This Month in Crypto: Binance CEO Announces Resignation & Grayscale’s Conversion from Trust to ETF

Discover the top news stories circulating the block November 2023.

Binance CEO Changpeng Zhao Announces Resignation Amidst $4.3 Billion Settlement with U.S. Authorities

As the largest cryptocurrency exchange globally, Binance’s CEO, Changpeng Zhao (CZ), has pleaded guilty in a USD4.3 billion settlement with U.S. authorities. This resolves cases alleging Binance lacked safeguards, enabling the movement of “stolen funds.” U.S. officials accused Binance of feigning compliance while facilitating users with illicit ties, with investigations dating back to 2018.

As part of the settlement, CZ announced his resignation as CEO, and Richard Teng, Binance’s global head of regional markets, will assume the position. CZ acknowledged making mistakes and taking responsibility, emphasizing that stepping down was in the best interest of the community and Binance. Notably, the allegations did not include misappropriation of user funds or market manipulation.

CZ also shared a positive note, stating that he was “proud to point out” that the allegations did not include any claims of Binance misappropriating user funds or engaging in market manipulation. This acknowledgment suggests a focus on rectifying compliance issues rather than fraudulent activities.

Many view this settlement as a positive milestone for the industry as it addresses regulatory concerns, resolves legal uncertainties, and emphasizes the importance of compliance.

Grayscale’s Ongoing Conversion Journey from Trust to ETF

Grayscale, a leading crypto asset manager that manages the largest publicly traded Bitcoin trust, recently met with the Securities and Exchange Commission (SEC) to discuss the conversion of its Bitcoin trust into a spot Bitcoin exchange-traded fund (ETF). In August 2023, Grayscale achieved a notable victory against the SEC in its efforts to convert the Grayscale Bitcoin Trust (GBTC) into a listed Bitcoin ETF.

Grayscale’s consultation with the SEC is recognized as a pivotal milestone in their journey. The term “uplisting” was used, suggesting that the conversion of GBTC to an ETF is progressing, with no indication of issues. Grayscale aims to dominate the ETF category by converting its Bitcoin Trust into a Bitcoin Spot ETF, potentially entering the market with AUD 30 billion in assets under management.

In a related development, the SEC’s recent delays in deciding on two spot Bitcoin ETFs have led analysts to believe that the SEC might be preparing for simultaneous approvals of all pending applications by the January 10, 2024 deadline. Bloomberg ETF analysts see the delays as a strategic move to align applications for potential approval. They also predict a 90% likelihood of spot Bitcoin ETF approvals by January 10, 2024. There are currently 13 spot Bitcoin ETF applications before the SEC, with most having final decision dates in March.

More news stories circulating the block:

• Australia imposes capital gains tax on wrapped cryptocurrency tokens, impacting investors; ATO clarifies taxing rules for DeFi and token wrapping.
• BlackRock joins the spot Ethereum ETF race after Ark Invest21, confirming plans with the registration of “iShares Ethereum Trust” in Delaware.
• Australian regulators mandate businesses to report cyberattacks, emphasizing transparency; no fine for non-compliance, and ransom payment discouraged.
• Bitcoin investment products attract AUD 2.2B year-to-date
• Abu Dhabi introduces a pioneering DLT framework, legalizing decentralized entities like DAOs, signaling a significant move in Middle Eastern regulatory landscape.
• Argentina’s Bitcoin community is optimistic as Javier Milei’s presidential victory signals radical policy changes, including abolishing the central bank and supporting free-market money.
• HTX crypto exchange resumes Bitcoin services after an AUD 45M hack
• South Korea’s National Pension Service invests USD 20M in a U.S based crypto exchange
• FTX founder Sam Bankman-Fried was found guilty on all seven counts of fraud and conspiracy in New York, linked to the collapse of the cryptocurrency exchange.
• SEC sues Kraken, accusing the exchange of being unregistered and mixing user funds with its own, violating regulations.
• Zipmex, a crypto exchange, proposes to pay creditors 3 cents per dollar as part of its restructuring offer, addressing its USD 97 million debt to customers.
• US Justice Department seizes 9M USDT in crackdown on a romance scam organization, freezing USD 225M in illicit funds linked to Tether.

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