Binances U.S.-licensed exchange is being booted from two states while founder Changpeng CZ Zhao isnt being booted from his U.S. confinement.

On January 25, theWall Street Journalreported that the Alaska Division of Banking and Securities had decided not to renew the operating license ofBinance.US. At the other end of the country, Floridas Office of Financial Regulation reportedly suspended Binance.USs money transmitter license last November, a week after Binance and CZ reached their$4.3 billion settlement of criminal charges with the Department of Justice.

Binance.US has been desperately trying to keep its lights on following a series of body blows, including CZs settlement,civil chargesof violating securities laws filed by the U.S. Securities and Exchange Commission (SEC),massive layoffs, andU.S. traditional finance entities retreating from having anything to do with the notorious exchange.

Binance.US has been negotiating the survival of its other state-level money transmitter licenses, reportedly reaching an accommodation with regulators in Arkansas, Illinois, and South Dakota. Those states reportedly forced Binance.US to guarantee CZs inability to influence future business decisions. A Binance spokesperson told the WSJ the company was in active dialogue with officials in other states to retain a semblance of viability.

The SECs civil charges, plus aseparate suitfiled (and since settled) by the U.S. Commodity Futures Trading Commission (CFTC), exposed the fact that CZ was in complete control of the money U.S. customers deposited on Binance.US and had beentransferring the cash outside the U.S. to accounts under his control.

Customers understandably panicked, withdrawing assets and closing accounts, leaving the exchange a shell of its former self. The sites 24-hour trading volume was barely $13 million on January 26, $2.124 billion less than the rivalCoinbase(NASDAQ: COIN) exchange.

While Binance.US may be intent on going down swinging, its anyones guess how much longer it can carry on as a going concern, given that its legal bills likely exceed its revenue. Binance.US lawyerswere in court last week trying to argue that the SEC case should be dismissed because its just not pretty when people beat dead horses.

The two parties showed little sign of agreement in their most recentjoint status reportto the court on January 25. The SEC claims Binance.US parent companies (collectively referred to as BAM) continue to withhold documents and communications the SEC believes are important aspects of their complaint. BAM replied that while it plans to make one final production of documents to the SEC this week, it does not believe that there are any gaps in its productions.

The SEC also believes it has the right to conduct more depositions with Binance staff, while Binance (surprise!) disagrees. The parties were similarly split on the scope of the SECs investigation of Binances software. The parties next status update is due February 15.

Judge rejects CZs pledge of billions for release

Meanwhile, we learned last week the lengths to which CZ was prepared to go to temporarily free himself from his DoJ-imposed confinement in Washington State. CZs sentencing on his criminal charges is scheduled for February 23.

CZ previously requested the right to temporarilyreturn to his partner and children in Dubaiahead of his sentencing, but these appealswere rejected by U.S. District Court Judge Richard Jones. The judge agreed with prosecutors that CZs lack of formal ties to the U.S., his immense wealth, and the likelihood that he could serve significant time in prison made him a significant flight risk.

Court documents released last week show that CZs late-December request for release was based on his desire to return to the United Arab Emirates (UAE), where an unidentified individual he claims to be close to was scheduled for hospitalization and surgery. CZ even submitted medical records in case Judge Jones remembered CZs documented proclivity for lying his ass off when it served his interests.

CZ, who remains in the U.S. on a $175 million release bond, wanted to travel on January 4 and stay in Abu Dhabi for up to four weeks. CZ reportedly offered to pledge his entire equity in Binance.USvalued at $4.5 billion based on theexchanges last funding round two years ago but certainly worth a fraction of that valuation these daysas a security that he would return for sentencing in February.

The DoJ wasnt amenable to CZs request, prompting a hearing on December 29 to discuss the matter before Jones. The judge was evidently unmoved by CZs promises and pledges and denied the request.

BSC security incidents hit all-time high last year

Binances in-house BNB Smart Chain (BSC) has long held the dubious honor of being thetop target of hackers and other malicious actors, but a new in-house report claims that the situation dramatically improved in 2023.

