Binance's CZ Pleads Guilty (And Gets Stuck In The US)

GM! The DOJ, Treasury Department, and CFTC unveiled a $4.3 billion settlement with Binance, the SEC cracked down on Kraken — again, GBTC’s discount slimmed significantly, and YOU can win 0.25 ETH picking the best project in crypto! Meanwhile, a recognizable NFT was spotted in Manhattan — floating through one of New York’s most prominent parades.

Tap into our Space for the latest. But first …

CZ Goes Cold Turkey

Binance founder Changpeng Zhao stepped down as CEO of Binance last week, ceding control over crypto’s largest exchange at the U.S. government’s behest. As part of a settlement agreement with the DOJ, Treasury Department, and CFTC, Zhao and Binance itself pleaded guilty to money laundering violations, which came with $4.3 billion in penalties and forfeiture.

It was one of the largest penalties ever levied against a company in a criminal matter, the DOJ said in a press release, noting the resolution includes monitorship and reporting requirements.

“Using new technology to break the law does not make you a disruptor,” said Attorney General Merrick B. Garland. “It makes you a criminal.”

Zhao’s departure from Binance follows a string of high-level departures at the global exchange and its U.S. affiliate as a criminal inquiry loomed. In Zhao’s wake, the company said Binance will be helmed by Richard Tang, who was previously Binance's global head of regional markets.

In a Monday interview with Fortune, Teng said Binance will adopt a traditional corporate structure, including a board of directors, financial transparency, and an address for its headquarters — last July, Zhao told Decrypt that Binance would disclose its headquarter’s location in “due time.”

Zhao traveled to a Seattle court to plead guilty. And, pending a judge’s decision, he’s stuck in the U.S., as a motion that would require him to stay stateside until his sentencing is weighed.

Relitigate the Kraken

The SEC brought charges against Kraken last week — calling attention to the firm’s alleged misconduct — just a day before Binance’s settlement burst into the crypto spotlight.

The lawsuit, much like ones brought by the SEC against Binance.US and Coinbase, alleges Kraken operates as “an unregistered securities exchange, broker, dealer, and clearing agency.”

It also accused Kraken of commingling customer funds with its own.

Kraken reached a settlement with the SEC in February. At the time, the San Francisco-based exchange agreed to halt its staking service for U.S. customers and pay a $30 million fine.

In response to the recent complaint, Kraken signaled it’s prepared for a fight. In a statement, the exchange accused the SEC of “demanding compliance with a regime that doesn’t exist.” Kraken specifically called out the SEC for telling digital asset firms to “come in and register,” arguing that such a process doesn’t practically exist.

On top of that, Kraken pushed against certain assertions with regards to customer assets. It noted the SEC’s claims of commingled customer funds didn’t and cannot include claims that “customer funds are missing, or any loss has occurred.”

Going, Going, Almost Gone?

Shares of Grayscale’s Bitcoin Trust have traded at a discount relative to the fund’s Bitcoin holdings since February of 2021. However, since the discount ballooned to 50% last December, GBTC’s discount has steadily slimmed. Amid anticipation that a spot Bitcoin ETF could get a regulatory green light in the U.S. soon, GBTC’s discount narrowed to 8.06%, as of Monday.

Look Ma! NFTs on TV Again

The NFT market became a viral, television punchline last month after “The Simpsons” roasted crypto during its annual Halloween special. And, as Americans gathered to celebrate thanks, a balloon from the NFT project Cool Cats was broadcast to millions of households as part of the Macy's Thanksgiving Day Parade.

Alongside the launch Cool Cats’ YouTube Shorts series, “The Milk Chug,” the collection’s iconic Blue Cat, and milk carton Chugs, were paraded through the streets of Manhattan. Per NFT Price Floor, Cool Cats trading volume has surged 416% to 500 Ethereum over the past week.

In Winning 0.25 ETH…

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