Binance, a major cryptocurrency exchange, has refuted claims suggesting its affiliation with a registered entity in the United Kingdom (UK).
The controversy emerged when a post on the r/buttcoin subreddit revealed a modest structure known as a “utility closet” in Mildenhall, Suffolk County, England, purportedly serving as Binance Ltd’s registered office address in the UK. Nevertheless, a representative from Binance has informed Cointelegraph that the mentioned entity is not associated with the exchange.
The address in question belongs to OfficeServ, a company that offers virtual registered address services, aiming to provide clients with a credible business location.
Google Maps confirms the site’s presence as a small and unremarkable garage building situated on the outskirts of Mildenhall, approximately ninety minutes away from London.
According to Companies House, Binance Ltd is registered to engage in “other service activities not elsewhere classified.”
Although the specifics regarding this entity, Binance Ltd, remain ambiguous, the Financial Conduct Authority in the UK has previously cautioned the public about crypto “clone” firms.
These fraudulent entities employ information from legitimate organizations to deceive potential victims into believing their authenticity.
Multiple entities incorporating “Binance” in their names can be found across various addresses throughout the UK.
The utilization of virtual “shell” addresses by technology companies has been a prevalent practice globally and within the United States for several years. Such addresses serve various purposes, including preserving privacy, concealing patent filings, or establishing businesses in tax havens.
One prominent example is the Corporation Trust Company, the largest registered agent service firm globally.
Numerous well-known companies, including Google, Walmart, Coca-Cola, and Apple, have availed themselves of its services. The company operates from an unassuming brick building in Delaware, which allows firms to maintain confidentiality.
Apple, for instance, employed the Corporation Trust Company in November of the previous year to obscure patent filings related to its recently announced Vision Pro headset and the accompanying operating system.
Another notable case involves Wyoming Corporate Services, which Reuters exposed in 2011, describing it as a “brick house” situated in a placid city and housing around 2,000 registered companies at that time.
Binance has categorically denied any connection to the entity registered at the modest address in Mildenhall,
UK. Virtual shell addresses have been utilized by technology companies worldwide to fulfill various purposes, although they have also raised concerns regarding privacy and potential fraudulent activities.
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OKCoin USA, Inc., a cryptocurrency exchange, has been called out by the US Federal Deposit Insurance Corporation (FDIC) for disseminating false and misleading information about its deposit insurance.
In a letter sent to OKCoin USA, Inc., the FDIC demanded immediate corrective action to address these misleading statements.
On the same day, the FDIC also sent letters to Bodega Importadora de Pallets and Money Avenue LLC, cautioning them about the potential harm their statements could cause to consumers.
FDIC Chairman Martin J. Gruenberg stated that the agency has noticed an uptick in the misuse of the FDIC’s name or logo, as well as false claims about deposit insurance, which can confuse individuals about the legitimacy of an insured institution and the protection offered by deposit insurance.
The FDIC pointed out that OKCoin and its senior executives have made repeated misleading statements. For instance, OKCoin claimed in a post that it possessed “FDIC insurance on OKCoin accounts” and stated on Twitter that one of its affiliated exchanges offered FDIC insurance.
In response, the FDIC issued a directive to OKCoin, ordering the removal of all statements implying FDIC insurance or endorsement of any specific blockchain.
The cryptocurrency exchange has been given a deadline of 15 business days to provide written confirmation to the FDIC that it has complied with these demands.
It is important to note that the FDIC only provides deposit insurance for deposits held at insured banks and savings associations, and not for deposits at cryptocurrency companies.
The maximum coverage offered by the FDIC is at least $250,000. In a fact sheet released in July 2022, the FDIC explicitly stated that deposit insurance does not apply to financial products like stocks, bonds, commodities, or cryptocurrencies.
The FDIC emphasized that apart from the potential harm to consumers, misinformation and confusion caused by misrepresentations about deposit insurance can also expose banks to legal risks if a cryptocurrency company or other third-party partner misrepresents the extent and nature of deposit insurance. The agency issued a related advisory last year to highlight these concerns.
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Charles Hoskinson, the founder of Cardano, has recently revealed his involvement in an expedition dedicated to finding a meteor of interstellar origin that crashed onto Earth in 2014.
The United States Department of Defense had already confirmed the meteor’s extraterrestrial origin in 2019. The search for this remarkable object is being led by the Galileo Project, which operates under the auspices of Harvard University, with Professor Avi Loeb and his student Amir Siraj at the helm.
