Former Binance CEO, Changpeng “CZ” Zhao, is opposing the United States government’s attempt to prevent his return to the United Arab Emirates (UAE), where he wishes to be with his family while awaiting sentencing after pleading guilty to charges.
In a recent court filing dated November 23, Zhao’s legal team strongly urged a U.S. district judge to reject proposed changes to his bail conditions suggested by the U.S. Department of Justice (DOJ).
Zhao’s lawyers emphasized that he should be allowed to leave the United States and return to the UAE until his sentencing, scheduled for February 2024.
They made it clear that despite the potential 18-month prison sentence, Zhao has no intention of evading his sentencing in the UAE.
They cited Judge Tsuchida’s previous findings, which indicated that Zhao poses no flight risk and should be permitted to reside with his family in the UAE.
Furthermore, Zhao’s legal team argued that his actions, such as traveling from the UAE to the United States, demonstrate his intent to resolve the case and appear for sentencing.
They consider it illogical for him to take these steps if he planned to evade his responsibilities.
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On November 22, U.S. prosecutors filed a court document suggesting that Zhao should not be allowed to leave the United States due to concerns about his potential flight risk.
The DOJ expressed concerns about the difficulty of ensuring Zhao’s return if he chose not to come back from the UAE for his sentencing.
However, a bond document submitted to the court on November 21 revealed that Zhao had posted a substantial $175 million release bond and committed to returning to the U.S. at least 14 days before his scheduled sentencing on February 23, 2024.
This development comes after Zhao’s agreement to step down as the CEO of Binance as part of his guilty plea to multiple charges brought by the DOJ.
While he will retain his majority stake in Binance, he is prohibited from holding an executive position within the crypto exchange.
It’s important to note that this agreement does not impact the ongoing litigation between Binance and the U.S. Securities and Exchange Commission, but it is expected to resolve the company’s issues with the Commodities Futures Trading Commission.
BitMEX co-founder Arthur Hayes has expressed his bullish stance on Bitcoin, offering insights on the cryptocurrency’s potential trajectory.
In a recent post, accompanied by a chart illustrating net reverse repurchase agreement (RRP) and treasury general account (TGA) balance changes, Hayes humorously referred to United States Treasury Secretary Janet Yellen as “Bad Gurl Yellen.”
Hayes urged fellow Bitcoin enthusiasts to maintain their focus, citing a notable increase in U.S. dollar liquidity.
He posited that Bitcoin’s price is likely to mirror the rise in dollar liquidity, potentially leading to an uptick in its value.
The provided chart showcases fluctuations in RRP and TGA balances, hinting at a potential correlation between heightened dollar liquidity and Bitcoin’s price.
In a parallel development, crypto analyst dharmafi offered more precise data points.
The post highlighted an RRP of $65 billion and a TGA balance of $35 billion, resulting in a substantial net liquidity surge of $106 billion since November 21.
As Hayes pointed out, this surge in liquidity reflects shifting dynamics within financial markets. Investors and Bitcoin enthusiasts closely monitoring these liquidity injections are anticipating potential repercussions for the cryptocurrency market.
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While Hayes emphasized the connection between dollar liquidity and Bitcoin’s price movement, dharmafi’s data further underscores the impact of the liquidity surge.
The substantial increase in net liquidity since November 21 has raised questions regarding its potential effects on various asset classes, including cryptocurrencies.
In contrast to the enthusiasm expressed by Hayes and others in the crypto space, Janet Yellen, who has been a vocal skeptic of Bitcoin, recently issued a caution to cryptocurrency exchanges.
During a meeting of G20 finance ministers and central bank governors, Yellen emphasized the importance of compliance within the digital currency industry.
She underlined the necessity for cryptocurrency exchanges to adhere to regulations to operate within the U.S. financial system, reinforcing her commitment to maintaining regulatory oversight in the crypto sector.
This stance by Yellen reflects ongoing discussions and debates surrounding the regulatory framework for cryptocurrencies in the United States.
Azuki DAO, a decentralized autonomous organization linked to a nonfungible token (NFT) collection, has made significant updates, including a rebranding to “Bean.”
This transformation comes in tandem with the abandonment of a proposed lawsuit against Zagabond, the founder of the NFT collection, in relation to a contentious $39 million minting event.
The development was confirmed following a clarification statement from an Azuki DAO spokesperson.
In its new avatar as Bean, Azuki DAO has charted a course to become a memecoin project and integrate into the Ethereum layer-2 Blast ecosystem.