The report, which contains crucial contributions by AvengerDAO members Ancilia, Certik, Hashdit, and Salus Security, claims that the total financial value lost on BSC fell from a peak of $1.12 billion in 2022 to just $161.2 million in 2023.

This 85% decline was enough to lower BSC from first to fourth on the chart of most vulnerable chains.Ethereumclaimed that title with over $1 billion lost last year, nearly twice as much as was lost in 2022.Tronsuffered a major spike in attacks last year, with losses topping $400 million, whileFantom also reported a major drain of $171.5 million.

However, the number of security incidents on BSC rose by 44% to an all-time high of 414 over the same period, suggesting that much of the reduction in financial losses has to do with the decline in value tokens endured throughout 2023.

The report acknowledges this factor (although its somewhat buried towards the end) by noting the total value locked across decentralized finance (DeFi) projects was down 85% in 2023. Regardless, the report insists that other factors also play important roles in influencing the losses within the ecosystem.

BSCs total funds lost would have been more than one-third higher had centralized exchangesincluding Binanceand other entities not acted to freeze around $55 million in stolen funds last year, allowing them to be recovered.

This willingness to act is a far cry from Binances historic approach to stolen assets, including its 2020refusal to freeze certain accountsthat accepted coins stolen from an Australian man, despite admitting that it was highly likely the paths leading to this account are malicious. But then again, those stolen tokens werent stolen from a Binance-linked entity, so

In terms of types of BSC attacks, most of 2023s value-lost reduction was in hacks, which fell from nearly $871 million in 2022 to $73.2 million last year despite the number of hacks nearly doubling over the same period.

DeFi remains the most popular target for attackers, with the number of DeFi attacks rising by two-thirds to 352 in 2023. The number of outright scams was up 14% last year, while the value lost to these scams fell by 54% to $87.9 million. Rugpulls claimed the biggest slice of attacks at 35.2%, with Ponzi schemes second with 22.5% and hot wallet compromises third with 17.1%.

FollowCoinGeeks Crypto Crime Cartelseries, which delves into the stream of groupsfromBitMEXtoBinance,Bitcoin.com,Blockstream,ShapeShift,Coinbase,Ripple, Ethereum, FTXandTetherwho have co-opted the digital asset revolution and turned the industry into a minefield for nave (and even experienced) players in the market.

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Binance.US booted from 2 US states, judge rejects Changpeng Zhao's latest bid for release - CoinGeek

Binance confirms early-stage talks over Gopax stake | Tap here | Inshorts  Inshorts

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Binance confirms early-stage talks over Gopax stake | Tap here | Inshorts - Inshorts

U.Today - In a surprising move that has captured the attention of the cryptocurrency community, an (ETH) whale has orchestrated a series of transactions involving major exchanges, moving a staggering $46.02 million in ETH over the past two days. The entity, utilizing a network of eight wallets, withdrew funds from Binance and Bitfinex before staking with Lido, a liquid staking solution.

Blockchain analytics platform Spot On Chain first brought attention to the substantial transactions through a tweet, revealing intricate details of the massive ETH movement. The whale withdrew the Ethereum holdings from crypto exchanges Binance and Bitfinex at an average price of approximately $2,419.

Subsequently, five wallets were employed to withdraw 50.15 million USDT from Aave, a prominent DeFi protocol, to the CEX trading platform, exchanging the stablecoin for 19,021 ETH, equivalent to the $46.02 million value. Spot On Chain further disclosed that three wallets still retained around 30 million USDT in Aave, sparking speculation that they might deposit these funds into a CEX soon, potentially acquiring more ETH.

Coinglass, another analytics platform, reported a significant amount of liquidations for ETH within the last 24 hours, totaling $53.78 million. Of this amount, $47.48 million resulted from long liquidations, while short liquidations accounted for $6.29 million. The liquidation data underscores the volatility and uncertainty prevalent on the market, with traders experiencing significant losses.

Market analysts and enthusiasts are closely monitoring these developments, as such large-scale transactions from influential entities often lead to speculation and conjecture regarding potential market impacts. Traders and investors are advised to exercise caution and stay vigilant as the cryptocurrency landscape continues to unfold, revealing the dynamics of this rapidly evolving market.

