CZ pleads guilty, Binance settles with DOJ for $4.3B, Genesis sues Gemini

Between binance and CZ yesterday will go Down in crypto History good morning you're listening to The ryzen crypto podcast by coin Telegraph with me Robert bags steering You through the crypto Cosmos with daily Dispatches from the digital Frontier if You want to stay ahead of the curve in Crypto make sure you click that follow Button okay grab yourself a coffee and Let's get into It so obviously today is going to be Binance and CZ heavy given yesterday's News but here is what we will cover Today binance agrees to settlement with Multiple US government agencies for $4.3 Billion CZ pleads guilty over violations Of the bank secrecy act CZ is released On a $175 million Bond and risks jail Genesis sues Gemini over $689 million And grayscale meets with the SEC over The Bitcoin trust conversion to an ET F right here we go so unless I am the Only place you get your crypto news and What a beautiful thing that would be you Will know that yesterday was an enormous Day for crypto and binance so we're Going to start there with Turner Rights Article the US Department of Justice has Announced that Chang penzal known as CZ Has pleaded guilty to one felony charge Of failure to maintain an effective Anti-money laundering program at the Exchange which violated the Bank secrecy

Act for this CZ will pay $50 million in Fines Additionally the former compliance Chief at binance Samuel Lynn will pay $1.5 million in fines if those fines Sound eyering to you brace yourself Binance has reached a settlement Agreement with several US agencies that Will see the exchange pay a total of $4.3 billion an amount more than the GDP Of around 44 of the world's countries 3.4 billion will be penalties to the Financial crimes enforcement Network and $1 billion will be to the treasury's Office of foreign assets control According to the US attorney general Merrick Garland the settlement was Primarily as a result of bance's Policies that allowed criminals involved In illicit activities to move stolen Funds through the exchange he added that Binance pretended to comply with us Federal laws and made two scathing Comments the first was binance Prioritized its profits over the safety Of the American people and the second Which felt almost personal was using new Tech techology to break the law does not Make you a disruptor it makes you a Criminal that line is bound to be in an Upcoming movie binance tweeted we're Pleased to share we have reached Resolutions with several US Agencies Related to their investigations that is One hell of a use of the word pleased

But as they continue it does turn the Page on a challenging yet transformative Chapter CZ also tooks a x with a candid Approach saying I made mistakes and I Must take responsibility the fine is not The only way he has taken responsib Ability Cy tweeted today I stepped down As CEO of binance admittedly it was not Easy to let go emotionally but I know it Is the right thing to do I made mistakes And I must take responsibility this is Best for our community for binance and For myself binance is no longer a baby It is time for me to let it walk and run I know binance will continue to grow and Excel with the Deep bench it has the Tweet goes on to discuss that deep bench And announce rich Richard Tang former Global head of regional markets as the New CEO of binance as for cz's immediate Future he wrote I will take a break First I have not had a single day of Real phone off break for the last 6 and A half years the settlement was Expensive for binance and CZ there's no Doubt about it but some are suggesting That a part of the settlement was the Stipulation that CZ is barred from Serving as an executive on any Cryptocurrency company that is it may Not have been his decision to step down Richard Tang does appear to be the Natural replacement for CZ as CEO of Binance with CZ suggesting Tang has over

Three decades of financial services and Regulatory experience the latter is of Course a good fit going forward given The circumstances and Teng took to X to Lay out the focus for binance from here In he wrote reassuring users that they Can remain confident in the financial Strength security and safety of the Company what this might mean for binance Going forward is difficult to say it Feels as if the Survivor of this Setlement is an indicator of the Platform's strength and durability even If it is as a result of unsavory Behavior on the part of the exchange Rather than just regulatory confusion so What do you think the future holds for Binance after this share your thoughts With us on atoin Telegraph and at arcade Bags on X so let's wrap up the binance and CZ News news feels like an understatement For all of this with what the situation Means for CZ specifically when I read That CZ had pleaded guilty to the Violence ation of the bank secrecy act And agreed to a weighty fine of $50 Million I wonder what perhaps you are Too does this carry a custodial sentence That is is CZ on his way to jail it's no Secret that Financial crimes often have Aggressive punishments in the US and Given the fine CZ is paying it raises The question of what the future might

