Binance Denies Improper Use of $1.8B of Users‘ Funds

• Binance, the world’s largest cryptocurrency exchange, was accused of moving almost $2Bn without permission.
• Forbes published a report titled „Binance’s Asset Shuffling Eerily Similar To Maneuvers By FTX,“ which argued that the crypto giant transferred $1.8 billion associated with its users‘ funds.
• Binance denied the allegations, claiming that it had fully audited its reserves and never touched its clients‘ deposits.

Accusations Against Binance

Binance, the world’s largest cryptocurrency exchange, was accused of moving almost $2 billion without permission. Forbes published a report titled „Binance’s Asset Shuffling Eerily Similar To Maneuvers By FTX,“ arguing that the crypto giant transferred $1.8 billion associated with its users‘ funds between August 17 and early December 2022.

The Allegations

According to Forbes, $1.1 billion of the funds extracted from customers in USDC tokens, the stablecoin issued by Circle, were sent to Cumberland/DWR – a Chicago-based high-frequency trading firm – which may have assisted Binance in its efforts to transform the collateral into its own BUSD stablecoin. Other relevant actors in the crypto ecosystem such as Amber Group, Sam Bankman-Fried’s Alameda Research and Justin Sun’s Tron also allegedly received hundreds of millions of dollars in funds from Binance.

Binance Denies The Allegations

In response to these allegations, Binance denied having moved any user funds and stated that it had fully audited its reserves and never touched clients‘ deposits. Moreover, they noted that all customer assets are safe and secure at all times due to their multi-signature wallet architecture system which requires multiple private keys for each transaction before any money is moved out of their wallets.

CTO Comments on The Incident

The Chief Technology Officer (CTO) at Binance Changpeng Zhao wrote on Twitter: “I don’t know where this FUD came from but I can assure you we did not move any user funds without permission.“ He further elaborated: „We do have protocols for inactive accounts but it does not involve moving anyone’s funds without prior notice.“

Conclusion

It remains unclear whether or not these accusations against Binance are true or simply FUD spread by malicious actors looking to damage the reputation of one of the most dominant exchanges in the industry. Only time will tell if there is any truth behind them or if they will remain unfounded rumors with no basis in reality whatsoever.

FTX Japan Resumes Withdrawals After Nov. Halt: Here’s What You Need To Know

• FTX Japan announced that customers can now withdraw their assets from February 21, 2023.
• The withdrawals will be processed through the Japanese crypto exchange Liquid.
• Other services on the platform are expected to resume soon.

FTX Japan Resumes Withdrawals

FTX Japan, the Japanese arm of the bankrupt crypto exchange, has announced that it will resume its withdrawal function for customers as of February 21, 2023. The announcement was made via a press release on Monday (Feb. 20, 2023).

Processing Through Liquid Exchange

The platform stated that both fiat and crypto asset withdrawals can be processed through the Japanese crypto exchange Liquid. Customers who do not have an account with Liquid Japan must open one before moving their funds.

Notification Process

FTX Japan further said it has already notified eligible customers about the procedures for withdrawals but warned that processing times may take longer due to the large volume of requests being made by users.

Directive From FSA

The latest development comes after the Japanese subsidiary halted withdrawals in Nov. 2022 following a directive from Japan’s Financial Services Agency (FSA). Since then, FTX Japan has been making efforts to restore services for its customers.

Other Services To Resume Soon

Other services on FTX Japan are expected to resume soon according to Monday’s press release.

Coinbase Claims Staking Products Not Securities – COIN Slumps 22%

• Coinbase, the largest US-based crypto exchange, recently published a blog post claiming that its staking products do not meet the SEC’s Howey test criteria and should thus not be considered securities.
• Paul Grewal, Chief Legal Officer of Coinbase, argued that crypto staking rewards are simply payments for validation services provided to the blockchain and not a return on investment.
• All of these statements come as COIN, an exchange-traded product backed by Bitcoin and Ethereum, has dropped 22% in the last week.

Coinbase Claims Staking Products Not Securities

Coinbase, one of the largest US-based cryptocurrency exchanges, recently released a blog post in which they claim their staking products do not meet the criteria set out by the SEC’s Howey Test and should thus not be considered securities.