This article was originally published on U.Today

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Ethereum Whale Moves $46 Million in ETH Across Binance, Bitfinex and Aave: Details By U.Today - Investing.com

The worlds largest crypto exchange, Binance [BNB], drastically improved its market share since the legal resolution with the U.S. Department of Justice (DOJ) in November 2023.

According to leading crypto market researcher Kaiko, Binances market share relative to 23 other centralized exchanges increased to 49% in January, up from multi-year lows seen during the latter period of 2023.

The crypto behemoth settled its disputes with the U.S. government by agreeing to pay a $4 billion penalty and undertaking measures that improve its compliance with the local laws.

The event also resulted in the exit of former CEO and one of the most popular faces in the industry Changpeng Zhao (CZ).

As one can see, there was no major impact on Binances share of trading volume immediately after the settlement happened.

However, key developments in December and January shifted the tide in Binances favor.

Binance reintroduced the highly popular zero-fee promotions in December for top assets like Bitcoin [BTC], Ethereum [ETH], and XRP.

The move was seemingly done to jack up demand for stablecoin, First Digital USD [FDUSD].

For the curious, Binances zero-fee trading program was a major factor in boosting volumes and expanding its market in 2022.

The fact that the there was a severe drop in volumes when the campaign ended last year, reflected its strategic importance.

Additionally, the hype surrounding Bitcoin spot ETFs boosted trading volumes across the industry in early January.

According to AMBCryptos analysis of CryptoQuant data, stablecoins inflows to Binance rose significantly in the days leading to the approvals, indicating greater buying/trading activity.

Is your portfolio green? Check out theBNB Profit Calculator

The events discussed above therefore played a big part in pushing Binances market share to 50%. In the report, Kaiko said,

The exchange has proven to be mostly resilient in the aftermath of the settlement.

That being said, there was still much distance to be covered. Binances market share still remains considerably lower than its 2023 highs of 65%.

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Binances market share reaches 49%: Was this event a catalyst? - AMBCrypto News

Yesterday, API3 made headlines as one of the top daily gainers on Binance, experiencing a remarkable surge of over 17%.

The impressive performance of API3 extends beyond the daily gain, with a 28% increase in the past 7 days. Also, a 58% rise in the past month, and an astounding 142% gain over the last 90 days.

According to recent on-chain reports, DWF Labs, a significant player in the crypto space, deposited 500,000 API3 tokens into Binance, amounting to approximately 1.63 million US dollars in value.

Notably, DWF Labs received 1 million API3 tokens from the API3 Primary Treasury Agent address just two weeks ago, on January 15, at a price of $1.68 per token.

With the current market conditions, DWF Labs has realized a floating profit of $1.44 million from this transaction.

The surge in API3s value can be attributed to the recent announcement of the launch of the ZK-Rollup platform, OEV Network, by the oracle project API3. This innovative platform has propelled API3s value by over 28% in the past seven days.

The OEV Network represents a groundbreaking development in the crypto space, serving as a specialized order flow auction platform. It enables the sale of rights to execute specific data feed updates for particular dApps to the highest bidder.

Powered by Polygon CDK, a framework designed for creating custom ZK-rollups, the OEV Network promises to revolutionize data feed updates and enhance the efficiency of decentralized applications.

Overall, the surge in API3s value, coupled with the introduction of the OEV Network, highlights the projects growing significance in the cryptocurrency ecosystem. Also, its potential to drive innovation in decentralized oracle solutions. Investors and enthusiasts alike eagerly anticipate further developments and advancements in the API3 ecosystem.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter@nulltxnewsto stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, andMetaverse news!

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API3 Surges On Binance As DWF Labs Deposits Tokens - NullTX

NEW YORK CITY An American mother who was taken hostage by Hamas in Gaza and the relatives of two men killed following the militant groups Oct 7 attack have sued crypto giant Binance for allegedly facilitating the violence.

