US Web3 and Cryptocurrency Providers May Leave Amid SEC Action Against Coinbase and Binance, Warns 1inch Co-Founder
The SEC's enforcement action against Coinbase and Binance could result in major Web3 and cryptocurrency service providers leaving the United States, according to Sergej Kunz, co-founder of DeFi protocol 1inch Network. Kunz believes that regulatory uncertainty in the US could harm the industry and stifle innovation.
Treasury Secretary Yellen Supports SEC's Enforcement Powers Amid Binance and Coinbase Lawsuits
Treasury Secretary Janet Yellen expressed her support for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission to use their enforcement powers to protect consumers and investors in the crypto industry. Yellen stated that the agencies have tools at their disposal under US law to do so.
DeFi Value Locked Remains Stable Despite SEC Drama and Falling Token Prices
Despite falling prices, the value locked on decentralized finance (DeFi) applications operating on blockchains of tokens alleged as securities by the SEC remained mostly stable, indicating positive sentiment among global market participants. The SEC charged Binance and Coinbase with selling unlicensed securities in the US, despite a lack of regulatory clarity on whether crypto tokens can be considered securities.
Binance Redirected $12B to Firms Controlled by CEO Changpeng Zhao, SEC Says
According to a court document filed by the Securities and Exchange Commission (SEC), Binance CEO Changpeng Zhao and Guangying Chen received billions of dollars of customer funds through their holding company. The funds were allegedly sent to firms controlled by Zhao via an intermediary holding company known as Key Vision Development Limited. The SEC is requesting a temporary restraining order to freeze assets on Binance.US, citing evidence from testimony delivered by an accountant employed by the regulator. The SEC alleges that $12 billion was sent to Zhao and $162 million to a Chen-controlled company in Singapore, and that the majority of the funds are now in offshore accounts.
Binance Money Trail Reveals $70 Billion Flowing Through Silvergate, Signature
According to Bloomberg, Binance and related entities moved around US$70 billion through accounts at Silvergate Bank and Signature Bank from 2019 until this year, with some funds flowing out to foreign entities, according to a recent court filing. The SEC sued Binance for “blatant disregard” of US securities laws, including mishandling customer funds.
SEC Accuses Binance of Redirecting over $12 Billion in Customer Assets to Entities Controlled by CZ
Binance and Binance.US have been accused by the SEC of redirecting more than $12 billion in customer assets to entities controlled by Binance founder Changpeng Zhao between 2019 and 2021. The SEC has requested a temporary freeze on assets at Binance.US and wants to freeze Binance and Zhao's assets, but has only filed a temporary restraining order on Binance.US's assets.
Firedancer Delivered Good Results in Initial Performance Tests, Hitting 1 million TPS
Solana's Firedancer validator client has delivered good results in initial performance tests, achieving 1 million transactions per second (TPS) and reducing latency times significantly. This could make the network more attractive to decentralized finance (DeFi) applications and high-frequency traders. While most networks opt for a modular approach to scalability, Solana has taken a monolithic approach at layer-1.
Binance Customers Unfazed by SEC Lawsuit as Exchange Sees Modest Bitcoin Withdrawals
Despite the Securities and Exchange Commission's (SEC) lawsuit against Binance, the world's largest crypto exchange by trading volume, customers seem to be unaffected. Binance experienced outflows of 10,000 Bitcoin (BTC), the largest withdrawal total of 2023, but this appears less significant when viewed on a zoomed-out time chart.
SEC Sues Binance and Coinbase, Alleging Serious Wrongdoings
The SEC has filed lawsuits against two major crypto companies, Binance and Coinbase, with serious allegations against both. The allegations against Binance are more damning, directly mentioning CEO Changpeng Zhao and claiming that the company operated through a "web of deception" and commingled customer funds.
IOG Refutes SEC's Claim That Cardano's ADA Qualifies as a Security
Input Output Global (IOG), the company responsible for developing the Cardano blockchain, has responded to the U.S. Securities and Exchange Commission's (SEC) recent claim that Cardano's native token, ADA, is a security. IOG has denied the SEC's allegations and stated that ADA is not a security under U.S. securities laws.
