Facing accusations of violating securities laws from U.S. regulators, Binance.US, the American subsidiary of crypto behemoth Binance, has reportedly conducted a wave of layoffs. According to insiders and social media posts from employees, the layoffs come in response to the regulators’ charge and subsequent move to freeze the company’s assets.
While one source estimated the number of affected staff to be approximately 50, Reuters was unable to independently verify the figure or the seniority of the employees impacted. The firm’s spokesperson has yet to comment on the matter. Those reportedly dismissed primarily belong to the legal, compliance, and risk departments.
On June 5, the Securities and Exchange Commission (SEC) alleged Binance and its founder and CEO, Changpeng Zhao, of contriving Binance.US as a means to circumvent U.S. securities laws designed to safeguard American investors. The company responded with a commitment to vigorously defend itself. The SEC also brought a suit against BAM Trading, the operational entity behind Binance.US, accusing it of misleading investors about non-existent trading controls on its platform.
The next day, the SEC requested a federal court to freeze Binance.US’ assets, including over $2.2 billion in cryptocurrency and about $377 million in U.S. dollar bank accounts, over concerns that the funds could be transferred offshore. Binance.US has labeled the move as unwarranted and the allegations as baseless.
The CEO of Binance.US, Brian Shroder, noted in a communication to staff that the ongoing legal ordeal necessitated cost-cutting and organizational streamlining to maintain long-term viability. Two employees took to LinkedIn to confirm their exit from the company, with one attributing it to the layoffs.
Binance.US also alerted that its banking partners may cease dollar withdrawals as early as June 13, in light of the SEC’s hardline stance. Customers were encouraged to withdraw their funds, as the firm seeks to transition into a crypto-only exchange.
Despite avoiding layoffs in the past year, Shroder admitted that the actions of the SEC and their banking partners necessitated a change in approach. According to a court filing, BAM Trading argued that the SEC’s asset freeze request could effectively render the company inoperable, as it would be unable to meet its financial obligations and maintain its technological platform.
Other Stories:
Mark Cuban clashes with the SEC over crypto regulation
Celsius adjusts bankruptcy filing after Fahrenheit crypto consortium acquisition
A heated debate erupted on Crypto Twitter this week, pitting billionaire investor Mark Cuban against former SEC official John Reed Stark. Cuban criticized SEC Chair Gary Gensler for his “regulation via litigation” strategy, which he believes is harming crypto startups.
The feud, which began on June 14, ignited over Stark’s support for the SEC’s recent lawsuit against Binance, a leading cryptocurrency exchange. Cuban contended that Stark was misjudging the lawsuit’s repercussions and blamed Gensler’s approach for undermining cryptocurrency businesses.
Stark had previously insisted that regulators treat crypto businesses as large-scale enterprises. However, Cuban disagreed, arguing that most crypto startups are small entities and should not be required to hire securities lawyers just to launch their businesses.
Moreover, Stark commended the SEC’s action against Binance, stating it would eradicate “bad actors” and foster transparency within the largely unregulated industry. This steered the conversation towards an examination of how cryptocurrencies should be regulated.
Stark held the view that crypto assets should not be seen as pink sheets or stocks. In contrast, Cuban dismissed Stark’s perspective as biased, advocating instead for tokens to be regarded similarly to other securities. He called on the SEC to establish more lucid guidelines.
Mark Cuban, known as an American entrepreneur and investor, has evolved from initially labeling Bitcoin a pyramid scheme in 2017 to supporting digital assets today. Conversely, John Reed Stark, ex-chief of the SEC’s Office of Internet Enforcement and a moderate crypto skeptic, frequently shares his legal perspectives on digital assets with his 21,000 Twitter followers.
While the debate ended with Cuban acknowledging that many blockchain companies and tokens might fail, he emphasized that the successful ones would be “game changers,” reflecting the typical lifecycle of tech firms. Cuban concluded by championing crypto’s potential impact on the broader economy, cautioning that both the irrational hatred of crypto, which he terms “Crypto Derangement Syndrome,” and the overhyping of its potential could have negative effects.
