Binance.US Faces Staff Departures Amid Regulatory Concerns
Binance.US, the American affiliate of cryptocurrency exchange Binance, has experienced significant staff departures recently. The company’s president and CEO, Brian Shroder, left to take a break, followed by the head legal executive and chief risk officer. In the midst of these departures, Binance announced the appointment of Rachel Conlan as Chief Marketing Officer to enhance partnerships and influencer collaborations.
Regulatory concerns loom over Binance.US, with its growth reportedly hindered until founder Changpeng ‘CZ’ Zhao addresses these issues or sells his stake. The Securities and Exchange Commission (SEC) has expressed dissatisfaction with Binance.US’s cooperation in an ongoing investigation, citing limited and unsatisfactory document submission. Earlier this year, the SEC took legal action against Binance and CZ for alleged misrepresentations related to the oversight of the Binance.US platform.
CoinEx Hacked by North Korean Lazarus Group
Evidence suggests that North Korea’s Lazarus Group orchestrated a $55 million hack on cryptocurrency exchange CoinEx. Crypto investigator ZachXBT linked the CoinEx exploit to a previous attack on Stake.com attributed to the Lazarus Group by the FBI. Despite the breach, CoinEx assured users that their funds remain secure and committed to compensating affected parties for any losses incurred.
In addition to CoinEx, Vitalik Buterin’s X account and billionaire Mark Cuban’s MetaMask wallet were also hacked this week.
SEC Charges Stoner Cats NFT Project
The SEC has charged Stoner Cats 2 LLC, creators of the “Stoner Cats” NFT show, for conducting an unregistered offering that raised $8 million. The show, funded through NFTs and featuring celebrity voices like Ashton Kutcher and Jane Fonda, drew criticism from two Republican SEC commissioners. Stoner Cats 2 has agreed to pay a $1 million penalty and will destroy all the NFTs they hold.
DCG and Gemini Continue Feud as Genesis Proposes New Recovery Plan
Digital Currency Group (DCG) has proposed a new creditor agreement in Genesis’s bankruptcy proceedings, potentially allowing Gemini Earn users to recover their crypto holdings. However, Gemini has criticized DCG’s plan, accusing them of “gaslighting” and attempting to pay less than owed. The feud between DCG and Gemini began when Genesis froze withdrawals from the Gemini Earn program. Separately, Genesis announced it will cease digital asset derivatives trading through GGC International.
FTX Estate Receives Approval to Liquidate Assets
The FTX estate has received court approval to liquidate its crypto holdings after declaring bankruptcy. Notable assets include $1.2 billion in solana (SOL) tokens and a collection of properties in the Bahamas. Speculation surrounding FTX’s potential massive asset sales has caused market apprehension, leading to a dip in bitcoin’s price below $25,000. Prosecutors are challenging the line of questioning proposed by FTX CEO Sam Bankman-Fried’s lawyers in his trial.
Hot Take: Uncertainty Surrounds Binance.US, CoinEx Hack Attributed to North Korea, SEC Targets NFT Project, DCG vs. Gemini Continues, FTX Estate Liquidation Approved
This past week brought significant developments in the crypto world. Binance.US faced staff departures amidst regulatory concerns raised by the SEC. CoinEx was hacked by the Lazarus Group, a state-sponsored hacking organization from North Korea. The SEC charged the creators of the “Stoner Cats” NFT show for an unregistered offering. DCG and Gemini clashed over a proposed recovery plan in Genesis’s bankruptcy proceedings. The FTX estate gained approval to sell its assets, causing market uncertainty. These events highlight the challenges and risks faced by the crypto industry as it continues to evolve.
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