Golden Morning Post | SEC may file criminal charges against Binance

Headline

▌"Fortune": Legal experts believe that the US SEC is likely to file criminal charges against Binance

According to FORTUNE, the two lawsuits brought by the SEC against Binance and Coinbase are quite different in nature. In the Binance case, the SEC said the company attempted to fool U.S. regulators by engaging in so-called "wash trading" — that is, trading itself against itself to boost trading volume, and that Binance also dumped customers' funds. Mixed with own account. Another important signal is that the US Securities and Exchange Commission has chosen to file a lawsuit in Washington, D.C. Legal experts say this indicates that the US Securities and Exchange Commission is likely to file criminal charges against Binance. In contrast, the SEC chose to sue Coinbase in Manhattan, where by convention, most of its lawsuits in Manhattan are ordinary securities lawsuits. In fact, its accusations against Coinbase are also milder than those of Binance.

▌SEC’s lawsuit led to the withdrawal of nearly $996 million in Ethereum and Bitcoin from centralized trading platforms

It has been six days since Binance faced a lawsuit from the U.S. Securities and Exchange Commission (SEC), while Coinbase faced a similar legal challenge five days ago. In the wake of these events, large amounts of Bitcoin and Ethereum were withdrawn from exchanges, with data showing that nearly $996 million in Ethereum and Bitcoin have been withdrawn from centralized exchanges.

Quotes

As of press time, according to coinmarketcap data:

The latest transaction price of BTC is 25871.80 US dollars, with an intraday increase and decrease of +0**.46**%;

The latest transaction price of ETH is 1750.72 US dollars, with an intraday increase and decrease of +0**.49**%;

The latest transaction price of BNB is 234.86 US dollars, with an intraday change of -0.07%;

The latest transaction price of FIL is US$3.41, with an intraday increase and decrease of +1**.16%**;

The latest transaction price of DOGE is US$0.0613, with an intraday increase and decrease of +0**.15%**;

The latest transaction price of ADA is US$0.0613, with an intraday increase and decrease of +0**.18**%;

MATIC's recent transaction price was US$0.6319, with an intraday change of +2.07%.

policy

▌Members of the House of Representatives asked the Ministry of Finance and the Internal Revenue Service to quickly issue regulations to solve the problem of tax evasion in cryptocurrencies

House of Representatives Brad Sherman and Stephen Lynch earlier this week asked the Treasury Department and the Internal Revenue Service to quickly issue regulations to address cryptocurrency tax evasion. Brad Sherman and Stephen Lynch earlier this week asked the Treasury Department and IRS to "quickly" issue regulations to address tax evasion in cryptocurrencies.

Democrats are still pushing the issue after Republicans successfully blocked a tax-loss harvesting provision for the cryptocurrency industry in the recently passed debt ceiling bill. Congress removed the cryptocurrency taxation portion of the bill ahead of a vote, which passed the House and Senate. The provision is intended to discourage wash trading of cryptocurrencies. Wash trading is illegal when it comes to securities, but the IRS does not consider cryptocurrencies to be securities. Seth Wilks, vice president of government relations and success at TaxBit, said that in this particular example, the wash trading rules were actually written specifically for securities, and the IRS considers cryptocurrencies and digital assets to be property, so this designation makes it Exemption from wash trading rules, as currently written.

▌SEC lawsuit: 67 cryptocurrencies are now considered securities by the SEC

The total number of cryptocurrencies labeled as securities by U.S. securities regulators has now reached 67, following a few more additions to the lawsuit against cryptocurrency exchanges Binance and Coinbase. In the case against Binance, the SEC classified 10 cryptocurrencies as securities, while naming 13 cryptocurrencies in its Coinbase lawsuit. Security tags now apply to a market worth more than $100 billion, roughly 10 percent of the $1.09 trillion total cryptocurrency market cap.

Blockchain Application

▌Nostr Launches Decentralized Social App with New Bitcoin Features

Video game payments company Zebedee today migrated its main ZBD application to Nostr, a decentralized platform that competes with Twitter. This move will ultimately allow Zebedee users to seamlessly move from the ZBD app to any of the dozens of existing Nostr apps. Unlike traditional social networks, which control user identities, integration with the open-source Nostr protocol could dramatically drive adoption by enabling any of the 18 million registered Nostr users to join the app. Andre Neves, co-founder and CTO of Zebedee, said the ZBD app is now a fully functional Nostr client.

