The Binance Crypto News Just Got Way Worse...

The picture you are seeing here is unprecedented .

We have not seen this attorney general and this Secretary of the Treasury do a joint press conference before today .

And the reason is because of the scale of the alleged criminality that they are announcing here in this deal with Binance .

Things just got worse for Binance .

As we know from yesterday's video , Binance just got criminally charged .

Binance has agreed to plead guilty to willfully violating the Bank Secrecy Act knowingly failing to register as a money transmitting business and willfully violating the International Emergency Economic Powers Act .

They also got fined .

This is actually one of the largest fines in history of the US .

Treasury .

The Justice Department is requiring finance to pay $4.3 billion in penalties and forfeitures .

This is the largest enforcement action in the history of the Treasury Department .

And you get a sense of why that when you read the specifics of what the Treasury is laying out here and of course founder and CEO CZ has also pleaded guilty .

We have also filed a felony charge against and secured a guilty plea from Chang PNG Zhao Zhao willfully violated federal law .

That requires financial institutions to guard against money laundering and terrorist financing .

And as B and B token dips yet Bitcoin , the Bitcoin price continues to rally what comes next for B will shock you .

All of that is the reason why the Treasury Department is now imposing monitoring on B which will get active reports inside the firm to understand what's going on in real time .

Monitoring has never been done before in the Cryptocurrency space , we have seen that in other criminal allegations in corporate America .

This will be a first for the crypto space .

So even though Binance Exchange is not a US company , it appears that will now be monitored by the US government .

And there also is an important detail here , Scott which they're calling the SAR look back .

SAR is again the suspicious activity report , the Treasury Department is going to get a look back at suspicious activity that took place historically on Binance .

So they're going to get intelligence on all sorts of alleged criminal and terrorist transactions that took place on that exchange .

Going back for years , it will be a treasure trove for us , investigators , us , intelligence us law enforcement and the rest as they pour through all those transactions and try to make connections and follow the money going back years here , Scott .

So a real historic .

So with the US government combing through past transactions , are you in trouble with the US government if you used finance in the past .

Here's who they're looking for terrorist financing took place on the Binance exchange including for groups like Al Qaeda Isis and others .

They're saying that ransomware was paid for on the Binance Exchange .

They're saying that child use materials were paid for on the Binance exchange .

Binance never reported transactions with websites devoted to selling child use materials .

They're also saying that all sorts of illegal activity including drug purchases were transferred on the exchange through dark net markets , scams and other illicit activity .

So you're fine .

Most of us are fine .

The government is looking for the big crimes , the big players and keep in mind , Founder CZ does now face a maximum of 10 years in prison with fines up to half a million dollars plus any profits he made from the alleged scheme .

Although as stated by the judge at the hearing , Zhao's agreement includes a waiver of his right to appeal provided that his sentence doesn't exceed 18 months .

So many people are saying that 18 months would be the absolute maximum when in doubt zoom out learned from the past history doesn't repeat itself .

But it often rhymes .

Founder of Bit Max Arthur Hayes , which at the time was near the number one exchange in the world .

Much like B is the number one exchange now .

Arthur founder Ceo , who by the way , I partied with in Singapore , he throws a rager .

He got near the same charges and he didn't know jail time I think he got like two years probation and had to step down as CEO bit Mex was also not a US company and Arthur Hayes did not live in America .

He saw no jail time .

CZ was not running an American company .

So if Arthur Hayes got 1 to 2 years probation , my bet is CZ gets 2 to 5 and Bitcoin is pumping because now we have clarity .

The dark clouds around B are starting to clear up the reaction I'm getting from investors .

Those in the crypto space is actually pretty optimistic .

They're saying this was the last shoe to drop .

This was the big uncertainty hanging over these markets and that it if it can survive something like this happening .

C getting taken out as the CEO of this company that there's a lot of optimism that maybe this is now priced in .

They know what the price tag is in terms of the resolution .

The plea deal here , finance is not shutting down .

It now makes up about 30% of global volume .

It was 80% at one point .

But that worst case scenario , Binance need to shut down is not happening .

So there's a little bit of optimism here despite this being objectively negative news .

And by the way , even the alleged illicit activity that the US government said finance facilitated is nothing compared to what happens with the dollar .

Less than 1% of activity in crypto is for illicit purposes like those that you just described , by the way , the US dollar cash is about 4% used for illicit activity .

So crypto is certainly not unique in that a small percentage of bad actors try to use it .

That's why we at Coinbase , for instance , have really strong transaction monitoring programs and we've invested a lot in these , in these programs around KYC and AM L .

Um But the centralized actors need to follow those rules .

I personally think CZ didn't have to do any of this .

He chose to just let's just pay the fine .

I'll step down .

B can go on its way on its own , by the way , he still retains majority share , so he still has ownership .

But now that this dark cloud has been lifted off of the space , the Bitcoin price did dip on the news but look , it appears we're already higher and it makes sense , right ?

Banks have been fined for the exact same thing .

If not worse .

Treasury Secretary Janet Yellen can't pronounce B we are here today to announce that the justice department has secured felony guilty pleas from the world's largest Cryptocurrency exchange finance .

Actually , it's bants finance , bants largest VB bants and let me be clear all while all the major Bitcoin ETF companies readied their application secretly .

Gray Scale had meetings with the S ECs division of trading and markets yesterday , meaning gray scale is cooking .

Also , Kathy Woods Company becomes the first issuer to publicly disclose basis points fees for its Bitcoin ETF signaling constructive talks with the SEC and with the looming approval of the Black Rock spot , Bitcoin ETF combined with the Bitcoin having next year , this could be the perfect storms we know in the past that Bitcoin has had these two year cycles that are generally centered around the happening .

And so we have another happening coming up in April .

And I'm not one of those people that thinks the happening is the actual catalyst , but it's one of those sentiment things that all of a sudden now you have a reduction in supply .

Couple that with the fact that we have the Federal Reserve that is likely done for some time being of raising rates .

If not , we don't think they're going to go to 10% maybe they go to five a half , right ?

And then the second part of that is we now have these ETF filings .

So for the first time ever , just like the gold ETF , you're going to have retail investors , not that they couldn't buy it before , but now registered investment advisors , your Morgan Stanley wealth manager can allocate to this .

And so that's what's got the market excited about this new ETF .

This is an ongoing story .

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We have Thor Chain making moves the monthly trading volume on Thor chain has exceeded now $5 billion the highest it has ever been .

This is good for the Ro token .

It's cool to see a decentralized exchange .

Excel also alt coin erratic making moves just in radix attracts $20 million in total value locked after only eight weeks .

No smart contract hacks and exploits .

Next generation UX and DEV X hidden L one gem .

Could this be the next soul ?

And of course , Bonsai seed just went live .

I am investor .

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Like always see tomorrow .