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Tag: Changpeng Zhao (CZ Binance)

  • CZ Returns to US for Trump-Backed Crypto Event

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    The event hosted at Mar-a-Lago blended politics and digital assets, signaling deeper ties between industry and power brokers.

    Former Binance CEO Changpeng Zhao (CZ) returned to the United States this week for the first time since his release from a California federal prison in 2024.

    The visit took place at Mar-a-Lago in Palm Beach, Florida, where Zhao attended a 500-person convention hosted by the Trump family-backed World Liberty Financial.

    CZ Makes Appearance at Crypto Event

    A Wall Street Journal (WSJ) report revealed that the gathering brought together prominent figures from finance, technology, and entertainment.

    Guests included Goldman Sachs CEO David Solomon, New York Stock Exchange president Lynn Martin, “Shark Tank” personality Kevin O’Leary, and Coinbase founder Brian Armstrong, who had also attended a smaller VIP dinner on Tuesday evening alongside Trump’s sons and CZ. Rapper Nicki Minaj, who has publicly supported the Trump administration, also held a “fireside chat” on that day.

    Posting on X during the occasion, Zhao shared a photo of himself listening to a top federal crypto regulator, writing, “Learned a lot.”

    CZ, whose crypto exchange has been barred from operating in the U.S. since 2023 for violating anti-money-laundering rules, pleaded guilty to a related charge that same year. He was then sentenced in April 2024 to four months in prison and officially released in late September after serving his term.

    Later in October 2025, the crypto entrepreneur received a presidential pardon from President Donald Trump. During a recent interview on the “All-In” podcast, Zhao said he “didn’t do anything” to secure the clemency but noted that it could help the exchange resume its efforts to return to the American market.

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    World Liberty Unveils Ambitious Crypto Vision

    World Liberty’s leadership used the occasion to lay out its vision for the cryptocurrency industry. CEO Zach Witkoff described the company’s goal as creating a “new digital Bretton Woods system,” referencing the 1944 conference that established a post-war economic order.

    His co-founders, the Trump sons, talked about the scale of the event, with Donald Trump Jr. joking about how much it would have been unimaginable a year ago. Meanwhile, Eric Trump compared it to the World Economic Forum in Davos, Switzerland, saying it offered “better hospitality, better food, better weather, better group of people, less wokeness.”

    The firm also promoted its stablecoin, USD1, and outlined plans to sell digital tokens that would give accredited investors a share of loan revenues from a Trump resort under development in the Maldives.

    The president’s sons also addressed questions about foreign investment in World Liberty, including a $500 million deal with a senior Abu Dhabi royal, stressing that such moves are standard in global finance and unrelated to government agreements.

    Several other Trump administration officials were also in attendance, including Commodity Futures Trading Commission (CFTC) Chairman Michael Selig and Under Secretary of State for Economic Affairs Jacob Helberg.

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    Wayne Jones

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  • CZ Says Buy-and-Hold Isn’t for Every Token After Trader Backlash

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    CZ defended buy-and-hold as his personal strategy, saying critics twisted his words and ignored the need for careful coin selection.

    Former Binance CEO Changpeng “CZ” Zhao has defended his long-standing buy-and-hold stance after critics accused him of misleading retail traders and promoting harmful market behavior.

    The advice has ignited a fierce debate, showing how the crypto entrepreneur’s words still move sentiment and attract scrutiny, even without a formal role at Binance.

    Buy-and-Hold Remarks Spark Backlash and Clarifications

    Zhao’s latest comments followed an earlier January 25 post where he said few trading strategies beat buy-and-hold and added that it is his own approach, while stressing it was not financial advice.

    The message drew pushback from users who argued that blanket buy-and-hold messaging ignores the high failure rate of crypto projects.

    The Binance co-founder followed this on January 28 with clarifications, noting that the advice “obviously does not apply to every coin” and suggesting his comments were being twisted by fear, uncertainty, and doubt.

    He also compared crypto to earlier tech cycles, where most startups failed while a small number delivered large gains. “If you ‘buy and hold’ all crypto ever created, you know how your portfolio will perform,” CZ said, arguing that selection matters and that investors should research projects rather than buying everything listed on an exchange.

    Furthermore, the 48-year-old pushed back against claims that exchanges should only list assets with near-certain success. Responding to a Chinese-language post, he asked whether Nasdaq should have listed only the top internet companies in 1990, noting that future winners were impossible to predict at the time. He added that giving early-stage projects a chance does not mean investors must buy them.

