Binance Accused Of Possible Money Laundering As Feds Go After Biggest Exchange

As per Politico, HBO and filmmaker Cullen Hoback have announced a new film titled Money Electric: The Bitcoin Mystery, set to unveil fresh evidence regarding the identity of the creator of Bitcoin, Satoshi Nakamoto. The documentary, scheduled to air on October 8th at 09:00 PM EST, has generated significant anticipation as it aims to shed light on the enigmatic figure behind the Nakamoto pseudonym, which has remained a mystery since 2009.

New Evidence

Hoback, known for exposing individuals linked to the QAnon movement, is expected to present new evidence regarding the identity of Nakamoto. However, details about this evidence remain scarce. What began as a cryptographic experiment has transformed into a trillion-dollar asset class, utilized both as a currency and an investment vehicle. Speculation surrounding Nakamoto and his true identity has persisted for over a decade.

Potential candidates frequently mentioned include Len Sassaman, Hal Finney, and Adam Back. Although Sassaman and Finney, both of whom were involved in Bitcoin since the early days, have passed away, there is no definitive proof linking either to Nakamoto. Meanwhile, Back, a prominent figure in the crypto community, has consistently denied any involvement in the creation of Bitcoin.

An Intriguing Film

The upcoming film will also explore the rise of Bitcoin and its broader implications. Alex Thorn, head of research at Galaxy Digital, indicated that if the documentary identifies Sassaman as Nakamoto, the impact on the market would likely be minimal. Still, confirming the identity of Sassaman could alleviate concerns regarding the potential movement of the substantial Bitcoin holdings of Nakamoto.

Additionally, the documentary examines Bitcoin in both a cultural and financial context, including its evolution into a decentralized multi-trillion-dollar asset, and the ongoing speculation about its future in the global economy.

Bullish sentiment surrounding cryptocurrency for October, often referred to as Uptober on social media, has been diminishing as markets continue to decline. Onchain analytics firm Santiment observed a significant drop in mentions of Uptober since the month's onset, according to an X post on October 4th.

They noted that traders have grown pessimistic about the notion of this month being an automatic money printer for crypto. Instead, social media is filled with references to Selltober and Octobear. However, Santiment founder Maksim Balashevich remarked that the current lack of enthusiasm may create opportunities for a short-term rebound.

Chance For Recovery

Maksim stated that as Uptober excitement fades with the market downturn, it does create a chance for recovery. Whether the larger downward trend has concluded remains uncertain. Veteran crypto trader Ash Crypto informed his 1.1 million X followers on October 3rd that BTC might dip further, leading people to lose faith in Uptober, before adding that once bears get excited and start predicting $40k to $45k, BTC will surge.

In a note to investors on October 4th, analysts at 10x Research pointed out that many crypto bulls had been taken by surprise since March, anticipating a continued bull run. They indicated that technical indicators showed the rally was overextended, noting that it appears that sell-offs by early adopters and substantial token unlocks have been pushing prices down, even with strong inflows via stablecoins, Bitcoin Spot ETFs, and increased futures leverage.

A Repetitive Pattern

Historically, October has been favorable for Bitcoin, with positive price movements observed in nine out of the last eleven years, which contributed to its nickname. The past five consecutive Octobers recorded gains between 5.5% and 40%, including during bear markets.

However, price gains typically emerge around mid-October based on past cycles. In the first half of October 2023, BTC experienced a decline of about 7%, dropping to $28,500 on October 2nd before falling further to $26,650 by October 13th. The asset then surged nearly 30%, closing the month at $34,500. As of now, Bitcoin has lost approximately 4.7% this month.

Tens of thousands of Bank of America customers have reported a network outage that is hindering access to their bank accounts and displaying a $0 balance. Issues with the service began surfacing around 4:26 PM UTC on October 2nd, peaking roughly an hour later when nearly 18,000 customers reported problems within a 15-minute window, according to real-time outage monitoring platform Downdetector.

Still A Lot Of Work To Do

Approximately 98% of the aforementioned reports were related to mobile and online banking applications. Although Bank of America has not released a public statement regarding the outages, it has reportedly informed CNN that the network issues have largely been resolved. However, several comments on Downdetector still indicate that the problem remains unresolved for some users.

Unsurprisingly, many customers have expressed frustration over the IT glitch, noting that while their balances appeared as $0, their debts were still intact. Issues also extended beyond the mobile app, as the bank was also apparently not allowing deposits or withdrawals. Other customers indicated that ATMs were unable to display their account balances, though they could still withdraw cash.

