The ongoing Bitcoin price play out leading into a bear market is now one of the most pressing questions in the crypto industry. Right now, Bitcoin is trading between $87,700 and $88,000, which is a 30% drop from the all-time high it reached in October 2025.
Price action alone often leaves room for debate, but on-chain data is beginning to offer clearer guidance. Notably, analysis from CryptoQuant shows that Bitcoin’s internal market structure is shifting in a way that aligns more closely with early-stage bear market conditions.
BCMI Drops Below Equilibrium
The important bear market signal is from Bitcoin’s Combined Market Index, or BCMI, which is a composite indicator that blends price behavior with on-chain momentum. According to Woo Minkyu, a verified analyst on the CryptoQuant platform, Bitcoin’s BCMI returned to the 0.5 level in October. This was initially interpreted as a cooling phase rather than a definitive cycle top. At the time, the assumption was that Bitcoin was consolidating after an extended rally.
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However, that view has weakened with the deterioration of market conditions. Particularly, Bitcoin’s price action has declined materially since late October, and the BCMI has fallen in tandem with the price. This joint decline suggests the market has reset not only through time but also through valuation and participation.
As shown on the chart below, the BCMI has now slipped below its equilibrium zone, and this is a development that is known to coincide with transitions into bearish phases, where rallies tend to be capped, and downside risks increase.
A closer look at prior Bitcoin cycles adds more context to the current setup. In both 2019 and 2023, meaningful cycle bottoms formed only after BCMI compressed into the 0.25 to 0.35 range. Those levels reflected deep sentiment compression, washed-out positioning, and a structural reset of the market.
At current readings, Bitcoin’s Combined Market Index is less than 0.4. This reading is below equilibrium but still well above a bottom zone. This opens the possibility that the market is transitioning into a bear phase, not just experiencing a pullback.
According to the analyst, a more durable bottom may only form if history repeats itself and the BCMI revisits 2019-2023 levels.
Weak Sentiment Adds To Bear Market Evidence
Market sentiment is also supporting the idea that Bitcoin is moving deeper into a bearish phase. Optimism has been really scarce in recent weeks, with traders showing little confidence that the price has found a sustainable floor. CoinMarketCap’s Crypto Fear and Greed Index is currently posting a reading of 28, which places sentiment firmly in the Fear zone.
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This poor sentiment backdrop has been affirmed by industry commentary. For instance, Changpeng Zhao recently noted that many investors only wish they had bought Bitcoin early when prices were already at all-time highs. In practice, those early accumulations happened during periods like the present one, when fear, uncertainty, and doubt dominate market psychology.
BTC trading at $87,510 on the 1D chart | Source: BTCUSDT on Tradingview.com
Featured image from Pixabay, chart from Tradingview.com
While much of the attention in Washington this week is focused on the House bill regarding the potential release of the Epstein files, there has also been a fervor of activity around crypto exchange Binance, whose co-founder and former CEO Changpeng “CZ” Zhao was previously pardoned by President Trump.
On Monday, a report from the International Consortium of Investigative Journalists (ICIJ) indicated that Binance is still involved with the processing of illicit money, despite the exchange being previously charged with violating the Bank Secrecy Act (BSA) and paying a record fine of more than $4 billion. Zhao’s involvement in the exchange’s relaxed anti-money laundering standards was why the crypto billionaire had found himself in prison in the first place.
“Between the guilty pleas and Zhao’s pardon, Binance continued to profit from hundreds of millions of dollars in cryptocurrency transactions linked to some of the world’s most notorious organized crime groups,” says the ICIJ report.
Yesterday, CZ responded to a question on X regarding a potential refund of the fine payment in light of the pardon, stating, “IF we get any refund, we will be investing that in America anyway, to show our appreciation. Haven’t asked yet, I think.”
Trump and his affiliates have been heavily involved in the crypto industry during his second term as president. Just yesterday, a new tokenization project involving a Trump-branded hotel development was announced. This is on top of the TRUMP memecoin and World Liberty Financial, which is the crypto business at the heart of the corruption accusations related to the Zhao pardon.
On top of the new revelations regarding Binance and other crypto exchanges’ alleged continued involvement with illicit funds, Senators Elizabeth Warren and Jack Reed have taken issue with the involvement of allegedly shady actors in World Liberty Financial’s initial token offering. However, as the pseudonymous crypto scam investigator ZachXBT has pointed out on X, these claims are focused on $10,000 from a $550 million deal. Your mileage may vary on whether that’s significant.
Unprecedented, but Probably Legal, Corruption
According to a 60 Minutes report, President Trump’s recent decision to pardon Zhao has sparked a wave of concern from former Justice Department officials and ethics experts, who say the move bypassed established standards for clemency. Former DOJ pardon chief Elizabeth Oyer called the pardon “unprecedented,” arguing that Zhao fell far short of meeting the department’s criteria and that the financial ties between Zhao’s company and a Trump family venture created a troubling backdrop. “This is absolutely not justice,” Oyer added. “This is corruption.”
Critics warn that this case reflects a growing pattern in which the pardon power, traditionally reserved for advancing justice and the public interest, is instead being used to reward allies and benefactors. Of course, this isn’t necessarily a Trump-only issue, as many controversial pardons have been handed down over the years, including former President Joe Biden’s pardoning of his son Hunter.
While the White House denies any wrongdoing, Binance maintains roughly $2 billion in World Liberty Financial’s stablecoin, USD1, which could yield tens of millions annually for Trump-connected partners. “Any ordinary American would understand why that’s a corrupting relationship.” Harvard Law Professor Lawrence Lessig told 60 Minutes.
That said, while ethically and morally questionable, there is no smoking gun in terms of a direct quid pro quo that could lead to any sort of legal liability for Trump when it comes to his crypto deals, whether it be the pardon for CZ or the dinner that was put together for the top holders of the TRUMP memecoin.
Last month, President Donald Trump pardoned Binance founder Changpeng Zhao, a move that raised plenty of eyebrows given Binance’s promotion of the Trump family’s crypto ventures. Trump was asked about Zhao’s pardon on Sunday during an appearance on CBS News’s 60 Minutes, where the president gave a bewildering answer. But viewers didn’t even get to see the strangest part, which was edited out.
There are essentially three versions of the 60 Minutes interview that the public can access. There’s the 28-minute version that aired on TV (and is available on YouTube), there’s the 1-hour and 13-minute video version that was posted to YouTube by 60 Minutes, and there’s the transcript of the interview published online by CBS News.
Naturally, we expect the two video versions to be different. That’s just editing and a normal part of presenting the news. But the portions that get cut can sometimes matter in the broader scheme of things. And a portion of the interview—where Trump is asked about cryptocurrency and the ways that Trump’s family has profited from it—doesn’t show up in the “extended version” released by 60 Minutes. We only know that because it’s in the transcript, as the Daily Beast was the first to point out.
The background
First, a little background on the reason Trump was asked about Changpeng Zhao in the first place.
Trump’s sons, Don Jr. and Eric, created a company with Steve Witkoff called World Liberty Financial in September 2024, just a couple of months before the presidential election. The company’s crypto coin, $WLFI, didn’t really take off until Trump beat his Democratic challenger Kamala Harris in November 2024. By March 2025, World Liberty launched a stablecoin called USD1. MGX, a state-backed company from the United Arab Emirates, used that stablecoin to invest $2 billion in Binance, according to the New York Times.
Binance called it the single largest investment in a cryptocurrency company ever, and it obviously raised questions about the ethics of a sitting president’s family profiting from foreign entanglements with the UAE, as well as a private crypto firm where the founder went to prison.
Zhao pleaded guilty to money laundering violations in 2023 and served four months. Zhao owed $50 million in restitution, and his pardon likely means he won’t have to pay that back, since that’s what has happened with many of Trump’s other pardons.
Which brings us to Sunday night, when 60 Minutes journalist Norah O’Donnell asked Trump about the pardon of Zhao.
What TV viewers saw
TV viewers of 60 Minutes saw Trump questioned about a variety of topics like deportations, inflation, and the prosecution of his political enemies, like former FBI director James Comey. When Trump was asked about Changpeng Zhao (often referred to as CZ) and the pardon he issued, Trump insisted he didn’t even know who the guy was.
O’DONNELL: Why did you pardon Changpeng Zhao?
