TL;DR Breakdown French authorities launch a preliminary investigation into Binance, the world’s largest cryptocurrency exchange, for alleged illegal client canvassing and aggravated money laundering. The investigation focuses on Binance’s failure to fulfill obligations regarding “know your customer” (KYC) procedures aimed at preventing money laundering. The investigation aligns with recent allegations by the U.S. Securities and Exchange Commission (SEC) against Binance for evading securities laws and offering services to American customers illegally. According to reports by French Daily Le Monde, the French branch of Binance, the world’s largest cryptocurrency exchange, is currently under a preliminary investigation by French authorities for alleged illegal canvassing of clients. The investigation, initiated in February 2022 and led by the finance judicial investigation service under the direction of the specialized interregional jurisdiction of Paris, focuses on whether Binance failed to comply with regulatory obligations, particularly in relation to the “know your customer” (KYC) procedures. These procedures are designed to prevent money laundering and require financial services to conduct thorough checks on their clients. The investigation aims to determine whether Binance violated its obligations regarding client onboarding…

TL;DR Breakdown BlackRock’s spot Bitcoin ETF has the potential to revolutionize the crypto market If approved. The majority of the crypto community is pleased by the news, but some mistrust persists. Some experts believe the SEC could approve the ETF to allow more conventional financial institutions to enter the market. While US regulators are filing lawsuits against crypto platforms for alleged violations of securities laws, BlackRock, the world’s largest asset manager with over US$10 trillion under management, has filed to launch the first publicly traded spot Bitcoin exchange-traded fund (ETF) in the US. After weeks of gloom and a huge governmental onslaught, the crypto market has received positive news. If BlackRock’s proposed Bitcoin ETF receives the go-light, it could completely transform the industry. A game-changing Blackrock ETF BlackRock, the largest US crypto exchange with $9.5 trillion in assets under management in the first quarter of 2023, is collaborating with Coinbase (COIN). The ETF will leverage Coinbase Custody and rely on spot market data from the exchange for pricing, with BNY Mellon as the cash custodian. In August of last year,…

TL;DR Breakdown Asia, a region known for using blockchain and digital assets for economic growth, has a massive opening after the US Securities and Exchange Commission shut down two of the world’s largest crypto exchanges.  The US government is ramping up crypto regulation. The SEC has accused Kraken, Bittrex, Binance, and Coinbase of violating different laws since last year’s FTX crisis. Retail investors can trade Bitcoin and Ethereum under the Hong Kong Securities and Futures Commission’s compliance sandbox. The US Securities and Exchange Commission’s recent actions against two of the world’s largest crypto exchanges have created a significant opportunity for Asia, which has heralded its potential to leverage blockchain technology and digital assets to spur economic development.  The SEC’s enforcement stance is to drive crypto enterprises elsewhere, as the East especially Asia provides more incentives and regulatory certainty for crypto firms to grow despite the US economy’s massive worldwide market share. Navigating the maze: understanding US regulations There has been speculation that American authorities were still deliberating on how to proceed. More and more evidence suggests that the United States…

TL;DR Breakdown Binance ends PEPE collateral support on the Flexible Loan platform, prioritizing reliable assets. Users must repay PEPE loans promptly before June 21, 2023, to avoid disruptions. Binance’s decision protects users from potential risks associated with less reputable cryptocurrencies. Binance, the leading cryptocurrency exchange, has recently announced a major decision that could have significant implications for its users. Starting from June 21, 2023, at 08:00 (UTC), Binance will cease accepting PEPE as collateral on its Flexible Loan platform. This move is part of Binance’s ongoing commitment to providing its customers access to reliable, high-quality assets. The decision to delist PEPE comes from Binance’s dedication to maintaining a robust and trustworthy platform. PEPE, unfortunately, fails to meet the necessary criteria to be considered a dependable asset for collateral. Consequently, Binance has decided to exclude it from the Flexible Loan platform, preventing users from borrowing PEPE. Users must take note of this announcement and take action if they have any outstanding loans involving PEPE. All loans must be repaid before the specified due date to avoid any potential disruptions in the…

TL;DR Breakdown FED and SEC team up to investigate Goldman Sachs’ over the acquisition of Silicon Valley Bank’s securities portfolio before its failure.  Goldman Sachs allegedly suggested to SVB executives that they “sell part or all of its securities portfolio” to establish the need for funds before raising capital. The Federal Reserve and Securities and Exchange Commission (SEC) are investigating Goldman Sachs for its participation in the unsuccessful capital raise and acquisition of Silicon Valley Bank’s securities portfolio before its failure. The Justice Department has issued a warrant, and the authorities are looking into possible inappropriate interactions and Goldman Sachs’ dual status as buyer and consultant. Goldman Sachs has acknowledged that it is helping with the inquiries. Justice Department subpoenas Goldman Sachs in SVB investigation Both regulatory organizations are looking into what Goldman Sachs did during the botched capital raise that preceded Silicon Valley Bank’s demise. According to The Wall Street Journal, Goldman Sachs is currently under investigation by the Federal Reserve and SEC over its role in acquiring Silicon Valley Bank’s securities portfolio before the bank’s collapse. Both agencies…