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    Old Allegations Return as Supporters and Critics Clash

    The debate widened as long-running accusations against Zhao resurfaced. Recently, trader StrongHedge called CZ “crypto’s biggest scammer” in a lengthy thread on X, repeating claims about past market manipulation, token listings, and Zhao’s 2023 U.S. conviction related to compliance failures. Crypto podcaster Leonidas echoed the criticism, accusing CZ of extracting large sums from the market and urging others to expose him.

    However, these claims reflect opinions on social media and have not been proven in court beyond Zhao’s earlier plea agreement.

    Others defended the crypto personality. User Zafer Erel countered that CZ had helped onboard millions of users, frozen scam-related funds, and donated to disaster relief and research rather than running off with customer assets.

    The clash has come shortly after Zhao warned traders not to treat his jokes as investment signals. In a January 13 post, he said meme coins inspired by his offhand remarks were likely to end in losses, a message that again split Crypto Twitter between those blaming influencers and those questioning exchange practices.

    Overall, the divide highlights a core tension in crypto: the philosophy of open permissionless listing versus calls for stricter quality gates to filter out potential scams.

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  • CZ’s Attorney Slams Media Over ‘Trump Pardon for Crypto Favors’ Narrative

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    CZ’s lawyer, asserted his pardon was due to him being improperly prosecuted, dismissing media narratives about “Trump Pardon for Crypto Favors.”

    In a recent appearance on Anthony Pompliano’s podcast, Teresa Goody Guillén, Binance founder Changpeng Zhao’s lawyer, discussed the presidential pardon he recently received.

    The conversation focused on why the pardon was granted, how the process worked, and the many rumors circulating online.

    Guillén Addresses Public Controversy

    The lawyer explained that CZ was accused of failing to implement proper anti-money laundering programs and compliance systems at Binance, but emphasized that this was a regulatory issue, not a criminal offence, and that no illegal activity had taken place. “He was pardoned because he should not have been prosecuted in the first place,” she said, adding that the pardon statement from President Trump proved that he had not committed any crime.

    Guillén described CZ as the only individual ever prosecuted for such regulatory violations, noting that this treatment was inconsistent with how executives at large financial institutions are typically handled. She also believes that the Binance founder became a target in what she described as part of regulators’ “war on crypto,” particularly in the aftermath of the FTX collapse.

    Explaining the pardon process, the legal professional said applications usually undergo extensive review by multiple offices, including the Department of Justice, the Office of the Pardon Attorney, and the White House Counsel, before the president makes the final decision. She rejected claims of a “quid pro quo” or corruption, describing such speculation as based on misinterpretations and unverified sources.

    The attorney also addressed misunderstandings regarding CZ’s business relationships, including links to firms like World Liberty Financial, clarifying that these connections have been widely misread. Guillén added that political statements, such as those made by Senator Elizabeth Warren, were inaccurate and showed how much influence public officials have over perception.

    Zhao’s Return to Binance

    Guillén has also confirmed that Zhao will not return to the company at this time, as Binance continues to operate under restrictions from multiple U.S. agencies, including the Department of JUSTICE (DOJ), the Commodity Futures Trading Commission (CFTC), and the Treasury Department. She explained that these measures remain in place despite the absence of fraud, victims, or a criminal record, limiting Binance’s operations in the U.S. market.

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    The lawyer concluded that while the pardon clarified the accusations against CZ, the broader consequences have affected him and the exchange, while the U.S has lost access to the liquidity and opportunities that come from hosting one of the world’s largest crypto platforms. Meanwhile, she also praised Zhao for remaining calm and positive throughout the ordeal, saying that he handled media scrutiny and public criticism with composure.

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  • After Pardoning CZ, Trump Insists He Doesn’t Know the Man

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    The POTUS said his sons were behind the decision.

    US President Donald Trump made some controversial comments on his own recent decision to pardon Binance’s founder, Changpeng Zhao.

    In a recent 60 Minutes interview, he claimed that he didn’t know who CZ was, but he pardoned him because he “heard” his case was a “Biden witch hunt.”

    When pressed by host Norah O’Donnell on why he freed a man whom he didn’t know, the POTUS said:

    “Well, here’s the thing. I know nothing about it because I’m too busy doing other… 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 are running a business, they are not in government.”

    According to a full CBS transcript of the interview, Trump avoided a question about potential corruption on the matter, given his family’s broader involvement with the cryptocurrency industry, and added, “I’m not concerned. I’d rather not have you ask the question.”

    The President’s claims are controversial, to say the least, given the recent history between Binance and the crypto businesses run by his family. Recall that the exchange facilitated a $2 billion purchase of World Liberty Financial’s stablecoin a few months back.

