Binance Faced a $4.3 Billion DOJ Fine
The most recent events surrounding Binance have sparked significant conversations in the cryptocurrency world. The exchange was hit with a massive $4.3 billion fine by the US Department of Justice for allegedly violating anti-money laundering procedures. Following this, the CEO, Changpeng Zhao (CZ), resigned from his position.
Ripple’s Stuart Alderoty Views Binance Action Positively
Stuart Alderoty, Ripple’s Chief Legal Officer, sees the regulatory action against Binance as a step in the right direction for the crypto industry. He believes that resolving anti-money laundering violations is necessary to bring the industry into compliance with important laws and safeguards, likening it to the process big banks went through years ago. He also noted the absence of any mentions of securities law violations by the DOJ regarding Binance, highlighting the absence of the US SEC from the situation.
SEC Sued Kraken Over Unregistered Securities
Simultaneously with the Binance announcement, the SEC filed a lawsuit against Kraken, alleging that the exchange offered services with unregistered securities, including Solana, Cardano, and Polygon. Notably, the SEC did not include Ripple’s XRP in this lawsuit, raising questions about the exclusion of this particular digital currency.
Hot Take: Ripple’s CLO Stuart Alderoty Criticizes SEC’s Actions
The recent regulatory actions taken against Binance and Kraken have drawn strong reactions from Ripple’s Chief Legal Officer, Stuart Alderoty. He criticized the SEC for what he described as “juvenile behavior” and likened their actions to those of a “petulant child who can’t stand being ignored.” This highlights the growing tensions between cryptocurrency industry players and regulators, raising concerns about regulatory overreach and inconsistency in applying the law.
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