Crypto Guides, Knowledge & Insights

SEC complaint hints at why Brian Brooks resigned as Binance.US CEO

The SECs latest complaint against Binance could point to why former Binance.US CEO Brian Brooks chose to step down in August 2021, only three months after his appointment.　　According to a June 5 tweet from cryptocurrency lawyer James Murphy — known on Twitter as MetaLawMan — the SEC complaint cites an “unnamed source” who ran Binance.US for a brief period of time in 2021. The dates correlate with the time that Brooks was CEO of Binance.US.　　Brooks, a former top banking regulator, led operations at the crypto exchange after replacing former CEO Catherine Coley on May 1, 2021. According to comments cited in the complaint, Brooks quickly realized that he was “not actually the one running this company.” Upon recognizing this, he decided to leave and announced his resignation just three months later on Aug. 7.　　Binance‘s Chief Communications Officer Patrick Hillman, has however pushed back on Murphy’s speculation, adding that this “might be one persons narrative” and that it “might not hold up to the test of time.”　　The information comes in the wake of the United States Securities and Exchange Commission pressing a total of 13 charges against Binance for allegedly failing to register as a securities exchange and operating illegally in

2023-06-06Deep Dive

UAE central bank issues new anti-money laundering guidance for cryptocurrencies

The United Arab Emirates central bank said on Wednesday, May 31, that it has published new anti-money laundering and counter-terrorism financing instructions for financial institutions to follow when dealing with virtual assets like cryptocurrencies and non-fungible tokens (NFTs).　　The new guideline addresses the risks that might be incurred when interacting with virtual assets and the service providers for those assets, according to a Reuters report on May 31 which referenced the statement.　　In particular, these risks include due diligence requirements for licensed financial institutions when interacting with virtual asset consumers and counterparties.　　Within a month, the regulations will be binding on financial institutions such as banks and finance firms as well as exchange houses, payment service providers, licensed hawala providers, and insurance agencies and brokers.　　The guidance set by the FATF　　The bank said that the guideline takes into consideration the requirements established by the Financial Action Task Force (FATF).　　In March of 2022, the UAE was placed on a list of countries that are subject to heightened scrutiny by the FATF. This list is known as its “grey” list. In response, the UAE said that it was dedicated to actively cooperating with FATF in order to make improvements.

2023-06-05Deep Dive

Terra Classic shoots 30% in a day; Why is LUNC price rising?

Terra Classic (LUNC), the original chain of the collapsed Terra (LUNA) ecosystem, has experienced a significant surge in value, offering a glimmer of hope amidst weeks of bearish sentiment. Indeed, the gains come as the LUNC community implements various initiatives aiming to give the network utility.　　As of the latest update, LUNC is trading at $0.0001083, reflecting a remarkable gain of 28.59% within the past 24 hours.　　LUNC seven-day price chart. Source: Finbold　　This surge is primarily attributed to increased buying pressure, propelling LUNCs market capitalization to $635.9 million, with over $138 million flowing into the token in just one day, according to CoinMarketCap data.　　LUNC one-day market cap chart. Source: CoinMarketCap　　The remarkable rise in LUNC‘s value has pushed it to become one of the top cryptocurrencies in terms of trading volume. Notably, LUNC holds the position of 7th cryptocurrency by trading volume in Binance’s spot market.　　Binance spot market trading volume chart. Source. Binance　　Drivers of LUNCs rally　　The resurgence follows the news of the v2.1.0 upgrade proposal, which has been generating significant attention. The forthcoming release, scheduled for June 14th, marks the third significant upgrade to the Terra Classic blockchain.　　Notably, the upgrade aims to align Terra Classic with other blockchains, including Terra 2.0 and various