    Trump’s initial decision to pardon CZ led to an immediate backlash from Democrat Sen. Elizabeth Warren, who condemned the move. Binance’s founder fought back, accusing her of misrepresenting the nature of the charges against him.

    CZ warned Warren to retract her statements or face legal consequences. On Sunday, the Senator’s lawyers rejected the defamation threat, stating that her post was factually correct.

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    “Senator Warren’s post is true in all respects and therefore cannot be defamatory. Senator Warren accurately represented publicly available and widely reported facts. The “charge” referenced in Senator Warren’s X post refers to the “charge” to which Mr. Zhao pled guilty and as to which President Trump had just pardoned him,” reads the statement.

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  • Two-Thirds of BNB Supply Held by the Public, CZ Owns Less Than 1%: YZi Labs

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    New data revealed that public holders dominate BNB’s distribution.

    Blockchain analytics firm YZi Labs has reported that Binance Coin (BNB) ownership has become widely “dispersed” across the network.

    More tokens have moved into self-custody and exchange-held public wallets.

    BNB’s Ownership Profile

    According to YZi Labs’ latest data, roughly 66-67% of BNB’s total supply is held by public participants, including exchange users and those in self-custody wallets. Around 27% of the supply is controlled by the BNB Foundation, which maintains a burn reserve used for programmatic token burns, a mechanism designed to reduce supply and reinforce BNB’s deflationary model gradually.

    Meanwhile, Binance’s treasury accounts for about 4-5% of circulating BNB, which serves operational and custodial functions. Binance founder Changpeng “CZ” Zhao personally holds less than 1% of the total supply.

    YZi Labs held that the largest labeled wallets are primarily associated with burn, operational, or custody purposes, rather than control or speculative holdings. The firm said this distribution structure suggests that BNB has evolved into a broadly held, transparent asset, and a majority of its supply is managed through open, on-chain mechanisms rather than centralized ownership.

    In terms of its price action, BNB traded mostly between $1,000 and $1,300 over the past month, and faced significant volatility but maintained a generally sideways trend. The token started the month near $1,008, and rose sharply in the first half of October to reach an all-time high above $1,300. However, this rally was followed by a steady correction as prices declined toward the $1,050-$1,100 range.

    Even as BNB struggled to regain its earlier highs, the token’s exposure to US markets appears to be expanding as new financial instruments such as BNB digital asset treasuries (DATs), ETFs, and listings on major exchanges like Robinhood and Coinbase provide indirect access for US-based participants.

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    These developments allow investors to gain exposure to BNB using fiat currencies without direct purchases.

    CZ’s Comeback

    In a related development, CZ was recently granted a “full and unconditional” pardon by US President Donald Trump, a move many industry observers believe could ease certain regulatory constraints for Binance tied to past US government cases. However, the pardon quickly sparked controversy.

    US Senator Elizabeth Warren labeled the decision as “corruption” and alleged that he had financed Trump-linked crypto ventures before seeking clemency. CZ denied the accusations and clarified that there were no money laundering charges, only a Bank Secrecy Act violation, and accused Warren of spreading misinformation. He also suggested that political bias under the Biden administration had influenced his prosecution.

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  • CZ Fires Back at Peter Schiff’s Latest Bitcoin Criticism

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    CZ hits back at Peter Schiff’s “brutal bear market” warning, dismissing the gold advocate’s Bitcoin criticism as short-sighted and historically insignificant.

    Binance co-founder Changpeng Zhao (CZ) has pushed back against Peter Schiff’s latest prediction for Bitcoin.

    This is after the economist’s recent warning of a “brutal” bear market looming over the digital asset.

    Critic Mocks BTC’s Fall

    Schiff, a well-known Bitcoin critic, said via X that the cryptocurrency’s 32% decline since August against gold shows that investors are losing confidence in its long-term value.

    “Gold is eating Bitcoin’s lunch. Bitcoin is now down 32% priced in gold since its August high. This Bitcoin bear market will be brutal,” he wrote.

    He further encouraged holders to sell their “fool’s gold” and buy the real asset, claiming that those who failed to do so would suffer losses.

    CZ responded to Schiff’s latest prediction with sarcasm, referring to it as “Peter revenge.” He explained that while his argument might be right in the short term, such occurrences represent only about 1% of Bitcoin’s 16-year history. During that period, the cryptocurrency has risen from $0.004 to $110,000 despite occasional declines against the metal.

    Joe Hill joked that the gold advocate is “stuck in the 1970s,” suggesting that the metal could face a bear market if the leading cryptocurrency declines. Meanwhile, popular trader The Bitcoin Therapist said he is considering selling his digital holdings to move entirely into gold and is seeking guidance.