The transition has also been facilitated by a substantial infusion of funds, as Bean has secured $10 million from notable investors to support its growth and acceleration within the Blast ecosystem.
The forthcoming Bean memecoin will have a total supply capped at 1 billion tokens. Azuki DAO developers clarified that the previously displayed token distribution plan on their website is outdated.
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The updated allocation includes 50% of Bean tokens earmarked for the Azuki DAO community as part of an airdrop of Azuki series NFTs that concluded four months ago.
The remaining tokens are held in the project’s address. Furthermore, 40% of Bean tokens have been allocated to the Bean Treasury, while 10% are designated for Zagabond and remain in the project’s address.
The Azuki NFT collection comprises 10,000 anime-themed profile pictures (PFPs).
A second series of 10,000 PFPs called “Elementals” was introduced by Zagabond in June, which led to concerns over the resemblance between Elementals and Azuki PFPs, resulting in an oversupply and a 44% drop in Azuki NFT prices.
This event triggered a lawsuit proposal from the Azuki DAO community against Zagabond.
The developers of Bean have promised to share more detailed information about their financing and future development roadmap in the near future.
These changes mark a significant shift for Azuki DAO, now known as Bean, as it embraces the memecoin space and looks to thrive within the Blast ecosystem while settling its legal disputes.
CoinW, a prominent cryptocurrency exchange, has unveiled an exciting new partnership with the legendary soccer player, Andrea Pirlo.
The worlds of sports and cryptocurrencies share several common traits, such as passionate fan bases and a relentless pursuit of excellence.
Both industries are driven by innovation and the desire to break new ground.
It’s no surprise that crypto companies have become prominent sponsors in major sporting events, adorning stadiums, team jerseys, and fan tokens from the Super Bowl to Formula 1, the Premier League, and UFC.
However, this exposure alone does little to convey the values and principles of a crypto business to the masses.
To bridge this gap, trusted figures can play a pivotal role in introducing curious individuals to the possibilities and financial freedoms offered by digital assets.
Enter Andrea Pirlo, one of the greatest midfielders in the history of soccer, known for his impeccable ball control, precise free kicks, and creative genius.
Having left an indelible mark on the global soccer scene by playing for Inter Milan, AC Milan, and Juventus, Pirlo has seamlessly transitioned into coaching, dedicating his expertise to nurturing the next generation of soccer talent.
Now, at the age of 44, Pirlo has added another milestone to his illustrious career by becoming an ambassador for CoinW, a cryptocurrency exchange boasting over 10 million users worldwide, with ambitious plans for further expansion.
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CoinW’s desire to align with top-tier entities has led to several high-profile partnerships, including associations with La Liga and the prestigious Globe Soccer Awards Ceremony, which have introduced its platform to new audiences.
Pirlo himself is excited about the role, stating, “Being appointed as CoinW’s global brand ambassador is an honor, especially as we celebrate its sixth-year milestone.
I’m enthusiastic about our potential to drive impactful initiatives and introduce Web3 technology to sports fans worldwide.” The collaboration will also feature a high-profile video production.
For CoinW, this partnership signifies not just the presence of a well-known face in their advertisements but also a testament to their journey and progress over the years.
Sonia Shaw, CoinW’s President of Partnerships, describes the collaboration as a “vibrant celebration” that brings together the excellence of both CoinW and Pirlo in their respective domains.
Since its inception in 2017, CoinW has prioritized security, innovation, and user-centric services.
It offers a user-friendly interface, robust security measures, and a diverse range of tradable assets to cater to the needs of both novice and experienced crypto traders.
With a presence in over 200 countries and regions, CoinW is committed to fostering a global cryptocurrency trading ecosystem while maintaining strict compliance with Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.
Their dedication to expansion and partnership-building further solidifies their status as a major player in the crypto exchange industry.
On November 23rd, the price of Ether exhibited a slight increase, maintaining its position above the $2,000 mark. This stability followed a brief dip to $1,930 on November 21st.
Over the past week, Ether has seen a 2.5% price surge, while the total market capitalization of the cryptocurrency market has grown by 0.5%.
Several factors contribute to this upward trend, including improved metrics for decentralized applications (DApps), increased protocol fees, and Ethereum’s dominant position in the nonfungible token (NFT) market.
However, the recent regulatory challenges faced by Binance, a major player in the cryptocurrency space, have caused concerns among investors.