Hold for him so here's what you need to Know about that CZ will pay a $175 Million release Bond and has agreed to Return to the US from Dubai where he Currently lives 14 days before Sentencing which will take place on the 23rd of February 2024 CZ has agreed to Share where he will be residing while on Bail and he posted $15 million in a Trust account separate from his bond Agreeing to Forfeit it if he fails to Adhere to the bond conditions the Document also lists two guarantors who Would cough up $250,000 and $100,000 respectively the 250,000 guarantor is likely as a result Of the following line you can see on the Appearance Bond a willful failure to Appear in court at a time set for Hearing is a separate criminal offense Punishable by up to 10 years Imprisonment and a fine of $250,000 but here's the big question can There be imprisonment without breaching The rules of his bond well yes a Violation of the bank secrecy act Carries an 18-month sentence though in Braden Linda's article on the CZ Bond he Notes that prosecutors are open to Slapping him with a longer sentence According to a New York Times piece the Final albeit very unlikely twist to this Tale could come in the form of Extradition being a CZ lives in Dubai

And the United Arab Emirates has no Extradition agreement with the US things Could get spicy though it doesn't look Like that's on the cards okay so that Was a lot to take in when it comes to Binance and CZ so I wanted to get a Different perspective and I spoke to our Head of news Stu clarland about it big Question now is what makes for binance We know that CZ obviously has to go he's F about $50 million of his own money to Go along with the 4.3 billion so we know That his replacement has been chosen Richard Tang very able guy he's their Former head of regional markets he's Already come out this morning on X Formerly Twitter to say company is Debt-free but they have low expenses and That their revenue and profits are Robust um obviously it's a private Company we don't have any figures to Back up what the man is saying we have To take him at his word we do know that Binance famously has its safu it's Secure asset fund for users which is 10% Of anything that is saved on the Platform is put aside to cover against Hacks or exploits which does not apply In this case obviously so I think the Major question for everyone is now where Is this 4.3 billion going to come from Is it going to come out of a liability Pot that we imagine that it must have as These investigations have been going on

Now for close to six years or will it be Coming from customer funds that really Is the big question here for the crypto Community so let us know your thoughts Thoughts okay we're taking a break from Binance and CZ but not from the Courtroom there's legal drama of Plenty Prant jar wrote a piece on the ongoing Feud between the bankrupt crypto lender Genesis and the crypto exchange Gemini Which has taken yet another large turn Genesis Global capital is suing Gemini To recover $689 million in preferential Transfers according to a 21st of November Court filing the lawsuit Alleges that in the 90-day period prior To the January bankruptcy filing Gemini Withdrew funds ahead of other defendants That ought to have been on level pegging As the lawsuit claims Gemini withdrew And I quote an aggregate gross amount of No less than approximately 689 mil 302,000 and this was at the expense of Other creditors who owed money from the Estate of the bankrupt the legal team For Genesis claimed that this breaches The United States Bankruptcy code and This unfairness must be corrected and to Return Gemini to the same position of Other similar creditors Genesis and Gemini have engaged in a rather public War since the collapse of FDX and it has Resulted in multiple lawsuits Gemini is Suing Genesis over the $ 1.6 billion

Worth of grayscale bitcoin trust shares As collateral in the Gemini NN program The NN program is also the subject of a Suit against the Genesis parent company Digital currency group and its CEO Barry Silbert and then there is another suit Against the digital currency group over $600 million of loans What a Mess so speaking of the great scale Bitcoin trust Martin Young wrote a piece About a recent meeting between grayscale And the Securities and Exchange Commission the SEC about this Bitcoin Trust on the 20th of November a memo Disclosed the grayscale CEO Michael Sunshin and their legal team met with The sec's division of trading and Markets to discuss converting the Grayscale Bitcoin trust into a spot Bitcoin ETF you didn't think we'd get Through an episode without mentioning a Spot coin ETF did you Nate gachi President of ETF store pointed out that The most substantive aspect of Grayscale's SEC meeting yesterday is That the gptc conversion is being Referred to as an uplisting I presume That the reason gachi is highlighting This is that uplisting generally refers To a security moving from a lower tiered Exchange to a more prestigious one this Could imply that the discussions between The SEC and grayscale was primarily over

The Regulatory and Market implications Of a move to a spot ETF grti also added That it doesn't indicate any issues with The conversion to an ETF though he did Worry that if the SEC wanted to batch Approve all of these ETF applications it Could delay Things so the ryzen crypto daily podcast Only made it 7 episodes in before we had To talk about a truly historic moment in Crypto that is it for today though so Consider yourself informed thank you for Listening to the ryen crypto podcast by Coin Telegraph if you're enjoying these Daily updates please make sure you let Us know by following subscribing leaving A review or sending us a tweet have a Great day let's do this again [Music] Tomorrow


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