Binance CEO Steps Down 🌇

GM. This is Degen Scoop. It’s Wednesday, and yesterday was a doozy to say the least with all the Binance news that transpired including the departure of its CEO, CZ. Let’s get into it:

• Binance CEO Steps Down 🌇

• Blast, The New Layer 2 ⛷

• ADA and SOL Deemed Securities 🏛️

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Binance CEO CZ To Step Down, Company To Pay $4.3B in Fines

Binance CEO Changpeng Zhao (CZ) is set to step down from his role in a settlement with the U.S. DOJ over alleged criminal violations of anti-money-laundering requirements. As part of the deal, Zhao will plead guilty to the charges, allowing Binance to continue its operations.

The settlement involves Binance paying $4.3 billion in fines and settlements, marking the end of a lengthy DOJ investigation. While Zhao will maintain ownership of Binance, he will be barred from executive roles. The settlement also addresses civil charges from the CFTC related to Binance's weak anti-money laundering controls and providing Americans access to derivatives.

Notably, the deal does not cover the SEC's lawsuit against Binance for alleged investor-protection violations. The news led to initial market wobbles, with Bitcoin and Ethereum experiencing fluctuations, but they have since rebounded. Regardless of your opinion of the man, it’s truly the end of an era without CZ.

Founder of Blur Launches New ETH Layer 2 Blast

Yesterday, we learned about another ETH Layer 2 Blast who has launched its early access phase after securing a $20M investment from backers like Paradigm and Standard Crypto. The chain has already absorbed over $70M of liquidity as speculators hope to earn an airdrop and take advantage of the opportunity.

The founder of Blur is the founder of this new chain and explains why it was created in the thread below. Put simply, Blast introduces a native yield model, aiming to become the first Layer 2 with this feature. Roquerre raised an additional $40M for the Blur ecosystem, including Layer 2 apps for NFTs.

Blast plans to airdrop tokens to community members and developers, offering native yields of 4% for ETH and 5% for stables. How they will manage to achieve this remains to be seen, but we will be watching. Initial criticisms are lambasting Blast as a pyramid scheme. The only question more important to ask is if you’re early.

Cardano and Solana Categorized As Securities in SEC Lawsuit Against Kraken

The SEC has filed a lawsuit against cryptocurrency exchange Kraken, while they continue their holy quest in trying to shut down crypto in which they will lose. What is notable about this move is that the lawsuit categorizes tokens like Cardano (ADA) and Solana (SOL) as securities.

Kraken CEO Dave Ripley vehemently disagrees with the SEC's claims, stating that Kraken does not list securities and emphasizing the lack of a clear registration path with the SEC. Ripley is probably right here, given that the SEC has still not provided any clarity in regards to regulation but rules via litigation.

Ripley called for Congressional action to resolve regulatory ambiguities and pledged Kraken's support for efforts to bring clarity to the U.S. crypto environment. Despite the lawsuit, Kraken assures its commitment to its mission and its clients, with no impact on current services offered.

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.