Sturdy Finance, a decentralized finance (DeFi) platform, recently endured an exploit that led to the temporary suspension of its stablecoin market. The lending platform, on June 16, reinstated the stablecoin market, enabling users to regain access to their assets.
The precautionary halt was emphasized as a measure of “an abundance of caution,” assuring users that their funds were never jeopardized.
The exploit, which cleverly manipulated a flawed price oracle, led to significant drain of funds from Sturdy’s platform.
Post-exploit, the team at Sturdy Finance is engaging in collaborative efforts with security specialists, focusing on on-chain analysis to reclaim the lost funds. An alliance with global law enforcement has been formed to aid in information collection and potential asset recovery.
To incentivize the return of the funds, Sturdy Finance has proposed a bounty of $100,000 to the perpetrator. The DeFi protocol’s team pledged to put the issue to rest if the stolen funds are returned to their crypto wallet. If this fails to occur, the same bounty is offered to anyone who can aid in either arresting the hacker or recovering the stolen funds.
Simultaneously, as digital theft grows in complexity, hackers are devising increasingly cunning techniques to obscure their ill-gotten wealth. According to a report by blockchain analytics company, Chainalysis, published on June 15, hackers have been found utilizing mining pools to camouflage their stolen assets.
This method transforms the stolen funds into what appears to be legitimate earnings from mining activities, effectively diverting suspicion from illicit ransomware activities.
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“We are excited to introduce MineLab.bz to the cryptocurrency mining industry,” said Alfie Hutchinson, CEO of MineLab Limited. “Our platform represents a paradigm shift in cloud mining, combining the power of AI with the potential of cryptocurrencies. We aim to provide a user-friendly, secure, and highly profitable solution for individuals and businesses looking to participate in cryptocurrency mining.”
MineLab.bz offers users the opportunity to join their cloud mining network and start earning daily returns of up to 3%. The platform caters to both experienced miners and newcomers, providing a streamlined and user-friendly interface that requires no technical expertise. Users can easily create an account, deposit funds, and begin mining within minutes.
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As a London-based company, MineLab Limited is committed to upholding the highest standards of transparency and regulatory compliance. The company operates in accordance with all applicable laws and regulations, further enhancing trust and confidence in its services.
For more information about MineLab.bz and to start earning daily returns through cloud cryptocurrency mining, please visit https://www.minelab.bz.
About MineLab Limited
MineLab Limited is a leading cloud cryptocurrency mining company based in London, United Kingdom. The company leverages artificial intelligence to optimize the mining process and deliver substantial daily returns to its users. With a commitment to transparency, security, and innovation, MineLab Limited aims to redefine the cloud mining industry and empower individuals and businesses to participate in the cryptocurrency revolution.
Media Contact:
Jennifer Thompson
Public Relations Manager
MineLab Limited
Email: [email protected]
Celsius, the bankrupt crypto lender, has adjusted its bankruptcy filing and awaits approval from a New York court, following an acquisition by the Fahrenheit crypto consortium. The reorganized plan, filed on June 15, involves conversion of all customer altcoins, barring those in “Custody and Withhold accounts,” into Bitcoin and Ethereum, commencing from July 1.
The restructuring agenda also proposes to manage retail borrowers’ claims using the ‘set off treatment’, which involves balancing losses against profits in the same year. Any losses not offset against income could be rolled over for offsetting against future years’ income.
However, David Adler of law firm McCarter & English, warned that Celsius’ approach might not sit well with borrowers. Despite demanding repayment of loans, Celsius plans not to honor certain contractual obligations, such as returning borrowers’ collateral. Adler warned, “This proposed ‘treatment’ violates every consumer lending law out there (state, federal) and the ad hoc Borrower group will be opposing this plan.”
As part of its restructuring strategy, Celsius seeks to appoint Chris Ferraro as the foreign representative to handle its U.K. assets in line with the U.K.’s Cross-Border Insolvency Regulations. This would secure the company’s U.K. assets and recognize the U.S. Chapter 11 as the “foreign main proceedings” for a global solution.