Ms Judith Raanan, who was released with her daughter on Oct 20, and the relatives of Israel Defence Forces soldier Itay Glisko and Dr Daniel Levi Ludmir, who were murdered by Hamas, filed the lawsuit against the digital asset exchange, as well as Iran and Syria, in federal court in Manhattan on Jan 31.

It appears to be the first civil case in what is expected to be a wave of litigation targeting Hamas and its networks after the militant groups attack and mass kidnapping that sparked an ongoing war with Israel.

The lawsuit takes aim at Binance for allowing Hamas to trade on its platform.

The allegation surfaced following a regulatory and criminal investigation into the worlds largest cryptocurrency exchange that came to a head in 2023.

Binance pleaded guilty to violating sanctions and anti-money laundering laws that allowed groups like Hamas to circumvent United States banking regulations.

The exchange is paying a criminal fine of US$1.8 billion (S$2.4 billion) and forfeiting US$2.5 billion, while former Binance chief executive officer Zhao Chanpeng is awaiting sentence for violating banking laws.

Officials at Binance did not immediately reply to an e-mail seeking comment. A lawyer for Ms Raanan and the families, Mr Robert Seiden, said he is confident that the victims are entitled to recover substantial damages under US law, including an anti-terrorism Act.

We have been working on this lawsuit for weeks and believe that anyone who aids terrorism should be held accountable, he said in a statement.

According to claims made by the government in the Binance case, Hamas military wing Al-Qassam Brigades used Bitcoin transactions to raise money for the Palestinian resistance.

At least 1.1 million transactions valued at US$899 million were conducted by people living in Iran in violation of US sanctions, the company admitted.

The assistance that Binance provided to Hamas helped finance the violent attacks and recruit individuals to carry out those attacks, the complaint filed on Jan 31 states.

According to the complaint, the plaintiffs also allege that Iran emerged as the principal backer of Hamas terrorism and that it has increased funding and the supply of weapons to the group in recent years.

Iran consistently and continuously provided funding to Hamas in the amount of a hundred million US dollars each year for the purpose of allowing Hamas to buy weapons and pay its terrorist fighters and otherwise carry out its terrorist operations, the complaint states.

Similarly, the plaintiffs argue, Syria was one of the cradles of Hamas terrorism and contributed to the groups military arsenal in the lead-up to Oct 7. The complaint references press reports, publicly available research and documents filed in related court cases.

Ms Raanan, the Glisko family and Dr Ludmirs uncle, Mr Jeffrey Ludmir, are suing Binance for aiding and abetting and providing material support to Hamas. The plaintiffs are seeking damages against Iran and Syria as state sponsors of terrorism.

Ms Raanans daughter, Natalie, who was held captive for two weeks in Gaza, and Ms Raanans former husband are also named as plaintiffs. BLOOMBERG

Read more here:

Binance sued by Hamas hostage, families of victims for allegedly facilitating Oct 7 attack in Israel - The Straits Times

In response to growing concerns about the safety of its platform, Binance has started allowing some of its larger traders to store their assets with independent banks. This move comes in the wake of the exchanges legal issues with U.S. authorities.

What Happened: The worlds largest cryptocurrency exchange, Binance, has begun offering its clients the option to keep their assets with independent banks, including Sygnum Bank and Flow Bank in Switzerland, reported Financial Times. Previously, Binance clients could only store their assets on the exchange or with custodian Ceffu, a mysterious Binance-related entity, according to U.S. regulators.

Traders concerns about the safety of their assets on the exchange have increased following the collapse of Binances rival, FTX, in 2022. This has led to a growing demand for independent custodians.

See Also: Trump Dumps Ethereum, Dogecoin Killer Shiba Inus Burn Rate Soars And More: This Week In Cryptocurrency

Despite Binances assurance that it has been working on a banking triparty solution for almost two years, traders remain wary, especially in light of the exchanges recent legal troubles.

Why It Matters: This development comes after a series of significant events for Binance. In 2023, Binance was fined $4.3 billion by U.S. authorities for money laundering and breaching international financial sanctions.

