🗿 SEC Sues Binance (Update)

The SEC charged Binance and CZ with securities law violations. Crypto prices tumbled Monday in response to the news

June 06, 2023

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GM. Apple threw its biggest demo day in a decade. The world’s biggest crypto exchange gets sued by the SEC. And it’s only Tuesday. Let’s dive in.

Today’s Specials:

No FOMO News 📰 : Ex-Minnesota Vikings co-owner sent to prison ⚖️

No FOMO 🗿 : SEC Sues Binance 👨‍⚖️ 

No FOMO 🗿 : Apple Launches First Spatial Computer 🥽

AI Intel 🤖 : AI Kills 4,000 Jobs in May 👷

Conference Corner 🏢 : NFC Lisbon Alpha 🇵🇹 

No FOMO News 📰

  • Ex-Minnesota Vikings co-owner sent to prison in $700M cyrptocurrency shadow bank scam (USA Today)

  • Venture capital funding for crypto firms has plummeted in 2023 (Quartz)

  • AI-related crypto returns rose up to 41% after ChatGPT launched: Study (Cointelegraph)

  • UK Crypto Think Tank Warns Government of CBDC Privacy, Security Risks (Decrypt)

  • Exclusive: Crypto giant Binance controlled ‘independent’ US affiliate’s bank accounts (Reuters)

  • Circle says it's launching USDC natively on Arbitrum (The Block)

  • Hong Kong’s regulatory lead sets it up to be major crypto hub (Cointelegraph)

  • Crypto Traders Suffer $320M Losses in Liquidations as SEC Lawsuit Against Binance Spurs Market Plunge (CoinDesk)

SEC Sues Binance 👨‍⚖️

The SEC threw the book at Binance and their founder Changpeng Zhao (better known as CZ) Monday morning.

You heard that right — the SEC charged Binance and CZ with securities law violations. Big yikes. Crypto prices tumbled Monday in response to the news.

Binance net outflows hit $778 million as of early Tuesday in response to the news. That’s a lot of pressure on the exchange.

The Allegations:

  • Binance and CZ allowed high-value U.S. customers to continue trading on Binance.com, despite publicly claiming restrictions and secretly controlling the operations of Binance.US.

  • Binance commingled customer assets and diverted them to an entity owned by CZ.

  • Binance engaged in manipulative trading and misleading investors about trading controls and volumes.

  • Charges include operating unregistered national securities exchanges, broker-dealers, and clearing agencies, unregistered offers and sales of crypto assets, and failure to restrict U.S. investors from accessing Binance.com.

Binance Denies Wrongdoing

  • Binance is disappointed, stating they should not be subject to enforcement action.

  • They criticized the SEC's approach to regulation in the digital asset industry, claiming a lack of clarity and guidance and reliance on enforcement rather than collaboration.

  • Binance highlighted concerns about the impact on America's position as a hub for financial innovation and leadership.

  • Binance ensured that user assets on Binance and its affiliate platforms, including Binance.US, are safe and secure.

  • They claimed the SEC's actions may be motivated by jurisdictional conflicts and headline-making rather than investor protection.

Silver lining: clearer rules around crypto are coming. This may just be FUD headlines that pass like the rain.

TLDR; Crypto prices took a tumble Monday as the SEC sued Binance for securities laws violations. Binance pushed back against the SEC and denied any wrongdoing.

A Metaverse Moment 🥽

Apple launches its own ultra-high-resolution VR headset, the “Vision Pro”. The first spatial computer.

It will start at $3,499 and launch early next year. Everyone on the internet is talking about this today, so we won’t bore you with what we think. Here’s Apple’s full presentation.

AI Intel 🤖

  • AI should be licensed like medicines or nuclear power, Labour suggests (The Guardian)

  • Apple’s practical approach to A.I.: No bragging, just features (CNBC)

  • AI eliminated nearly 4,000 jobs in May, report says (CBS)

  • Elon Musk says China will initiate AI regulations (Reuters)

  • AI-generated content should be labeled, EU commissioner says (Aljazeera)

Conference Corner 🏢 : NFC Lisbon Alpha 🇵🇹 

Non-Fungible Conference in Lisbon is starting tomorrow. There’s still time to get tickets here and check out the side event list below:

Shameless Shill + Alpha

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