First Mover Americas: SEC Sues Kraken; Binance Faces $4B Settlement


21 Nov 2023 1:01 PM

The latest price moves in crypto markets in context for Nov. 21, 2023....

  • Binance Holding Ltd. may have to pay $4 billion to settle U.S. Department of Justice (DOJ) accusations of criminal violations, including money laundering and violating U.S. sanctions laws.
  • The negotiations between Binance and the DOJ also raise the possibility of founder Changpeng "CZ" Zhao facing U.S. criminal charges.
  • The talks between Binance and the DOJ are expected to conclude in the coming weeks.
  • Kraken, another crypto exchange, is facing a lawsuit from the U.S. Securities and Exchange Commission (SEC) for allegedly commingling customer and corporate funds and violating federal securities laws.
  • The SEC claims that Kraken created a "significant risk" by commingling up to $33 billion in customer crypto with its own corporate assets.
  • Despite the SEC enforcement actions, many tokens mentioned in the Kraken lawsuit have posted double-digit gains year-to-date, suggesting that traders value technical capability over regulatory compliance.

The article primarily focuses on negative developments for Binance and Kraken, with potential legal consequences for both exchanges. However, it also highlights the resilience of certain tokens in the face of regulatory scrutiny, indicating a more positive sentiment towards their technical capabilities.

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You May Ask

What are the accusations against Binance by the U.S. Department of Justice?Is Binance's founder, Changpeng Zhao, facing potential criminal charges in the U.S.?What are the allegations made by the U.S. Securities and Exchange Commission against Kraken?How much customer crypto did Kraken allegedly commingle with its own corporate assets?Despite the SEC enforcement actions, how have the tokens mentioned in the Kraken lawsuit performed in the market?

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