🚀 GM,
Grab your favorite beverage (even if it’s a little early, we won’t tell), and get ready for the juiciest headlines that have been lighting up the Internet this week! 📰
1️⃣ The Binance vs. SEC Legal Standoff Gets Hotter!
2️⃣ Behind Bars: Cryptoqueen’s Sidekick Gets a Taste of Justice
3️⃣ Deutsche Bank Embraces Crypto
4️⃣ Editor’s Wrap: The Stupidity of the SEC ‘Stoner Cat’ Action
The Binance vs. SEC Legal Standoff Gets Hotter!
The ongoing battle between Binance, the big fish in the crypto pond, and the formidable Securities and Exchange Commission (SEC) is heating up.
📅 Mark your calendars: The clash is headed to a thrilling hearing on Monday, September 18 at 1:00 PM ET. That’s when things are gonna get real interesting!
🤝 Motions, motions everywhere: Binance’s affiliates, BAM Management and BAM Trading Services, filed Motion 95, aka the protective order, aiming to safeguard sensitive info. On the other side, the SEC fired back with Motion 102, opposing the protective order and requesting permission to keep certain documents confidential.
💼Binance Holdings and Binance.US teamed up and proposed a protective order of their own for sealed documents. But the SEC isn’t backin’ down—they’re demanding more details from Binance.
📜 The battle intensifies: In their latest move, Binance.US called the SEC’s motion to compel “unreasonable” and “unduly burdensome.” They argued that the requested depositions are excessive, emphasizing that they’ve already provided ample evidence to debunk the SEC’s claims.
💥 Executives on the move: Just when you thought things couldn’t get more dramatic, Brian Shroder, the President and CEO of Binance US, threw in the towel and made his exit. The reasons are hush-hush for now. But don’t worry, they didn’t leave the kingdom unattended—Norman Reed, the Chief Legal Officer, is keeping the ship afloat as interim CEO.
👋 Layoffs in the air: Brace yourselves—Binance also dropped the bombshell that they’re letting go of over 100 employees. That’s like one-third of their workforce! CEO Changpeng Zhao isn’t mincing words—he’s pointing fingers at the SEC, accusing them of stunting industry growth and harming American jobs. Shots fired!
⚔️ The origins of this epic clash: Rewind to June—the SEC leveled a hefty 13 charges against Binance.US and Changpeng Zhao, alleging violations of US securities regulations. They claim Binance offered unregistered securities and ignored restrictions on US investors. Binance.US fired back, denying any misconduct and challenging the SEC’s evidence. Drama, drama, drama!
Behind Bars: Cryptoqueen’s Sidekick Gets a Taste of Justice
The wheels of justice are finally turning for the infamous OneCoin crypto pyramid scheme. Karl Sebastian Greenwood, co-founder of this $4 billion fraud alongside the notorious “Cryptoqueen” Ruja Ignatova, has been sentenced to a whopping 20 years behind bars. That’s a long time to ponder the consequences of their deceit!
Back in 2014, Greenwood and Ignatova launched OneCoin as a multi-level marketing network, duping over 3.5 million victims with false promises of a private blockchain. Oh, the audacity! Now, they’ll be intimately acquainted with the inside of a prison cell.
Greenwood, originally hailing from the United Kingdom and Sweden, has also been slapped with a hefty $300 million forfeiture order. Ouch! That’s gonna sting more than a bear market.
Now, let’s talk about the elusive Cryptoqueen herself, Ruja Ignatova. She’s been on the run since 2017, evading capture like a ninja. In fact, she made it onto the FBI’s Ten Most Wanted list in 2022.
Rumors swirl about Ignatova’s fate, with some suggesting that she might have met a not-so-pleasant end at the hands of a certain drug lord named Hristoforos ‘Taki’ Amanatidis. A Bulgarian news outlet even claimed that Ignatova’s death was ordered by Amanatidis. But hold your horses! These reports are far from confirmed.
Here’s an exciting twist: The FBI has decided to sweeten the deal by offering a $100,000 reward for any information leading to the capture of Ignatova.
Deutsche Bank Embraces Crypto
Guess who’s jumping on the crypto bandwagon? It’s none other than Deutsche Bank. They’re teaming up with Swiss crypto firm Taurus to offer digital asset custody and tokenization services to their clients.