    Tony Edward, founder of the Thinking Crypto Podcast, argued that an upcoming liquidity rotation could allow Bitcoin and the wider crypto market to outperform these traditional assets.

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    The “De-Bitcoinization” Trend

    Schiff’s latest remarks come after Bitcoin’s recent underperformance compared to gold. The cryptocurrency peaked at around $126,000 in early October but fell to about $105,000 today, a 17% drop in USD terms. Against gold, the decline was even steeper, with it losing 32% of its value from August to today. On the other hand, the metal climbed to a record high of $4,300 per ounce.

    He described the current trend as a “de-bitcoinization” and “de-dollarization,” referring to a weakening of the narratives that once presented the flagship cryptocurrency as a better alternative to traditional stores of value like gold and currencies like the U.S. dollar.

    This is part of ongoing commentary from the financial commentator who saw him challenge the cryptocurrency’s narrative as ‘digital gold.’ Schiff believes that Bitcoin’s price trajectory is a warning that it is in a deeper bear market.

    The digital asset is currently trading around $106,025. This marks an over 12% drop in the past week and nearly 16% below its August all-time high.

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  • Smart Money Pours Into BNB Chain as Developer Activity Accelerates

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    Smart money is flowing into BNB Chain, with on-chain data showing over $700,000 invested in new projects within 24 hours.

    The network is also experiencing a surge in developer activity and infrastructure improvements, which analysts believe could position it to compete with networks like Base and Solana.

    Strong Token Inflows And Increased Activity

    Blockchain analytics platform Nansen shared via X that investors have been making “smart money” moves on BNB Chain in the last day. The ecosystem has recorded notable inflows over the period, with several tokens showing positive movement despite some volatility.

    STBL led the gains with a 33% increase, attracting $602,000 in new capital, while $BTCB remained steady but added $41,000. WOD continued to trade in the red, yet still drew $22,000. On the other hand, TRAD00R registered a 12% gain with $120,000 in inflows, while PROVE saw a more modest flow of $7,700.

    Analysts say that these token movements show a growing belief among traders that the BNB Chain is capable of competing with players like Base and Solana. Elsewhere, statistics indicate that the network is actually running at under 30% of its capacity, which means that there remains unused potential for transaction throughput growth.

    The network has also experienced an influx in developer activity, with new dApps, connectors, and AI-powered platforms being deployed across the ecosystem. Infrastructure improvements like Parallel EVM, gasless stablecoin transactions, and MEV protection have helped the platform become more efficient at processing higher volumes of transactions without losing performance.

    The current architecture is projected to handle three times more state data while enabling faster block times. Validators have also proposed reducing gas fees from 0.1 Gwei to 0.05 Gwei, which would lower transaction costs to around $0.005 and rank BNB Chain among the most affordable networks in the industry. Similar measures have proven effective before, with the April 2024 fee cut driving a 75% decline in median costs and a 140% increase in daily transactions.

    BNB Price Outlook

    Binance Coin (BNB) recently crossed the $1,000 mark, peaking at $1,079 before stabilizing around  $1,025. This milestone coincides with a $2.37 billion surge in open interest on BNB futures, which shows greater investor activity.

    Meanwhile, RSI hovers between 74 and 81, while  the MACD line remains above the signal line, showing strong bullish momentum. However, there are also early signs of divergence suggesting the rally may be entering a more fragile phase.

    CZ is already forecasting stellar long-term returns for BNB, but analysts advise that user and developer growth, and consistent smart capital inflows, are more vital for the project’s survival in the near future.

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  • ASTER Emerges as Top Trending Token on CoinGecko

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    Aster (ASTER) has emerged as a top trending token on CoinGecko, with its value surging over 2,400% since its launch.

    The project’s popularity is fueled by its Season 2 points program and key endorsements from industry figures, including former Binance CEO Changpeng Zhao (CZ).

    ASTER Climbs Rankings

    The crypto data aggregator reported via X that XLP has achieved the top spot on CoinGecko after a recent airdrop valued at about $10,000 was distributed to holders. Close behind on the rankings are the perpetual tokens ASTER and AVNT.

    ASTER is the native token of a decentralized perpetual futures exchange by the same name that’s challenging Hyperliquid’s dominance in the sector. It runs on multiple blockchains, including Ethereum and Solana, but it primarily exists on the BNB Chain.

    ASTER is trading at around $1.78 today, down by 15.3% in the last 24 hours, but remains up by over 181% over the last week. Since its launch on September 17, the coin’s value has surged by over 2,400%, pushing its market capitalization above $2.9 billion and securing the 50th position on CoinGecko.