In October, the exchange delisted multiple trading pairs and made changes to its platform, including halting U.K. registrations and stopping direct withdrawals of U.S. dollars from Binance. These changes were followed by the collapse of FTX, which further heightened concerns about the safety of assets on cryptocurrency exchanges.

Then, in January, Binance was in the news again when it was reported that the exchange was seeking to have a fraud lawsuit filed by the SEC dismissed. This legal confrontation with the SEC has been a major point of concern for Binance and its clients, further adding to the unease around the exchanges regulatory standing.

Read Next: Bitcoin, Ethereum, Dogecoin Trade Mixed As Speculation Builds Around BTC ETF Ads On Google: Analyst Says Real Impact Of ETFs Will Propel King Crypto To $500K

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Binance Allows Clients To Use Independent Banks As Custodians Amid Regulatory Pressure - Benzinga

Binance has opened the doors for its larger traders to secure their assets with external banks, a change sparked by a hefty $4.3 billion regulatory fine in the U.S. This initiative aims to restore trust among its users, offering them an added layer of security in turbulent times.

High-value Binance traders can now choose where to keep their digital assets, extending beyond the exchanges custody services to include reputable crypto-friendly banks like Sygnum and FlowBank in Switzerland.

This shift broadens user custody options and reflects Binances proactive approach to addressing the growing demands for financial safety and regulatory compliance in the crypto industry.

This strategic pivot towards a banking triparty arrangement underlines Binances commitment to boosting institutional trust. By allowing investors to pledge traditional assets as collateral, Binance enhances capital efficiency and paves the way for a more secure and inclusive crypto investment landscape.

This move is a testament to Binances adaptability and dedication to fostering a safer trading environment amidst the evolving regulatory and market challenges.

Also Read: Binance Teams Up with Wtech for Women in Technology Academy

Excerpt from:

Binance Enhances Security with External Bank Custody - Crypto Times

Last updated: January 27, 2024 07:47 EST | 3 min read

The legal battle between Binance and the United States Securities and Exchange Commission (SEC) continues to intensify as court documents shed light on the clash over evidence production and witness depositions in the SECs case against the leading cryptocurrency exchange.

According to a joint status report filed on January 25, the SEC alleges that BAM Trading Services, the parent company of Binance.US, has not fully complied with its information requests. The regulatory body seeks detailed insights into the custody and liquidity of assets, expressing concerns that Binance.US might have undisclosed control mechanisms over customer funds, reminiscent of the FTX scandal.

BAMs attorneys vehemently refute these allegations, asserting that the company has adhered to all document production requirements stipulated in the consent order and the expedited recovery request. They argue that the SECs methods, including issuing a Temporary Restraining Order (TRO) and pursuing expedited discovery, have imposed an undue burden on BAM.

At that point, BAM believes it will have more than reasonably complied with its obligations under the Consent Order and requests that expedited discovery be deemed complete as to BAM, particularly given how much harm and burden the SECs TRO and approach to expedited discovery has caused BAM over the past seven months.

Initially established to govern the SECs investigation, the consent order has become a focal point of contention. BAM contends that the SEC is exceeding the agreed terms, expanding its probe beyond the safety and accounting of customer assets. The company claims that the SEC is now delving into a broad examination of BAMs custody policies and practices. This assertion adds another layer of complexity to the already intricate legal battle.

The regulator is reportedly seeking evidence related to concerns that Binance.US may have had a backdoor allowing potential control over customer assets, akin to the situation with FTX. Attorneys for BAM assert that they have fully complied with document production requirements as specified in the consent order and expedited recovery request.

The report further highlights pending requests for depositions from BAM Trading Services former CEO and CFO, believed to be Brian Shroder and Jasmine Lee.

BAM Trading Services, the parent company of Binance.US, argues that additional depositions from its current or former personnel are unnecessary. The company points to the SECs prior deposition of numerous witnesses during the expedited discovery phase, asserting that the regulator has already gathered sufficient information.

BAM attorneys stated that the SECs motion does not identify any evidence that Shroder and Lee are involved in the day-to-day management details concerning the custody and transfer of customer assets at Binance.US.