On May 25, the Fahrenheit crypto consortium, including venture capital firm Arrington Capital and US Bitcoin Corp, secured the bid to purchase Celsius’s assets, valued at around $2 billion. The new agreement anticipates the new company will garner about $450–500 million in liquid cryptocurrency, while US Bitcoin Corp has plans for a 100-megawatt Bitcoin mining plant.
Celsius suspended withdrawals on June 13, 2022, after it was caught up in poor investments and a crypto market downturn following the failure of the Terra ecosystem.
Other Stories:
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SEC and Binance working together on Changpeng Zhao asset freeze
New York City, New York, June 15th, 2023, Chainwire
OKX, a leading Web3 technology company, yesterday hosted a panel discussion with McLaren Racing at the Tribeca Festival titled, “Need for Speed: How Technology Powers Change in Sports, Movies, and Crypto,” featuring OKX Chief Marketing Officer Haider Rafique, McLaren Racing Chief Executive Officer Zak Brown, McLaren F1 Driver Lando Norris, and director, producer and screenwriter Stephen Kay.
The panel, moderated by Emmy-nominated filmmaker and Webby Awards Founder Tiffany Shlain, was held at the Tribeca Screening Room and focused on how technology has transformed various industries, including sports, entertainment, cryptocurrency and finance. During the discussion, the panelists emphasized the impact of innovation on speed, performance and efficiency across the different sectors.
OKX Chief Marketing Officer Haider Rafique said: “We’ve achieved a lot together in just one year. The McLaren F1 team has a huge appetite to lean into Web3 and make its heritage more discoverable for younger generations, and we want to play a big role in making that a reality for them. There are incredible stories here that can motivate the next generation of drivers and fans to get involved with the sport and, in particular, celebrate McLaren’s achievements on and off track. Our goal is to help McLaren transcend into this future and share what we are cooking together on our panel”.
McLaren Racing CEO Zak Brown said: “This panel was a great opportunity to share the stage with our Primary Partner OKX, and discuss how technology can power change in our respective industries. In Formula 1, we constantly look to innovate and leverage technology to maximize our fan engagement opportunities. Partners like OKX can support us in these commitments, exploring how they can guide our Web3 strategy and make our sport ever-more exciting and accessible for the fans.”
OKX CMO Haider Rafique (left) and McLaren F1 Driver Lando Norris (right)
McLaren Racing CEO Zak Brown (in orange, left) and McLaren F1 Driver Lando Norris (in orange, right) with OKX CMO Haider Rafique
Tribeca Festival 2023 is OKX’s second consecutive year as the presenting sponsor. The company’s multi-year partnership with Tribeca Festival aims to unlock new Web3 opportunities for creators, fans and talent. OKX also introduced the first-ever Tribeca Festival NFT pass for 2023 in January.
In May of last year, OKX and McLaren Racing announced a multi-year partnership that would make OKX a Primary Partner of the McLaren Formula 1 Team and McLaren Shadow esports team. Through this partnership, OKX supports the team’s global fan experience, providing exciting opportunities and product innovations that bring fans closer to the action. OKX branding is featured on the McLaren cars, the helmets of McLaren F1 drivers Lando Norris and Oscar Piastri, as well as the McLaren F1 and McLaren Shadow team kits.
About OKX
A leading global technology company driving the future of Web3, OKX provides a comprehensive suite of products to meet the needs of beginners and experts alike, including the OKX Wallet, NFT Marketplace and DEX.
OKX partners with a number of the world’s top brands and athletes, including: English Premier League champions Manchester City F.C., McLaren Formula 1, The Tribeca Festival, golfer Ian Poulter, Olympian Scotty James, and F1 driver Daniel Ricciardo.
As a leader building innovative technology products, OKX recently launched a global brand campaign entitled, The System Needs a Rewrite, which advocates for a new paradigm led by Web3 self-managed technology to replace existing centralized systems.