TRUMP: Are you ready? I don’t know who he is
O’DONNELL: His crypto exchange Binance helped facilitate a $2b purchase of World Liberty Financial’s stablecoin. And they you pardoned him.
NORAH O’DONNELL: He pled guilty in 2023 to violating anti-money laundering laws.
PRESIDENT DONALD TRUMP: Right.
NORAH O’DONNELL: The government at the time said that C.Z. had caused “significant harm to U.S. national security,” essentially by allowing terrorist groups like Hamas to move millions of dollars around. Why did you pardon him?
PRESIDENT DONALD TRUMP: Okay, are you ready? I don’t know who he is. I know he got a four-month sentence or something like that. And I heard it was a Biden witch hunt.
NORAH O’DONNELL: In 2025 his crypto exchange, Binance, helped facilitate a $2 billion purchase of World Liberty Financial’s stablecoin. And then you pardoned C.Z. How do you address the appearance of pay for play?
PRESIDENT DONALD TRUMP: Well, here’s the thing, I know nothing about it because I’m too busy doing the other—
NORAH O’DONNELL: But he got a pardon—
PRESIDENT DONALD TRUMP: I can only tell you that—
NORAH O’DONNELL: He got a pardon—
PRESIDENT DONALD TRUMP: Norah, I can only tell you this. My sons are into it. I’m glad they are, because it’s probably a great industry, crypto. I think it’s good. You know, they’re running a business, they’re not in government.
The claim that Trump didn’t even know who CZ was is indeed interesting, especially since the president has repeatedly claimed that his predecessor, President Joe Biden, didn’t even know what kind of legislation he was signing during his cognitive decline in the Oval Office. But we obviously can’t take everything Trump says at face value.
The show cut out large portions of the conversation where Trump praises crypto and says it’s necessary to be competitive globally, none of which was particularly newsworthy for viewers at home. Trump also rambled on and on about Biden being the “most corrupt president” America has ever had. And viewers can see all of that in the online “extended” interview. But there was a moment that wasn’t in either video that’s very notable.
The part that’s only in the transcript
According to the transcript, Trump was asked about the appearance of corruption with his pardon and financial interest in crypto. And he replied that he didn’t want to answer that question, something that’s not available to see in either video that’s been published by 60 Minutes.
NORAH O’DONNELL: So not concerned about the appearance of corruption with this?
PRESIDENT DONALD TRUMP: I can’t say, because— I can’t say— I’m not concerned. I don’t— I’d rather not have you ask the question. But I let you ask it. You just came to me and you said, “Can I ask another question?” And I said, yeah. This is the question—
NORAH O’DONNELL: And you answered—
PRESIDENT DONALD TRUMP: I don’t mind. Did I let you do it? I coulda walked away. I didn’t have to answer this question. I’m proud to answer the question. You know why? We’ve taken crypto—
NORAH O’DONNELL: But just generally speak—
PRESIDENT DONALD TRUMP: Excuse me. We’re number one in crypto in the whole world. Other people wanna be. They’re fighting like hell to be. But we’re number one in crypto because I’m the president. Biden wanted to also, at the very end, you know, he totally switched his thing.
You know, Biden was totally in favor of crypto at the end. Do you know that many people that were indicted under Biden for crypto, at the very end before the election, were let go? You know why? He wanted the vote. We are number one in crypto and that’s the only thing I care about. I don’t want China or anybody else to take it away. It’s a massive industry.
NORAH O’DONNELL: Mr. President, thank you.
PRESIDENT DONALD TRUMP: Thank you very much.
The transcript suggests that this portion was the actual end of the interview as it happened in real-time, though the crypto portion was pushed much earlier in the videos both online and that aired on TV. And it’s not clear why this was the only part that appears to have been in the transcript but doesn’t show up in either video.
Why it matters
We can, however, take a guess at why this little section was deleted from the videos. Trump has bragged about how he got CBS News to pay $16 million in a settlement. Trump alleged that 60 Minutes edited a video to make her look better, something that seems ridiculous when you actually watch the videos side by side. But Trump insisted that such editing was a form of election interference, something most experts said wouldn’t have stood up in court.
CBS News settled with Trump in a move that was widely seen as capitulation in order to allow its parent company, Paramount, to merge with Skydance, something that needed regulatory approval. Stephen Colbert, the late-night host whose show is being cancelled under pressure from Trump, called the settlement a “big fat bribe.” The merger happened without a problem, and more recently, the right-wing founder of The Free Press, Bari Weiss, was hired to oversee all of CBS News.
As the Daily Beast notes, the transcript shows that CBS also didn’t air the part where Trump bragged that the network had paid him “a lot of money.” That part was in the extended video, however.
The future of Trump’s war on media
Trump seems to be chalking up wins in the mainstream media left and right, though he’s been sometimes stifled. Trump’s head of the FCC, Brendan Carr, led a failed campaign to have ABC host Jimmy Kimmel ousted. But Trump hasn’t given up on purging the airwaves of dissenting voices.
Over the weekend, Trump posted about late-night host Seth Meyers because he made fun of Trump, insisting that being 100% anti-Trump was “probably illegal.” It’s not illegal, obviously.
Trump’s buddies in Congress seem largely fine with everything Trump does, even if it means pardoning guys like Zhao and stifling speech.
House Speaker Mike Johnson, who has previously been critical of President Biden’s use of an autopen, was asked Monday about Trump’s claim that he didn’t know who CZ was. Johnson, in typical fashion, said he didn’t see the interview, so the reporter should ask Trump.
Congratulations to Kyrgyz President Sadyr Japarov on his newly announced national digital currency. And further congratulations to Changpeng “CZ” Zhao, Japarov’s advisor, who helped facilitate this launch, on his pardon from President Donald Trump two days ago.
To catch you up on what Kyrgyzstan is, it’s a mountainous, landlocked, former Soviet Republic that borders northwest China. Now that you have your bearings, that country has just announced a national stablecoin in partnership with Binance, the company Zhao co-founded, and where he used to work as CEO.
Updates from Kyrgyzstan🇰🇬 – The National Stablecoin launched, on @BNBChain – The CBDC is ready for rollout. Yes, both. CBDC will be used for gov related payments, etc – The National Cryptocurrency Reserve set up, #BNB included – LE training – Binance Academy with 10 top… https://t.co/KPrL0pnsWGpic.twitter.com/SInh5aCPMZ
According to Zhao’s post on X, the currency—which is pegged to the Russian ruble—is a central bank digital currency (CBDC), a digital version of a national currency, set to be used for government payments. It was launched on the BNB blockchain, the blockchain created by Zhao’s former company Binance.
Since not long after his release from prison for a conviction related to failing to prevent money laundering, Zhao had been lobbying for Trump to pardon him. A New York Times report found that in addition to pushing for a pardon, Zhao had been publicly praising Trump on podcasts, paying for lobbyists who had cozy relationships with Trump and his allies, and making a deal that resulted in a windfall for World Liberty Financial, the Trump family crypto company.
Trump, for his part, signed his signature piece of crypto legislation, the GENIUS Act, in July. It establishes a regulatory framework for stablecoins not unlike the new one Kyrgystan just created, and helps to deepen the involvement of cryptocurrencies in the U.S. economy.
For all we know, there’s nothing wrong with any of this. It might all be just fine.
As BNB’s price records a massive 30% rally, the BNB Chain ecosystem also experiences a remarkable performance, fueled by Chinese-themed memecoins launched on the Four.meme launchpad.
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BNB Chain Momentum Steals Memecoin Spotlight
Amid BNB’s run to the $1,300 barrier, the BNB Chain ecosystem is experiencing a memecoin frenzy, with multiple BNB Chain-based tokens gaining significant traction over the past few days.
Notably, the ongoing momentum has seen tokens like Palu (PALU), 币安人生 (BinanceLife), 4 (FOUR), PUP (PUP), and CZ’s Dog (BROCCOLI) record massive rallies.
According to DeFiLlama data, the BNB Chain-based memecoin launchpad, Four.meme, has overtaken Pump.fun, Solana’s leading launchpad, in daily revenue.
In the past 24 hours, Four.meme has gained around $1.4 million in revenue, surpassing Pump.fun’s $885,420. Meanwhile, CoinGecko data shows that the Four.meme ecosystem tokens have surged around 88% to an overall market capitalization of $1.044 billion and a daily trading volume of $963.4 million.