Crypto Could Be The Answer

Many crypto enthusiasts pointed to these difficulties as a reason to consider self-custody of funds, highlighting the strong uptime record displayed by Bitcoin (BTC). The flagship crypto has not experienced a network outage since March 2013, when it was still largely centralized, according to the Bitbo Bitcoin Uptime tracker.

However, this reliability does not extend to all blockchains. Solana, Canto, Zilliqa, and Linea have all experienced at least one halt this year, and several cryptocurrency exchanges, including BitForex and Lykke, suspended withdrawals after hacks earlier in the year.

Despite the IT issues, Bank of America saw its share price remain stable on October 2nd, as reported by Google Finance. Additionally, the share price managed to withstand $338 million in sell orders by Berkshire Hathaway between September 30th and October 2nd, according to Bloomberg.

In 2013, Edward Snowden disrupted beliefs about online privacy by revealing a worldwide surveillance operation aimed at citizens. Despite facing significant personal consequences, his disclosures reinforced his role as a dedicated champion for privacy rights.

During his speech at Token2049 in Singapore, Snowden criticized Solana (SOL) and its highly centralized approach to blockchain development, cautioning that it might ultimately serve authoritarian regimes.

Solana Under Scrutiny
Responding to a question about creating safe technology, Snowden cited Solana as a cautionary example of blockchain development. He emphasized that genuine security should incorporate an adversarial mindset above all else.

Snowden noted that while Solana integrates good concepts, it centralizes them to enhance speed and reduce costs. Although this convenience may be appealing, he warned it also leads to vulnerabilities, creating a system where individuals can easily lose control. Nonetheless, he expressed limited concern at the moment, pointing out that the primary applications on Solana revolve around memecoins and scams rather than significant state interests.

Thinking Long Term
The struggle between scalability and decentralization presents a core challenge in blockchain development, with projects often forced to choose one over the other. A libertarian perspective may view all regulatory efforts as attempts to co-opt freedom. Achieving an appropriate balance between absolute freedom and authoritarianism is essential.
Nevertheless, while Solana does offer rapid transactions and low fees which might draw users initially, with the platform also leading the charge in positive net flows and surpassing all other chains with a total of $1.0 billion over the past three months, the critique made by Snowden raises valid concerns regarding the long term viability of its development strategy.

A former Chinese finance official is urging the government to reconsider its stringent cryptocurrency ban, especially as the U.S. adopts more favorable policies toward digital assets. Zhu Guangyao, a former senior finance official, highlighted the significance of digital currencies for the Chinese digital economy during a recent forum in Beijing, as reported by the South China Morning Post.

Competing With The U.S.

The remarks made by Zhu arise amid discussions in China sparked by the apparent welcoming attitude toward crypto in the United States. He acknowledged that while virtual currencies carry risks such as volatility and potential misuse for illegal activities, these issues could be addressed through regulation instead of complete prohibition.

China initiated its crackdown on cryptocurrencies in 2017 by banning initial coin offerings (ICOs) and shutting down crypto exchanges. The measures were further tightened in 2021, with a ban on Bitcoin mining and a declaration of crypto-related activities as illegal. However, Zhu contends that the current ban has driven trading underground, leaving it without regulation.

Time To Restrategize

In contrast, Hong Kong is developing its own crypto strategy, striving to become a global hub for digital assets with implicit support by Beijing. Earlier this year, the region approved crypto exchange-traded funds (ETFs), showcasing a different approach within China.

This shift in global policy is also being recognized in the U.S. Former President Donald Trump has advocated for the adoption of digital assets to counter China, while Kamala Harris has recently shown support for innovative technologies, including cryptocurrencies.

Wang Yang, a prominent Chinese economist, criticized the mining ban as unwise, arguing that it has pushed opportunities abroad, particularly to the U.S. He cautioned that if Trump were to return to the presidency, China could face increased financial isolation.

$BONK is making waves in the crypto market, boasting an impressive 27.8% surge in just a week. This notable rise reflects a strong upward trend, capturing the attention of investors eager to see how far this meme coin can climb.

This recent rally is also fueled by a spike in trading activity, prompting speculation about even greater gains on the horizon. With robust technical indicators and an increasing number of market participants, $BONK appears primed for a significant breakout.

