Weekly Report | Zhao Changpeng has stepped down as CEO of Binance, and Binance will pay a fine of $4.368 billion
Richard Teng has taken over as CEO of Binance; the Layer2 network Blast launched by the founder of Blur has completed a $20 million funding round led by Paradigm, with TVL surpassing $500 million.Organizer: Cookies, ChainCatcher
"What Important Events Happened This Week (11.20-11.26)"
1. Zhao Changpeng has stepped down as CEO of Binance, and Binance agrees to pay a $1.81 billion criminal fine while $2.51 billion in assets will be forfeited
Zhao Changpeng announced on social media that he has stepped down as CEO of Binance. "I made mistakes, and I must take responsibility." Richard Teng, former Global Regional Market Director of Binance, will take over as CEO. Zhao Changpeng stated that he will engage in some passive investments, becoming a minority token/shareholder in startups in the blockchain/Web3/DeFi, AI, and biotechnology sectors. He also pointed out that U.S. authorities did not accuse Binance of misappropriating any user funds or engaging in market manipulation, and that user funds are safe.
The prosecutor in charge of the case stated that Binance agreed to pay approximately $1.81 billion in criminal fines to the U.S. and will pay this amount within 15 months after sentencing. Additionally, Binance agreed to forfeit $2.51 billion in assets. Zhao Changpeng has agreed to pay a $50 million fine to the CFTC. The U.S. CFTC imposed a $1.5 million fine on Binance's former Chief Compliance Officer Samuel Lim, who is prohibited from serving as an unregistered futures broker or operating any illegal cryptocurrency derivatives platform.
Richard Teng, as the new CEO of Binance, will focus on three key areas: 1. Ensuring users can trust the company's financial strength, safety, and security; 2. Collaborating with regulators to maintain high standards globally, promote innovation, and provide essential consumer protection; 3. Working with partners to drive the growth and adoption of Web3.
The U.S. Treasury will retain access to Binance's books, records, and systems for five years, stating that Binance granted VIP users the privilege of receiving advance notice when law enforcement agencies investigate. The U.S. Department of Justice requested Judge Richard A. Jones to overturn the initial ruling and issue a new order requiring Zhao Changpeng to remain in the U.S. before sentencing.
For more updates, please check out ChainCatcher's feature: "Binance's $4.3 Billion Settlement Case Continues to Track"
2. OpenAI: Sam Altman will return as CEO of OpenAI
OpenAI announced that a preliminary agreement has been reached for Sam Altman to return as CEO of OpenAI as a new board member (Chairman Bret Taylor, members Larry Summers and Adam D'Angelo), and they are collaborating on the details. (Source link)
3. Grayscale's new prospectus: plans to change the stock code from "GBTC" to "BTC"
Bloomberg ETF analyst James Seyffart stated that Grayscale has submitted a new S-3/prospectus for the conversion of GBTC to an ETF, with the most significant update being the plan to change the code from "GBTC" to "BTC." This move confirms that Grayscale is negotiating with the SEC and updating/changing its product documentation based on discussions and feedback with the SEC.
JP Morgan analysts noted that many Grayscale GBTC traders would seek to cash out during its ETF conversion, reviewing the inflows into GBTC since 2023 to calculate the value of shares that might be sold during the conversion. They estimate this figure to be around $2.7 billion. (Source link)
4. Layer 2 network Blast, launched by the founder of Blur, completes $20 million financing, with Paradigm participating
The Optimistic Rollup-based Layer 2 network Blast has completed $20 million in financing, with participation from Paradigm, Standard Crypto, eGirl Capital, and several angel investors including Mechanism Capital co-founder Andrew Kang, Lido strategic advisor Hasu, and The Block CEO Larry Cermak.
Blast stated that the current benchmark interest rate for Layer 2 is 0%, while Blast is the only Ethereum Layer 2 with native yields in ETH and stablecoins. Specifically, Blast natively participates in ETH staking, and the staking rewards will be returned to Layer 2 users and dapps. On Blast, users' balances will automatically compound, and they will earn additional Blast rewards. Blast believes this advantage alone can attract $20 billion in liquidity. (Source link)
5. Netflix director misappropriated series budget to invest in Dogecoin (DOGE)
According to Cointelegraph, Netflix series "Conquest" director Rinsch misappropriated over $4 million from the show's budget to bet on DOGE on Kraken, and when he liquidated his DOGE position in May 2021, the balance was nearly $27 million. Netflix spent $55 million on Conquest but did not release a single episode.
In March 2020, Netflix purchased Rinsch's concept, providing a budget of $44 million, followed by an additional $11 million. Rinsch misappropriated $10.5 million of this for stock trading, losing $5.9 million in just a few weeks. He then invested the remaining over $4 million in DOGE, withdrawing about $27 million upon liquidation in May 2021.
