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Binance CEO Resigns Amid $4.3 Billion Penalty in Historic Settlement!

READING TIME: 4 mins 32 secs

Diving deep into today's web3 currents:

🌐 Cardano Foundation Powers Decentralization with Bold Governance Move!

📉 Under Fire, Kraken, and Binance in the Storm!

🚨 Scammers Exploit Legitimate Project Names, Cause $600K in Damages!

⚖️ Changpeng Zhao Pleads Guilty to AML Violations!

The Cardano Foundation is reinforcing its commitment to achieving a fully decentralized on-chain governance structure by actively participating in the upcoming Cardano Ballot event.

The foundation will use its influential 11.4 million ADA wallet to vote in support of CIP-1694, a mechanism crucial for Cardano's transition to a fully self-sustaining network. Meanwhile, the cryptocurrency exchange Kraken is facing a lawsuit from the U.S. SEC, which categorizes Cardano (ADA) and Solana (SOL) as securities. Kraken's CEO, Dave Ripley, strongly denies any wrongdoing, emphasizing the need for clearer regulatory guidelines in the U.S. cryptocurrency landscape.

The U.S. SEC has filed a lawsuit against Kraken, accusing it of unregistered securities exchange operations and co-mingling customer funds.

Kraken plans to defend itself, arguing that Congress should define the regulatory framework for crypto exchanges and contesting the SEC's views on digital assets. The lawsuit mentions well-known cryptocurrencies available on Kraken, including Axie Infinity, Algorand, Cosmos, Chiliz, Dash, and more. Meanwhile, Binance, the world's largest cryptocurrency exchange, faces criminal charges related to sanctions violations and breaches of money transmission regulations. Binance CEO Changpeng "CZ" Zhao has resigned as part of a settlement, agreeing to pay a $50 million fine.

Recent rug pulls, including scam tokens with names resembling legitimate projects like DOR and Credix.finance, have resulted in over $600,000 in total damages.

PeckShield detected a 100% price drop in the DOR token and an exit scam affecting CredixFinance investors. Malicious actors often use the names of legitimate projects to trick investors. Notably, there are legitimate projects with similar names, such as Doragon Land's DOR token and Constellation Network's Dor token. The growing Credix.finance platform, focused on connecting institutional investors with credit opportunities, continues to develop despite the misuse of its name in a rug pull.

Binance's CEO, Changpeng Zhao (CZ), pleaded guilty to anti-money laundering (AML) violations, unlicensed money transmitting, and sanctions violations as part of a settlement with US agencies.

CZ announced his resignation, acknowledging mistakes and taking responsibility. Binance agreed to pay a record $4.3 billion in fines and penalties. The charges highlight Binance's "consistent and egregious violations" of US AML and sanctions laws, making it the world's largest exchange due in part to criminal activities. Attorney General Merrick B. Garland emphasized that Binance knowingly facilitated transactions violating US law, contributing to illegal activities like drug trafficking and terrorist financing. CZ faces up to ten years in prison but may receive a lower sentence, possibly 18 months.

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