Changpeng Zhao, the former CEO of Binance, suffered a setback; The Bitcoin spot ETF hype continues, with BlackRock and Grayscale changing their filings. and BTC secured the $39,000 spot amid a sustained market uptrend.
Former Binance CEO travel ban
- Recall that the US Department of Justice opposed Zhao's departure to the UAE, adding that he may not return to the US to face his sentencing as the country does not have an extradition treaty with the UAE.
- This week, District Judge Richard Jones agreed that authorities are preventing Zhao from leaving the United States before his sentencing in February next year. Until then, Zhao would have to stay in the USA.
Zhao resigns as chairman of Binance.US amid investigation
- Although the global Binance company admitted financial violations and fined it $4.3 billion, US authorities are still fixated on the Binance brand. The US Securities and Exchange Commission (SEC) recently announced that it has continued its investigation into the operations of Binance.US.
- The agency believes that the exchange may also have used a backdoor mechanism similar to the one used by FTX for its illegal financial operations with customer assets.
- A day after the SEC disclosure, Binance.US announced that Zhao had resigned as the company's CEO. Binance.US also emphasized its independence from the global Binance company.
Ronaldo caught in the crossfire, Binance's problems in the Philippines
- This week, football icon Cristiano Ronaldo was caught up in the Binance saga. Binance customers filed a class action lawsuit against the Al-Nassr striker, claiming they suffered losses as a result of his promotion of Binance.
- Binance’s troubles didn’t end in the US, but also extended to Southeast Asia this week. Notably, the Philippine SEC released a warning statement on November 28th revealing that Binance was operating in the country without a valid license.
- Shortly after this disclosure, reports suggested that the Philippine securities regulator was looking to take action to block Binance's operations in the country.
Spot BTC ETFs: Grayscale and BlackRock change filings
- The crypto community also witnessed the developments surrounding the spot BTC ETF filings. Documents on the SEC's website confirmed that Grayscale has amended its GBTC protocol to make it eligible for a spot ETF while awaiting conversion approval.
- In addition, BlackRock has also made changes to its filings. Minutes from the asset manager's meeting with the SEC revealed that the company has amended the spot BTC ETF filing to address the regulator's concerns.
Discussions about a BTC ETF
- Given the delay in approving a spot BTC ETF, discussions about the investment product erupted this week. When asked, SEC Chairman Gary Gensler declined to comment on the approval process for the multiple applications on the regulator's desk.
- However, Gensler emphasized the crypto industry's vulnerability to fraud and market manipulation. Meanwhile, Bloomberg ETF analyst James Seyffart revealed on November 30 that the next approval window is between January 5 and 10 next year.
- As efforts to obtain approval have been intensified. Grayscale hired John Hoffman, a former Invesco executive, to lead its partnership and sales team. This step was in preparation for the approval of the spot BTC ETF application.
Fraud, hacks and everything in between
- There was no shortage of developments surrounding fraud, hacks and enforcement actions this week. The US Treasury Department sanctioned another crypto mixer, Sinbad, claiming that North Korean hackers used it to launder stolen scams from protocols such as Atomic Wallet and Ronin Bridge.
- Meanwhile, the Kyberswap hacker who stole $47 million from the protocol on November 23 has finally demanded the funds be returned. The exploiter demanded full control of the protocol and a change in governance.
- USDC issuer Circle denied allegations that it actively facilitated illicit financial transactions, including flows involving Hamas. Circle's rebuttal came in response to concerns from U.S. Senators Sherrod Brown and Elizabeth Warren.
UN turns to Algorand, MSTR buys more BTC
- Despite growing concerns about illegal blockchain and crypto activity, adoption has not slowed this week. The United Nations has collaborated with the Algorand Foundation to train its staff on blockchain.
- Reports also showed MicroStrategy's continued optimism about Bitcoin. A disclosure this week revealed that the company had invested $593.3 million in 16,130 other BTC tokens at an average price of $36,785.
- Meanwhile, Circle turned its attention to Japan, signing a partnership with Japanese financial giant SBI Holdings with the intention of offering stablecoin services in the East Asian country.
- While blockchain and cryptocurrency are seeing increasing adoption in most sectors, reports in the gaming industry suggested a different story. According to a CoinGecko report this week, over 75% of Web3 games have failed in the last five years.
Bitcoin conquers $39,000
- Bitcoin continued its multi-week uptrend this week amid continued bullish momentum. As the broader market experienced bullish momentum last week, CoinShares confirmed that digital asset products recorded an 18-month high of $346 million in inflows.
- Starting the week at $37,447, BTC cleared two key psychological resistance levels in an impressive advance. The asset rose above $38,000 on December 1st and closed the day at $38,682 before hitting $39,000 on December 2nd.
- Following the massive price spikes, IntoTheBlock announced that over 80% of BTC holders are making profits. Bitcoin is now well above the $39,000 mark. At last check on December 3, it was just above $39,641 and is aiming to reclaim the $40,000 area.
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.