    Aster has been around for over a year, but activity on the platform exploded following the launch of its native token. Since then, the exchange has overtaken Hyperliquid in key metrics. DefiLlama data shows that it reported $35.86 billion in daily perpetual trading volume, surpassing its rival’s $17.16 billion.

    The strong performance has attracted new traders who see the platform’s liquidity as a competitive advantage. On-chain data reveals that whales have been accumulating ASTER steadily since last week, with more than $48 million invested in the token. Separately, another large holder recently pocketed $7 million in profits from an initial outlay of $300k.

    Why Aster Is Exploding in Popularity

    Part of the excitement is coming from the project’s community push around Season 2 of its points farming program. The campaign rewards users for trading, referrals, and margin usage. Crypto analyst Shawn shared on X that only 4% of tokens are released in this round, but participation is already 30 times higher than in Season 1.

    Aster has also received backing from prominent figures in the crypto industry, including Binance founder Changpeng Zhao (CZ), who has publicly endorsed the project and promoted it on his X account. The platform is also supported by YZi Labs, Zhao’s private investment firm, which provides mentorship, technical support, and marketing exposure.

    Additionally, crypto trader James Wynn has promoted Aster as a superior product to its competitor Hyperliquid. Wynn noted that its counterpart is facing a “slow and painful death” as the newer perpetuals DEX gains ground in the industry.

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  • CZ Warns Crypto Firms of North Korean Hacker Threats

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    Binance founder Changpeng Zhao (CZ) has issued a warning to crypto projects about North Korean hackers.

    He detailed how the group is using increasingly sophisticated tactics to gain access to companies.

    Operatives Are Exploiting Hiring Process

    CZ shared his concerns via a September 18 X post, describing the hackers as “advanced, creative, and patient.” He explained how the most common method used by these individuals involves posing as job candidates to secure roles in companies, particularly in developer, security, and finance positions, giving them a “foot in the door.”

    In other cases, the group poses as employers and attempts to interview staff, using the process to distribute malware. Zhao noted that during these sessions, the attackers often claim there is a problem with Zoom and then send a link to an “update” carrying a virus, or they provide coding questions followed by “sample code” embedded with malware.

    Another tactic involves pretending to be users who file customer support requests containing malicious links. CZ added that hackers also pay or bribe employees and hired vendors to gain access to data, pointing to a recent case in India where an outsourcing service was compromised, resulting in the leak of data from a major U.S. exchange and losses exceeding $400 million.

    This alert follows the release of a report by cybersecurity group Security Alliance (SEAL), profiling over 60 impostors linked to North Korean operations. The report says that these attackers built fake LinkedIn profiles, set up GitHub portfolios, and used forged government IDs to make their applications look real.

    Shift in Methods

    North Korean hackers have always been a major threat in the crypto industry, with over $1.3 billion worth of assets stolen in 2024 alone. Traditionally, they have relied on phishing, malware, and private key compromises to loot from exchanges. However, recent reports suggest they are moving towards targeting human resources.

    A separate investigation by ZachXBT also uncovered how a small DPRK team of five IT workers operated over 30 fake identities at crypto firms. Elsewhere, Coinbase also recently reported a similar threat from these bad actors. The exchange shared that they are increasingly targeting their remote worker policy to infiltrate sensitive systems.

    CEO Brian Armstrong has since announced changes to the company’s internal security protocols, including mandatory in-person onboarding in the U.S., fingerprinting, and U.S. citizenship requirements for employees with system-level access. The exchange also introduced stricter interview procedures, such as requiring cameras to remain on, to prevent impersonation and AI-assisted coaching.

    In light of the growing threat to the job market, CZ has urged crypto platforms to train their employees not to download files and to screen potential candidates carefully.

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  • CryptoQuant CEO Ki Young Ju Backs Former Binance CEO Changpeng Zhao as Release Nears

    CryptoQuant CEO Ki Young Ju Backs Former Binance CEO Changpeng Zhao as Release Nears

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    Ki Young Ju, the CEO of blockchain analytics firm CryptoQuant, has expressed his support for former Binance CEO Changpeng Zhao (CZ) as his four-month prison sentence nears its conclusion.

    Zhao began serving his sentence in June 2024 after admitting to breaches of the US Bank Secrecy Act (BSA).

    Ki Young Ju’s Statement

    His guilty plea involved not preventing money laundering on Binance, resulting in a $4.3 billion penalty for the company and a $50 million fine for Zhao himself. His imprisonment, which started in June 2024, will end on September 29.