Binance accounts for 30% of ETH futures contracts’ open interest and leads in Ether spot trading volume.
The closure of Binance’s $2.35 billion worth of ETH derivatives contracts within a short period could have significant consequences.
Despite initial analyses indicating minimal changes in spreads and liquidity, Binance experienced net outflows of $1.53 billion between November 21st and November 23rd, as reported by DefiLlama.
The regulatory landscape surrounding Binance presents both risks and opportunities.
While some view Binance’s actions as evidence of holding sufficient reserves, others are worried about the $4.3-billion fine facing Binance and its former CEO, Changpeng “CZ” Zhao.
This uncertainty has prompted some Bitcoin advocates to advise followers to withdraw their coins from exchanges.
Even if Binance continues to operate and safeguards all client assets, the long-term effects of full compliance and increased scrutiny remain uncertain.
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Additionally, the relationship between Binance and stablecoins like Tether, TrueUSD (TUSD), and Binance USD (BUSD) raises further questions.
Government agencies gaining access to previously undisclosed money laundering and terrorist financing operations through Binance, including fiat payment gateways and banking partners, increases the likelihood of regulatory actions against stablecoin providers.
This news has been particularly detrimental to Ethereum, given Binance’s status as the third-largest ETH staker, with $1.24 billion in deposits, according to DefiLlama.
However, recent regulatory developments also offer some positives.
Binance’s move toward full compliance reduces the risk associated with unregulated exchanges, making it more likely for the U.S. Securities and Exchange Commission (SEC) to approve spot exchange-traded fund (ETF) instruments for cryptocurrencies.
Leading industry mutual fund managers, such as BlackRock and Fidelity, have expressed interest in launching Ether spot-based ETFs.
Furthermore, the SEC’s lawsuit against Kraken on November 20th, which lists 16 cryptocurrencies as securities, excludes Ether.
This omission reduces the likelihood of regulatory actions against the Ethereum Foundation and entities involved in the 2015 initial coin offering (ICO), providing a silver lining amid regulatory uncertainties.
In terms of the Ethereum network’s health, Ethereum DApps achieved a total value locked (TVL) of $26 billion on November 23rd, representing a 5% increase from the previous week.
However, a hack significantly impacted dYdX, resulting in a 16% decline in the protocol’s deposits.
While Ether’s market capitalization of $248 billion trails behind Bitcoin’s $728 billion, the two networks generate similar protocol revenues.
Over the past seven days, the Bitcoin network has collected $57.5 million in fees, compared to Ethereum’s $54.3 million.
These figures do not include ecosystem fees from platforms like Lido, Uniswap, or Maker protocols.
Ethereum also reclaimed its leadership position in NFT sales, recording $12.6 million in transactions within 24 hours.
Despite a brief period where Bitcoin led in NFT activity, Ethereum remains the preferred blockchain for prominent NFT projects.
The positive performance of Ethereum on November 23rd can be attributed to improved on-chain metrics, growing expectations of a spot ETF approval, and reduced regulatory concerns stemming from the 2015 ICO.
A coalition of businesses and tech firms has jointly penned a letter addressed to European Union regulators, cautioning against excessive regulation of potent artificial intelligence (AI) systems that may stifle innovation.
This collective appeal, comprising 33 companies operating within the EU, underscores the potential detriment of imposing overly rigorous rules on foundational AI models such as OpenAI’s ChatGPT and general-purpose AI (GPAI).
Such stringent regulations, the letter contends, could potentially impede much-needed innovation within the European region.
To buttress their argument, the signatories point to data revealing that merely 8% of European companies are currently harnessing AI technologies, a figure notably distant from the European Commission’s ambitious 2030 target of 75%.
Furthermore, a mere 3% of the world’s AI unicorns originate from the EU. The signatories stress that Europe’s competitiveness and economic stability are heavily reliant on its businesses and citizens effectively deploying AI across vital sectors such as green technology, healthcare, manufacturing, and energy.
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The companies underscore that for Europe to emerge as a “global digital powerhouse,” it must champion AI technologies like foundation models and GPAI, both of which are under scrutiny as the EU prepares to introduce new legislation.
The letter also provides constructive suggestions for EU leaders, aiming to strike a balance between fostering innovation and addressing legitimate concerns.
These proposals encompass measures such as reducing compliance costs for companies, concentrating regulatory efforts on high-risk use cases rather than specific technologies, and offering clarity on areas where existing legislation already overlaps.