Paul Grewal, Chief Legal Officer of Coinbase, stated in his post that crypto assets are staked on decentralized platforms and therefore do not meet the common enterprise element of Howey’s test. He further explained that staking rewards are merely payments for validation services provided to blockchains and cannot be seen as returns on investments.

COIN Prices Drop 22% Weekly

All this comes at a time when COIN, an exchange-traded product backed by Bitcoin and Ethereum has dropped 22% in just one week. The sudden drop is likely due to investors‘ concerns regarding Coinbase’s ability to settle with regulators without any potential penalties or fines being imposed upon them.

SEC Criteria For Security Classification

The SEC uses four criteria when determining whether an asset falls under their security classification – efforts of other parties involved in producing profits from investments; money invested; expectation of profit; and common enterprise among all parties involved. As per Coinbase’s claims none of these apply to their staking products so it would make sense for them to avoid any potential legal issues or otherwise unfavorable outcomes if investigated further by regulatory authorities.

Coinbase Assurance Regarding Staked Assets

Grewal also reassured customers that they retain full ownership over their crypto funds while staking them on Coinbase: „They own exactly the same thing they did before.“ This statement could potentially encourage more people to take up such services since it eliminates any doubts about losing control over one’s assets while participating in coin staking programs offered by the platform.

Conclusion

Throughout its blog post Coinbase was adamant about its stance regarding its staking products – they do not constitute securities according to SEC guidelines and hence should remain unaffected by any future investigations or enforcement actions taken against them.. In addition to this assurance, customers can rest assured that their assets will remain fully theirs during any participation in such programs offered by Coinbase itself as well as other third party service providers available through its platform.

Founder of Crypto Scheme My Big Coin Sentenced to 8 Years in Prison

• Randall Crater – the Founder of the fraudulent cryptocurrency business „My Big Coin“ – will spend 100 months in prison for stealing $7.5 million from investors via his „My Big Coin“ scam.
• U.S. District Judge Denise Casper ruled that Crater should stay in prison for more than eight years for running a cryptocurrency scam called „My Big Coin“.
• Federal prosecutors revealed he used stolen investor funds to purchase expensive items including cars, artwork, jewelry, and antique coins.

Randall Crater Sentenced to 8 Years in Prison

U.S. District Judge Denise Casper has sentenced Randall Crater to eight years and four months in prison for running a cryptocurrency scam called „My Big Coin.“ Crater stole $7.5 million from investors between 2014 and 2017 by luring them to invest in a digital asset backed by gold and falsely claiming it was partnered with Mastercard.

Stolen Funds Used To Buy Luxury Items

Federal prosecutors also revealed that Crater used the stolen investor funds to purchase expensive items such as cars, artwork, jewelry, and antique coins. They had urged the authorities to impose a 13-year punishment on Casper in order to serve as a message of deterrence to other crypto scammers.

Crypto Scam Age-Old Scheme

Upon announcing the sentence, Judge Casper said: “Certainly, cryptocurrency is a newer enterprise, a newer market, a 21st Century market. But the scheme at its core was age-old, and that was a fraud.“ This serves as an important reminder that while cryptocurrencies are relatively new financial instruments they can still be susceptible to traditional scams like any other asset class or currency.

Protect Yourself From Crypto Scams

In order to protect yourself against crypto scams like these it’s important to do your due diligence before investing in any digital assets or cryptocurrencies and familiarize yourself with common warning signs of fraud such as promises of guaranteed returns or ‚too good to be true‘ offers of high returns with minimal risk involved. Additionally, make sure you research any company you’re considering investing with thoroughly online before committing any capital or providing any personal information associated with your identity or finances.

Conclusion

Randall Crater has been sentenced by US District Judge Denise Casper for running the fraudulent cryptocurrency business „My Big Coin“ which resulted in him stealing $7.5 million from unsuspecting investors between 2014-2017 via false promises regarding partnerships with Mastercard and gold backing their digital asset.. It’s important for anyone looking into investing in cryptocurrencies or digital assets do their due diligence beforehand and familiarize themselves with common warning signs of fraud so they don’t fall victim like those who invested with My Big Coin did