BAMs CEO and CFO have no unique knowledge regarding facts relevant to the limited topics identified in the consent orders expedited discovery provision, the lawyers said. The attorneys also said that BAM has offered many other witnesses who have more insights about BAMs operations, including BAM chief information security officer Erik Kellogg.

BAM does not believe that the SEC is entitled to any additional depositions from current or former BAM personnel because, among other reasons, the SEC has already deposed a dozen witnesses during expedited discovery.

The lawyers noted the burden imposed by these depositions far outweighs their potential benefit, and the discovery sought is disproportionate to the needs contemplated by the consent order.

In September, the SEC and Binance agreed on a protective motion requiring parties to file confidential information under seal. The plaintiff and the defendants submitted a joint motion pledging to file confidential and non-public information as protected materials, restricting access to parties such as the judge, attorneys, plaintiffs, and defendants.

Another point of contention is the potential examination of Binance co-founder Changpeng Zhao. Disagreements persist over the specifics of Zhaos deposition, including its scope, timing, and location. Zhao resigned as CEO of Binance in November 2023, following a $4.3 billion settlement with U.S. regulators.

His sentencing is scheduled for February 23, 2024, while the next status report on the case is expected by February 15. Zhao is currently free on a $175 million bond in the United States, facing a potential 18 months in prison.

Read more:

Binance and SEC Clash Over Evidence Production and Witness Depositions in Ongoing Legal Battle - Cryptonews

Florida and Alaska crackdown on Binance.US, Binances subsidiary in the United States, amid regulatory pressure. The crypto exchange can no longer offer services to residents in these states.

Notably, Floridas financial watchdog suspended Binances local license swiftly. The Office of Financial Regulation acted after Changpeng Zhao (CZ), Binances former CEO, admitted to anti-money laundering violations.

Zhaos plea landed one week before the states emergency order. Now, Florida bans the company from conducting money transmission activities.

In the meantime, Alaskas banking division denied Binance.US a license renewal. The Alaska Division of Banking and Securities made the decision in early January 2024. Binance.USs legal status in other states stands unstable. Something similar is observed for the cryptocurrency titan in other countries.

Zhao pleaded guilty to breaching U.S. Bank Secrecy Act regulations in November 2023. A U.S. federal court approved his guilty plea in December. As a consequence, Zhao relinquished control over Binance.US. He also signed over voting rights to a proxy, aiming to distance himself from the firm.

In response to these events, Binance.US emphasized its operational continuity. The exchange vowed uninterrupted services to Americans post-Zhaos legal troubles. On November 28, they assured customers of maintaining usual business activities.

On the other hand, the Binance.US secured permissions to operate in three other states. Arkansas, Illinois, and South Dakota reached agreements allowing the platforms continued service. These deals hinge on the permanent transfer of Zhaos voting rights within Binance.US.

Post-guilty plea, Zhao moved to secure his $4.5 billion Binance.US share. He proposed the stake as collateral for freedom to travel to his UAE home. However, Judge Richard Jones denied the request, keeping Zhao in the U.S. Zhao now awaits sentencing set for late February 2024, with a potential 18-month prison term.

Moreover, these developments reflect heightened scrutiny over the crypto industry. They highlight the legal complexities facing cryptocurrency businesses operating in the U.S.

Binance.USs future in Florida and Alaska appears dim after regulators strict actions. Other states continue to ponder their stance on the exchanges operations. The decision in these two states symbolizes growing regulatory enforcement upon crypto-related businesses.

As the legal landscape shifts, the industry watches closely. Zhaos case is a cautionary tale for others in the digital currency sector. Compliance with anti-money laundering laws remains a paramount concern for regulatory agencies.

Interestingly, Binance recently started a more compliant approach to its operations. For example, the dominating exchange threatened to remove privacy cryptocurrencies like Monero (XMR), following a global trend to crack down on financial privacy.

Meanwhile, affected Binance.US users in Florida and Alaska must seek alternative platforms. The crypto community awaits further developments regarding Binance.US and its ability to navigate the U.S. regulatory environment.

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Florida and Alaska ban Binance from serving their residents - Finbold - Finance in Bold