Deutsche Bank has been making waves in the crypto space lately. They recently applied for a cryptocurrency custodial services license in Germany, showing they’re serious about diving into the world of digital assets. And let’s not forget their involvement in Project DAMA, a tokenization platform in Singapore.
As the largest bank in Germany and the ninth-largest in Europe, with around $1.3 trillion in assets under their watchful gaze, Deutsche Bank knows the importance of adapting to the changing financial landscape. Paul Maley, their global head of securities services, even said, “The digital asset space is expected to encompass trillions of dollars of assets.” It’s clear they’re eyeing this new frontier as a priority for their clients.
But wait, there’s more! Taurus is just as thrilled about the partnership. Lamine Brahimi, one of the co-founders, expressed their excitement in supporting Deutsche Bank’s digital asset endeavors. They’re ready to help the bank launch various digital assets and blockchain-based products and services.
Funny enough, this isn’t the first rendezvous between Deutsche Bank and Taurus. They were actually involved in Taurus’ Series B funding round, alongside heavy hitters like Credit Suisse, Pictet Group, and Arab Bank Switzerland. Clearly, the big players are recognizing the potential of the crypto market and are seizing the opportunity.
It seems like the floodgates are opening! Financial powerhouses like BlackRock and Franklin Templeton are also dipping their toes in the crypto pool, with plans for Bitcoin exchange-traded funds.
Editor’s Wrap: The Stupidity of the SEC ‘Stoner Cat’ Action
The U.S. Securities and Exchange Commission (SEC) has come down hard on the creators of the NFT-powered web series, “Stoner Cats.” The SEC has slapped them with a whopping $1 million fine and demanded that they eliminate any remaining cartoon kitties in their possession. It’s a sad day for animated feline enthusiasts.
But hold onto your hats, folks, because despite this drama, the value of Stoner Cat NFTs has skyrocketed by a whopping 250% overnight! And trading volume has soared by a mind-boggling 7,256%! I guess some people see an opportunity for profit in the midst of chaos.
Now, let’s get into the nitty-gritty. Stoner Cats 2, LLC, the organization responsible for creating these NFTs and footing the hefty SEC bill, will also have to establish a reimbursement fund to repay affected investors. This so-called “Fair Fund” will be operated by the SEC (yes, they like to keep things official).
But here’s where things get a bit murky. We don’t know exactly how much money will be allocated to the fund, nor do we know if investors will receive ETH or good old U.S. dollars. Will the reimbursement be based on the initial $800 NFT mint price or current market prices? And what about those poor injured victims? Will they have to say goodbye to their beloved Cats or can they keep them as a memento?
It seems some folks believe the SEC’s actions might actually lead to a profit. In the land of crypto, you never know what kind of magic the gods of volatility will conjure. But let’s be real here, will minters really get back their initial investment of 0.35 ETH? Only time will tell.
To put things in perspective, when Poloniex faced a similar situation and set up its own Fair Fund, it had around $8.5 million at its disposal. So, if the Stoner Cats Fair Fund follows a similar structure, we might only see $1 million available for reimbursements, considering the civil penalty attached to the settlement is also $1 million. That’s just a fraction of the 3,650 ETH raised during the token sale. Ouch!
Oh, and here’s a little nugget of information: most minters decided to sell their tokens on the open market instead of holding them as collectibles. That seemed to be the SEC’s main argument against Stoner Cats 2, LLC. They just couldn’t resist the allure of the market, could they?
Now, it’s important to note that the SEC’s move has shed a bright spotlight on a project that was slowly fading into oblivion. And let me tell you, those floodlights can feel surprisingly warm in the crypto winter. Crowd psychology plays a big role in the world of crypto, and attention is everything. That’s how Stoner Cats managed to convince people to pay $800 for an NFT token that unlocks episodes of a Seth McFarlane web series.
But here’s the real question: were these NFTs really meant for collecting or were they just a way to fund a show and receive a token as a keepsake? The SEC’s dissenting commissioners argue that if Stoner Cats 2, LLC’s actions were illegal, then selling “Star Wars collectibles…in the 1970s” and many current creative activities would also be deemed illegal. Quite the argument, don’t you think?
CoinWestern Quixplaned🏆
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