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Binance Sued By The SEC 🇨🇳
Today's stories: the SEC sues Binance for securities laws violations, ETH Co-Founder Sends $41M in ETH to Kraken, and El Salvador has announced a partnership in helping to construct a $1B bitcoin mining farm.
GM. This is Degen Scoop, and the SEC strikes again. It’s Tuesday, let’s go:
Binance Sued By The SEC 🇨🇳
ETH Co-Founder Sends $41M in ETH to Kraken 💸
El Salvador Helping Build $1B Bitcoin Mining Farm 🇸🇻
Whale Moves 🐋
Threads You CAN’T Miss 🧵
The SEC Sues Binance
Evil Gary Gensler
The news yesterday that sent the market tumbling was the revelation that the SEC was filing charges against Binance. Like Gen Z, the SEC took to Twitter to make the announcment:
Today we charged Binance Holdings Ltd. (Binance); U.S.-based affiliate, BAM Trading Services Inc., which, together with Binance, operates Binance.US; and their founder, Changpeng Zhao, with a variety of securities law violations.
sec.gov/news/press-rel…
— U.S. Securities and Exchange Commission (@SECGov)
5:55 PM • Jun 5, 2023
While worrisome, in the short term, it is likely a nothing burger in the long run. As expected, CEO CZ responded with the following:
4.
Our team is all standing by, ensuring systems are stable, including withdrawals, and deposits.
We will issue a response once we see the complaint. Haven't seen it yet. Media gets the info before we do.
🙏 twitter.com/i/web/status/1…
— CZ 🔶 Binance (@cz_binance)
3:27 PM • Jun 5, 2023
The entity Binance release a more formal response to the market-disrupting news:
Today, the SEC filed civil claims against in what is the latest example of regulation by enforcement under the current Commission. To be clear, we believe the lawsuit is baseless and we intend to defend ourselves vigorously. However, we want to address… twitter.com/i/web/status/1…
— Binance.US 🇺🇸 (@BinanceUS)
4:19 PM • Jun 5, 2023
To summarize: Binance will be fighting this suit. If there is any silver lining to this, there will be regulatory clarity established that will provide exchanges to operate in good faith. The issue isn’t so much Binance and their alleged actions, but rather the regulatory overreach of the SEC who refuses to provide clear rules. This is why CoinBase is more than happy to meet them in court. Clarity is needed.
While the markets stuttered, there were no major withdrawals from Binance signaling trust in the institution. Binance is far from the most trustworthy entity, but this suit should be beneficial for the crypto industry as a whole.
SEC sues @binance, but no major withdrawals from Binance. User balances are increasing actually.
cryptoquant.com/asset/btc/char…
— Ki Young Ju (@ki_young_ju)
5:52 PM • Jun 5, 2023
Jeffrey Wilcke, ETH Co-Founder, Sends $41M in ETH to Kraken
Jeffrey Wilcke (@jeffehh)
Out of nowhere, Wilcke, a co-founder of Ethereum, sent a significant sum of ETH off to Kraken. This was the first activity on this wallet in nearly two and a half years, outside of a test transaction prior to sending to Kraken that is. If you want to see the transaction on-chain, you can see it here.
Transaction to Kraken. Price had dropped at time of screenshot.
The wallet remains in possession of 150K ETH ($272M), so this move was roughly 13% of its holdings in ETH. Through Nansen, we were able to verify that this wallet belongs to Wilcke.
El Salvador Enters Partnership to Build $1B Bitcoin Mining Farm
Blessed El Salvador
El Salvador continues to show its support of Bitcoin despite the bear market that appears to be never ending. This partnership that they have joined in will be with Volcano Energy. The venture will initially be seeded with $250M which will go towards power generation in the form of wind and solar farms.
A surprise participant in the endeavor is Tether. Tether is the company behind USDT, the largest stablecoin in crypto by market cap. The amount that Tether contributed to the investment remains unknown. Countries who remain optimistic about cryptocurrency provides comfort knowing that other recognize the promise this space holds.
Notable NFT Sales in the Last 24 Hours / Over the Weekend:
CryptoPunk #1287 - Sold For 75 ETH ($136K)
CryptoPunk #8187 - Sold For 72.949 ETH ($132K)
Notable Threads You May Have Missed:
🧵 1/ Want to get steady profits in crypto? Catch the right narrative early.
.@zksync is the next big. Healthy TVL growth proves it.
Participating in early or token-less projects gives you a chance to make significant profits.
🔍 What I'm keeping an eye on:
1️⃣ First of all,… twitter.com/i/web/status/1…
— AlΞx Wacy 🌐 (@wacy_time1)
2:30 PM • Jun 4, 2023
The most promising gems are found on newly launched chains 🥂
Since my research article on @0xPolygon zkEVM, I am closely following its ecosystem development as the first movers will always have an advantage 👀
A new contender just joined the game… 🧵
— Louround 🥂 (@Louround_)
9:09 AM • Jun 2, 2023
1/ Crypto AI traders made 100x returns by capitalizing on the narrative.
But this is not sustainable.📈
To find sustainable AI plays you need to find pick and shovel plays that will benefit from an AI wave. ⚒
Here's 5 pick and shovel plays to ride the AI narrative.🧵
— Emperor Osmo🧪 (@Flowslikeosmo)
3:00 PM • Jun 4, 2023
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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.
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