    In a recent statement posted on X, the CryptoQuant CEO acknowledged the Binance executive’s mistakes while also emphasizing his contributions. “Don’t underestimate CZ. He deserves respect,”  he wrote, elaborating on the broader societal perspective.

    The statement noted that when an industry’s intrinsic value falls short of the capital it has absorbed, society tends to view this as a “sin.” In such scenarios, the most influential figures are often held responsible for the industry’s shortcomings.

    He further explained that the crypto sector, like other young and immature ones, has faced its share of “growing pains,” including rampant crime like hacks and frauds, which have hurt its growth. In his view, Zhao has become a scapegoat for some of the industry’s failings, but this should not overshadow his role in its development.

    “While he has certainly made mistakes, his detention also carries a vicarious element, representing the industry’s growing pains.” He concluded by acknowledging that without Binance, the crypto space would not have attracted the global liquidity it benefits from today.

    Community Backlash

    Meanwhile, there has been some backlash from the community following the statement. BlockTower Capital’s Ari Paul alleged that CZ  committed all the same crimes as Sam Bankman-Fried and that he was only spared a harsher sentence due to fears of his ability to bribe foreign governments and the value of the information he could provide to authorities.

    He also claimed that CZ’s actions had “ruined a lot of lives,” leading to the “vanishing” of several Binance executives, and had caused significant harm to the industry as a whole.

    However, Ju has countered these accusations, stating that the exchange never used customer funds and that on-chain data shows the differences in wallet management between Binance and FTX. He also pointed out that the exchange’s CEO was not charged with using customer funds but rather with abetting money laundering.

    “If CZ were truly the criminal you’re suggesting, the authorities wouldn’t have released him, even if a deal had been offered, as you mentioned.”

    Ju also argues that the suspicion surrounding Binance is similar to the FUD (fear, uncertainty, and doubt) surrounding Tether, as there is no conclusive evidence to support the accusations.

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  • These American States Have Asked Binance.US to Cease Services: WSJ

    These American States Have Asked Binance.US to Cease Services: WSJ

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    Following the guilty plea of Changpeng Zhao (CZ), founder and former CEO of crypto exchange Binance, in November 2023, several American states have asked the local arm of the trading platform to refrain from servicing their residents.

    The Wall Street Journal reported that authorities in Florida and Alaska recently instructed Binance.US to cease its services in the regions.

    Florida and Alaska Restrain Binance.US

    Recall that the Department of Justice (DOJ) announced a $4.3 billion settlement with Binance late last year, but the exchange refrained from pleading guilty to willfully floundering the Bank Secrecy Act, among other charges. At the same time, CZ pleaded guilty to failing to implement a strong anti-money laundering (AML) program on the platform, accepting to pay a $50 million fine and resign from the CEO position.

    Besides stepping down as Binance’s CEO, CZ also exited his role as chairman of Binance.US’ board of directors and transferred his voting rights to Norman Reed, the firm’s chief executive. Following the changes, CZ’s interest in the exchange’s American arm became purely economic as the company became independent of its global business.

    Despite all said and done, regulators in Florida and Alaska said CZ’s guilty plea has made him unsuitable to control Binance.US as he still holds approximately 80% of the firm’s shares.

    Within a week after the guilty pleas, the Florida Office of Financial Regulation issued an emergency suspension order against Binance.US’ money services business license, stating that the continued operation of the platform constituted “an immediate serious danger to the public health, safety, and welfare.”

    CZ to Be Sentenced Next Month

    Furthermore, the Alaska Division of Banking and Securities denied the renewal of Binance.US’ money transmitter license earlier this month because the exchange’s ownership structure did not meet the requirements for renewal.

    It is worth mentioning that regulators in Arkansas, Illinois, and South Dakota reached an agreement with Binance.US in December concerning the firm’s continued operation in the states. The settlement requires the exchange to secure a depository account at a federally insured banking institution and make the transfer of CZ’s voting rights irrevocable no later than June 30, 2024.

    Meanwhile, CZ has been confined to the U.S. until his sentencing next month despite being released on a $175 million personal recognizance bond after his guilty plea and offering his $4.5 billion equity in Binance as collateral.

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  • Court Rejects Binance Founder CZ Travel Request Despite $4.5B Equity

    Court Rejects Binance Founder CZ Travel Request Despite $4.5B Equity

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    Changpeng Zhao, the founder of the crypto exchange Binance, encountered a setback last month when a federal judge denied his request to travel to the United Arab Emirates.

    CZ proposed using his substantial $4.5 billion stake in Binance as collateral, based on the company’s valuation from its last fundraising round two years ago. However, the Judge still rejected the request.