This development unfolds against the backdrop of the EU’s ongoing efforts to finalize the landmark EU AI Act, originally passed in June and currently undergoing scrutiny and revision by member states.
Following the initial passage of the act, 160 executives from the technology industry issued a similar letter to EU officials, highlighting the potential repercussions of excessively strict AI regulations.
The convergence of industry leaders in advocating for a balanced approach to AI regulation underscores the significance of striking the right equilibrium between promoting innovation and safeguarding societal interests in an increasingly AI-driven world.
Numerous users of the cryptocurrency analytics platform Nansen have fallen victim to phishing attempts by scammers promoting an enticing yet entirely fictitious opportunity known as the “Nansen Airdrop.”
This malicious campaign came to light on November 23 when vigilant members of the cryptocurrency community on X (formerly Twitter) flagged ongoing phishing activities targeting Nansen’s user base.
In these fraudulent schemes, the scammers masquerade as Nansen and distribute counterfeit invitations to an exclusive airdrop event.
Crypto investigator Officer’s Notes (Officercia) first alerted the community to the ongoing attack, suspecting that the scammers may have obtained user data from a prior third-party database breach and are now exploiting it to target Nansen users.
The breach in question occurred on September 22 when one of Nansen’s third-party vendors suffered a security breach, impacting nearly 7% of the system’s users.
Those affected by the breach had their email addresses exposed, some had password hashes compromised, and a few even had their blockchain addresses compromised.
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Nansen had promptly responded by identifying and notifying the affected users, urging them to change their passwords.
Importantly, Nansen reassured users that their wallet funds remained unaffected by the breach.
One screenshot of a phishing email, shared with Cointelegraph, revealed that the sender’s address was “mail@networkforgood.com,” a completely unrelated email domain to the legitimate Nansen platform.
The fraudulent email promised users a guaranteed allocation of fake NANSEN tokens for the next 48 hours, accompanied by a link that potentially directed unsuspecting victims to a rigged website.
Officercia advises individuals to report suspected phishing links to databases such as chainabuse.com, cryptoscamdb.org, and phishtank.org, all of which contribute to the collective effort in reducing the success rates of such cyberattacks.
Despite these alarming developments, Nansen has not yet responded to Cointelegraph’s request for comment on the phishing campaign.
It’s worth noting that an increasing number of cryptocurrency investors are becoming susceptible to phishing attempts, especially in the wake of recent data leaks from platforms like TrueCoin and FTX bankruptcy claims.
However, Friend.tech has denied allegations of a data leak involving its database of over 100,000 users, asserting that the information in question was obtained through scraping its public API and did not result from a security breach.
Australia’s largest cryptocurrency exchanges are gearing up for a major rally, as the number of crypto buyers begins to climb.
According to the heads of these exchanges, this upward trend is expected to gain momentum in early 2024.
Adrian Przelozny, CEO of Independent Reserve, is actively preparing for the anticipated bull market.
He recognizes the need to fortify infrastructure and expand the team in anticipation of rapid growth.
Przelozny emphasizes the importance of being well-prepared to handle the surge in business when the bull market arrives, as it tends to unfold swiftly.
Caroline Bowler, the CEO of BTC Markets, notes that market conditions have become increasingly bullish throughout the year.
She acknowledges that market gains have not followed a linear path but highlights the industry-wide growth in asset prices and technological applications as reasons for confidence.
She also points to the influx of new users, increased trading volumes, and the deployment of “dry powder” as indicators that the market is in the early stages of a bull run.
Tommy Honan, the head of product strategy at Swyftx, reports a rising trend in buying activity on their exchange.
To address recent challenges faced by the Australian crypto scene, Swyftx is swiftly improving direct debit functionality.
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Honan attributes the uptick in activity to improved market fundamentals, drawing back investors who had stayed on the sidelines during the bear market.
Jonathon Miller, the managing director of Kraken Australia, exercises caution in determining the market’s phase. He dispels the notion that the crypto market is solely in a bull or bear phase, emphasizing the existence of a gray area in between.
Miller highlights factors like the upcoming Bitcoin halving and Ethereum’s Dencun upgrade as catalysts that are catching the attention of both institutional and retail investors.
Ben Rose, the general manager of Binance Australia, refrains from making a definitive call on the arrival of a bull market.
He observes an increase in new registrations and trading activity on Binance Australia recently.
