🤯 CZ Pleads Guilty!

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CZ has plead guilty and Binance is facing $4 Billion in fines! Yes, you read that right 🤯 . The market reaction wasn’t as severe as you might expect, with some analysts actually saying that this is a good thing for the ecosystem.

Let’s dive in. 👇️ 

Markets

Crypto giant Binance admits to money laundering and agrees to pay $4.3bn (4 minute read)
Changpeng Zhao, the founder of Binance, the world's largest cryptocurrency exchange, has voluntarily resigned from his position and pled guilty to charges of money laundering.

Additionally, Binance itself has agreed to plead guilty and undertake several measures, including the appointment of a monitor and payment of a substantial $1.81 billion criminal fine, along with a $2.51 billion forfeiture order, to settle three criminal charges. The U.S. Justice Department had accused the company of engaging in an unlicensed money transmitting business, conspiring to commit the same, and violating the International Emergency Economic Powers Act.

The combined fines of $4.3 billion constitute one of the largest penalties ever obtained by the Justice Department in a criminal matter.

Binance Founder Changpeng 'CZ' Zhao Released on $175M Bond, Will Be Sentenced in February (3 minute read)
Changpeng "CZ" Zhao, has been released from custody after posting a $175 million personal recognizance bond. This follows his guilty plea to violating the Bank Secrecy Act, a charge stemming from allegations that he directed Binance to permit U.S. customers to use the platform without undergoing proper know-your-customer or anti-money laundering checks.

The terms of Zhao's release include standard provisions such as refraining from breaking the law, tampering with witnesses or victims, and abstaining from non-prescribed controlled substances. The release order seemingly permits Zhao to leave the U.S., specifying a requirement to return 14 days prior to sentencing. However, federal prosecutors expressed their intent to appeal this provision to a higher-ranking judge during a hearing earlier on Tuesday.

Binance saw $1 billion in net outflows over the last 24 hours (2 minute read)
Binance, saw a significant uptick in withdrawals during news that its founder pleaded guilty to criminal charges in the U.S. Data from DefiLlama showed that Binance’s 24-hour outflows topped $1 billion as of 3:30 p.m. Hong Kong time on Wednesday. The exchange's net outflows over 7 days amounted to $703.1 million. Of the total outflows experienced by Binance, $605.9 million came across the Ethereum, BNB chain, Avalanche, Fantom and Polygon networks.

Tech

Bittensor TAO token up over 300% as blockchain and AI integrate (3 minute read)
The synergy between blockchain technology and artificial intelligence has led to the emergence of innovative projects like Bittensor, a protocol specifically designed for machine learning models. Leveraging the transparency and efficiency inherent in blockchain, Bittensor rewards users with TAO tokens based on their contributions to the collective machine learning model.

TAO not only functions as a reward mechanism but also enables external users to access network information, customizing activities according to individual needs. The overarching vision of the project is to establish a transparent market for artificial intelligence, fostering interaction between consumers and producers.

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Misc

Crypto assets dip as Binance settlement unfolds — but what’s next? (3 minute read)
Crypto asset prices experienced a downturn in response to the Binance news. Binance Coin (BNB) notably saw a nearly 7% decrease, trading at approximately $239, while Bitcoin and Ether dipped 1.3% and 1.7%, respectively, with values dropping below $37,000 and $2,000 within a one-hour span.

Despite these initial declines, some industry observers view the Binance situation as a potential catalyst for the broader crypto market. Matteo Greco, a Fineqia Research Analyst, expressed the belief that the situiation could ultimately have a positive impact on the crypto space.

Mt. Gox to start repaying creditors in cash 'shortly' this year, trustee says (2 minute read)
Mt. Gox has communicated its intention to initiate cash repayments to certain creditors in the near future, according to an email sent to creditors today. The defunct bitcoin exchange, which experienced a collapse in 2014, revealed that the rehabilitation trustee is actively working to commence cash repayments within the 2023 calendar year.

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