Four.meme flips Pump.fun in daily revenue. Source: DeFiLlama
Nonetheless, the Solana-based launchpad continues to lead in higher timeframes, with weekly and monthly revenues of $8.34 million and $40.9 million, respectively. Binance co-founder and former CEO Changpeng Zhao, also known as CZ, highlighted the recent memecoin frenzy in the BNB Chain.
On Tuesday, CZ acknowledged the “BNB meme szn” on X, affirming, “I didn’t expect this at all.” On-chain analytics platform Bubblemaps declared that the “BNB memecoin szn is real,” noting that over 100,000 on-chain traders bought into the new memecoin frenzy, with 70% of them being in profit.
As the platform detailed, 21,000 investors have made over $1,000, while 900 have earned over $100,000 with the leading tokens. Meanwhile, 40 traders have made over $1 million, and one has profited more than $10 million.
Can BNB’s Memecoin Season Last?
A crypto community member weighed in on how long the ongoing memecoin trend could last and whether it was worth participating in it. According to the X post, the investor considers that the BNB Chain tokens frenzy might continue, arguing that “this time is different.”
Following the rapid surge of BinanceLife, which has reached a market cap of $372 million in less than a week, the investor listed multiple reasons why BNB Chain’s memecoin season could last for a while.
They argued that “CZ and He Yi won’t let this wave fade easily,” suggesting that they will “likely keep pushing it forward.” The investor pointed out that the ecosystem is more mature and capital is more abundant. Previously launched memecoins “aimed” for a Binance listing, while the new project’s exit path is clearer.
“First generate hype through reposts, then launch on Alpha, followed by listing on Aster spot and Binance spot—each step driving upward momentum in a relentless surge,” they explained.
Lastly, the investor argued that the rules have changed, as this Memecoin bull run is spearheaded by the Chinese-speaking community, who “stand at the crest of the wave” this time.
“Those who embrace change swiftly profit first; Those with biases neither gain nor lose,” they concluded.
BNB’S performance in the one-week chart. Source: BNBUSDT on TradingView
Featured Image from Unsplash.com, Chart from TradingView.com
Changpeng Zhao continues to lead Forbes’ list of cryptocurrency billionaires. How did he build his fortune?
Changpeng Zhao has remained one of the wealthiest people for several years, even with legal issues and billions in fines in 2023. In early April, Forbes updated its billionaire list, featuring 17 people from the cryptocurrency industry. Once again, the founder and former CEO of Binance topped the list with an estimated fortune of $47.7 billion.
Profiting from Binance’s success
In 2017, Changpeng Zhao launched Binance Coin (BNB), distributing $200 million in BNB. Since its launch, Binance Coin’s value has surged, with its price currently around $540. With a market capitalization of about $80 billion, BNB ranks as the fourth largest cryptocurrency.
Source: CoinMarketCap
After five rounds of funding, Changpeng Zhao acquired a significant but undisclosed portion of Binance, where $3 billion has been invested. As a result, his net worth was estimated at $100 billion in 2022.
Additionally, the exchange was actively engaged in acquisition. Zhao discussed this strategy in an April 2021 interview with Bloomberg.
“We plan to do somewhere between 20 and 30 acquisitions a year. Most are smaller acquisitions—we don’t announce them. Some will be bigger ones like CMC, but we do plan to do about 30 acquisitions each year, which probably means about three deals every month now.”
Changpeng Zhao, founder and former CEO of Binance
The statement refers to Changpeng Zhao’s early 2020 acquisition of a cryptocurrency data tracking site, though the purchase price was not revealed. Zhao stated that this move aimed to diversify Binance’s business.
According to Business of Apps, Binance has made substantial profits, reporting annual revenues of approximately $5.5 billion in 2020, $20 billion in 2021, and $12 billion in 2022.
However, the previously unregulated growth of both the broader crypto industry and Binance ended in 2023. Starting with a 55% market share, Binance experienced a decline in on-chain activities, which led to decreased reserves and trading volumes. Regulatory issues caused its market share to drop to 32%, though it recovered to 48% by January.
Due to legal issues, the company’s value decreased, reducing Zhao’s net worth to $40 billion. After resigning as CEO of Binance, CZ agreed to pay a $50 million fine, and the company offered to pay $4.3 billion in fines and compensation. However, Zhao’s control over the company remains unchanged unless he sells most of his stake.
Zhao’s other assets and investments
Most of Changpeng Zhao’s wealth comes from his ownership in Binance and his investments in BNB and BTC cryptocurrencies. Besides these, he also owns other assets.
Real estate
Changpeng Zhao owns at least two properties in Dubai, a city he admires for being “very pro-cryptocentric.” The crypto billionaire praised Dubai for its favorable business environment and bought property there as a sign of his commitment to the city. This is a change from his past stance, as he once mentioned that he avoided owning cars or real estate because he considered them too illiquid.
FTX and Twitter
Changpeng Zhao’s investments outside Bitcoin, BNB, and Binance have yet to be discovered. However, in 2019, he invested in rival cryptocurrency exchange FTX, founded by notorious fraudster Sam Bankman-Fried, who was once one of the wealthiest and most famous crypto entrepreneurs but is now in prison awaiting sentencing on fraud charges.
Changpeng Zhao left FTX in 2021, cashing out $2.1 billion, which proved wise as FTX collapsed in 2022, impacting the entire cryptocurrency industry.
He also invested $500 million in Elon Musk’s $44 billion acquisition of Twitter, not as a personal investment but as a corporate strategy.
In a November 2021 interview with Associated Press, Zhao said that most of his wealth is in cryptocurrencies, specifically Bitcoin and BNB. If he retained these assets through 2023, he likely profited towards the year’s end as the cryptocurrency market began recovering from a downturn, and Bitcoin’s value surged.
Financial struggles due to SEC
In June 2023, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, accusing the company of bypassing regulations that prohibited U.S. users from accessing its services. The SEC also claimed that Binance lacked proper anti-money laundering measures, inflated its trading volumes, and mishandled client assets. Binance disagreed with the accusations and disputed them in court.
As a result, the Bloomberg Wealth Index slashed the value of Binance.US to zero in June 2023 after it announced it would no longer transact in dollars, sharply reducing trading volumes. Before this, Binance.US was valued at $4.7 billion in March 2022, and Changpeng Zhao’s (CZ) net worth had reached a high of $96 billion in January of the same year. His wealth then plummeted by 82% at one point.
By October 2023, Bloomberg reported that tightening regulations in the crypto industry and a market downturn had further reduced CZ’s fortune to $17.2 billion.
Restoring Zhao’s wealth
By the end of 2023, Zhao’s capital rose like a phoenix. Bloomberg journalists said at the end of last year that the estimated personal capital of the founder and former head of Binance increased to $37.2 billion amid the recovery of the cryptocurrency market.
This amount is still below his January 2022 peak of $96.6 billion and just above the $50 billion he had in June. However, CZ’s wealth increased by almost $25 billion since January. This growth is more than five times the $4.3 billion that Binance agreed to pay in a settlement with the U.S. Department of Justice in November.
In determining CZ’s wealth, Bloomberg experts relied on his 90% stake in Binance and 86% of the shares of the American division of Binance.US. The entrepreneur also announced investments in Bitcoin and BNB. However, their amount is unknown and needs to be included in the overall figure. The confidence rating in the accuracy of his capital assessment is at the lowest level.
Unknown profit of a known exchange
While the exact profits and assets of Binance’s founder, Changpeng Zhao, are not publicly disclosed, he is widely regarded as the wealthiest person in the cryptocurrency industry. Despite Binance’s financial details being largely private, the exchange commands nearly 50% of the market share, suggesting its profits could far exceed those of its competitors. As the owner of the company’s largest share, Zhao would benefit significantly from Binance’s success.
Moreover, the cryptocurrency market’s recovery typically favors all industry players. Although Binance has not released recent profit figures amidst the market’s upswing, it’s reasonable to assume that Zhao’s wealth has not only been preserved but has also grown due to the increase in market share, Bitcoin, and the overall capitalization of digital assets.
This week, business intelligence firm MicroStrategy augmented its Bitcoin (BTC) stash with $615 million. The drama surrounding the spot BTC ETF continued, while, a U.S. court affirmed that Binance founder Changpeng Zhao remains in the country until his sentencing.