To learn more about OKX Web3, download our app or visit: okx.com/web3
About McLaren Racing
McLaren Racing was founded by racing driver Bruce McLaren 60 years ago in 1963. The team entered its first Formula 1 race in 1966. McLaren has since won 20 Formula 1 world championships, 183 Formula 1 grands prix, the Indianapolis 500 three times, and the Le Mans 24 Hours at its first attempt.
McLaren Racing competes across five racing series. In 2023, the team will compete in the FIA Formula 1 World Championship with McLaren F1 drivers Lando Norris and Oscar Piastri, the NTT INDYCAR SERIES with Arrow McLaren drivers Pato O’Ward, Felix Rosenqvist and Alexander Rossi, the ABB FIA Formula E World Championship with NEOM McLaren Formula E Team drivers René Rast and Jake Hughes, and the Extreme E Championship with NEOM McLaren Extreme E Team drivers Emma Gilmour and Tanner Foust. The team also competes in the F1 Esports Pro Championship as McLaren Shadow, having won the 2022 Constructors’ and Drivers’ Championships.
McLaren is a champion for sustainability in the sport and a signatory to the UN Sports for Climate Action Commitment. It is committed to achieving net zero by 2040 and fostering a diverse and inclusive culture in the motorsport industry.
McLaren Racing – Official Website
About the Tribeca Festival
The Tribeca Festival, presented by OKX, brings artists and diverse audiences together to celebrate storytelling in all its forms, including film, TV, immersive, games, audio storytelling, music, and online work. With strong roots in independent film, Tribeca is a platform for creative expression and immersive entertainment. Tribeca champions emerging and established voices; discovers award-winning filmmakers and creators; curates innovative experiences; and introduces new technology and ideas through premieres, exhibitions, talks, and live performances.
The Festival was founded by Robert De Niro, Jane Rosenthal, and Craig Hatkoff in 2001 to spur the economic and cultural revitalization of lower Manhattan following the attacks on the World Trade Center. Tribeca will celebrate its 22nd year from June 7–18, 2023.
In 2019, James Murdoch’s Lupa Systems, a private investment company with locations in New York and Mumbai, bought a majority stake in Tribeca Enterprises, bringing together Rosenthal, De Niro, and Murdoch to grow the enterprise.
Disclaimer
This announcement is provided for informational purposes only. It is not intended to provide any investment, tax, or legal advice, nor should it be considered an offer to purchase, sell, or hold digital assets. Digital assets, including stablecoins, involve a high degree of risk, can fluctuate greatly, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your risk tolerance and financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances.
Contact
Press
[email protected]
Dubai, United Arab Emirates, June 15th, 2023, Chainwire
OKX, the second-largest crypto exchange by trading volume and a leading Web3 technology company, today announced that OKX Middle East Fintech FZE (OKX Middle East) has received a Minimal Viable Product (MVP) Preparatory license from the Dubai Virtual Assets Regulatory Authority (VARA).
The UAE is a key strategic growth and business hub for OKX globally and in the region, and the company plans to scale OKX Middle East’s operations. As part of this effort, OKX has opened a new office in Dubai World Trade Center, and will seek to expand its number of Dubai staff to 30 with a focus on local hires and senior management. OKX also plans to extend its nine-figure brand partnerships to the UAE with customer and fan-focused activations and activities.
The MVP preparatory licence allows approved licensees to fulfill all pre-conditions required to undertake MVP operations within the VARA regime. Once licensed to be operational, OKX Middle East will be able to extend its approved suite of duly regulated virtual assets activities and will provide spot, derivatives, and fiat services, including USD and AED deposits, withdrawals and spot-pairs, to institutional and qualified retail customers.
OKX Global Chief Commercial Officer Lennix Lai said: “We’re thrilled to receive the MVP preparatory license from VARA. Regulated entities are the future of digital assets and capital markets and Dubai and VARA have succeeded in creating a unique environment where VASPs can thrive. With the expansion into a new office this year, we are focused on hiring local staff and senior management. The MENA region has incredible potential as a center of excellence for Web3 and virtual assets, we look forward to the opportunity to expand the already growing ecosystem across the region.”
