In This Issue
- David & Sam share their thoughts on the SEC suing Binance & Coinbase + what this actually means for crypto, Atomic Wallet being hacked for millions, headset wars and the metaverse, Japanese stablecoin development & lightning in the cloud.
- This Week On Chain.
- Rekt Capital has the latest technical analysis for you on the market.
- This week’s trending coins by Rebecca.
- Erik has a report for you on ERC-6551 (Token Bound Accounts).
- Defi Dad has a tutorial for you on how to earn up to 900% randomly with Asymetrix.
- Jesse has a ton of hot new airdrops for you.
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The News Now
SEC Sues Binance
On Monday, June 5th, the SEC sued Binance, Binance.us, and CEO Changpeng “CZ” Zhao for allegedly violating multiple federal securities laws.
Here’s the SEC’s main allegations (137 pages reduced to 6 points):
- Binance operates unregistered trading platforms which allow U.S. investors to buy and sell crypto securities. BNB, BUSD, SOL, ADA, MATIC, COTI, ALGO, FIL, ATOM, SAND, AXS, and MANA are all securities, as well as Binance’s BNB Vault, Simple Earn, and staking programs.
- Two Binance.us parent companies lied to U.S. investors about safety controls on Binance.us that don’t exist.
- CZ was secretly running Binance.us through a web of corporate structures while publicly claiming that Binance.us was an independently controlled company.
- CZ and Binance were secretly helping certain U.S. VIPs get access to and trade on Binance.com, while publicly claiming that controls were in place to prevent U.S. customer access.
- CZ and Binance diverted and mixed customer funds into other entity accounts that they owned. Most of these funds were then transferred to a third party for the purchase and sale of crypto assets, but $11M was spent on a yacht.
- Entities controlled by CZ and Binance engaged in wash trading on Binance.us, which thereby artificially inflated the exchange’s trading volumes. These same entities also acted as counterparties to customers on Binance.us.
Within 24 hours of this news, two more events happened. First, the SEC filed a temporary restraining order (TRO) seeking to freeze all assets in U.S. accounts held by Binance, Binance.us, and CZ. The SEC justified their TRO from the allegations of Binance diverting customer funds. And second, this occurred . . .
SEC Sues Coinbase
On Tuesday, the SEC sued Coinbase for allegedly violating federal securities laws by operating an unregistered trading platform that allows U.S. investors to buy and sell crypto securities.
The Coinbase complaint mentions several of the coins listed in the Binance complaint, and then adds CHZ, FLOW, ICP, NEAR, VGX, DASH, NEXO, and Coinbase’s staking program as securities.
Talk about whiplash. And it’s only Wednesday.
The Big Picture
Let’s discuss what’s really going on here.
This is the SEC’s big salvo against crypto. It’s been building for a long time, and now it’s here. Make no mistake, Gary Gensler, Elizabeth Warren, and several other politicians and bureaucrats are the purchased henchmen for Jamie Diamond and the U.S. banking cartel. Their…