MicroStrategy accumulates, Trump distributes
MicroStrategy continued its Bitcoin buying spree on Dec. 27 when the firm purchased an additional 14,620 Bitcoin at an average price of $42,110 per token, according to chairman Michael Saylor.
The company now holds 189,150 Bitcoin currently valued at $7.99 billion. MicroStrategy procured these tokens at an average price of $31,168 per coin, or approximately $5.9 billion.
Meanwhile, reports from this week suggested that former U.S. President Donald Trump could be distributing his Ethereum (ETH) holdings. Data shows that an Ethereum wallet, which has been accumulating royalties from Trump’s NFT collection, transferred millions worth of ETH to Coinbase.
ETF drama consumes BlackRock, VanEck, Coinbase, Bitwise
Meanwhile, the drama surrounding the race for a spot BTC ETF spilled into this week. VanEck became the latest asset manager to update its filing for a spot BTC ETF with the U.S. SEC. In the update, the firm adjusted its redemption method to cash-only.
Recall that Coinbase had been chosen by BlackRock and others for custody services in their spot BTC ETF filings. This week, the U.S.-based exchange replaced the CEO of its Custody entity with Rick Schonberg in what appears to be a preparation for the approval of a spot ETF.
BlackRock further made disclosures pointing to an imminent approval of its product. The asset manager revealed on Dec. 29 that JPMorgan Chase and Jane Street are authorized participants of the upcoming spot BTC ETF.
Amid the sustained ETF race, prominent asset management firm Bitwise disclosed this week that it would be launching its spot BTC ETF with seed funding of $200 million from an unidentified investor. Recall that BlackRock’s seed funding stood at $10 million.
Mt. Gox creditors finally receive payments
This week also featured developments surrounding ongoing court cases and bankruptcy proceedings. Notably, some creditors of the defunct exchange Mt. Gox started receiving their compensations this week, almost a decade after the exchange collapsed with customer’s BTC tokens.
Judge declares LUNA security, Zhao grounded
In the case involving the U.S. SEC and Terraform Labs, Judge Jed Rakoff ruled that Terra (LUNA) and the MIR token are unregistered securities, as argued by the SEC. Recall that the agency sued Terraform Labs in February, alleging that they offered the tokens as securities without registration.
Following an earlier ruling that barred him from leaving the U.S. before his sentencing in February, Binance founder Changpeng Zhao made a second appeal to be allowed to depart the country. However, this week, a District Court in Seattle also denied this request.
Despite the troubles faced by Zhao and Binance this year, the former saw his net worth appreciate by a massive $25 billion this year due to the green market. In addition, this week, Binance crossed a milestone of 170 million users globally.
Global regulatory efforts
The week also witnessed increased regulatory efforts across the globe. Japan amended an existing crypto legislation to relax end-of-year crypto tax commitments for companies.
The amendment effectively put an end to a requirement demanding companies pay a mark-to-market valuation tax for their cryptocurrency holdings.
Hong Kong declared this week that it would now allow retail investors to procure stablecoins in the region, as long as the issuers of the tokens are fully regulated by the authorities.
Shortly after the Central Bank of Nigeria relaxed its ban on cryptocurrency transactions, reports from this week suggested that a group of banks in the country are looking to launch cNGN, a stablecoin pegged 1:1 to the Nigerian naira.
In a Dec. 28 release, Indian authorities warned that certain crypto exchanges, including Binance, Huobi, Kraken, KuCoin, Gate.io and MEXC, were violating anti-money laundering provisions in the country.
Changpeng Zhao, Binance’s former CEO, faced a setback; the Bitcoin spot ETF craze continues, with BlackRock and Grayscale modifying their filings; and BTC clinched the $39,000 spot amid a sustained market uptrend.
Binance ex-CEO’s travel ban
Recall that the U.S. Justice Department argued against letting Zhao leave to the UAE, adding that he might not return to the U.S. to face his sentencing, as the country does not have an extradition agreement with the UAE.
This week, District Judge Richard Jones agreed that authorities restrict Zhao from leaving the U.S. before his sentencing in February next year. Zhao would have to remain in the U.S. until then.
Zhao resigns as Binance.US chairman amid probe
Despite getting the global Binance entity to admit to financial violations and a fine of $4.3 billion, U.S. authorities are still onto the Binance brand. The U.S. Securities and Exchange Commission (SEC) recently revealed it has continued its probe into Binance.US’ operations.
The agency believes the exchange might have also employed a backdoor mechanism similar to what FTX leveraged for its illegal financial operations involving customer assets.
A day after the SEC’s disclosure, Binance.US announced that Zhao had resigned from his position as the board Chairman of the company. Binance.US also emphasized its independence from the global Binance entity.
Ronaldo caught in the crossfire, Binance’s woes in the Philippines
This week, soccer icon Cristiano Ronaldo found himself caught in the Binance saga. Binance customers initiated a class action against the Al-Nassr forward, claiming they incurred losses due to his promotion of Binance.
Binance’s woes did not end in the U.S., extending to Southeast Asia this week. Notably, the Philippines SEC released a warning statement on Nov. 28, revealing that Binance had been operating in the country without a valid license.
Shortly after this disclosure, reports suggested that the Philippines securities regulator was looking to enact measures to block Binance’s operations in the country.
The crypto community also witnessed developments surrounding the spot BTC ETF filings. Documents on the SEC’s website confirmed that Grayscale modified its GBTC agreement to make it suitable for a spot ETF as they await an approval of the conversion.
In addition, BlackRock also made changes to its filings. The minutes of the asset manager’s meeting with the SEC revealed that the firm modified the spot BTC ETF filing to tackle concerns raised by the regulatory agency.
Discussions surrounding a BTC ETF
Amid the delay in the approval of a spot BTC ETF, discussions surrounding the investment product emerged this week. When asked, SEC Chairperson Gary Gensler refused to comment on the approval process of the multiple filings on the regulatory agency’s desk.
However, Gensler did highlight the crypto industry’s susceptibility to fraud and market manipulation. Meanwhile, Bloomberg ETF analyst James Seyffart revealed on Nov. 30 that the next window for an approval is between Jan. 5 and Jan. 10 next year.
As efforts to get approval intensified. Grayscale hired John Hoffman, a former Invesco executive, to lead its team of partnerships and distribution. This move was in preparation for an approval of its spot BTC ETF filing.
Scams, hacks and everything in between
This week saw no shortage of developments surrounding scams, hacks and enforcements. The U.S. Treasury sanctioned another crypto mixer Sinbad, claiming that North Korean hackers used it to launder stolen frauds from protocols such as Atomic Wallet and Ronin Bridge.
Meanwhile, the Kyberswap hacker who stole $47 million on Nov. 23 from the protocol finally made his demands for the return of the funds. The exploiter demanded full control of the protocol and a change of governance.
USDC issuer Circle denied allegations that it was actively facilitating illegal financial transactions, which include funds flows involving Hamas. Circle’s rebuttal came in response to concerns from Sherrod Brown and Elizabeth Warren, U.S. senators.
UN turns to Algorand, MSTR buys more BTC
Despite the growing concerns surrounding illicit blockchain and crypto activities, adoption did not slow this week. The United Nations collaborated with the Algorand Foundation to educate its staff on blockchain.
Reports further demonstrated MicroStrategy’s sustained optimism in Bitcoin. A disclosure from this week revealed that the firm had pumped $593.3 million on 16,130 more BTC tokens at an average price of $36,785.
Meanwhile, Circle turned its eyes toward Japan, inking a partnership with Japanese financial giant SBI Holdings, intending to offer stablecoin services in the East Asian country.
While blockchain and cryptocurrency have endured growing adoption in most spheres, reports suggested a different story in the gaming industry. According to a CoinGecko report this week, over 75% of Web3 games in the past five years have not been successful.
Bitcoin conquers $39,000
Bitcoin extended its multi-week uptrend into this week amid sustained bullishness. As the broader market saw bullish momentum last week, CoinShares confirmed that digital asset products recorded an 18-month high of $346 million in inflows.
Starting the week at $37,447, BTC conquered two pivotal psychological resistance thresholds amid an impressive run. The asset surged past $38,000 on Dec. 1, closing the day at $38,682, before conquering $39,000 on Dec. 2.
