Ah, the world of cryptocurrency - a realm where blockchains are the new bling, crypto exchanges are the new stock markets, and the US Securities and Exchange Commission plays the part of the strict school principal.
It's a world where even a little dust could be worth a fortune, as long as it's crypto dust. Just another day in the neighborhood, right?
Well, not quite. There's a new saga in town, and it features our very own Binance, the global crypto exchange behemoth, and the SEC, the US Securities and Exchange Commission. It's a gripping tale of allegations, denials, and yes, tweets. So grab your popcorn (or should I say, your Bitcoin?), and let's dive right in.
📟 Disclaimer
I am not a financial advisor, and nothing I say in this substack is financial advice.
This is all educational content you can use as a starting off point for your own research initiatives. I’m just another random individual who started a substack ‘cause I think I have something to share with you all’. 🤷
That said, if you’d like to know a bit about me and are wondering why you should listen to me, read this intro post I wrote 🙌
🗒️Key Takeaways From This Post:
SEC sues Binance and CZ for multiple violations.
Binance rejects charges and defends itself.
Lawsuit outcome could shape crypto market.
Writing a FlashLoan bot and deploying smart-contracts can be Quite Risky
When Binance Met SEC: A Tale of Crypto, Allegations, and Tweets
The SEC has decided to play the role of the school bully, and has slapped Binance and its founder, Changpeng Zhao (or 'CZ' as the cool kids call him) with thirteen, yes thirteen, charges.
The charges range from operating unregistered exchanges, broker-dealers, and clearing agencies, to misrepresenting trading controls and oversight on the Binance.US platform, and even the unregistered offer and sale of securities.
The SEC alleges that CZ and Binance have essentially been playing a game of 'hide and seek'. They claim that while Binance publicly stated that U.S. customers were restricted from trading on Binance.com, in reality, they allowed high-value U.S. customers to continue trading on the platform.
The SEC also alleges that Binance claimed Binance.US was created as a separate, independent trading platform for U.S. investors, while CZ and Binance controlled the platform's operations behind the scenes.
But wait, there's more! According to the SEC, CZ and Binance exercised control over the platforms’ customers’ assets and diverted them as they pleased, including to an entity CZ owned and controlled called Sigma Chain.
The SEC further alleges that Binance entities misled investors about non-existent trading controls over the Binance.US platform and concealed the fact that it was commingling billions of dollars of investor assets.
Now, if you're thinking Binance is just going to roll over and play dead, think again. CZ, in his typical style, responded with a tweet, promising to 'defend ourselves vigorously' and calling the lawsuit 'baseless'.
The official statement from Binance in response to the SEC complaint presents the company's disappointment and disapproval of the SEC's decision to file a complaint against them.
Binance emphasizes that they have been actively cooperating with the SEC's investigations, answering their questions, and addressing their concerns.
Despite their efforts, Binance expresses dismay that the SEC abandoned the negotiation process and chose to litigate instead.
Binance defends its platform and deems the SEC's refusal to engage productively as an example of the Commission's refusal to provide clarity and guidance to the digital asset industry.
The company criticizes the SEC for using enforcement and litigation as a means to regulate, rather than taking a nuanced approach considering the complexity of the technology.
Binance rejects any allegations that user assets on its platforms have ever been at risk, asserting that all assets on Binance and its affiliate platforms are safe and secure.
The company accuses the SEC of trying to make headlines rather than genuinely protecting investors.
Despite the SEC's actions, Binance commits to continue cooperating with regulators and policymakers globally and to fight against the SEC's overreach.
Binance's stance is clear: they feel this is regulation by enforcement, an overreach on the part of the SEC. They argue that they have been engaging in good faith with the SEC for over two years, with the goal of working toward a clear, practical regulatory framework that allows their business to grow and provide safe access to digital assets for American consumers.
So, what does this all mean for the crypto world? Well, there are several potential outcomes to this lawsuit. Let's put on our fortune-teller hats and explore some possibilities:
Binance wins: If the courts rule in favor of Binance, this could set a precedent that the SEC cannot extend its reach to crypto exchanges operating outside its jurisdiction. This could pave the way for a more open and less regulated crypto market.