TL;DR Breakdown In a second auction, Sotheby’s sold $10.9 million in NFTs from insolvent hedge fund Three Arrows Capital. The Goose for $6.2 million, Kyle Davies, co-founder of 3AC, bought it in August 2021 for about 1,800 ETH, or about $5.8 million. Sotheby’s completed a second auction of non-fungible token (NFT) artwork from bankrupt hedge fund Three Arrows Capital, generating over $10.9 million in sales. The collection, featuring works by renowned generative artists, saw high-profile sales, including “The Goose” by Dmitri Cherniak, which sold for $6.2 million. “The Goose” NFT sells for $6.2m in heated bidding A second auction of non-fungible token (NFT) artwork confiscated from the insolvent cryptocurrency hedge fund Three Arrows Capital (3AC) was completed by Sotheby’s on Thursday, netting over $10.9 million in sales. The “Grails” collection was represented at the live auction in New York. There were 37 pieces by generative artists, including Dmitri Cherniak, Tyler Hobbs, Jeff Davis, and others. The Ringers #879 by Dmitri Cherniak, sometimes known as “The Goose” due to its likeness to the bird, was one of the highlights of this…

TL;DR Breakdown Sturdy Finance, a decentralized finance (DeFi) protocol, made an announcement on June 16, stating that users can now access their funds once again. The exploit occurred on June 12 and resulted in the loss of 442 Ether, which was valued at around $800,000 at the time. In an interesting move, Sturdy Finance has offered a $100,000 bounty to the hacker who executed the exploit. Sturdy Finance, a decentralized finance (DeFi) protocol, has recently reopened its stablecoin market after a recent exploit on its platform. The lending platform made an announcement on June 16, stating that users can now access their funds once again. Sturdy Finance assured its users that no funds were at risk during the incident and explained that the decision to pause the market was made out of an “abundance of caution.” The stablecoin market is now unpaused, enabling users in this market to access their funds! No funds in this market were ever at risk; the market was only paused out of an abundance of caution. As an additional safety measure, the bb-a-USD pool has…

TL;DR Breakdown The FDIC has warned OKCoin’s American crypto exchange subsidiary for making misleading claims. OKCoin falsely stated on its website that the HASH token had received regulatory acceptance from the SEC, OCC, FED, and the FDIC. The FDIC clarified that their insurance coverage only applies to banks within the US and does not extend to crypto exchanges. The US Federal Deposit Insurance Corporation (FDIC) has issued a public warning regarding OKX’s American crypto exchange subsidiary, raising concerns about the company’s misleading claims. In a letter addressed to OKCoin’s CEO Hong Fang, the FDIC highlighted instances where the firm misrepresented itself as insured by a well-known US financial institution regulator. The FDIC singled out three specific fraudulent statements made by OKCoin. The exchange falsely stated on its website that the HASH token, issued by Provenance Blockchain and traded on their platform, had “received broad regulatory acceptance from the SEC, OCC, FED, and the FDIC.” Furthermore, in 2020, the FDIC became aware of OKCoin’s misleading assertions on their website, proclaiming to be “licensed across the US with FDIC insurance on OKCoin…

TL;DR Breakdown Binance has made the decision to exit the Dutch market due to its inability to obtain a virtual asset service provider (VASP) license from the Dutch regulator. Effective from July 17, Binance will only allow Dutch residents to withdraw their funds from the platform, as stated in an announcement by the exchange. The exchange expressed its commitment to maintaining engagement with Dutch regulators, indicating a willingness to continue discussions. Binance, the largest cryptocurrency exchange globally, has made the decision to exit the Dutch market due to its inability to obtain a virtual asset service provider (VASP) license from the Dutch regulator. The license attests that Binance complies with anti-money laundering (AML) guidelines, which the exchange failed to persuade the regulator to issue. Effective from July 17, Binance will only allow Dutch residents to withdraw their funds from the platform, as stated in an announcement by the exchange. Binance expressed regret over its departure from the Dutch market, informing users that new registrations from the Netherlands would no longer be accepted. Existing Dutch resident users will have the option…

TL;DR Breakdown Co-founder Kyle Davies of Three Arrows Capital (3AC) is being pursued contempt of court for ignoring a subpoena related to the bankruptcy proceedings of the former crypto hedge fund. Liquidators had to secure permission from Singapore and U.S. authorities to issue subpoenas digitally. The founders are accused of evading their obligations, hiding their whereabouts, and engaging in new ventures related to trading claims in cryptocurrency bankruptcy cases. Three Arrows Capital (3AC) co-founder Kyle Davies is facing potential contempt of court charges due to his failure to comply with a subpoena connected to the bankruptcy proceedings of the former crypto hedge fund, according to court filings from 3AC’s liquidators on June 14. The creditor’s legal team alleges that Davies is intentionally delaying the recovery of assets from the bankrupt hedge fund. The court filings propose civil sanctions against Davies for contempt, which include the payment of attorneys’ fees and a daily fine of $10,000 until he complies with the subpoena. It is important to note that these measures do not apply to Su Zhu, the fellow co-founder of the…