Following the massive price spikes, IntoTheBlock revealed that over 80% of BTC holders are in profit. Bitcoin now sits well above the $39,000 mark. At last check on Dec. 3, it hovered just above $39,641 and aims to reclaim the $40,000 territory.
Changpeng Zhao, commonly known as “CZ,” has stepped down as Chairman of Binance.US’s Board of Directors.
The recent announcement by Binance.US regarding Changpeng Zhao, known as “CZ,” is stepping down as Chairman of its Board of Directors, marking a significant moment in the cryptocurrency sector.
The company stated, “As [Zhao] transitions to life after Binance, he has decided to step down from his role as Chairman of our Board of Directors and transferred his voting rights through a proxy arrangement.” The move comes amidst a landscape of regulatory scrutiny and market uncertainty in the crypto world.
Binance.US emphasized its operational independence from Binance.com, stating, “While we share a brand and industry-leading technology stack, we operate independently of Binance.com.”
Binance.US further clarified its regulatory status, asserting, “We are not a party to the settlements announced last week, nor do we have any outstanding enforcement matters with the DOJ, FinCEN, OFAC, or CFTC.”
Zhao’s decision to step down and change his involvement to “purely economic” raises questions about the motives and future implications for Binance.US. The announcement also highlighted the continuity of leadership at Binance.US, “Binance.US continues to be led by Norman Reed and our existing, experienced management team.”
The lawyers for former Binance CEO Changpeng Zhao insist the crypto billionaire is not a flight risk. The Justice Department isn’t so sure.
On Tuesday, the U.S. government announced criminal charges against Binance and its leader. The world’s biggest cryptocurrency exchange agreed to pay $4.3 billion in penalties, among the largest fines in corporate history. It also pleaded guilty to anti-money laundering and U.S. sanctions violations. But it avoided a death sentence and will be allowed to continue operating.
Binance failed to report over 100,000 suspicious transactions with organizations the U.S. described as terrorist groups, among them Hamas, al Qaeda, and the Islamic State of Iraq and Syria, according to U.S. authorities. And it illegally profited by letting “darknet” actors and ransomware hackers operate on the platform, they added.
When contacted by Fortune about the settlement, a spokesperson for Binance shared a blog post reading in part: “These resolutions acknowledge our company’s responsibility for historical, criminal compliance violations, and allow our company to turn the page on a challenging yet transformative chapter of learning and growth.”
As for Zhao, the billionaire agreed to step down as CEO and pay a $50 million fine, and he pleaded guilty to failure to protect against money laundering. Scheduled to be sentenced on Feb. 23, he faces up to a decade in prison but under a plea deal is expected to get no more than 18 months.
Zhao, a citizen of Canada and the United Arab Emirates, hopes to travel to his home in the UAE ahead of the sentencing, with his lawyers saying he wants to prepare his partner and three children for his sentencing. But if he decides to never come back, prosecutors warned on Wednesday, the U.S. government might be unable to secure his return because it has no extradition treaty with the UAE—and the billionaire has “significant assets,” it noted.
“In the vast majority of cases, a multi-billionaire defendant who has pleaded guilty, faces possible prison time, and lives in a country that does not extradite its citizens to the United States would be detained,” said Justice Department lawyers.
The DOJ said in a brief on Friday that while it recommended Zhao remain free before sentencing, that was because it believed travel restrictions could make him less of a flight risk. Instead, on Tuesday magistrate judge Brian Tsuchida set bail conditions, over DOJ objections, that allow for the Binance founder to leave the U.S.
On Wednesday, the Justice Department asked U.S. district judge Richard Jones to reverse those bail conditions. The following day, Zhao’s lawyers asked him not to, noting that their client voluntarily came to the U.S. to accept responsibility for his actions. Jones is expected to rule on the matter by Monday.
Meanwhile Binance this week announced that Richard Teng, its global head of regional markets, would replace Zhao as CEO. Teng tweeted that his focus would be on “collaborating with regulators” in addition to “reassuring users.”
As for Zhao, he posted on Tuesday: “What’s next for me? I will take a break first. I have not had a single day of real (phone off) break for the last 6 and half years.”
How his sentencing and presumed jail time plays into that remains to be seen.
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(Bloomberg) — Binance Holdings Ltd. and its Chief Executive Officer Changpeng Zhao pleaded guilty to anti-money laundering and US sanctions violations under a sweeping settlement with the US that allows the cryptocurrency exchange to continue operating.
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Binance will pay $4.3 billion in one of the largest corporate agreements in US history. Zhao will pay a $50 million fine under a deal that requires him to step down as CEO. Zhao pleaded guilty Tuesday to violating the Bank Secrecy Act in federal court in Seattle. The deal, which includes the Justice Department, Treasury Department and the Commodity Futures Trading Commission, ends a years-long investigation into the exchange.
Binance, which admitted that it allowed transactions with Hamas and other terrorist groups on the platform, was charged with three counts, including anti-money laundering, operating an unlicensed money transmitting business and violating US sanctions. The exchange is paying a criminal fine of $1.8 billion and forfeiting $2.5 billion, according to court filings unsealed Tuesday.
Zhao faces as many as 10 years in prison but is expected to get no more than 18 months under a plea deal that appears to have saved him from the harsh penalties that other prominent crypto criminals have faced. The Justice Department hasn’t decided yet what length of a prison term they will seek for him.
Binance’s violations included failure to prevent and report suspicious transactions with terrorists, including Hamas’ Al-Qassam Brigades, Palestinian Islamic Jihad, Al Qaeda, and the Islamic State of Iraq and Syria, according to the Treasury Department. The announcement comes as Israel and Hamas have been embroiled in a war that began Oct. 7.
Binance also allowed at least 1.1 million transactions, worth more than $898 million, on its platform between customers in US and Iran, according to the court filing.
“Binance became the world’s largest cryptocurrency exchange in part because of the crimes it committed — now it’s paying one of the largest corporate penalties in U.S. history,” Attorney General Merrick Garland said in a press release.
Money from the fine will be split among DOJ, CFTC and other agencies. It includes $3.4 billion to the Treasury Department’s Financial Crimes Enforcement Network and $968 million to its Office of Foreign Assets Control over Bank Secrecy Act and sanctions violations.
New CEO
BNB, a cryptocurrency tied to the Binance ecosystem, slipped about 5.2% following the news. The token had hit a five-month high earlier in the day on the news that the DOJ would soon confirm its settlement with the exchange.
“Binance turned a blind eye to its legal obligations in the pursuit of profit,” Treasury Secretary Janet Yellen said in a press release. “Its willful failures allowed money to flow to terrorists, cybercriminals and child abusers through its platform.”
The settlement negotiated between the two sides will resolve all allegations of criminal wrongdoing. Bloomberg News reported the settlement on Monday. Garland and Yellen held a press conference Tuesday to announce details of the deal.
Read More: US Is Seeking More than $4 Billion From Binance to End Case
As part of his plea deal with the government, Zhao, who has a net worth of $23 billion according to Bloomberg’s Billionaires Index, has stepped down as Binance CEO and can’t be involved in managing the company for three years. Richard Teng will succeed Zhao as CEO. Richard Teng will succeed Zhao as CEO.
The company has also agreed to enhance its compliance program and appoint an independent monitor for three years. Binance’s multibillion dollar fine reflects a 20% discount for “partial cooperation” with the investigation, the agreement states.
In a blog post Tuesday, the company acknowledged that it did not have proper compliance controls in its early launch, but said the settlement didn’t include any allegations that Binance misappropriated user funds or engaged in market manipulation.
VIP Customers
The Justice Department accused the company — as well as top executives, including Zhao — of taking steps to conceal that it was dodging US laws intended to stem the flow of dirty money around the world. The filing states that from about August 2017 until October 2022, Binance and Zhao were involved in a “deliberate and calculated effort” to profit from the US market without implementing controls required by law.
Binance “chose not to comply with US legal and regulatory requirements because it determined that doing so would limit its ability to attract and maintain US users,” according to the charging document.
Binance created loopholes that allowed US-based VIP customers to trade on the international exchange through offshore entities. The government’s case relied on internal documents, chats and details of phone calls to show how Binance helped VIP customers circumvent IP address blocking.
