Largest crypto exchange CEO arrested! Anyone getting deja vu?

[freedomgo]

The bad news is that Binance will have to pay over $4B and for that they will likely have to liquidate some BTC which would negative affect the price in short term. Also the largest crypto exchange admitting to violating the law is not good for the market, but at least Binance will only have to pay the fine and they are not getting shut down. Unless they don't have that kind of money and will file for bankruptcy.

I have my doubts; there was a negotiation, and they won't agree if they don't have enough funds to cover those penalties. Once Binance manages to overcome this issue, it's unlikely to recur, and that could positively impact their reputation, showcasing their ability to navigate challenges.

CZ is required to pay $50 million, but he should be able to afford it, considering his reported net worth of $12 billion.
https://fortune.com/crypto/2023/10/27/changpeng-cz-zhao-net-worth-drops-11-billion-dollars-binance/

This is good news for me because, despite their violation, Binance is still operational.

[1714997256]

1714997256

[Freddie Boyer]

from what i read he was charged a week ago and made a deal to plead in exchange for a cash settlement(punishment) to avoid jail/prison/extradition

a whopping $4.3billion penalty for binance and $50m for CZ personally

CZ has to pay his $50m plea settlement between now and february to get a reduced sentance (from years) to be instead 10-18months

binance has to pay(of the $4.3b):
$1.8Bill within 15 months  (overall fine for crimes)
$1.6bill within 6 months (forfeiture of profits/fee's of running the business)
$0.9bill within 30days (clawback of funds sent to IRAN)

it only became unsealed and newsworthy today

Why? Is there any indication of pressure, so that CZ is like that?

[Smack That Ace]

So as you all know they charged CZ and he stepped down. Most likely he will get arrested as he goes on US soil.

What I find strange about all this, is that it’s all familiar. Anyone know what I am taking about?

Remember Bitmex and it’s CEO Arthur Hayes who was arrested. What happened right after? One of the biggest bull runs in Bitcoins history.

History doesn’t repeat itself but it often rhymes.

That is the similarity that the community has discovered and excitedly discussed everywhere. History doesn't repeat every detail exactly, but it has similarities as you said. My theory is that with the news of CZ's resignation and imprisonment, the market will panic and many people will dump but the ETFs will suddenly be approved and we will enter the bull season in everyone doubting. I expect that scenario to happen and many people will miss out on this bull season but that's how this market works.

[pooya87]

3. facilitating money transmits to iran

Did they just throw this randomly in the mix
Binance doesn't accept anyone from Iran and also considering that it has a strict KYC policy there is no way to circumvent that either.

[Kakmakr]

Ok, so CZ has to be the fall guy in this and the company goes on as normal, under the rules and regulations that are stipulated by the SEC. This is why centralized organizations are easy targets for governments and why they can milk them like cows, whenever they want to. 

Also shows you that it is all about money..... and topping up the government's pockets. Let's hope they take with one hand and gives with the other.... by approving the BlackRock application. 

[OcTradism]

Did they just throw this randomly in the mix
Binance doesn't accept anyone from Iran and also considering that it has a strict KYC policy there is no way to circumvent that either.

They just did not mention when the violation happened. If they counted it since Binance birthday in 2017 and a few years later before the exchange required KYC on their users, it is very possible that there are users from Iran or other sanctioned countries, locations used Binance and laundered their criminal money through cryptocurrencies and Binance.

They only started to do KYC since 2021
How KYC Helps Keep Users Safe in the EEA & UK

[naira]

And this also coincides with 1 year of FTX collapse, is there a connection? maybe it's not possible either. But I don't want to know more. Because the most important thing now is that your assets must be temporarily secured from any exchange. Any centralized exchange will not escape the scrutiny of the SEC because this is where it all begins and ends. CZ had to face trial without re-involving Binance so it was reasonable for him to step down. Regardless of the crimes, the regulations that we all know are almost imposed by the SEC on every centralized exchange. Now that no one can escape, as big as Binance was quickly targeted, then what about the fate of other exchanges? please prepare your seat belt.

[2Pizza410000BTC]

So as you all know they charged CZ and he stepped down. Most likely he will get arrested as he goes on US soil.

What I find strange about all this, is that it’s all familiar. Anyone know what I am taking about?

Remember Bitmex and it’s CEO Arthur Hayes who was arrested. What happened right after? One of the biggest bull runs in Bitcoins history.

History doesn’t repeat itself but it often rhymes.

We have already seen that Binance CEO CZ has already resigned from his post as CEO. The issue shook the entire cryptocurrency market. The Binance CEO pleaded guilty to all of his criminal activities and anti-money laundering charges and was fined $4.3 billion. Meanwhile, the Binance CEO has hunted down all his activities. But how risky it is for the binance holders I can't guess now. But I think since the new CZ has appointed I think the environment will be much calmer and the BNB market will be safe very soon.

[adaseb]

Back in 2019-2020 the largest exchange at the time was Bitmex, similar to how Binance now has the largest volumes. Binance started to gain popularity around that time but still didn’t have the same volume as Bitmex.

When he stepped down and was charged, we assumed crypto would crash but the complete opposite happened. Some speculated they had to bring Bitmex down to pave the way for the Coin IPO and the Bitcoin futures etf listed on the stock market.

[NotATether]

Re: Largest crypto exchange CEO arrested! Anyone getting deja vu?