To prepare users for a potential rally and prevent FOMO buying, Binance Australia is focused on educating its users.
Rose underscores the significance of responsible onboarding and ensuring users understand the long-term benefits of cryptocurrency beyond short-term price gains.
In conclusion, Australia’s cryptocurrency exchanges are bracing themselves for what they anticipate to be a significant market rally in 2024.
While optimism prevails, caution and preparedness are key themes among these industry leaders as they navigate the unpredictable crypto landscape.
U.S. government prosecutors are taking steps to prevent former Binance CEO Changpeng “CZ” Zhao from leaving the United States, citing concerns about his potential flight risk.
In a filing made on November 22 to a federal court in Seattle, prosecutors requested a review and reversal of a judge’s decision that would have allowed Zhao to return to his home in the United Arab Emirates (UAE) on a $175 million bond, provided that he comes back to the U.S. two weeks before his sentencing scheduled for February 2024.
The prosecutors argued in their proposed order that Zhao poses an “unacceptable risk of flight and nonappearance” if allowed to leave the United States before his sentencing. They expressed serious doubts about their ability to ensure his return if he decides not to come back voluntarily.
The government’s case against Zhao is based on his strong ties and privileged status in the UAE, coupled with the absence of an extradition treaty between the UAE and the U.S. Prosecutors pointed out that Zhao has a partner and three young children in the UAE, and once he is in the UAE, he might choose to remain there with his family rather than facing the prospect of up to 18 months in a U.S. prison.
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Furthermore, prosecutors argued that the majority of Zhao’s wealth, which was used to secure his $175 million bond, is held outside the United States and beyond the reach of U.S. jurisdiction.
Changpeng Zhao recently admitted to failing to maintain an effective Anti-Money Laundering program at Binance as part of a plea agreement.
This led to his resignation as CEO of the exchange and a $50 million fine.
Despite this legal setback, industry experts and observers view Binance’s settlement with the Justice Department as a positive development for the cryptocurrency industry, as it further legitimizes the industry in the United States.
Crypto markets have already rebounded from the negative news surrounding one of the industry’s most influential players, with the total market capitalization returning to pre-Binance news levels, reaching $1.48 trillion during the Thursday morning Asian trading session.
OpenAI, the developer behind ChatGPT, made headlines recently when it abruptly ousted its CEO, Sam Altman, citing a loss of confidence from the board.
However, this decision took an unexpected turn when Altman returned to the company after an astounding 90% of OpenAI staff threatened to resign.
This episode triggered a flurry of excitement in the tech industry, with companies rushing to match OpenAI’s salaries in an attempt to poach top talent.
The OpenAI debacle underscored the urgent need for regulations in the field of artificial intelligence, especially concerning security and privacy.
Many companies are rapidly expanding their AI divisions, and a reshuffling of talent could propel one ahead of the rest, potentially outpacing existing laws and regulations.
While President Joe Biden has taken some steps in this direction through executive orders, these orders lack the stability and legislative input required for comprehensive and lasting regulations.
Biden’s executive order this year addressed the need for “safe, secure, and trustworthy artificial intelligence” and aimed to protect workers from potential job losses due to AI advancements.
It tasked various government bodies, such as the Office of Management and Budget (OMB), the Equal Employment Opportunity Commission (EEOC), and the Federal Trade Commission (FTC), with establishing governing structures and evaluating their authority in overseeing AI-related issues.
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However, relying solely on executive orders has its shortcomings. Such directives lack permanence, can be subject to interpretation by the courts, and may not adequately address the complex ethical implications of widespread AI implementation, such as algorithmic bias, surveillance, and privacy concerns.
These critical issues should be debated and addressed by Congress, where elected officials can represent the interests of the people rather than leaving them to be resolved by appointed agency bureaucrats.
A lack of congressional involvement also hinders the development of laws that provide users of AI with control over their personal data and ensure that companies conduct responsible risk assessments and maintain automated systems safely.
Relying solely on federal agencies to enact regulations can lead to confusion and a lack of trust among consumers, as seen in the cryptocurrency sector when the SEC filed lawsuits against crypto companies.
It is imperative for President Biden to engage with Congress on these AI-related issues rather than relying solely on executive branch actions.
Congress, in turn, must craft legislation that encompasses the concerns and aspirations of diverse stakeholders.
Without collaborative efforts between the executive and legislative branches, the United States risks falling behind in AI innovation and jeopardizing the security and privacy of its citizens and others worldwide.