OKX Global Head of Government Relations Tim Byun said: “Dubai and VARA are world leaders in crypto regulation by establishing the most timely, comprehensive and built from-the-ground-up framework for virtual assets and Web3. Licensing in Dubai is a critical element of OKX’s global regulatory compliance strategy. In today’s uncertain market environment, it’s of the utmost importance for VASPs to be highly secure, transparent, compliant and backed by strong, clear regulation. Under VARA’s comprehensive framework, all operators must meet high standards of compliance, risk management, security and consumer protection, benchmarked against well-known existing regulatory principles for traditional financial services. This provides confidence to operators and customers alike, and positions the crypto and Web3 industry in MENA for increased participation and overall growth in the near and long term.”
OKX Chief Marketing Officer Haider Rafique said: “We’ve been waiting to enter the UAE and we want people here to experience our products first hand. We’re different – we do things in a measured and transparent manner. May was our seventh consecutive month of publishing our proof of reserves, making us the only crypto exchange globally with that commitment. We’ve done that while out-innovating the industry in Web3 with our leading decentralized ecosystem. We’ve also launched numerous new security features while adding more depth in markets. This attitude is consistent with the brand partners who represent us, Manchester City Football Club, McLaren Racing, and the Tribeca Festival. We take our time, and do things the right way.”
For more information on OKX, please visit OKX.com.
About OKX
OKX is a world-leading technology company building the future of Web3. Known as one of the fastest and most reliable crypto trading platforms for investors and professional traders everywhere, OKX’s crypto exchange is the second largest globally by trading volume and is trusted by more than 50 million users.
OKX’s leading self-custody solutions include the Web3-compatible OKX Wallet, which allows users greater control of their assets while expanding access to DEXs, NFT marketplaces, DeFi, GameFi and thousands of dApps.
OKX partners with a number of the world’s top brands and athletes, including: English Premier League champions Manchester City F.C., McLaren Formula 1, The Tribeca Festival, golfer Ian Poulter, Olympian Scotty James, and F1 driver Daniel Ricciardo.
OKX is committed to transparency and security and publishes its Proof of Reserves on a monthly basis.
To learn more about OKX, download our app or visit: okx.com
About VARA
Dubai Virtual Assets Regulatory Authority [VARA] is the world’s first specialized regulator for the Virtual Assets sector. Established in March 2022, following the effect of Law No.4 of 2022, VARA is the competent entity in charge of regulating, supervising, and overseeing VAs and VA activities in all zones across the Emirate of Dubai, including Special Development Zones and Free Zones but excluding the Dubai International Financial Centre.
VARA plays a central role in creating Dubai’s advanced legal framework to protect investors and establish international standards for Virtual Asset industry governance, while supporting the vision for a borderless economy.
This announcement is provided for informational purposes only. It is not intended to provide any investment, tax, or legal advice, nor should it be considered an offer to purchase, sell, or hold digital assets. Digital assets, including stablecoins, involve a high degree of risk, can fluctuate greatly, and can even become worthless. You should carefully consider whether trading or holding digital assets is suitable for you in light of your financial condition. Please consult your legal/tax/investment professional for questions about your specific circumstances.
Contact
Marc Rognon
[email protected]
Stablecoin TrueUSD (TUSD) saw a slight deviation from its dollar peg on June 10, following the suspension of its minting activities through tech partner Prime Trust. At its lowest point, the fifth-largest stablecoin by market capitalization traded at $0.9964, and it is currently valued at $0.9981, according to CoinMarketCap.
Data from LedgerLens indicates that the current TUSD supply stands at $2.04 billion, backed by $2.08 billion in collateral.
This fluctuation follows an announcement by the TrueUSD team that the minting of TUSD through Prime Trust has been temporarily halted. The team confirmed that minting and redemption services via other banking partners remain unaffected. “Our partnerships with other banking institutions remain intact, ensuring smooth transactions,” the statement assured. Over the past year, the stablecoin has frequently deviated from its USD peg.