2023-06-05Deep Dive

Don’t blame meme coins and degens for crypto’s credibility problem

Cryptocurrencys credibility crisis goes beyond the impact of meme coins and degen gambling.　　Crypto has always struggled with credibility among no-coiners – who point to the lack of intrinsic value, price volatility, and regulatory concerns, among other issues.　　These criticisms seem all the more persuasive when applied to memecoins, which typically exist without an underlying purpose or specific practical use case.　　On the flip side, meme coins offer social value and have the uncanny ability to capture the spirit of the times, which, when coupled with hype and the Fear of Missing Out (FOMO), can undergo substantial price increases, leading to exponential gains for early investors.　　Memecoins, and their prevalence within the crypto industry, are often cited as significant factors in crypto‘s poor standing among the general public. But in fairness, crypto’s credibility problem runs much deeper than meme coins.　　Dogecoin is the top dog　　On April 17, Pepe rolled out, catching the attention of crypto investors as it surged from zero to an all-time high of $0.00000431 in two weeks.　　During this period, social media was flooded with posts about early Pepe investors becoming overnight millionaires – perpetuating a cycle of hype and FOMO, catalyzing further price tailwinds.　　The stated purpose of PEPE is “to make meme

2023-06-05Deep Dive

Who Owns Huobi Exchange? The Need For Clarity In The Cryptocurrency Industry

Huobi Exchanges ownership is shrouded in mystery, with conflicting reports about who the controlling party is.　　The lack of transparency regarding Huobi‘s ownership raises concerns about the exchange’s credibility and trustworthiness, potentially driving away customers.　　According to PROTOS, About Capital Management, which announced the acquisition of Huobi exchange in October 2022, said in May this year, “no longer involved with Huobi in any way.” Capital is generally considered just Justin Suns agency for acquiring Huobi.　　Huobi, one of the largest cryptocurrency exchanges in the world, is shrouded in mystery when it comes to its ownership. In October 2022, Hong Kong-based investment firm, About Capital Management announced that it had acquired Huobi. However, it soon became clear that the mysterious party responsible for acquiring the exchange was none other than TRON and Poloniex founder Justin Sun. Despite persistent tweeting about the company and his appointment to the Huobi Global Advisory Board, Sun denies controlling ownership of the exchange.　　According to PROTOS, About Capital Management, which announced the acquisition of Huobi in October 2022, said in May of the following year that it was “no longer involved with Huobi in any way.” The company refused to elaborate further.　　Hong Kong corporate documents for numerous Huobi and Justin

2023-06-02Deep Dive

Bitcoin Millionaire, Onfo Founder Found Dead After One Week Missing

A Bitcoin millionaire voted by Forbes and impromptu founder of the Onfo cryptocurrency project has been found dead after a week of losing contact.　　John Forsyth works in the emergency room of Mercy Hospital in Cassville, Mo.,　　He was reported missing by relatives after failing to show up for his shift on May 21.　　John Forsyth, the founder of cryptocurrency project Onfo and former Bitcoin millionaire, was found dead with gunshot wounds a week after he went missing.　　John Forsyth was found at Beaver Lake in northwestern Arkansas　　As Decrypt reports, John Forsyth, the founder of the Onfo crypto project, had been missing in Missouri for more than a week when he was found dead.　　His body was found in a lake in northwest Arkansas with obvious gunshot wounds. Police have not provided further details on the circumstances of Forsyths death but said it was not a homicide.　　Forsyths day job is to work in the emergency room of Mercy Hospital in Cassville, Mo. Relatives realized he was missing after he failed to show up for his shift on May 21. His family soon made a social media appeal about his whereabouts.　　Authorities found Forsyth‘s sedan parked less than a mile from the hospital on May 28. Forsyth’s

2023-06-02Deep Dive

Binance Asks Canadian Regulators To Recall Securities Violation Investigation

Binance requests the Ontario Securities Commission, Canada, to drop its investigative orders regarding the exchanges securities violations.　　The exchange left the Canadian market a few days after receiving notices of an investigation to see if it was attempting to circumvent securities laws by regulators.　　A hearing on whether the investigation should be dropped will take place today.　　Binance could face securities-related investigations by the Securities and Exchange Commission of Ontario, Canada, if its request to rescind an investigative order is not met.　　According to a document filed with the Capital Markets Court, the Securities Commission of Ontario, Canada, issued an investigative order against Binance last month. Binance will be investigated to determine if it is intentionally circumventing securities laws.　　According to the petition, the OSCs submission requested a particularly extensive examination of whether the exchange may have attempted to evade Ontario securities laws and compliance procedures related to Binance.com or engaged in conduct contrary to Ontario securities laws or the public interest.　　A few days later, Binance announced it was leaving the country due to “new guidance regarding stablecoins and investor restrictions.” When asked why it chose to leave the Canadian market, its CEO Changpeng Zhao (CZ), a Canadian citizen, said in a Twitter post that

