documents, Binance and ex-CEO Changpeng Zhao (CZ) violated AML laws and the Bank Secrecy Act among other agency regulations.
The charges also highlighted Binance’s practice of maintaining a steady stream of very important people (VIPs) from the U.S., even after claiming to no longer serve U.S. customers following the establishment of Binance US. The unsealed document delved into Binance’s VIP clientele, revealing that high-net-worth individuals had contributed significantly to the exchange’s revenue.
“Although Binance announced it would block U.S. users and establish a separate exchange that would serve the U.S. market, Binance retained a substantial portion of its user base on Binance.com, with a particular focus on U.S.-based VIPs, including trading firms that made markets on Binance.com,” the court filing details.
11,000 VIP Whales Accounted for 70% of Binance’s Revenue in 2019
Per the court documents originally sealed on November 14, 2023, upon learning the formidable roster of 3,500 American VIP users in June 2019, CZ was briefed that 11,000 whale clients represented 70% of Binance’s trading volume, with U.S. VIPs comprising “about one-third” of this highly-lucrative bracket. By June 25th, CZ and three Binance brass began sketching strategies to clandestinely retain U.S.-based VIP users through direct phone communication.
An unnamed informant mentioned in the court filing revealed that Binance executives labeled American patrons “miscategorized,” with an internal “VIP handling” guidebook coaching employee management of these elite spenders. For example, this document reportedly demanded that privileged users open accounts sans any “U.S. documentation,” to ensure the confidentiality of the user. By 2020, the DOJ said that Binance still had a substantial amount of U.S.-based clientele but these customers were referred to as “unknown.”
In August 2021, Binance publicly explained that all users complied with know-your-customer (KYC) regulations, but the DOJ said that a higher tier of customers who did not submit KYC documentation were grandfathered until May 2022. During that time, the DOJ claims that Binance did not “systematically monitor transactions” on the platform. While none of the VIPs or market makers were mentioned in the court document, the filing gives a glimpse at how much power and impact crypto whales have in the industry.
What do you think about the details about Binance’s VIP customers? Share your thoughts and opinions about this subject in the comments section below.