The connection between the minting suspension and recent insolvency rumors surrounding Prime Trust remains unclear. Prime Trust, a Nevada-based fintech infrastructure provider, laid off a third of its staff in January. The company has been managing Binance.US customer funds through its banking partners amid the broader US banking system’s resistance to crypto businesses.
Crypto custodian BitGo is reportedly planning to acquire Prime Trust. BitGo signed a non-binding letter of intent to purchase the company on June 8, aiming to acquire Prime Trust’s payment rails and cryptocurrency IRA fund to expand its wealth management services. The deal’s specific terms have not been disclosed.
This potential acquisition emerges as the U.S. Securities and Exchange Commission is proposing regulatory changes that would restrict crypto companies’ capacity to act as a customer’s custodian.
READ: Bitcoin hits 3-month low with bear market on the horizon
In a recent interview with the Wall Street Journal, Coinbase CEO Brian Armstrong insisted that the regulation of cryptocurrencies isn’t as complicated as it might seem. He expressed his confidence that the United States would achieve clear regulatory guidelines for the crypto industry, even though it might take time.
This interview comes on the heels of a lawsuit filed against Coinbase by the Securities and Exchange Commission (SEC) on June 6, alleging that the exchange was operating as an unregistered securities exchange, broker-dealer, and clearinghouse. Armstrong argued in the interview that Coinbase’s operations do not require these registrations.
“The assets that we trade are commodities, not securities, hence they do not necessitate such registrations. We operate our exchange on crypto commodities,” Armstrong explained.
He also noted that despite not claiming to be a broker-dealer, Coinbase had faced difficulties in activating its acquired broker-dealer license.
When discussing regulations, Armstrong argued that crafting sensible rules is not “rocket science,” and he expects the U.S. to arrive at the correct regulatory framework over time. He believes the SEC lawsuit against Coinbase is significant for the entire U.S. crypto industry, as he hopes it will bring more clarity and prevent the U.S. from lagging behind other countries in this arena.
Armstrong is optimistic that once clear and stable regulations are established in the U.S., it would encourage crypto businesses to return to the country. He stated, “We expect entrepreneurs who had left the U.S. to return, as they won’t be randomly targeted or face high legal bills unexpectedly.”
A previous report by Cointelegraph noted a 26% decline in the share of global crypto developers in the U.S. between 2018 and 2022, attributing this decrease to regulatory ambiguity.
Armstrong emphasized that clarity is needed, especially in defining the roles and boundaries of the two major U.S. financial regulators, the SEC and the Commodity Futures Trading Commission (CFTC).
READ: Changpeng Zhao claims SEC chairman wanted to become Binance adviser
Bybit, one of the largest crypto exchanges in the world, has announced that its integration with Copper’s ClearLoop network has been completed.
This integration will allow investors to trade on Bybit’s exchange while settling off-chain, to ensure the near-instant settlement of their trades. This is especially useful during periods of heightened market volatility, as blockchain transaction confirmation times typically increase significantly during such periods.
As the assets will be safeguarded under secure Multi-Party Computation custody at Copper, Bybit’s integration with ClearLoop also empowers institutions with its clear English Law trust structure.
Copper’s ClearLoop network provides clients with off-exchange settlement which mitigates counterparty risk and improves capital efficiency.
Clients can also benefit from Copper’s market-first trust documentation, which mitigates both exchange counterparty and insolvency risk.
By joining the ClearLoop network, Bybit has demonstrated its commitment to transparency, accountability, safety, and effective governance.
Ben Zhou, co-founder and CEO of Bybit, hailed the integration, saying: “Bybit now sits alongside major industry players within the ClearLoop network that honor the pillars of good governance by being transparent, accountable, and, above all, secure.
“A little over a year ago, security was the biggest concern for institutional investors, but we are now removing concerns by partnering with custodians like Copper that offer the right set of tools for our institutional clients,” Zhou added.
Meanwhile, Copper CEO Dmitry Tokarev said his company is “excited to join forces with Bybit, who share our commitment to asset security, user experience and to setting higher standards for the crypto industry to reach its full growth potential.”