Rinsch has initiated a confidential arbitration process against Netflix, claiming that the streaming platform breached the contract and is seeking $14 million in damages. Netflix denies the allegations, and the arbitration results are expected to be announced soon. (Source link)
6. RootData launches new features including Web3 character database and primary/secondary market, and completely iterates the chart page
The crypto asset data platform RootData announced the launch of new features including a Web3 character database and primary/secondary market, and has completely iterated the chart page to enhance the composability of platform data and further enrich the platform's use cases and user experience.
In the Web3 character database, based on 7,000 profiles and their work and educational backgrounds collected by RootData, users can view the latest career dynamics of important industry figures, as well as the universities and companies that contribute the most talent to the industry.
In the primary/secondary market, RootData has built a bridge between the Web3 primary and secondary markets, helping users publish information to buy and sell equity/SAFT of unlisted projects to improve trading efficiency in the primary/secondary market.
On the chart page, RootData has enhanced the composability of various charts, allowing users to locate chart content based on multi-dimensional information such as time, track, and investors, and has added several charts including the regional distribution of financing. (Source link)
7. Data
- Over $200 million has been stolen from platforms/blockchains under Sun Yuchen in the past two months.
- Layer 2 network Blast's TVL has surpassed $500 million.
- The proportion of Bitcoin circulating supply that has not been active for over a year reached 70.35%, a record high.
- Tether voluntarily froze 225 million stolen USDT related to international crime groups.
- dYdX used approximately $9 million from the v3 insurance fund to fill the YFI market liquidation gap.
"What Great Articles Are Worth Reading This Week (11.20-11.26)"
1. "Binance Loses Illusions: From Grassroots to Compliance"
$4.3 billion, this is the amount Binance needs to pay for its long-term violations, which also means that U.S. regulators' accusations against Binance over the years will come to an end. This is the biggest test in Binance's history and the most important opportunity concerning its long-term fate, as well as the "calamity" that Binance must face to become a "great" company.
Is the U.S. Department of Justice's indictment against Binance a positive development? How will the hefty fine of $4.3 billion be paid, and where will the funds come from? Will Binance follow in BitMEX's footsteps? What impact will this settlement agreement have on Binance and the crypto industry?
3. "After SBF, will Zhao Changpeng also find himself in prison?"
Even if Zhao Changpeng is sentenced to prison, those hoping for a reunion between the Binance CEO and his former rival SBF may be disappointed. Theoretically, Zhao Changpeng, who admits to violating the law today, could face five years in a U.S. federal prison, but several signs indicate he may not receive the maximum penalty.
4. "$4.3 billion fine: U.S. Treasury reaches the largest settlement in history with Binance"
According to the settlement agreement, Binance will pay $3.4 billion to FinCEN and $968 million to OFAC, the largest fines in their respective histories. The investigation by IRS CI led to the Department of Justice's actions. The U.S. Treasury took unprecedented actions through the Financial Crimes Enforcement Network (FinCEN), the Office of Foreign Assets Control (OFAC), and the Internal Revenue Service Criminal Investigation (IRS CI) to hold Binance Holdings Limited and its affiliates (collectively referred to as Binance) accountable for violations of U.S. anti-money laundering (AML) and sanctions laws.
5. "Becoming Binance CEO in just 2 years and 4 months, who exactly is Richard Teng?"
With the dust settling, on November 22, Binance founder Zhao Changpeng announced his resignation as CEO, stating, "I made mistakes, and I must take responsibility," while Richard Teng will take over as CEO of Binance. This is not surprising. In June of this year, Bloomberg published an article titled "Binance's Regulatory Dilemma Paves the Way for CZ's Successor," predicting that if CZ resigned due to regulatory issues, Richard Teng would likely become the next CEO of Binance.
6. "Why is the L2 disruptor Blast making L2s so anxious?"
As a disruptor in the L2 wars, Blast evokes memories of Blur's devastating impact on the NFT space, as well as the BRC-20 inscription market frenzy, which is referred to as the "victory of retail investors."
7. "ABCDE: Why are we investing in Matr1x?"
ABCDE believes that Matr1x has the potential to become a leader in the Web3 gaming sector, playing a significant role in breaking into the Web3 space and achieving mass adoption in the next bull market, becoming the next Axie/StepN-level phenomenon in Gamefi.
8. "Complete Guide to Gitcoin Grants Round 19 Donations"
This article will briefly introduce the differences between Gitcoin Grants Round 19 and previous donations, and carefully select some quality projects for readers.
