Binance CEO Chengpeng Zhao Pleads Guilty to Violating US Money Laundering Laws
It was a historic week for the crypto industry as Binance CEO Chengpeng Zhao (CZ) stepped down and pleaded guilty to violating US money laundering laws. Binance also agreed to pay a massive $4.3 billion fine. Crypto Twitter went into a frenzy, pointing out the irony of CZ previously dismissing rumors of Binance’s legal troubles using the symbol “4,” only for those rumors to be proven true and the number four making a comeback.
With the possibility of CZ heading to prison, Twitter users joked about a potential reunion between CZ and his one-time rival, FTX founder Sam Bankman-Fried, in the prison yard. However, other industry developments quickly took over the discourse in the latter half of Thanksgiving week.
Blast Sees Massive Deposits Amid Accusations of Ponzi Scheme
Blast, a new layer-2 blockchain from the creators of Blur NFT marketplace, witnessed over $400 million in deposits. However, some users expressed concerns about the network’s lack of transparency and accused its makers of running a Ponzi scheme. The negative commentary surrounding Blast prompted Pacman, Blur’s creator, to address community concerns on Twitter.
Solana’s Booming Market for SPL20 Tokens Raises Questions
Solana’s booming market for SPL20 tokens, which are digital assets inscribed on denominations of Solana similar to Bitcoin Ordinals, generated excitement among its dedicated community. However, some questioned this development since Solana already supports NFTs through smart contracts. Unlike Bitcoin, which lacked this capability and led to the creation of Ordinals, Solana’s support for NFTs made the need for SPL20 tokens puzzling.
Hot Take: Crypto Industry Faces Legal Troubles and Controversies
This week, the crypto industry witnessed significant legal troubles and controversies. Binance CEO CZ pleaded guilty to violating US money laundering laws, while Blast faced accusations of being a Ponzi scheme. Additionally, Solana’s market for SPL20 tokens raised questions about its necessity. These events highlight the challenges and scrutiny faced by the crypto industry as it continues to grow and evolve. It is crucial for participants in the industry to navigate these issues with transparency and accountability to maintain trust among users and regulators.
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