    Zhao Requests Travel Permission

    In November, Zhao pleaded guilty in a Seattle federal court for failing to maintain an effective anti-money laundering program at the world’s largest crypto exchange. Binance, in response, agreed to pay $4.3 billion in penalties related to the case.

    Following his guilty plea, Zhao stepped down as CEO, and his sentencing is scheduled for February 23. Despite the guilty plea, Zhao has remained free in the U.S. on a $175 million release bond. His lawyers submitted a letter requesting permission from Judge Jones to allow him to travel to Abu Dhabi from January 4 for one to four weeks.

    The purpose of the travel was to be present for the hospitalization, surgery, and subsequent recovery of an individual whose identity is redacted in the filed letter.

    Notably, the details of the medical procedure were also concealed, and it was highlighted that federal prosecutors had not given their consent to Zhao’s travel request.

    Concerns About Flight Risk

    Judge Jones’ recent denial followed a previous rejection of another request for Zhao to travel to the UAE in December. The Judge justified the decision, citing Zhao’s “enormous wealth” as a substantial flight risk. In an order issued on December 7, Judge Jones stated that his family resides in the UAE, and it appears he has favored status there.

    The Judge expressed concerns that Zhao had not demonstrated, by clear and convincing evidence, that he would not be likely to flee if allowed to return to the UAE. Despite the denial, Zhao remains bond-free, with the restriction that he cannot travel outside the United States.

    This contrasts with the case of former Celsius CEO Alex Mashinsky, who was arrested in July and is free on a $40 million bond. Additionally, former FTX CEO Sam Bankman-Fried, initially allowed to stay in his parents’ California home after extradition to the U.S. in 2022, was later ordered remanded due to allegations of witness intimidation.

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  • Binance Co-Founder Yi He Holds Minimum 10% Stake in Cayman Islands Holding Company: WSJ

    Binance Co-Founder Yi He Holds Minimum 10% Stake in Cayman Islands Holding Company: WSJ

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    Binance co-founder Yi He held at least a 10% share in Binance’s Cayman Islands holding company, according to a new report by WSJ.

    A former talk-show host, Yi He, reportedly holds significant influence over the marketing and investment sectors of the company. She also assumes the role of the largest shareholder within the firm in the absence of CEO Changpeng “CZ” Zhao.

    Yi He’s Influence on Binance

    The WSJ report made several interesting claims, including Yi He proposing a project to establish a movie studio akin to Netflix and envisioning a Marvel Cinematic Universe-style series featuring early Binance employees as heroes. However, this idea was ultimately abandoned.

    Under her leadership, Binance instead launched “Build the Block,” a series resembling “Shark Tank,” where crypto entrepreneurs pitched for Binance investment. The show featured computerized avatars for contestants and judges, marking it as the first metaverse-based reality show. Despite Yi He’s involvement as a guest judge in the debut episode, the show faced challenges, and a producer assigned to it was laid off.

    Throughout 2022, Yi He advocated for a Binance project selling digital identities from Palau to outsiders for $248, aiming to provide access to the firm’s trading platform for residents in countries where it was restricted. Despite warnings of reputational and legal risks, she persisted in pursuing the plan, aiming to create a backdoor for Chinese users. The company later claimed not to have proceeded with any partnership after conducting due diligence.

    CZ Not Allowed to Leave United States

    Yi He appears to be steadily inching closer to the spotlight. CZ, on the other hand, is still not allowed to leave the United States as ordered by a federal judge, pending his sentencing hearing.

    During a hearing on December 29 in the U.S. District Court for the Western District of Washington in Seattle, Judge Richard Jones rejected a request from CZ to travel abroad. The specific grounds for this second motion were undisclosed to the public, as the court sealed the information, but the former Binance CE’O’s legal team hinted that it was related to “medical information regarding Mr. Zhao’s child.”

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  • Arthur Hayes Speaks Out Against American Authorities’ Treatment of Changpeng Zhao

    Arthur Hayes Speaks Out Against American Authorities’ Treatment of Changpeng Zhao

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    Arthur Hayes, the founder of the BitMEX crypto exchange network, issued a statement expressing his perspective on the unfair treatment of Changpeng Zhao (CZ), the co-founder and former CEO of Binance, by American authorities.

    Hayes criticized the treatment, deeming it absurd and inconsistent, emphasizing that it only highlights the arbitrary nature of punishment.

    BitMEX Founder Slams CZ Treatment

    In his statement, the BitMEX founder opens with a playful reference to a Biblical verse, followed by a straightforward statement: “Changpeng Zhao (CZ), the former CEO of Binance, is a sinner, but not for the reason you might expect, considering recent events.”