▌V God: For long-term sustainable development, Ethereum needs to undergo three transformations: Layer 2 expansion, wallet security and privacy

Vitalik Buterin, the co-founder of Ethereum, pointed out in his latest blog post that Ethereum needs to undergo three major technological changes for long-term sustainable development, namely Layer 2 expansion, wallet security, and privacy. It’s not just the protocol’s functionality that needs to be improved, he said. In some cases, the way we interact with Ethereum will need to change fundamentally, requiring profound changes to applications and wallets. Since there are many different expansion solutions on Ethereum, it is difficult for users to have only one address now, so it is necessary to build a cross-chain solution for Layer 2 blockchain. And this has to happen at the same time as smart contract wallets and privacy are further developed.

Cryptocurrency

▌North Korea has established a shadow labor force to be used for large-scale cryptocurrency hacking

North Korea has created a shadow labor force of thousands of IT workers, according to U.S. officials. The shadow labor force has been linked to North Korean cybercrime operations and has been used to carry out massive cryptocurrency hacks. Shadow workers targeted a Sky Mavis engineer last year, posing as a recruiter on LinkedIn. After a phone conversation, shadow staff gave him a document to review as part of the hiring process. The file contained malicious code that allowed North Korean hackers to break into Sky Mavis and steal more than $600 million in the Ronin Bridge hack.

To infiltrate encryption companies, North Korean hackers hired Western front-office personnel, the report said. These front-office people are hired by crypto companies through interviews, and once hired, they make small changes to the product, making it vulnerable, and then hackers take over. With the help of these shadowy employees, North Korean hackers have stolen more than $3 billion over the past five years, according to Chainalysis.

▌The total number of SHIBs held by SHIB giant whales has decreased by 3 trillion pieces

The Shiba Inu (SHIB) market saw whales dump trillions of SHIB tokens in the past 48 hours. The total number of Shiba Inu tokens held by these whales has dropped by 3 trillion since last Friday, according to blockchain analytics firm IntoTheBlock. In total, SHIB whales own 661.44 trillion tokens. As of the latest data, their holdings have shrunk to 658.48 trillion SHIB. A significant portion of those 410.36 trillion tokens have been destroyed and remain inaccessible in dormant wallets. Most of the SHIB whale holders are exchange addresses, of which Binance is the largest. From this, it can be inferred that the sell-off of Shiba Inu tokens mainly originated from exchanges. In addition to the massive sell-off by whales, Whale, a platform that monitors large cryptocurrency exchanges, reported on Friday an unusual transfer of $31.7 million worth of SHIB from Shiba staking to Binance. This major shift is often associated with sales and is interpreted as a bearish signal.

▌Ripple General Counsel: The SEC is hypocritical

Stuart Alderoty, Ripple's general counsel, said the SEC is hypocritical and issues orders to block registration statements when they are not true. If the SEC deems the statement to be untrue, then I do not register as a broker-dealer, stock exchange, or automated trading system because the statement that I do not trade in securities should be blocked.

▌Jason Yanowitz: The continued attack on the centralized financial giants of cryptocurrencies has made him think about the current role of the cryptocurrency industry

Jason Yanowitz, co-host of the Bell Curve podcast, said the ongoing attacks on the giants of cryptocurrency-centralized finance got him thinking about the current role of the cryptocurrency industry and how they are inconsistent with traditional finance. Essentially, there are three groups in the crypto market that in some respects parallel the traditional market structure, but confusingly mix or overlap in purpose and function. In the centralized financial world of cryptocurrencies, there are no broker-dealers per se, as users' assets are deposited directly on platforms such as Coinbase. Then the settlement is sometimes on Coinbase, but sometimes only on L1, such as on ETH.

Important economic developments

▌Bank of America: It is expected that central banks will continue to focus on fighting inflation and tend to be hawkish

Surprise rate hikes this week by the Reserve Bank of Australia and the Bank of Canada show us that they are fully aware of the risk that inflation may be stickier than expected, Bank of America said. The Reserve Bank of Australia and the Bank of Canada were supposed to be on hold. Other central banks may follow suit. We expect central banks to remain focused on fighting inflation and lean toward a hawkish stance. With inflation still so high, employment so strong, markets responding relatively well to tightening, and the March banking shock contained, we see no reason for central banks not to do so. So far, the economy has shown no signs of a rupture that suggests central bank policy is wrong, and most likely, something has to rupture for inflation to come down sufficiently. The risk to this view is if some central banks, especially the Fed, hesitate to show signs of weakness in the data. In our view, this would lead to a policy error as it affects the necessary landing and leads to a discontinuity in rate hike policy.

Golden Encyclopedia

▌****What is Web3 Privacy

The main features of Web3.0 include: open and transparent blockchain ledger, decentralization, etc. The data on the chain is recorded through the blockchain, that is, our transactions and the information contained in the transactions. Specifically, it generally includes: transfer sender, transfer receiver, and transfer amount. If the user does not want to disclose the data information on the chain, this is the user privacy that needs to be protected in Web3.