Explore SEC's charges against Binance, Do Kwon's bail approval, Barcelona's NFT journey, FTX's Genesis dispute, Atomic Wallet's hack, and 'crypto' search drop.
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The SEC sues Binance and Changpeng Zhao

The SEC sues Binance and Changpeng Zhao

Date:
Jun 6, 2023
| Issue
#
32

Happy first day of the week crypto family and welcome to another Datawallet newsletter. We will cover topics relevant for all levels of investors from the dynamic and ever changing world of cryptocurrencies. So strap in and let’s get the show on the road.

Today’s drop will cover these key daily news items:

  • SEC sues Binance on 13 charges for US violations
  • Do Kwon’s $428,000 bail request approved
  • FC Barcelona launches NFT collection
  • FTX challenges Genesis’ Zero debt claim
  • Atomic wallet users hacked for $35 million
  • Google searches for ‘crypto’ fall to 2020 levels

The SEC sues Binance and Changpeng Zhao on 13 Charges

Binance, the world's largest cryptocurrency platform, has been accused by the U.S. Securities and Exchange Commission (SEC) of violating investor protection laws. The SEC alleged that Binance and its CEO, Changpeng Zhao, mishandled customer funds and ignored rules meant to safeguard investors, engaging in a "web of deception."

The SEC outlined 13 charges, accusing Binance and CZ of illegaly luring investors, misrepresenting the platform's trading volume, and obscuring its oversight. They are also alleged to have diverted customer funds to Zhao-controlled entities. SEC Chair Gary Gensler referred to Binance's alleged actions as conflicts of interest, lack of disclosure, and calculated evasion of the law.

The lawsuit forms part of a broader regulatory crackdown on the crypto industry, following the collapse of Binance rival FTX. Earlier this year, the Commodity Futures Trading Commission filed a lawsuit against Binance for allegedly operating in the U.S. illegally.

In response to the lawsuit, Binance defended its platform and denied putting customer funds at risk. The company criticized regulators for their "refusal to provide much-needed clarity and guidance to the digital asset industry". It also insisted that the SEC's allegations are unjustified and should not be subject to enforcement action.

Do Kwon’s $428,000 bail request approved

In a move that stirred the world of finance, the high court of Montenegro granted Terra founder Do Kwon his request for bail. The hefty sum of 400,000 euros ($427,740) was set as his ticket to temporary freedom, as revealed in a statement released on June 2. The basic court's initial decision on bail was challenged and revoked, leading to an appeal for the same amount of bail and extra scrutiny for the accused.

The high court of Podgorica gave their nod of approval, and the drama continued. Kwon and former Terra executive Han Chang-joon found themselves in legal trouble after allegedly being caught with fraudulent travel documents. All this while, Terra was making waves in the world of cryptocurrencies, boasting a massive market capitalization of $45 billion at the peak of its success with Luna and TerraUSD (UST).

FC Barcelona launches NFT collection

Through a groundbreaking partnership with Plastiks, FC Barcelona sets its sights on a noble mission: to rescue a staggering 1,000,000 kilograms of plastic from waste and destruction. This amounts to thwarting the production of roughly 35,000,000 one-liter plastic bottles, and sparing a precious 800,000 liters of oil from being squandered. But this is just the beginning for the soccer giants. FC Barcelona is also leveraging its massive social media influence and dedication to Web3 technology to pave the way for sustainable solutions, as exemplified by their ingenious use of NFTs to combat environmental waste.

FTX challenges Genesis’ Zero debt claim

The insolvent crypto exchange, FTX, has vehemently denied the ludicrous accusation that it has received no payment from the embattled Genesis. According to FTX, it is a creditor of considerable magnitude and yet, inexplicably, was excluded from a critical mediation session in May. The cherry on top? Allegedly, Genesis cherry-picked participants for the aforementioned powwow. In a court document released on Friday, FTX expressed surprise and dismay at the sudden and brazen declaration by Genesis that FTX's claims were worthless. This calculated move, Genesis claimed, was to facilitate a speedy confirmation of a Chapter 11 plan.

Atomic wallet users hacked for $35 million

Over the weekend, the crypto world suffered yet another blow as Atomic Wallet, a centralized storage and wallet service, fell victim to a whopping $35 million worth of token theft. Among the lost assets were the likes of Bitcoin (BTC), Ether (ETH), Tether (USDT), Dogecoin (DOGE), Litecoin (LTC), Bnb Coin (BNB) and Polygon (MATIC). According to blockchain detective @ZachXBT, the largest haul appeared to be the Tron-based USDT. It's a harsh reminder that even in the digital world, there are still thieves lurking in the shadows, waiting to pounce on unsuspecting victims.

Google searches for ‘crypto’ fall to 2020 levels

The optimism surrounding cryptocurrencies has been eerily silent for the past two months, as the online search interest for crypto-related terms has plummeted back to levels not seen since late 2020. This unfortunate downturn is backed by the data from Google Trends, where the once glorified word "crypto" now has a score of a mere 17, a far cry from its peak of 100 in May 2021. The likes of Bitcoin and Ethereum have also followed suit with a downward spiral.

Interestingly, this downward trend has been consistent since May 2022, a month after the infamous Terra Luna ecosystem collapse. Only a small ray of hope came in early November when the crypto exchange FTX crumbled, sparking a momentary spike in search interest. Nevertheless, it seems like the crypto industry has hit a bit of a rough patch.

Other breaking news

  • US bill gives crypto assets a path to become commodities
  • Ethereum gas fees cool down
  • Met Museum agrees to return $550,000 in FTX donations
  • JPMorgan uses blockchain for 24/7 dollar transfers with Indian banks
  • Pro-Ripple attorney positive of victory against SEC

Wrapping up

The crypto space starts the weekn on a wild ride with Binance battling SEC charges, Do Kwon securing bail, FC Barcelona pioneering with NFTs, and Atomic Wallet suffering a hefty hack. FTX calls out Genesis on its zero debt claim amidst a general dip in crypto interest online. Buckle up, cryptonauts, this journey's just heating up! Keep checking back for your daily dose of crypto news.