These strategies, the government claimed, allowed US-based VIP users to carry out virtual currency transactions “equivalent to billions of US dollars per day.” Acting on instruction from Zhao and other senior management, employees encouraged the VIPs to conceal their US connections, including by creating new accounts.
Zhao, according to the government’s court filings, discussed strategies to keep the market makers on Binance.com to reduce “our own losses” and to have “US supervision agencies not cause us any troubles.”
Zhao was well aware of the presence of US customers on the Binance.com exchange. In a chat in 2019, he wrote that if Binance blocked US customers from day one “Binance will not be as big as we are today.”
A year later, US users still made up 16% of total users on Binance, more than any other country. Binance removed the US label for user location and recategorized it as “UNKWN.”
Zhao wrote that it was “better to ask for forgiveness than permission” and described the situation as a “grey zone.”
CZ in Court
Zhao wore a dark suit and light blue tie, and spent most of the hearing seated with his hands clasped. Judge Brian Tsuchida ruled Zhao would be released and was free to return to his home in the United Arab Emirates while awaiting sentencing.
“I want to close the issue, I want to take responsibility and close this chapter of my life,” Zhao told the court during the hearing. Zhao said he was “a little bit scared” to come to the US to face his plea, but said he was reassured by the court’s thoroughness. “I will return.”
Zhao’s bond was set at $175 million, after his lawyers said he would be prepared to put up that amount to secure his release. Lawyers for the government, who had asked that Zhao be ordered to stay in the country because the US lacks an extradition treaty with the UAE, said they would appeal the release terms.
As part of the release, Zhao’s sister also put up a California home, which his lawyers said was valued at more than $5 million, and two unnamed guarantors committed a total of $350,000.
Zhao faces a maximum sentence of 10 years and fines up to $500,000, plus any profits he made from the alleged scheme. His lawyers said in court that his sentencing will be delayed by 6 months. Zhao’s agreement includes a waiver of his right to appeal, provided that his sentence doesn’t exceed 18 months, judge Tsuchida said during the plea hearing.
Crypto Crackdown
The resolution against the world’s largest cryptocurrency exchange and its top leader represents one of the largest penalties imposed within the cryptocurrency industry, which has been facing withering scrutiny from the Justice Department, other government agencies and lawmakers.
Binance, which exploded onto the crypto scene in 2017 and almost immediately took on and surpassed larger rivals, saw its market share surge to more than 60% worldwide after the fall of FTX in November 2022. Since then, its combined market share for spot crypto and derivatives has declined to less than 44% this month, according to researcher CCData.
The Justice Department recently prosecuted FTX co-founder Sam Bankman-Fried in New York for allegedly orchestrating a multibillion-dollar misappropriation of customer funds that led to the cryptocurrency exchange’s collapse. Bankman-Fried was convicted of fraud following a high-profile criminal trial.
Both the CFTC and Securities and Exchange Commission sued Binance and Zhao earlier this year alleging a range of violations, including mishandling customer funds and allowing Americans to illegally access the platform. Tuesday’s settlement resolves the CFTC case but the SEC lawsuit is ongoing.
Zhao worked at Bloomberg LP, the parent company of Bloomberg News, from 2002 to 2005.
–With assistance from Michael P. Regan, Yueqi Yang, stacy-marie ishmael, David Voreacos and Daniel Flatley.
(Updates with details from the press conference and the complaint throughout the story.)
Binance faces a pivotal change as CEO Changpeng Zhao agrees to step down and the company prepares to pay $4.3 billion in fines, following a settlement with the SEC over anti-money laundering violations.
Changpeng Zhao’s decision to step down as CEO of Binance and plead guilty to violating U.S. anti-money-laundering requirements has sparked a complex interaction with U.S. regulatory bodies, particularly in the context of a substantial settlement agreement.
The unfolding situation involves intricate negotiations and exchanges between Zhao, Binance and the U.S. Securities and Exchange Commission (SEC), according to sources close to the matter. The core of these discussions revolves around the specifics of the charges against Binance and its CEO, and the implications of the settlement for Binance’s future operations.
Today, I stepped down as CEO of Binance. Admittedly, it was not easy to let go emotionally. But I know it is the right thing to do. I made mistakes, and I must take responsibility. This is best for our community, for Binance, and for myself.
“A lot of back and forth is happening as the SEC seeks to understand the depth of the violations and the steps Binance will take to comply with regulations,” an insider noted. “The SEC is essentially laying out what they expect from Binance in terms of regulatory compliance, and now it’s up to Binance’s leadership to respond to these expectations.”
We’re pleased to share we’ve reached resolution with several US agencies related to their investigations.
This allows us to turn the page on a challenging yet transformative chapter of learning that has helped us become stronger, safer, and an even more secure platform.
Under the settlement, Zhao will step down from his role, and Binance, the company he founded in 2017, will plead guilty to charges of anti-money laundering and sanctions violations. Additionally, Binance has agreed to pay fines totaling $4.3 billion, which includes resolving civil allegations brought by regulators. Zhao himself has agreed to pay a $50 million criminal fine, with the possibility of a reduction based on his agreement to pay separate civil penalties.
It is an honour and with the deepest humility that I step into the role of Binance’s new CEO.
We operate the world’s largest cryptocurrency exchange by volume. The trust placed on us by our 150m users and thousands of employees is a responsibility that I take seriously and hold…
The plan for Binance’s future, following the Zhao’s departure, includes appointing Richard Teng as the new CEO. Teng, formerly the Global Head of Regional Markets at Binance and with a strong background in financial services and regulatory affairs, is expected to steer the company through a more compliant and transparent phase. This includes enhancing Binance’s anti-money laundering measures and ensuring adherence to global sanctions.
If Binance fails to meet these regulatory expectations, the company faces the risk of more severe penalties, including potential restrictions on its operations. The approved backup plan, in case the company fails to adhere to the settlement terms, involves a more rigorous restructuring of Binance’s operational and compliance procedures.
Chief Executive Officer of Binance, Changpeng “CZ” Zhao, has shared a report in which the exchange intervened in the theft of millions of dollars worth of crypto assets. Through a fast response operation, the Binance Global Head stated they were able to prevent the bad actors from making away with over 90% of the stolen loot.
Binance Confiscates $11.8 Million In Assets Belonging To Kidnapped Clients
In a Friday post on X, CZ stated that executives from one of Binance’s client companies were deceived into going on a business trip to Montenegro, during which they were kidnapped and forced to forfeit all assets in their crypto wallets.
Executives from a client were lured on a ‘business trip’ to Montenegro, where they were abducted and forced to empty their wallets. Total loss ~$12.5m.
We investigated the on chain activities and reached out to our partners earlier today to have the wallet frozen, as all of the…
In total, the Binance CEO stated that the bad actors were able to obtain approximately $12.5 million dollars worth of digital assets from their victims, which were all converted to USDT and moved to a TRON wallet.
However, Binance was able to quickly intervene in the matter, alerting their partners to the situation, who were then able to freeze the wallet. In doing so, Binance foiled the kidnapper’s access to $11.8 million of the $12.5 million loot.
The incident recounted by CZ is not a new occurrence in the crypto space, as sometimes bad actors resort to such brazen methods to steal crypto assets from investors.
In 2020, Le Duc Nguyen, a Vietnamese investor, was kidnapped and robbed of about VND 35 billion ($1.5 million) worth of crypto assets by another Vietnamese man named Ho Ngoc Tai with the help of 15 gang members.
Tai claimed that he lost 1,000 Bitcoins valued at VND 100 billion by investing in other tokens based on financial advice. The crypto investor felt cheated and proceeded to obtain a “refund” via forceful means.
Albeit, Tai and his hired hands were eventually apprehended by the police and faced trial in May 2023, during which 14 of the 16 culprits were given sentences ranging from 9 to 19 imprisonments.
CZ Faces Questions On Crypto’s Decentralization
Following Zhao’s account of the successful crypto asset recovery, some crypto enthusiasts raised concerns over Binance’s ability to freeze users’ assets at will, a feature synonymous with the fiat banking system.
I really condemn this loss and happy coz most of the money is safe but I have a question @cz_binance In fiat banks, everyone say that those guys can freeze money at any time without any reason How crypto is better if someone can still freeze our personal wallet??
However, the Binance boss stated that crypto users have a choice to avoid such occurrences, as assets can only be frozen on centralized exchanges (CEX). Using other forms of storage, such as non-custodial wallets, users’ assets are bound to remain inaccessible to any third party.