2023-06-02Deep Dive

Silvergate Bank Prepares To Self-Liquidate Following Fed Approval

In a noteworthy development within the cryptocurrency industry, Silvergate Bank, renowned for its cryptocurrency-friendly stance, has committed to submitting a self-liquidation plan to financial regulators in California within a period of 10 days. This decision follows a consent order issued by the Federal Reserve Board against Silvergate Capital Corporation and Silvergate Bank, signifying the banks voluntary intention to liquidate its assets, as previously disclosed on March 8, 2023.　　　　　　Silvergate To Self-liquidate Within 10 Days　　Approval from the California Department of Financial Protection and Innovation is required for the self-liquidation plan submitted by Silvergate Bank, with the possibility of a deadline extension. As part of the process, the bank is obligated to prudently manage its cash reserves and utilize any other accessible resources to ensure full compensation for depositors. Prior to this, the financial institution had publicly declared its intention to wind down operations following a business setback.　　The consent order issued by the Federal Reserve brings attention to a range of “deficiencies” uncovered during the recent examination of Silvergate Bank conducted by state regulators and officials from the Federal Reserve Bank of San Francisco. These deficiencies encompass both concerns related to safety and soundness, as well as instances of non-compliance with banking laws

2023-06-02Deep Dive

BlockGPT Appears Rug Pull With Damage $256,000

BlockGPT, a new Web3 project that aims to build a ChatGPT-style artificial intelligence system on the blockchain, was found to be rug-pulling users.　　According to the report, 816 BNB has been withdrawn from the platform.　　The previous projects white paper found many suspicious points when it did not provide enough information.　　BlockGPT, a Web3 company, was found to be rug-pulling users, raising concerns with newly launched platforms.　　According to PeckShieldAlerts warning, a rug pull occurred in the BlockGPT project on the BSC chain, and more than 816 BNBs (about $256,000) were lost. So far, 800 BNBs have been transferred to Tornado Cash. The price of BGPT has dropped by about 52% in the past hour.　　A rug pull is a kind of fraud in which a cryptocurrency or NFT developer hypes a project in order to gather investor funds, only to abruptly shut down or leave, taking investor assets with them. The phrase “to pull the rug out from under someone” refers to throwing the person off balance and scrambling.　　A rug pull often starts with the creation of a new cryptocurrency token, which is then posted on a decentralized market and coupled with a coin from a dominant platform, such as Ethereum. Fraudsters then use

2023-06-01Deep Dive

Charity Project Pixel Penguin Defrauds Users’ Trust For Profit

Hopeexist1s charity initiative Pixel Penguin, which promised to generate donations to help him battle cancer, had a rug pull.　　The projects remaining contract value is just $117,000.　　Earlier, artist Andrew Wang retweeted his encouragement and referred to Hopeexist1 as a buddy.　　Pixel Penguin is supposed to be a project that builds the community‘s trust in other disadvantaged people, but it doesn’t seem to have delivered the hope it promised.　　On-chain detective ZachXBT said that a rug pull occurred on Pixel Penguin, a charity project created by Hopeexist1, which claims to raise funds to help him fight cancer.　　At present, the social accounts of Hopeexist1 and Pixel Penguin have been deleted, and the contract value of Pixel Penguin is only $117,000 (61,686 ETH).　　Previously, artist Andrew Wang retweeted his support and called Hopeexist1 his friend. Andrew Wang later apologized to the public, saying he had done proper due diligence.　　“Ill put my rep on the line to say this is for real amidst all the scams in our space,” he said.　　According to Wang, Hopeexist1 used photos of cancer patients to gain the trust of the community and then extracted the money for profit:　　“F**k man, she was doing commissions for various people in the space (that looked legit and

2023-06-01Deep Dive

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