As of 10 p.m. on December 4th, CZ (Changpeng Zhao) has only tweeted four times in December, or strictly speaking, two times. The latest one is a simple greeting with just two letters:
The earlier tweet commemorated his bold move ten years ago when he sold his house in Shanghai and went all-in on Bitcoin:
The earlier two tweets were mere retweets. One shared an article from Binance Academy titled "What is Bitcoin ETF?" while the other relayed a press release from the new CEO, Richard Teng, about Binance piloting a banking triparty agreement to assist institutional investors in managing counterparty exposure.
At this moment, Zhao appears to be meditating in the calm eye of the storm, displaying an unprecedented level of restraint. However, this doesn't alter the fact that Binance is struggling in the midst of a tempest. Can his god-like restraint withstand the metaphorical storms and towering waves? That remains a serious question.
Nevertheless, compared to a year ago when a single tweet could sink industry ex-titan SBF and FTX, Zhao has undergone a transformation from a fierce-looking Guan Gong (a Chinese deity symbolizing loyalty and righteousness) to a serene Bodhisattva with closed eyes.
This particular storm stemming from the U.S. government's regulatory bodies shows no signs of abating, with the latest rumblings suggesting a possible ten-year prison sentence for Zhao.
FinCEN and OFAC has earmarked $3.4 billion and $0.968 billion, respectively, according to the U.S. Department of the Treasury's announcement on November 21:
As a Money Services Business (MSB), Binance had an obligation to report suspicious transactions to FinCEN through Suspicious Activity Reports (SARs). FinCEN's investigation revealed that Binance's former compliance officer had informed employees that the CEO's policy was not to report such activities. It also appears that Binance had never submitted an SAR to FinCEN.
Due to Binance's serious lack of risk control measures, such intentionally unreported suspicious transactions amounted to over 100,000 over the years. These transactions were found to be related to terrorist organisations, ransomware, child pornography, the dark web, and other fraudulent activities.
Binance did not report transactions related to terrorist organizations, including Al-Qaeda, ISIS in Iraq and Syria, Hamas' Al-Qassam Brigades, and Palestinian Islamic Jihad (PIJ).
Despite being one of the highest-grossing exchanges in ransomware transactions, facilitating transactions involving millions of dollars in at least 24 different ransomware attacks, Binance did not report these transactions.
Binance did not report transactions related to websites that specialised in selling child pornography information, including Dark Scandals.
Despite sending and receiving virtual asset proceeds from large-scale hacker attacks, account takeovers, and transactions on the dark dealing with illegal drugs, counterfeit goods, and fraud-related products and services, Binance did not report any such transactions.
To fill the gap of not reporting these and other types of illegal activities to law enforcement agencies, Binance has agreed to retrospectively review past records, identify, and report to FinCEN the suspicious transactions that it handled but intentionally did not report.
The U.S. Commodity Futures Trading Commission (CFTC) stated that, through this joint law enforcement campaign, it has requested Binance to surrender $1.35 billion in illicit gains and pay a civil penalty of $1.35 billion to the CFTC. In addition, Changpeng Zhao is required to personally pay a civil penalty of $150 million to the CFTC. This penalty is the largest ever imposed in the history of the regulatory agency.
And we're not stopping there. This only involves the facts of the case i.e., what has already happened. Within the next five years, Binance will continue to be at the mercy of the storm.
According to the U.S. Department of the Treasury's settlement announcement with Binance, the Financial Crimes Enforcement Network (FinCEN) will impose a five-year regulatory period, retaining its access to records and systems. Binance is required to make significant compliance commitments, including ensuring a complete exit from the U.S. OFAC's settlement agreement – which in addition to a $968 million fine, requires Binance to comply with a series of strict sanctions compliance obligations, including full cooperation with regulatory authorities supervised by FinCEN.
In other words, for the next five years, Binance will carry a sword of Damocles over their head, facing potential fines over its head with each step they take.
See: Navigating the Storm: Where Exactly is CZ Leading Binance? (Part 2)
See: Navigating the Storm: Where Exactly is CZ Leading Binance? (Part 3)
The FTX bankruptcy estate claims SBF’s $1.76 billion repurchase deal with Binance in July 2021 was a fraudulent transfer due to FTX’s insolvency. The lawsuit seeks to recover billions for FTX creditors, alleging the transaction was fraudulent.
KikyoFormer Binance CEO, CZ (real name Changpeng), told Bloomberg that he had received multiple offers from buyers who are willing to offer him a high price to buy his shares in Binance.
XingChiBinance and its former CEO, Changpeng Zhao, are pushing to dismiss the SEC’s amended complaint, arguing that the regulator’s approach to crypto lacks clarity and consistency. Binance claims the SEC's broad interpretation of crypto assets as securities is confusing and unfairly applied.
WeatherlyChangpeng Zhao, founder of Binance, made his first public appearance since his prison release at the Binance Blockchain Week in Dubai, discussing his reflections on his incarceration and future plans. He expressed a renewed appreciation for personal connections, a commitment to education, and intentions to invest in emerging sectors while remaining optimistic about the future of cryptocurrency.
JoyFormer Binance CEO CZ's first tweet after his prison release sparked attention, briefly mentioning future plans and enjoying freedom. BNB surged to a monthly high but quickly reversed, declining along with the broader crypto market.
KikyoBinance founder CZ will be released today, 27 September, two days ahead of schedule, due to his release date falling on a weekend. Will this trigger a rise in BNB’s price?
KikyoBinance is expanding its compliance team by 1,000 employees to address rising regulatory demands, aiming to manage increased costs and scrutiny from U.S. authorities. The company has also prevented $2.4 billion in potential fraud losses this year, highlighting its commitment to enhancing security and regulatory alignment.
AnaisToncoin (TON) surged 12% on Thursday following Binance's announcement of its listing on 8 August at 6PM SGT, with withdrawals available 24 hours later. Will TON breakthrough its upper resistance or test its lower support?
KikyoThe 28th quarterly burn by the BNB Foundation eliminated $971 million worth of tokens, reinforcing the ecosystem’s commitment to reducing total supply and potentially increasing value.
SanyaThe SEC's attempt to classify BNB secondary sales as securities fails, though investigations into Binance’s activities continue.
ZeZhengBinance provided services to U.S. customers but failed to comply with U.S. laws, including not registering with the U.S. Department of the Treasury as a money services business and not implementing an effective anti-money laundering program. Instead, it facilitated unregulated cryptocurrency transactions worth billions of dollars, including transactions involving U.S. users and unsanctioned users.
CaptainXLegal counsel representing Binance and CZ contended that the CFTC's legal actions could be interpreted as an effort to assume a role akin to the "world’s derivatives police."
KikyoAccording to CZ, buying a bank would not guarantee future debankings and would thus be a suboptimal solution.
cryptopotatoAmid the SEC's objections to BinanceUS's attempt to acquire Voyager Digital, rumors have spread throughout the crypto community that Binance has called off the deal.
BitcoinistCZ said on Feb.1 that stablecoins regulation could help accelerate its adoption and commended Hong Kong's "decided approach."
CryptoSlateRegarding the alleged misuse of funds at bankrupt rival FTX, CZ said that crypto businesses must never touch user funds.
BeincryptoBinance experienced a historic day and stress test yesterday after several rumors and FUD surfaced.
BitcoinistCZ showed commendable dedication to the Binance community, staying up late into the night and posting updates on Twitter.
NulltxBeincryptoPresident Faustin-Archange Touadéra received Changpeng Zhao to discuss bitcoin and crypto. The meeting of the minds happened on Friday and ...
Bitcoinist