Sam Bankman-Fried takes the stand on FTX’s collapse
Sam “SBF” Bankman-Fried testified this week in his ongoing criminal trial in the Southern District of New York, denying any wrongdoing between FTX and Alameda Research while acknowledging making “big mistakes” during the companies’ explosive growth. Highlights of his testimony include denying directing his inner circle to make significant political donations in 2021, as well as claims that FTX’s terms of use covered transactions between Alameda and the crypto exchange. Additionally, Bankman-Fried testified that he requested additional hedging strategies for Alameda in 2021 and 2022, but they were never implemented. The trial is expected to conclude within the next few days.
‘Buy Bitcoin’ search queries on Google surge 826% in the UK
Google searches for “buy Bitcoin” have surged worldwide amid a major crypto rally, with searches in the United Kingdom growing by more than 800% in the last week. According to research from Cryptogambling.tv, the search term “buy Bitcoin” spiked a staggering 826% in the U.K. over the course of seven days. In the United States, data from Google Trends shows that searches for “should I buy Bitcoin now?” increased by more than 250%, while more niche searches, including “can I buy Bitcoin on Fidelity?” increased by over 3,100% in the last week. Zooming out further, the search term “is it a good time to buy Bitcoin?” saw a 110% gain worldwide over the last week.
US court issues mandate for Grayscale ruling, paving way for SEC to review spot Bitcoin ETF
The United States Court of Appeals has issued a mandate following a decision requiring Grayscale Investments’ application for a spot Bitcoin exchange-traded fund (ETF) to be reviewed by the Securities and Exchange Commission (SEC). In an Oct. 23 filing, the “formal mandate” of the court took effect, paving the way for the SEC to review its decision on Grayscale’s spot Bitcoin ETF. The mandate followed the court’s initial ruling on Aug. 29 and the SEC’s failure to present an appeal by Oct. 13. To date, the SEC has yet to approve a single spot crypto ETF for listing on U.S. exchanges but has given the green light to investment vehicles linked to Bitcoin and Ether futures.
Coinbase disputes SEC’s crypto authority in final bid to toss regulator’s suit
The U.S. Securities and Exchange Commission overstepped its authority when it classified Coinbase-listed cryptocurrencies as securities, the exchange has argued in its final bid to dismiss a lawsuit by the securities regulator. In an Oct. 24 filing in a New York District Court, Coinbase chastised the SEC, claiming its definition for what qualifies as a security was too wide, and contested that the cryptocurrencies the exchange lists are not under the regulator’s purview. The SEC sued Coinbase on June 6, claiming the exchange violated U.S. securities laws by listing several tokens it considers securities and not registering with the regulator.
Gemini sues Genesis over GBTC shares used as Earn collateral, now worth $1.6B
Cryptocurrency exchange Gemini filed a lawsuit against bankrupt crypto lender Genesis on Oct. 27. At issue is the fate of 62,086,586 shares of Grayscale Bitcoin Trust. They were used as collateral to secure loans made by 232,000 Gemini users to Genesis through the Gemini Earn Program. That collateral is currently worth close to $1.6 billion. According to the suit, Gemini has received $284.3 million from foreclosing on the collateral for the benefit of Earn users, but Genesis has disputed the action, preventing Gemini from distributing the proceeds. Genesis filed for bankruptcy in January. It had suspended withdrawals in November 2022, which impacted the Gemini Earn program.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $34,143, Ether (ETH) at $1,789 and XRP at $0.54. The total market cap is at $1.26 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Pepe (PEPE) at 72.08%, Mina (MINA) at 55.47% and FLOKI (FLOKI) at 53.33%.
The top three altcoin losers of the week are Bitcoin SV (BSV) at -10.27%, Toncoin (TON) -3.14% and Trust Wallet Token (TWT) at -0.82%.
“I should say, I am not a lawyer, I am just trying to answer based on my recollection. […] At the time [at] FTX, certain customers thought accounts would be sent to Alameda.”
“Without prejudging any one asset, the vast majority of crypto assets likely meet the investment contract test, making them subject to the securities laws.”
Gary Gensler, chair of U.S. Securities and Exchange Commission
“I do not believe there has been a single serious conversation regarding a settlement between Ripple […] and the SEC. The SEC is pissed and embarrassed and wants $770M worth of flesh.”
“He [Sam Bankman-Fried] thought he was going to take that money, and […] he would out-trade the market and put the money back and end up as a half-a-trillionaire, but it never works like that.”
Bitcoin beats S&P 500 in October as $40K BTC price predictions flow in
Bitcoin surfed $34,000 at the end of the week as attention turned to BTC price performance against macro assets. Data from Cointelegraph Markets Pro and TradingView showed BTC/USD holding steady, preserving its early-week gains.
The largest cryptocurrency avoided significant volatility as the weekly and monthly closes — a key moment for the October uptrend — drew ever nearer.
“I think Bitcoin will hang around this range for some time,” popular pseudonymous trader Daan Crypto Trades told X subscribers in one of several posts on Oct. 27. “Roughly $33-35K is what I’m looking at as a range. Eyes on potential sweeps of any of these levels for a quick trade,” he wrote.
FUD of the Week
UK passes bill to enable authorities to seize Bitcoin used for crime
Lawmakers in the United Kingdom have passed legislation allowing authorities to seize and freeze cryptocurrencies like Bitcoin if used for illicit purposes. Introduced in September 2022, the passed legislation aims to expand authorities’ ability to crack down on the use of cryptocurrency in crimes like cybercrime, scams and drug trafficking. One of the provisions of the bill permits the recovery of crypto assets used in crimes without conviction, as some individuals may avoid conviction by remaining remote.
Scammers create Blockworks clone site to drain crypto wallets
Phishing scammers have cloned the websites of crypto media outlet Blockworks and Ethereum blockchain scanner Etherscan to trick unsuspecting readers into connecting their wallets to a crypto drainer. A fake Blockworks site displayed a fake “BREAKING” news report of a supposed multimillion-dollar “approvals exploit” on the decentralized exchange Uniswap and encouraged users to visit a fake Etherscan website to rescind approvals. The fake Uniswap news article was posted on Reddit across several popular subreddits.
Kraken to suspend trading for USDT, DAI, WBTC, WETH and WAXL in Canada
Kraken will suspend all transactions related to Tether, Dai, Wrapped Bitcoin, Wrapped Ether and Wrapped Axelar in Canada in November and December. The suspensions may not surprise many Canadian cryptocurrency users, as they come on the heels of several other notable exchanges taking similar actions throughout 2023. OKX ceased operations in Canada in June after Binance announced its intention to do so in May.
5,050 Bitcoin for $5 in 2009: Helsinki’s claim to crypto fame
Grayscale files for new spot Bitcoin ETF on NYSE Arca
Major cryptocurrency investment firm Grayscale Investments has filed a new application with the U.S. Securities and Exchange Commission for a new spot Bitcoin exchange-traded fund (ETF). The new filing aligns with Grayscale’s ongoing effort to convert its Grayscale Bitcoin Trust into a spot Bitcoin ETF, according to a statement from the firm. The news comes weeks after Grayscale won an SEC lawsuit for its spot Bitcoin ETF review, with a court of appeals ordering the SEC to explain why it rejected Grayscale’s application in June 2023. The company also filed with the SEC to list an Ether futures ETF in September.
New York Attorney General sues Gemini, Genesis, DGC for allegedly defrauding investors
New York’s attorney general has filed a lawsuit against cryptocurrency firms Gemini, Genesis and Digital Currency Group (DCG) for allegedly defrauding more than 23,000 investors through the Gemini Earn investment program. The suit claims that Gemini assured investors that the program was a low-risk investment, while investigations carried out by the office of New York State Attorney General Letitia James found that Genesis’ financials “were risky.” The lawsuit also charges Genesis’ former CEO, Soichiro Moro, and its parent company’s CEO, Barry Silbert, with defrauding investors by attempting to conceal more than $1.1 billion in losses. In addition, the court case looks to ban Gemini, Genesis and DCG from operating in the financial investment industry in New York.