In an intriguing move, Hoskinson had previously invested $1.5 million in the Galileo Project in March 2023. On June 16th, he made his presence known, joining the researchers on the coast of Papua New Guinea in the Pacific Ocean, and documenting his experiences through a series of tweets.
One of his updates highlighted the extensive ground they still needed to cover, noting that they hadn’t yet begun using the sluice sled, an important tool for the expedition.
Meanwhile, Professor Loeb, another member of the research team, has been diligently updating a blog with daily reports on the expedition’s progress. In a recent post dated June 16th, he revealed the discovery of a manganese-platinum wire with a unique abundance pattern distinct from commonly available commercial products.
Hoskinson’s involvement in such an intriguing venture comes as no surprise, as he is known for investing in unconventional and exciting projects that push the boundaries of knowledge.
In March 2022, he announced his investment in a project dedicated to resurrecting the woolly mammoth, combining blockchain technology with the field of de-extinction.
With Hoskinson’s support, the Galileo Project and its team of dedicated researchers aim to shed light on the mysteries surrounding alien life and the potential existence of UFOs.
As the search for the interstellar meteor continues, the world eagerly awaits any breakthroughs or discoveries that may emerge from this extraordinary expedition.
The scientists involved in the expedition harbor a strong belief in the existence of extraterrestrial life and speculate that the meteor that crashed into the ocean may actually be a fragment of an unidentified flying object (UFO).
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According to data from CoinMarketCap, BUSD, the stablecoin created through a partnership between Binance and Paxos Trust, has experienced a significant decline in market capitalization over the past 30 days, causing it to drop to the fourth position among stablecoins.
Currently, the market cap of BUSD stands at $4.3 billion, marking a 29% decrease from $5.54 billion recorded on May 18. This downward trend for BUSD began in December 2022 when its market cap reached an impressive $23 billion.
The decline in BUSD’s market cap appears to be closely tied to the major developments surrounding Binance, which followed the dramatic collapse of FTX in November 2022.
In December 2022, news emerged suggesting that the U.S. Department of Justice would focus its attention on Binance, triggering a massive net withdrawal of $3.6 billion in just seven days. Market makers, including Jump Finance, redeemed substantial amounts of BUSD, with withdrawals exceeding $245 million.
It is worth noting that the creation of BUSD resulted from a partnership between Binance and Paxos Trust, with Paxos being the issuer and owner of the stablecoin while Binance licenses its brand.
However, this partnership has presented new challenges for Paxos. In February, reports surfaced claiming that the U.S. Securities and Exchange Commission had issued a Wells notice to Paxos, alleging that BUSD was an unregistered security.
The fall in market capitalization and subsequent decline in BUSD’s position among stablecoins highlight the challenges faced by the cryptocurrency industry as it navigates regulatory scrutiny and market volatility.
It remains to be seen how BUSD and other stablecoins will respond to these challenges and adapt to the evolving landscape of the digital asset market.
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Bakkt, a prominent cryptocurrency trading platform, has joined the likes of Robinhood and eToro by suspending trading of several major altcoins.
The decision came after the United States Securities and Exchange Commission (SEC) recently classified SOL, MATIC, and ADA as securities, prompting regulatory uncertainty in the crypto market.
The SEC’s recent lawsuits against Binance and Coinbase, in which the regulator categorized more than 20 digital assets as securities, have caused ripple effects across the industry.
This brings the total number of cryptocurrencies considered securities by the SEC to an estimated 68. In response to this regulatory landscape, Bakkt has chosen to suspend trading until there is greater clarity on how to compliantly offer a wider range of coins.
The delisting of altcoins by Bakkt, eToro, and Robinhood has significant implications for the crypto space. It further tightens liquidity for these tokens, which have already been impacted by the market downturn.
CoinMarketCap data reveals that MATIC, ADA, and SOL collectively lost nearly $10 billion in market capitalization. SOL’s market cap decreased from $8.78 billion on June 4 to $5.85 billion.
ADA’s market cap dipped from $13.31 billion to $9 billion, and MATIC’s market cap declined from $8.37 billion to $5.32 billion within the same period.
Bakkt’s decision to delist altcoins comes after its acquisition of Apex Crypto, a blockchain technology platform, for $55 million in cash and stock in April.
Following the acquisition.,Bakkt initiated an overhaul of token pairs traded on its platform, resulting in the removal of 25 out of the 36 listed crypto tokens.
The SEC’s enforcement actions have sent shockwaves through the cryptocurrency industry, leading to heightened regulatory concerns and subsequent delistings.
While these actions aim to ensure compliance and protect investors, they have introduced uncertainties for trading platforms and investors alike. As the industry evolves, market participants will closely monitor regulatory developments to navigate this ever-changing landscape.