Analyzing Price Action

A closer look at the price chart reveals two critical indicators, the Relative Strength Index (RSI) and Bollinger Bands (BB). The RSI has surged to over 73.7, signaling that the token has entered overbought territory. While this could hint at a potential short-term pullback, the widening of the Bollinger Bands suggests heightened volatility, often a precursor to major price movements.

If $BONK can maintain its position above the middle Bollinger Band, it may be gearing up for another strong upward shift. Unsurprisingly, the trading volume for $BONK has also skyrocketed, increasing by nearly 50%. This uptick highlights a surge in interest by both retail and institutional investors. Generally, higher trading volume correlates with stronger price momentum, and this increased volume reflects a solid conviction among buyers, hinting at potential for further gains.

Short Sellers Feel the Pressure And Open Interest on the Rise

Short sellers are currently facing significant challenges, with $126.59K in liquidations recently recorded. The liquidation data illustrates a dominance of long positions, with only $30.88K in long liquidations during the same timeframe. This imbalance has intensified buying pressure as short sellers scramble to cover their positions.

As this short squeeze unfolds, $BONK could break through critical resistance levels, amplifying its bullish momentum. Open Interest has also climbed by 15.33%, reaching $11.51 million, signaling increased market engagement. More participants are stepping in, and rising Open Interest typically aligns with price movements, suggesting that this rally may be more than just a fleeting spike.

With strong technical indicators, a surge in trading volume, and rising open interest, $BONK seems well-positioned for continued growth. The combination of positive price action, driven by liquidations and increased market activity, indicates that this rally has significant potential.

Vladimir Kalnitsky, a prominent developer involved with the cardano-transaction-lib (CTL), recently announced that he will be leaving the project, further highlighting significant exits within the Cardano ecosystem. This raises concerns about the ability of the platform to attract and retain talent in the rapidly evolving blockchain landscape.

Despite this however, Cardano still managed to reach new record transaction volumes and process over 4 million transactions back in December and January, demonstrating a noteworthy uptick in on-chain activity.

Mounting Frustrations

Kalnitsky expressed that, despite gaining valuable experience in the Cardano PureScript ecosystem, he has lost his enthusiasm for functional programming, particularly Haskell, which plays a crucial role in the development of Cardano. His perspective underscores that, while Haskell is elegant, its complexity poses a challenge in drawing new developers, echoing frustrations shared by others in the community.

Both new and experienced developers seem to be losing interest in Cardano over time due to the various intricacies associated with Haskell alongside its limited appeal outside academic circles. Another developer, Hinson Wong, noted that the tools associated with Haskell and the UTXO model create barriers to broader adoption. In comparison to Ethereum, which boasts a larger developer community and market, Cardano reportedly incurs significantly higher development costs, especially within the DeFi sector.

Numerous Difficulties

Sidan also highlighted the difficulties in creating DeFi applications on Cardano, suggesting that the constraints in tooling make building a platform similar to Uniswap V1 on Ethereum far less time-consuming. These departures and frustrations indicate that Cardano may be facing deeper challenges.

With the ongoing developer exodus, Cardano is becoming a less appealing option for development, particularly for DeFi projects, despite its ambitious goals and active community. This struggle is mirrored in the performance of ADA, which has lagged behind other leading cryptocurrencies. The future of Cardano, particularly in the DeFi space, remains uncertain as key developers exit, making the platform seem both costly and complex for development.

Gemini, the crypto exchange founded by the Winklevoss twins, plans to shut down all customer accounts in Canada by the end of 2024. In an email sent to Canadian users on September 30th, Gemini announced that all accounts would be closed by December 31st, urging users to withdraw their assets within 90 days.

New Regulations

Effective December 31st, 2024, Gemini will close all customer accounts in Canada with limited exceptions. This decision comes shortly after Canadian financial regulators implemented new regulations for crypto exchanges and trading platforms operating within the country.

On February 22nd, the Canadian Securities Administrators (CSA) released a notice mandating that all crypto asset trading platforms submit a legally binding pre-registration undertaking to continue their operations. Responses to these new regulations varied among major international crypto exchanges.

A Domino Effect

Gemini quickly complied with the aforementioned regulations, filing its pre-registration on April 13th. A spokesperson highlighted Canada as one of the most important and developed markets in North America, noting its significant role.