Former FTX engineering director faces up to 75 years in prison following guilty plea
Nishad Singh, the former engineering director at now-defunct crypto exchange FTX, faces up to 75 years in prison for charges related to defrauding users of the crypto exchange. He pleaded guilty to fraud charges as part of his cooperation agreement with the U.S. prosecutors. During his testimony this week, Singh said that when liquidity issues at FTX began in November 2022, he felt “suicidal for some days” while dealing with alleged inconsistencies between the exchange’s public statements and its activities behind the scenes. Singh also claimed that Bankman-Fried had the habit of deciding on purchases through Alameda Research by himself.
Binance shutting down European Visa debit card in December
Elon Musk, Mark Cuban team up to contest SEC trial strategies
Elon Musk, Mark Cuban and others have collaboratively submitted a shared amicus brief to the Supreme Court of the United States to raise concerns about the U.S. Securities and Exchange Commission’s (SEC) approach to conducting internal proceedings without the inclusion of juries. The context of this legal challenge centers around the SEC vs. Jarkesy case. George Jarkesy argues that the SEC’s internal adjudication process, which lacks a jury and is overseen by an administrative law judge appointed by the commission, contradicts his Seventh Amendment rights. Effectively resulting in a single entity fulfilling the roles of judge, jury and enforcer.
Winners and Losers
At the end of the week, Bitcoin (BTC) is at $29,590, Ether (ETH) at $1,607 and XRP at $0.52. The total market cap is at $1.12 trillion, according to CoinMarketCap.
Among the biggest 100 cryptocurrencies, the top three altcoin gainers of the week are Bitcoin SV (BSV) at 59.00%, Stacks (STX) at 25.91% and MX TOKEN (MX) at 25.26%.
The top three altcoin losers of the week are Conflux (CFX) at -8.03%, Frax Share (FXS) and Sui (SUI) at -6.35%.
“Using publicly available information to learn is not stealing. Nor is it an invasion of privacy, conversion, negligence, unfair competition, or copyright infringement.”
“After extensive DAO forum discussion followed by community vote, the sunsetting of the Lido on Solana protocol was approved by Lido token holders and the process will begin shortly.”
BTC price hits 2-month high amid bet Bitcoin will break $32K ‘soon’
On Oct. 20, data from Cointelegraph Markets Pro and TradingView captured new two-month Bitcoin highs of $30,233 on Bitstamp. BTC price showed continued strength during the Asia trading session on the same day, with a slight comedown taking the spot price back below $29,500.
With volatility still evident, market participants argued that a weekly candle close was needed in order to establish the rally’s true staying power. For Keith Alan, co-founder of monitoring resource Material Indicators, the 100-week moving average (MA) at $28,627 was of particular importance.
“This move is one to watch, but what I’m watching for right now is to see if this Weekly candle closes above the 100-Week MA and if next week’s candle can stay above it with no wicks below,” Alan wrote in part of an X post on the day. “Some might consider that a confirmation of a bull breakout, but this market is known for squeezes and fake outs so I’m looking for more confirmations. For me BTC will also need to take out prior resistance at $30.5k, $31.5k and ultimately $33k to call a bull breakout confirmed and validated.”
FUD of the Week
Fantom Foundation hot wallet hacked for $550K
The Fantom Foundation, the developer of the Fantom network, has been hacked for over $550,000 worth of cryptocurrency. The foundation confirmed the attack on X, claiming that most of the funds stolen belonged to other users and that 99% of the foundation’s funds remain safe. Blockchain security researchers initially reported that the attacker stole approximately $7 million in crypto. The Fantom Foundation later released an official statement saying that some of the wallets labeled “Fantom: Foundation wallet” were mislabeled by block explorers and that not all the stolen funds were from the foundation.
TrueCoin’s third-party vendor breach potentially leaks TUSD user data
TrueUSD (TUSD) announced a potential leak of certain Know Your Customer (KYC) and transaction history data after one of TrueCoin’s third-party vendors was compromised. The company was the operator of the TUSD stablecoin until July 13, 2023. The impact of the attack and the resultant data leak is yet to be identified, as the total number of users’ data was not revealed during the announcement. Data collected from such breaches — names, email addresses and phone numbers, among others — are typically used for phishing attacks. Attackers reach out to unwary investors by mimicking various crypto services, often promising high profits in short amounts of time.
Web3 game project allegedly hired actors to pose as executives in $1.6M exit scam
The development team for gaming project FinSoul carried out an alleged exit scam, siphoning away $1.6 million from investors through market manipulation, according to a recent report from blockchain security platform CertiK shared with Cointelegraph. The FinSoul team allegedly hired paid actors to pretend to be its executives, then raised funds for the sole purpose of developing a gaming platform. However, instead of actually creating the platform, the FinSoul team allegedly transferred $1.6 million in bridged Tether from investors to itself. Blockchain data indicates developers then laundered the funds through cryptocurrency mixer Tornado Cash.
Big Questions: What did Satoshi Nakamoto think about ZK-proofs?
What was once a passing interest of Bitcoin inventor Satoshi Nakamoto, zero-knowledge-proof technology is now a major part of the crypto world.
Ethereum restaking: Blockchain innovation or dangerous house of cards?
“Restaking” involves reusing staked Ether to earn fees and rewards. The restaked tokens can then help secure and validate other protocols. But many fear restaking could disrupt Ethereum’s chain itself.
Bitmain’s revenge, Hong Kong’s crypto rollercoaster: Asia Express
Bitmain allegedly fires staff for speaking out against salary cuts, Hong Kong investors lose faith in crypto after JPEX scandal, Bitget gets a new crypto credit card and more.
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Sam Bankman-Fried, the former billionaire facing a litany of criminal charges for alleged fraud in his now-bankrupt exchange FTX and the now-defunct trading firm Alameda Research, made his first public comments of 2023 on Thursday.
Before he was arrested Monday in the Bahamas, disgraced FTX founder and former CEO Sam Bankman-Fried was planning to testify before Congress on Tuesday about the dramatic collapse of his cryptocurrency exchange.
The chief executive of dominant cryptocurrency exchange Binance called for new but stable and clear regulations for the industry in light of recent developments and participants “cutting corners”.
“We’re in a new industry, we’ve seen in the past week, things go crazy in the industry,” Changpeng Zhao told a gathering of G20 leaders at a summit in Bali. “We do need some regulations, we do need to do this properly, we do need to do this in a stable way.”
His comments come as crypto industry peers and partners outline steps to deal with the collapse of Sam Bankman-Fried’s rival exchange, FTX. FTX filed for bankruptcy on Friday after a week of seeing customers pull assets and Binance abandoning a rescue offer.
“I think the industry collectively has a role to protect consumers, to protect everybody. So it’s not just regulators. Regulators have a role but it’s not 100 per cent their responsibility,” Zhao said.
On the weekend, he had tweeted that Binance had stopped accepting deposits of FTX’s FTT token on its platform, and urged other exchanges to do the same.
Zerodha founder and CEO Nithin Kamath has hailed the Indian capital market infrastructure and regulations and said the entire system does not get enough credit for being among the best globally. In a LinkedIn post that has gone viral, Kamath talked about the crypto world and that brokers and exchanges can act as banks in most markets.
He added, “In India, all securities are held by the customer at the depository. All unused funds are sent back monthly/quarterly and one client’s funds can’t be used to fund another. In most markets, brokers can hold customer securities and funds indefinitely and use them any way they want.”
The Zerodha founder went ahead and commended the Securities and Exchange Board of India (SEBI) for their efforts aimed at protecting the interests of the retail investors by reducing risks and making markets safer.
Kamath’s comments come after a deal between crypto exchanges FTX and Binance collapsed. The deal was touted as an emergency rescue in the world of cryptocurrencies as investors pulled their money back from risky assets.
Binance said in a statement accessed by news agency Reuters, “As a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations, we have decided that we will not pursue the potential acquisition of FTX.com.”
After this, FTX CEO Sam Bankman-Fried said in a message to employees, “I’m working, as quickly as I can, on the next steps here. I wish I could give you all more clarity than I can.”
Meanwhile, cryptocurrency market-cap saw a decline of 7.82 per cent to $835.16 billion. Key tokens such as Bitcoin and Ethereum also fell to $16,612.50 and $1,181.61 respectively. Market cap of Bitcoin and Ethereum stands at $319.67 billion and $145.09 billion at the time of writing this story, according to coinmarketcap.com.