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Crypto community members have rallied together to support blockchain investigator ZachXBT, who is facing a defamation lawsuit that could potentially cost him over $1 million in legal fees.
In just over 24 hours, donations from the crypto community have surpassed the $1 million mark, highlighting the solidarity within the industry.
ZachXBT is well-known for his investigative work in the blockchain and cryptocurrency space. However, he recently found himself entangled in a legal dispute with Jeffrey Huang, also known as MachiBigBrother on Twitter.
On June 16, Huang took to Twitter to announce that he had filed a defamation lawsuit against ZachXBT, alleging that he had tarnished his reputation with false accusations.
The specific allegations made by ZachXBT were not explicitly mentioned in Huang’s tweet.
However, one of ZachXBT’s articles, titled “22,000 ETH Embezzled and Over Ten Projects Failed: The Story of Machi Big Brother (Jeff Huang),” published in June 2022, accused Huang of being involved in the launch of numerous failed pump and dump tokens and NFT projects.
ZachXBT responded to the lawsuit on June 17 through a series of tweets, labeling it as “baseless” and an attempt to stifle freedom of speech.
Recognizing the potential financial burden ahead, he established a donation wallet address for his followers to contribute towards his legal expenses.
He expressed his belief that the fees associated with defending himself could easily surpass $1 million.
Despite the overwhelming nature of the lawsuit, ZachXBT remained steadfast in his convictions.
He referred to the legal action as “sickening” but acknowledged that he had anticipated such a consequence, recognizing it as the price he must pay for upholding honesty and integrity in his work.
The remarkable response from the crypto community in supporting ZachXBT financially underscores the importance placed on defending free speech and protecting individuals who contribute to the transparency and accountability within the blockchain and cryptocurrency industry.
With the substantial donations received, ZachXBT now has a significantly strengthened position to address the legal challenges he faces, ensuring that his voice and investigative efforts continue to make an impact in the community.
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Tether, the stablecoin issuer, has responded to the controversy surrounding the deactivation of accounts belonging to major cryptocurrency firms, including MoonPay. The New York Attorney General (NYAG) released documents stating that Tether deactivated approximately 29 accounts of prominent players in the crypto industry in 2021.
While the specific reasons for the terminations were not disclosed, Tether has stated that it will not comment on individual relationships. The company emphasized that all individuals had undergone thorough compliance checks during onboarding and continuous monitoring as part of Tether’s compliance policies.
Among the deactivated accounts were those of MoonPay, BlockFi, CMS Holdings, and Galois Capital. The NYAG investigation, which began earlier in 2021, revealed that certain documents related to the probe extended until around June of the same year. User codes within these documents have been redacted.
The investigation into Tether and its sister company Bitfinex was initiated by the NYAG, alleging misappropriation of $850 million in funds. During the investigation, iFinex, the parent company of both entities, requested a 30-day extension to produce critical financial documents.
Eventually, the parties involved reached a settlement, with Tether agreeing to pay an $18.5 million penalty and cease trading activities in New York.
Following the settlement, media outlets and Coinbase requested access to Tether’s initial quarterly report under the Freedom of Information Act. Tether, however, objected to the request, citing the need to protect customers’ confidential information from potential exploitation by malicious actors.
Despite Tether’s objection, the NYAG allowed media outlets access to the documents, revealing the deactivation of numerous company accounts. Tether’s response to the controversy highlights its commitment to compliance checks and emphasizes the rigorous processes involved in onboarding and ongoing monitoring. By addressing the concerns surrounding the account deactivations, Tether aims to maintain transparency while safeguarding the confidentiality of its customers’ information.
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Binance, the largest cryptocurrency exchange worldwide, and Binance.US have negotiated an arrangement with the U.S. Securities and Exchange Commission (SEC). The agreement is intended to ensure all assets from U.S. customers remain domestically held until a significant lawsuit filed by the SEC is concluded.
The deal, revealed in court documents submitted on Friday, awaits the approval of the presiding federal judge in the case. As part of the agreement, only Binance.US employees will have access to these U.S. customer assets to prevent them from leaving the country.
Earlier this month, the SEC sued Binance, its founder and CEO Changpeng Zhao, and the operator of Binance.US. The SEC alleges that Binance manipulated its trading volumes, misappropriated customer funds, did not adequately restrict U.S. customers on its platform, and misled investors about its market monitoring measures.
This litigation, along with another one launched against major U.S. exchange Coinbase, marks an intensification of regulatory pressure on the cryptocurrency industry in the U.S.