Many publications tried to reach out to Gemini for comments regarding the closure of Canadian accounts but did not receive a response. Other leading exchanges, including OKX, dYdX, Paxos, Bybit, and Binance, have also announced that they will be leaving the Canadian market. Stringent regulations are also nothing new, as was the case last year with the G-7 Summit.

As of September 27th, 2024, Shigeru Ishiba, a member of the Liberal Democratic Party, has been elected as the next Japanese Prime Minister. However, his previous role as defense minister and his preference for higher taxes and increased money supply may pose challenges for cryptocurrency supporters in the nation.

Infact, his stance on Bitcoin remains vague, and unlike his predecessor, Ishiba has not publicly engaged with crypto at major tech events, focusing instead on economic and defense issues. His past statements include harsh penalties for military draft evaders and strong advocacy for an Asian counterpart to NATO, along with a desire to amend the Japanese pacifist constitution due to perceived threats by North Korea.

Boosting The Military

Described as a Christian, military advocate, and banker, Ishiba is not what one might typically associate with a leader in a predominantly Shinto and Buddhist country that prides itself on pacifism. He will officially take over on October 1, following the recent vote, and his objectives are clear, namely to increase taxes on investments and income while boosting military capabilities.

The Japanese cryptocurrency landscape presents a mixed picture. While the foundational idea of Peer-to-Peer (P2P) electronic cash continues to thrive in various trading communities and local businesses, the government has faced significant criticism. This includes high taxes on crypto assets and a ban on privacy coins on exchanges. Nonetheless, trading on centralized platforms reportedly surged in 2024.

Amidst a changing economic environment, the Bank of Japan (BoJ) previously adjusted its longstanding monetary policy, indicating a possible departure compared to the prolonged era of an extremely accommodative monetary approach.

Growing Centralization

Ishiba has expressed intentions to enhance income and investment taxes but has assured that those investing through approved programs like NISA (Nippon Individual Savings Account) will be exempt. This program currently does not include cryptocurrencies, with the only exception being a select few ETF investments.

Despite his emphasis on tax reforms, Ishiba aligns with U.S. style economic policies, advocating for increased defense spending, higher minimum wages, and measures to combat deflation, which translates into aggressive monetary policies. While traditional fiat currency issues once led many to see crypto as a safe haven, the growing centralization of markets raises concerns among mainstream holders.

While militaristic policies might not seem directly connected to cryptocurrency, closer ties with U.S. military efforts and increased focus on global conflicts could have substantial implications for the crypto market in Japan.

Changpeng Zhao (CZ), the founder and former CEO of Binance, the largest cryptocurrency exchange in the world, recently shared his thoughts and future plans after completing a four-month prison sentence. Zhao expressed deep gratitude to his supporters who stood by him during difficult times before saying that there are always more opportunities ahead than there were in the past, conveying a hopeful outlook for the future.

Investing Long Term

CZ reaffirmed his commitment to blockchain technology and decentralization, describing himself as a long term investor focused on impact rather than just returns. He also indicated that Giggle Academy, a nonprofit online education platform, would be a key focus for him in the coming years, as he plans to devote more time to charitable initiatives and education.

In a recent tweet, he provided an update on his upcoming book, stating that he is about two-thirds done before jokingly remarking that writing a book is a lot more work than he initially expected. He also reflected on Binance and its performance, noting with satisfaction that the exchange has been thriving without him.

A Notable Development

The aforementioned remarks by CZ followed his release after serving time for anti-money laundering violations, stemming via a Department of Justice investigation into him and Binance. He paid a $50 million fine and resigned as CEO in November 2023, bringing the lengthy investigation to a close. The exchange faced $4.3 billion in penalties during this period.

His imprisonment made headlines, especially since he was one of the wealthiest individuals to serve time in a U.S. federal prison, ranked as the 34th richest person globally with a net worth over $40 billion at the time. As for the market, BNB, the native token of the Binance ecosystem, was trading at around $575, down nearly 4% in the last 24 hours, according to CoinGecko.

RD Technologies raised $7.80M in Pre-Series A funding with help by Solana Foundation. RD Technologies is a fintech company focused on facilitating payments and commerce with trust, stability, and efficiency.

Nodepay obtained an undisclosed amount with assistance by Animoca Brands. Nodepay is the network infrastructure that provides decentralized bandwidth for AI training. By connecting to the Nodepay Network, users can sell their unused internet to AI companies, enabling the efficient transfer of public training data, labelling, model sharing and remote distributed training.

