Behind the Scenes of Binance's Deal 🕵️

In today’s edition: 🚫 FTX disputes IRS claim, 💻 Google's crypto ad shift, 📊 Bitcoin dips, then recovers, 💰 Coinbase adds SEAM token, 🔍 ARK reduces Coinbase stake , and more!

December 12, 2023

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What’s Poppin’?

by James Rubin, Brandy Betz, Sage Young and Samyuktha Sriram

The FTX bankruptcy estate said that the exchange never earned anything near an amount that supports the $24 billion that the IRS claims it is owed in taxes.

The update will occur on January 29. The SEC will likely decide on spot BTC ETFs earlier in the month.

Ether and most other major altcoins were also still trading in negative territory in what one analyst said “can be seen as a healthy cleanse of excess leverage,” but market signs overall continue to point upward.

Coinbase has added support for SEAM, the governance token of the Seamless Protocol built on the Layer 2 network Base.

The active manager of exchange-traded funds sold the shares on Friday from three funds where the crypto exchange has grown to outsized weight.

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The record $4.3 billion settlement between Binance and the U.S. government over charges of money laundering and sanctions violations calls for the world’s largest crypto exchange to maintain an independent compliance monitor for the next five years. Michael Dawson, a partner at WilmerHale, and Dorothy DeWitt, founder and CEO of Tolt Strategies, a former director at the CFTC and former general counsel at Coinbase, dissect the intricacies of this arrangement, delving into the roles and responsibilities of the compliance monitor, the potential impact on Binance’s operations and the broader implications for the crypto industry.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Pandora, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Daily Bits…✍️✍️✍️

  • ⚖️ Sam Bankman-Fried's lawyer, David Mills, described him as the "worst" witness he's ever seen, acknowledging the challenges in defending the FTX co-founder's case due to his handling of cross-examination and the strength of the prosecution's evidence and testimony.

  • 🤝 BlackRock and Fidelity are discussing spot bitcoin ETF redemption models with the SEC, suggesting progress toward potential ETF approval.

  • 📝 Senator Elizabeth Warren gained additional co-sponsors for her bill targeting crypto, aiming to extend Bank Secrecy Act requirements to the crypto sector.

  • 🔍 The UK's National Audit Office criticized the Financial Conduct Authority for being slow to take enforcement action against rule-breaking crypto firms.

  • 🔄 Uniswap expanded to the Bitcoin sidechain Rootstock, deploying its version 3 on the platform and enhancing Bitcoin's decentralized finance landscape.

  • 🔍 China's Blockchain-based Service Network (BSN) announced a new platform, RealDID, to verify citizens' identities using blockchain technology.

  • 💹 Synthetix community approved governance proposal SIP-2043 to end SNX token inflation, shifting focus to token buybacks and burns.

  • 🗣️ U.S. presidential candidates discussed crypto-related issues, including Tornado Cash and pending legislation, at the Stand With Crypto event.

Today in Crypto Adoption...

  • ⚽ FIFA is releasing NFTs on Polygon, offering holders a chance to win tickets to the 2026 World Cup final.

  • 💰 El Salvador's Bitcoin bonds received regulatory approval, with plans to launch in early 2024 on Bitfinex Securities.

  • 🏦 Taiwan completed a technical study for a wholesale central bank digital currency, with plans to gather public feedback for platform improvement.

  • 🛡️ South Korea proposed consumer protection rules for crypto users, set to take effect in July 2024, under the Virtual Asset User Protection Act.

The $$$ Corner…

  • 🎯 Crypto VC C1 Fund targets acquisitions in Australian crypto firms like Animoca Brands and Chainalysis at significant discounts.

  • 💰 Crypto fund inflows continued their 11-week streak, totaling $1.8 billion, with a focus on bitcoin-based funds.

  • 💸 Crypto derivatives exchange Bitget invested in consumer-centric Ethereum layer-2 blockchain Morph, focusing on secure and scalable transactions.

What Do You Meme?

Recommended Reads

📈 Your Market Update 📉

  • BTC is down 1.7%, trading at $41,628

  • ETH is down 1.4%, trading at $2,214

  • BTC dominance: 49.54%

  • Crypto market cap: $1.65T

*All data as of today, 06:45 am ET

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