Come on man, this is click-bait. He hasn't been arrested yet, and why would he they arrest him anyway if he entered a settlement with the US government to pay a (enormous) fine and step down?

I don't think anything bad is going to happen to Binance without CZ, except I guess for luna-trader-tics dumping BNB and BUSD, but that's kinda expected from them.

[rohang]

Regardless of how likely it might or might not be, nobody has been arrested yet.

I would ask OP to change the title accordingly as this hasnt happened yet and titles like this shouldnt be posted, yet

[KiaKia]

He hasn't been arrested yet doesn't mean he won't be arrested later, give it time first, let some fresh air flow by this news for few weeks, honestly getting him arrested is still possible.

Now I bet Kevin O'Leary will be happy about this, he vowed to make this happen, he promised CZ that he will fall just like CZ made FTX fell, I should have saved that video for myself, but I still clearly remember how hateful this man sounded towards CZ, he meant to ruin him and now I think he is part of the group that did this.

I think its too early to think that CZ is free, I doubt it, they have some menace for this man since FTX secret was let out of the bag, I strongly believe that there is more to this than we know right now, few weeks from now will tell if I am wrong or not.

[heslylamba]

How do we still trust crypto exchanges after that? I'm just in shock and I don't think it will benefit bitcoin and the entire crypto community.

[Nrcewker]

Yes last time when it happened, the market went crazy. But I highly doubt that the same might happen again. We have seen normally that when bad news appear about the crypto, the market goes down and all over crashes of coins are seen, but when there is a good news about coin, like a big company buying large number of coins, the market goes up. So we need to evaluate the situation like this and then can conclude that whether we going towards a bear market or bull market.

[milewilda]

So as you all know they charged CZ and he stepped down. Most likely he will get arrested as he goes on US soil.

What I find strange about all this, is that it’s all familiar. Anyone know what I am taking about?

Remember Bitmex and it’s CEO Arthur Hayes who was arrested. What happened right after? One of the biggest bull runs in Bitcoins history.

History doesn’t repeat itself but it often rhymes.

Not totally shocking whenever we are really that near on Bull run event on which these kind of situations do really happens which is usually end of the year? Negative news and events are already
coming out on a certain extent in speaking about on how often and how bad or severe those situations. Are they planning to make the market drop that hard? Not something new.
Getting in with very cheap price would really be always their main target. US does really have on controlling on everything  and would love on monopolizing but since there are people or platforms or companies
which cant really be controlled then expect that they would really be actively be attacked or raised up issues.

The good thing here is that the market didnt really react that much with this kind of news, BTC dropped only -2k almost which it isnt really that severe.
If they do have plans on taking down the market then they did fail on this one. 

[n00ber]

How do we still trust crypto exchanges after that? I'm just in shock and I don't think it will benefit bitcoin and the entire crypto community.

I don't know what benefit you have brought to the crypto community but from many years in the market, I know that centralized exchanges are an integral part of the market and have made a lot of contributions both negative and positive for the market. If they don't work, why are there hundreds of millions of users? Are hundreds of millions of investors out there stupid and only you are smart? The cryptocurrency industry has grown so far thanks to the massive encapsulation of centralized exchanges although many people hate them but the majority of those who hate them do not bring any benefit or value to crypto industry like you.

[Tigerheart3026]

How do we still trust crypto exchanges after that? I'm just in shock and I don't think it will benefit bitcoin and the entire crypto community.

nothing secure in crypto, centralized exchanges too risky but i think at least binance has gained everyone's trust because it's a top crypto exchange in their 150 million users,
even they guarantee to keep your money safe, fully refundable by their SAFU (secure asset fund for users) in case of any loss of money in hacked,

[krishnaverma]

This had less effect on prices because he is not going to be arrested. He just has to pay fine which he can comfortably pay.

[kryptqnick]

Wow, $4.3 billion as a settlement is absolutely huge! It's good that they've reached a deal that will allow the company to continue operating, so it means that Binance won't go down, but is $4.3 billion really the kind of money Binance can easily pay without it affecting the operations of the exchange?
It seems unclear from the articles what sort of punishment (incarceration, probation) CZ is likely to get, but I've also seen that it's unlikely that he'll be sentenced over the next 6 months. Bitcoin seems to be doing okay, so this negative news doesn't seem to have shaken the market.

[Synchronice]

a whopping $4.3billion penalty for binance and $50m for CZ personally

When I said that Bitcoin exchange is the money making machine because trading fees are extremely high on every of them, many people replied me that fees aren't high and exchanges have so many expenses that they barely make net profit and so on. But here we go, Binance will pay this money without a problem because they collect millions of dollars daily just from spot trading fees.

$1.8Bill within 15 months  (overall fine for crimes)
$1.6bill within 6 months (forfeiture of profits/fee's of running the business)
$0.9bill within 30days (clawback of funds sent to IRAN)

Just another proof that you can pay for crimes with money. Rob as many people as you want, just pay fines in the end of the day and you are fine

CZ's "crimes"
1. operating a money transmitter service
2. not registering a money transmitter service
3. facilitating money transmits to iran

binance "crime"

I might be the only one who says this but I have to admit again, CZ knows the language of business and is smart as F. He had so many problems, he broke so many rules, still manages to keep Binance number one exchange and still manages to avoid arrest. CZ really reminds me Kim Dotcom, they would be a great couple