MeshMap acquired secured $4M in Undisclosed funding with support by Andreessen Horowitz. MeshMap is a decentralized platform for creating and sharing 3D maps collaboratively. It leverages decentralized infrastructure to enable users to contribute, validate, and access highly detailed 3D maps without relying on centralized mapping services.

AminoChain secured $5M in Seed funding with help by Andreessen Horowitz. AminoChain is developing a Layer 2 blockchain protocol that connects enterprise medical institutions, enabling the creation of user-owned decentralized healthcare applications.

Mawari raised $10.80M in Strategic funding with assistance by 1kx. Mawari is a Solana-based DePIN (Decentralized Physical Infrastructure Network) project focused on scaling spatial computing.

EarthFast obtained $1.40M in Seed funding with support by Nascent. EarthFast is an infrastructure protocol that began as a community project in 2022 called Armada Network. It enables projects to build and host decentralized apps easily, providing a scalable, secure, and efficient alternative to traditional cloud platforms.

Infinex raised a whopping $65.29M in Undisclosed funding with help by Framework Ventures. Infinex is a decentralized perpetuals exchange created by the founder of Synthetix, Kain Warwick, aimed at providing a user experience similar to centralized exchanges.

Berkeley Compute Inc secured $5M in Pre-Seed funding with assistance by Chia Network. Berkeley Compute is developing a pooling protocol to scale GPU capacity for AI workloads through decentralized data center operators.

Helix Labs obtained $2M in Pre-Seed funding with support by Tribe Capital. Helix Labs is a protocol that enhances yield opportunities for non-ETH Layer 1 asset holders through restaking. It also supports an OmniVM rollup future via liquidity abstraction.

Zulu Network raised an undisclosed amount in Seed funding with help by Draper Dragon. Zulu Network is the first Bitcoin Layer 2 to achieve Bitcoin-level security using BitVM2, enabling developers to seamlessly deploy dApps on both EVM & UTXO layers. Zulu is also a recognized key contributor to BitVM, poised to launch the first trust-minimized Bitcoin bridge.

Bitcoin (BTC) responded positively to the recent US inflation report, rising above $66,500 for the first time in nearly two months before experiencing a slight pullback. In addition, several altcoins have seen significant gains recently, particularly within the meme coin sector.

Shiba Inu has stood out, gaining another 6% in the last 24 hours and nearing $0.000022 earlier today for the first time in over three months, marking a 42% rise for the week. PEPE has also made notable gains, climbing 6.5% since yesterday and 36% since last Saturday. Other meme coins like WIF, BONK, and FLOKI have also recorded significant increases.

BTC Hits $66.5K

The week began strongly for Bitcoin, which had already gained momentum following the US Federal Reserve deciding to finally cut interest rates on September 18th. The cryptocurrency was valued at $63,000 over the weekend and surpassed $64,500 on Monday.

However, it struggled to hold its ground initially, dipping again as bears took charge on Thursday, driving the price down to $62,700 (on Bitstamp). Despite this, the bullish trend resumed, culminating in a surge last night that pushed the asset to $66,500, a level not seen since August 1st, fueled by favorable inflation news.

While Bitcoin has since lost some momentum and is now just below $66,000, its market capitalization remains above $1.3 trillion on CoinGecko, with its dominance over altcoins slightly increasing to 53.8%. On the larger-cap altcoin front, Ripple and Toncoin are both showing positive daily movements, alongside BNB, ETH, DOGE, and TRX, albeit to a lesser extent.

Other Markets

In a bold move, Israel seized an opportunity to eliminate Hezbollah leader Hassan Nasrallah, escalating tensions in the region. This assassination has garnered support by the United States, with President Biden openly backing Israel. Meanwhile, the Australian Foreign Minister, Penny Wong, has called for an immediate cease-fire in Lebanon, highlighting growing international concern.

As both Israel and Hezbollah edge closer to an all-out conflict, economic factors also come into play. Federal Reserve Chair Jerome Powell recently held a press conference following a key rate decision, indicating that upcoming employment data will shed light on what kind of monetary policy the central bank decides upon. The September jobs report is expected to reflect a strong, yet moderating, labor market.

On another front, high-risk real estate bonds are outpacing returns from tech giants like Nvidia, while China has made a substantial pledge to address its ongoing property crisis. The global landscape remains volatile as these interconnected issues unfold.