    Hayes proceeds to recount the story of CZ, a Canadian of Chinese descent, who swiftly ascended to billionaire status by providing crypto trading services through the renowned exchange Binance.

    Hayes highlights that the exchange was widely regarded as a symbol of financial freedom and an effective means to speculate on a new political, economic, and traditional system.

    However, as Hayes points out, the issue lies in the fact that these platforms driving the financial revolution are not backed by political or financial establishments but are run by ordinary individuals.

    Furthermore, Hayes argues that these individuals enable others to own a stake in the Industrial Revolution within 10 minutes, using either mobile trading apps or desktop platforms – an unprecedented phenomenon.

    Emphasizing the severe treatment experienced by both CZ and Binance, Hayes draws attention to the substantial $4.3 billion fine imposed on the exchange, marking it as the most significant corporate penalty in the history of Pax Americana.

    Hayes observes that the treatment of this financial giant differs significantly from the consequences faced by traditional institutions such as Goldman Sachs and HSBC in the aftermath of scandals.

    Those who oversee such expansive platforms often leverage state and legal mechanisms to diminish the influence of institutions governing the “global financial and political system of Pax Americana.”

    Testament of Blockchain’s Transformative Power

    The BitMEX founder asserts that the recent unjust treatment underscores the transformative potential of the blockchain ecosystem.

    He emphasizes that the blockchain space is establishing a parallel to the financial, political, and economic systems. Through voluntary legal participation instead of coercive measures, this new system has the potential to enable individuals to amass substantial wealth within a decade.

    Hayes highlights that CZ’s and Binance’s treatment should serve as compelling evidence for the necessity of long-term investments in Bitcoin and other cryptocurrencies. Given the ongoing fluctuations, Hayes urges crypto holders to store their assets in wallets controlled by themselves, ensuring financial independence.

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  • Spot Bitcoin ETF Hopes Rise Amidst Binance Trouble and CZ’s Plea Deal: Report

    Spot Bitcoin ETF Hopes Rise Amidst Binance Trouble and CZ’s Plea Deal: Report

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    Binance’s founder and former CEO, Changpeng “CZ” Zhao, pleaded guilty to violating the Bank Secrecy Act. The charges against Binance include money laundering violations, conspiracy to engage in an unlicensed money-transmitting business, and violations of US sanctions. It’s worth noting that US authorities haven’t accused Binance of misusing user funds or engaging in market manipulation.

    The latest turn of events is expected to catalyze the anticipated approval of a spot-based bitcoin exchange-traded fund (ETF) in the US.

    A Catalyst for Spot Bitcoin ETF Expectations?

    The crypto market faced unexpected turbulence on November 21 following the announcement of a $4.3-billion settlement between Binance and US authorities, including the Department of Justice, Commodity Futures Trading Commission, and US Treasury.

    Additionally, the former CEO of Binance, Changpeng Zhao, revealed plans to plead guilty to a felony charge as part of the settlement, addressing criminal and civil cases involving the exchange. This development might serve as a catalyst for heightened expectations of a spot Bitcoin ETF, Matrixport analyst Markus Thielen said in a new report.

    Thielen believes the likelihood of a spot Bitcoin ETF has possibly increased to 100%, as the cryptocurrency industry will now be compelled to adhere to the regulations followed by traditional financial firms (TradFi). This increased regulatory compliance could strengthen the case for institutional players to adopt Bitcoin, positioning it as a safe-haven asset in investors’ portfolios.

    Moreover, the FTX exchange is expected to undergo a sale and transition to a management team compliant with US securities laws starting next month, potentially relaunching the exchange by Q3 2024. Anticipated inflows of $24-50 billion into any US-listed Bitcoin ETF and the increasing presence of crypto firms engaging in CME-listed crypto derivatives suggest a trend toward regulated and compliant platforms catering to institutional investors, the report said.

    Additionally, the enforcement actions by US agencies throughout the year signal a shift from unregulated retail-focused exchanges to fully regulated venues for institutions.

    “As the macro-environment continues to be a tailwind with the demand from institutions, 2024 will likely be another rocking year for Bitcoin – CZ might come back during the next bear market in 2026.”

    Favorable Outcome for Binance

    With CZ stepping down and the imposed fine being less than the feared $10 billion, Binance is expected to maintain its position as one of the top three cryptocurrency exchanges for the next 2-3 years, according to the Matrixport analyst.

    However, the company, which currently employs 6,000 people, may face pressure to streamline its operations. Despite the plea deal not involving the SEC, it represents a favorable outcome for CZ and Binance.

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    Chayanika Deka

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