DOJ Seeks 3-Year Term for Binance Founder CZ

U.S. prosecutors are seeking a 36-month prison sentence for Changpeng Zhao, the founder and former CEO of Binance, following his guilty plea to charges of anti-money laundering and sanctions violations. The Department of Justice argues that Zhao deliberately violated U.S. laws to grow his business. 

In contrast, Zhao’s defense requests probation, citing substantial fines already paid and his cooperation with authorities. Zhao, who has stepped down from his position, remains free on bail. Binance, under new leadership, has settled related charges with a record $4.3 billion payment. Zhao’s sentencing is set for April 30.

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SEC Delays Decision on Franklin Templeton Ether ETF

The U.S. SEC has deferred its decision on Franklin Templeton’s application for a spot Ether ETF until June 11. This extension allows the SEC an additional 45 days to evaluate the proposal to list and trade shares of the Franklin Ethereum Trust on the Cboe BZX Exchange. 

This delay follows the SEC’s earlier allowance in January for U.S. exchanges to list spot Bitcoin ETFs, a significant shift that has influenced how financial institutions approach cryptocurrencies. While the future of Ether ETFs remains uncertain, with potential classification as a security, Franklin Templeton previously gained approval for a spot BTC ETF.

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Mt. Gox’s $9B Payout May Impact Bitcoin Price

K33 Research warns that the pending distribution of approximately $9.5 billion worth of Bitcoin and $73 million in Bitcoin Cash by defunct crypto exchange Mt. Gox could negatively impact Bitcoin prices in the coming weeks. Mt. Gox is set to distribute 142,000 BTC and 143,000 BCH to creditors this year, reviving fears of a market overhang. 

Although it is unlikely that creditors will sell all their payouts immediately, the anticipation of the distribution could deter market participants from taking risks, potentially affecting Bitcoin’s price trajectory and stalling any forthcoming market rallies.

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Cosmos Addresses ‘Critical’ IBC Protocol Bug

Cosmos has resolved a critical security vulnerability in its Inter-Blockchain Communication (IBC) protocol, which had placed at least $126 million at risk. The bug, identified by Asymmetric Research, could have allowed hackers to execute a reentrancy attack, potentially creating infinite tokens on IBC-linked chains like Osmosis. 

Although the vulnerability existed since the ibc-go language’s 2021 introduction, it only became exploitable recently after the launch of a new IBC middleware. Thankfully, no malicious exploitation occurred, and no funds were lost. The patch, applied three weeks ago, underscores the ongoing need for rigorous cross-chain security measures.

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Other breaking news

• Crypto Lobbyists Sue SEC Over Expanded Dealer Rule
• Binance Executive to Stay in Nigerian Custody Until May 17 Bail Hearing
• Tether Steps Up Efforts Against Wallets Trying to Bypass Venezuelan Sanctions
• Hedera’s HBAR Doubles, Then Slips 25% as BlackRock Connections Fade
• Stablecoin Holder Count Approaches 100M

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