Not FED. Not SEC. It's CFTC vs Binance 🏴 🚁
Commodity Futures Trading Commission has Binance cornered over trading rules violation. Nvidia CTO blasts crypto. Crypto can buy you a burger in Paris. Warren Buffett, the financial analyst bot.
Hello y'all. This is The Token Dispatch. You realise the power of the government when they let loose the whole machinery on you, one by one. Hello US. Sorry crypto. Gotta show us some love on telegram, eh? 🤟
Binance is facing some serious legal troubles 🚨
On Monday, the Commodity Futures Trading Commission (CFTC) accused Binance of violating trading and derivatives rules.
What did Binance do to get into this mess?
Well, apparently, Binance has been trading against its own users via around 300 "house accounts" owned by CEO Changpeng Zhao. Most of the CFTC's charges relate to knowingly offering crypto derivatives to US residents through Binance's international exchange 😬
Binance did take measures to prevent this day from coming 🙌
Increased compliance team from around 100 to 750 personnel,
Hired former members of law enforcement and regulatory agencies.
Spent over $80 Million on transaction monitoring, market surveillance, and investigative tools.
Implemented a "three lines of defense" approach to both risk and compliance.
Blocked US users by banning US IP addresses and cellular providers.
Prevented deposits and withdrawals from US banks.
But none of that worked.
🔥And the reactions:
“I eat our own dog food and store my crypto on Binance.com”
CZ: "4"
Also CZ: "CFTC filed an unexpected and disappointing civil complaint, despite our working cooperatively with the CFTC for over two years."
Coins: Fell.
BTC 3.89% to $26,874
ETH 2.59% to $1,719
BNB 6.2% to $309
Industry: Some are predicting a lengthy legal battle, and some say it's a *fatal* blow. Some have compared the situation to the BitMex case, while others are comparing it to the FTX disaster.
Community: Twitter up in arms. Forever bullish.
The same day: A Federal judge temporarily stopped bankrupt Voyager Digital from completing a proposed $1.3 billion sale to Binance US.
Reason? The fear of unregistered securities!
Voyager Digital has been going through bankruptcy proceedings since July, and as part of this process, it agreed to sell its assets, including its customers' digital currencies, to Binance US.
One thing's for sure, the crypto industry has seen its fair share of setbacks recently, from Coinbase's Wells Notice from the SEC to Tron's Justin Sun being served legal papers. Now it’s time for playing the tune for Binance.
Why not sponsor us, eh?
TTD What we tracking 🔀
Polygon just launched its highly-anticipated Ethereum zkEVM scaling solution, and to celebrate, Vitalik Buterin sent out the first transaction with a hidden message:
So what's a zkEVM? Faster and cheaper Ethereum transactions for everyone.
About Polygon's zkEVM
Completely open-source. Currently in beta.
Permissionless and public for anyone to build and use.
Integrated projects like Lens, Balancer, and The Graph.
Polygon wasn't the only one in the game. Matter Labs surprised everyone by launching their own version of the zkEVM called zkSync Era on Friday.
TTD Blockquote 🔊
Michael Kagan, CTO Nvidia, the US chip-maker
“I never believed that [crypto] is something that will do something good for humanity”
Nvidia’s tech top dog thinks that the chips they make have more worthwhile use in developing chatbots as against crypto mining. Savage 💀
TTD Food for crypto 🍔
If you in Paris, your crypto can buy you a burger feast 🤤
At Burger King, Paris you can pay for your burger using over 70 unique cryptocurrencies. It has partnered with Binance and Alchemy to provide crypto payment services via Instpower power bank machines.
Paris bosses fashion, and it don’t want to be left behind on Web3 innovation. Gotta love them french. Always.
TTD Check it out 🧐
Mayo Oshin, an AI engineer in the UK wants to fast track finance documents processing. An AI analyst to to process complex contracts and documents. What do we call it then? Warren Buffet, duh. That’s sweet.
TTD Surfer 🏄
Ticketmaster is offering artists a token-gated option for exclusive ticket access, makes debut with nft-gated ticket sales for Avenged Sevenfold.
Luxury fashion brand Gucci partners with Bored Ape Yacht Club creators Yuga Labs to develop the Otherside metaverse and 10KTF narratives.
Twitter flags Arbitrum official account as spam, briefly suspends the account. All by mistake. Back to normal business in a few hours.
Tech winter swoops Disney’s metaverse division, 50 member team working on developing a new form of storytelling laid-off.
Latest SEC filing reveals MicroStrategy buying $150 Million Bitcoin, and paying off Silvergate Bank Loan.
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