SEC wins: If the SEC comes out on top, this could potentially scare off other crypto exchanges from offering services to U.S. customers without proper registration and adherence to U.S. securities laws. This could also result in a more regulated and safer (albeit less free) crypto market
Settlement: Binance and the SEC could reach a settlement, which would likely involve Binance paying a hefty fine and agreeing to adhere to U.S. securities laws moving forward. This scenario could potentially lead to a more regulated crypto market, but also to a recognition of the legitimacy of crypto exchanges like Binance.
Congress Steps In: As Binance has suggested, Congress could pass legislation that provides a clear, workable regulatory framework for digital assets. This could resolve the current uncertainty and provide a path forward for both crypto exchanges and regulators.
While we wait for the outcome, Binance continues its operations and the SEC continues its role as the 'school principal' keeping a close eye on things.
Adam Cochran has done a detailed breakdown in their tweet as well:
Meanwhile, the crypto world watches, popcorn in hand (or should we say, Bitcoin in wallet?), as this drama unfolds.
So, there you have it - an engaging tale of the wild wild crypto west. Will Binance ride off into the sunset, or will the SEC be the new sheriff in town? Only time will tell. But one thing's for sure, in the crypto world, there's never a dull moment.
👛Wallet Review: Adventures in Ether, A Tale of Two Wallets.
Once upon a time, in a galaxy far, far away... Okay, not really, it was right here on Earth, in the thriving realm of Ethereum. Our protagonist, the stellar shitcoinoor.eth wallet (let's call it Wallet One), embarked on a journey into the wild and wonderful world of crypto.
Among the stars and planets of digital art, it stumbled upon a gem - Boki.
Not just one, but two Boki NFTs nestled in its digital pocket, transforming Wallet One into a respected member of the Boki community.
Ah, the power of cute, pixelated creatures in this digital age!
But that wasn't the end of Wallet One's token journey. It also played host to a host of other tokens, including a curious one named FUKBEN. Now, what stories could that one tell if tokens could talk?
Meanwhile, in the parallel universe of the Arbitrum network, A secondary wallet (let's call it Wallet Two), with the address 0x64559e3d0b05538956a67a77ecfd1e88adafd965, was created as a derivative of shitcoinoor.eth.
I transferred about $35 worth of DAI and ETH to Wallet Two. to deploy and test out a triangular flashloan arbitrage which failed miserably. Here’s a link to the github repo (WIP) You’ve been warned.
I was able to successfully deploy this and test it but, I wasn’t able to find good arb opportunities, leading me to trying riskier and riskier ideas in my code which eventually lead me to accidentally transferring out ETH and DAI to wallets I shouldn’t have.
I will likely never recover those funds and as of today I consider that amount gone and a net loss for this wallet. Just means I need to get a touch serious and recover my funds through another means.
To add another feather to my cap, there's a successful project from an Ethereum bootcamp to showcase.
A PEPE token block explorer, a tool as quirky as the token itself, came to life from the depths of code and creativity. Wallet, tokens, NFTs, flash loans, and now a block explorer - talk about a crypto rollercoaster ride!
So there you have it - the tale of two wallets, filled with NFTs, tokens, flash loans, and coding triumphs. A story of exploration, experimentation, and learning.
And who knows what the next chapter might hold? In the ever-evolving crypto universe, the possibilities are endless.
Stay tuned, because in the world of Ethereum, the adventure is just getting started!
And remember, whether you're a Bitcoin billionaire, an Ethereum enthusiast, or a Dogecoin devotee, keep those private keys safe, those wallets secure, and always, always remember: in the world of crypto, hodl is the word!
Until next time, this is your friendly neighborhood crypto blogger, signing off.
🪤 Outro
Of course, it goes without saying but bears repeating that nothing I say or share here is financial advice. I’m just another random individual starting a substack ‘cause I think I have something to share with you all’.
Also, like many individuals who are doing this for a living I also am a humble penniless fool. So, if you are a kind, bountiful, and gifted individual who has benefited from this Shit Postery and wish to buy this Shit Poster of yours a coffee, Some drip money would definitely be appreciated and will help to keep my fingers going on this mechanical keyboard of mine.
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