The current agreement does not solve the SEC lawsuit. Instead, it stipulates that Binance.US will restrict Binance Holdings officials from accessing private keys for its diverse wallets and tools such as Amazon Web Services. This move is aimed at protecting customer assets.
On Saturday, the SEC affirmed that the emergency relief order obtained for Binance.US customers would protect their assets and enable ongoing withdrawal of assets. Gurbir Grewal, the SEC’s enforcement division director, stated the prohibitions were crucial for asset protection.
In response, a Binance spokesperson emphasized that user funds would remain safe and secure on all Binance platforms. The proposed agreement also includes plans for Binance.US to create new crypto wallets inaccessible to the global exchange’s employees and accelerate the discovery schedule.
Last week, the U.S. Binance affiliate ceased dollar deposits and set a deadline for customers to withdraw their dollar funds, following an SEC court request to freeze its assets.
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In a recent response to circulating reports, Tether, a significant stablecoin issuer, addressed allegations that its reserves once encompassed securities from Chinese corporations. These assertions were presented by mainstream media including Bloomberg, citing documents provided by the New York Attorney General (NYAG).
The highlighted securities were allegedly backed by USDT and issued by prominent Chinese state-owned entities such as the Industrial and Commercial Bank of China, China Construction Bank, and the Agricultural Bank of China.
In the face of these reports, Tether quickly retaliated on the same day. In their statement, they questioned the intent and haste with which these media outlets shared the information.
They asserted, “Ultimately Bloomberg, CoinDesk or any other media outlet’s decision to present this information to its readers was likely done in haste with little attention to current events or facts.” Tether expressed disappointment in this perceived media behavior, clarifying their primary allegiance to their clientele.
Moreover, Tether elaborated that the presented documents do not accurately represent the company’s current standing. They claimed that the information shared with media channels is both outdated, being over two years old, and insufficiently comprehensive.
The company also took the opportunity to detail its past involvement with Chinese commercial papers, asserting that these investments were liquid and from stable issuers.
It stressed that these papers were also part of the portfolios of some of the globe’s top investment managers, boasting A1 or better ratings. Tether emphasized the solidity of its financial decisions by stating, “The Chinese banking-related commercial paper at issue was rated A1 or better.”
Tether further revealed that it severed its ties with commercial paper holdings last year, reducing its exposure to zero. Maintaining their stance of strong financial conduct, Tether reassured stakeholders that it did not suffer any losses from any commercial paper, including those issued by Chinese firms. The company appears to be eager to clarify its position amid the unfolding events and remains steadfast in defending its strategic financial decisions.
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Facing accusations of violating securities laws from U.S. regulators, Binance.US, the American subsidiary of crypto behemoth Binance, has reportedly conducted a wave of layoffs. According to insiders and social media posts from employees, the layoffs come in response to the regulators’ charge and subsequent move to freeze the company’s assets.
While one source estimated the number of affected staff to be approximately 50, Reuters was unable to independently verify the figure or the seniority of the employees impacted. The firm’s spokesperson has yet to comment on the matter. Those reportedly dismissed primarily belong to the legal, compliance, and risk departments.
On June 5, the Securities and Exchange Commission (SEC) alleged Binance and its founder and CEO, Changpeng Zhao, of contriving Binance.US as a means to circumvent U.S. securities laws designed to safeguard American investors. The company responded with a commitment to vigorously defend itself. The SEC also brought a suit against BAM Trading, the operational entity behind Binance.US, accusing it of misleading investors about non-existent trading controls on its platform.
The next day, the SEC requested a federal court to freeze Binance.US’ assets, including over $2.2 billion in cryptocurrency and about $377 million in U.S. dollar bank accounts, over concerns that the funds could be transferred offshore. Binance.US has labeled the move as unwarranted and the allegations as baseless.
The CEO of Binance.US, Brian Shroder, noted in a communication to staff that the ongoing legal ordeal necessitated cost-cutting and organizational streamlining to maintain long-term viability. Two employees took to LinkedIn to confirm their exit from the company, with one attributing it to the layoffs.
Binance.US also alerted that its banking partners may cease dollar withdrawals as early as June 13, in light of the SEC’s hardline stance. Customers were encouraged to withdraw their funds, as the firm seeks to transition into a crypto-only exchange.
Despite avoiding layoffs in the past year, Shroder admitted that the actions of the SEC and their banking partners necessitated a change in approach. According to a court filing, BAM Trading argued that the SEC’s asset freeze request could effectively render the company inoperable, as it would be unable to meet its financial obligations and maintain its technological platform.
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