BlackRock meets with SEC over ETF, Binance’s new era begins and SBF loses release bid: Hodler’s Digest, Nov. 19-25

This week's featured stories

US Officials Announce $4.3 Billion Deal with Binance and Plea Deal with CZ

Binance and its co-founder, Changpeng “CZ” Zhao, they have reached an agreement on criminal and civil cases with the United States Department of Justice. CZ will plead guilty to a felony as part of the negotiated deal. Attorney General Merrick Garland announced the settlement, alleging that Binance's policies allowed criminals involved in illicit activities to move "stolen funds" through the exchange. As part of the agreement, CZ announced on X (formerly Twitter) that it had resigned as CEO and that Binance's global head of regional markets, Richard Teng, will take over. He added that he was "proud to note" that US officials did not allege that Binance misappropriated funds or manipulated markets. C.Z. was released on bail and is fighting the government's efforts to prevent his return to the United Arab Emirates be with your family. His sentencing is scheduled for February.

BlackRock Met with SEC Officials to Discuss Bitcoin Spot ETF

Representatives from BlackRock and Nasdaq met with the US Securities and Exchange Commission (SEC) to discuss the proposed rule allowing the listing of a spot Bitcoin exchange-traded fund (ETF). BlackRock made a presentation detailing how the company could use an in-kind or cash reimbursement model for its iShares Bitcoin Trust. Many reports have suggested that the SEC could be nearing a decision on a spot BTC ETF to list on US markets. SEC officials also met with Grayscale representatives this week to discuss the listing of a Bitcoin ETF. BlackRock is one of many companies with spot crypto ETF applications pending with the SEC awaiting a response, including Fidelity, WisdomTree, Invesco Galaxy, Valkyrie, VanEck, and Bitwise.

Bitcoin user pays $3.1 million transaction fee for 139 BTC transfer

A Bitcoin user paid $3.1 million in fees for transferring 139.42 BTC. The transaction fee is the eighth highest in Bitcoin's 14-year history. A wallet address attempted to transfer 139.42 BTC only to pay more than half the actual value of the transaction fee. The destination address received only 55.77 BTC. Mining pool Antpool captured the absurdly high mining fee on block 818087. This is the largest Bitcoin transaction fee ever paid in dollar terms, knocking out Paxos' September transfer of $500,000.

SEC sues Kraken alleging it is an unregistered exchange and mixes user funds

The US Securities and Exchange Commission has sued Kraken, alleging that he commingled client funds and failed to register with the regulator as a stock exchange, broker, dealer and clearing agency. Additionally, the SEC alleged that Kraken's business practices and "poor" internal controls caused the exchange to commingle up to $33 billion in client assets with its own. The SEC said this resulted in a "significant risk of loss" to its clients. In a follow-up blog post, Kraken said the SEC's commingling allegations were "no more than Kraken's spending fees it had already earned," and the regulator does not allege any missing user funds.

Appeals court rejects Sam Bankman-Fried's request for releasemy

Sam Bankman-Fried remain imprisoned for not being able to convince a US appeals court who should be freed while his legal team appeals his conviction. Government prosecutors accused Bankman-Fried of leaking Caroline Ellison's diaries to the New York Times in July, prompting a New York district court to revoke her bail. Bankman-Fried was found guilty of seven counts related to fraud and money laundering on November 2. The former CEO of FTX will remain behind bars as he awaits his sentencing on March 28 of next year.

Winners and losers

At the end of the week, Bitcoin (btc) I sat down $37,710Ether (myTH) is at $2,079 and XRP is at $0.62. The total market capitalization is $1.43 billion, according to CoinMarketCap.

Among the 100 largest cryptocurrencies, the three altcoins with the biggest gains of the week are Blur (BLUR) at 99.25%, FTX token (FTT) at 39.05% and KuCoin Token (K.C.S.) at 24.82%.

Top three altcoin losers of the week are Celestia (AIT) at -19.89%, ORDI (ORDI) at -17.63% and THORChain (RUNE) at -15.53%.

To learn more about cryptocurrency prices, be sure to read Cointelegraph Market Analysis.

Most memorable quotes

"The United States has a financial regime that has basically been weaponized."

Carlos Hoskinsonfounder of Cardano

"I made mistakes and I must take responsibility."

Changpeng “CZ” Zhaoformer CEO of Binance

“We, the employees of OpenAI, have developed the best models and taken the field to new frontiers. [but] The process by which you fired Sam Altman. […] “It has jeopardized all of this work and undermined our mission and our company.”

OpenAI Employees

"Get your crypto company out of the US war zone".

Jessie Powellco-founder of Kraken

"The regulatory uncertainty permeating the US market is having an impact on the rest of the world."

Oliver LynchCEO of Bittrex Global

“I look forward to returning to OpenAI and building on our strong partnership with Microsoft.”

Sam AltmanCEO of OpenAI

Prediction of the week

'Enjoy Bitcoin for less than $40,000': PlanB emphasizes average BTC price of $100,000 from 2024

Bitcoin Buyers Should Enjoy the Opportunity to add to your stack below $40,000, according to PlanB, pseudonymous creator of the stock-to-flow family of BTC pricing models. He believes Bitcoin will rise much higher than its recent 18-month highs.

Bitcoin bear market bottoms are characterized by the spot price falling below the realized price, while bull markets begin once the spot price crosses the two-year and five-month realized price levels. BTC/USD is now once again above all three price iterations made.

“Enjoy sub-$40,000 bitcoin… while it lasts,” PlanB commented in an accompanying chart.

When asked if the market should expect lower levels from here, PlanB didn't get carried away, saying he simply expected an average BTC price of at least $100,000 between 2024 and 2028, the next halving cycle. Bitcoin.

FUD of the week

HTX to restore services 'within 24 hours' after $30 million hack

HTX crypto exchange, formerly known as Huobi Global, deposits and withdrawals resumed within 24 hours of suffering a $30 million exploit on November 22. It was reported to be $13.6 million. around the time of the incident, but has since increased in value. HTX hot wallets were compromised in conjunction with an $86.6 million coordinated attack against the HTX Eco (HECO) chain bridge, which consists of HTX, Tron, and BitTorrent. The company has promised to fully compensate users for any losses suffered as a result of the hack.

CZ is an 'unacceptable flight risk', should remain in US: Justice Department

united states prosecutors They are trying to arrest the former head of Binance Changpeng “CZ” Zhao left the country, expressing concern about the possible risk of flight. The government requested a review and overturning of a judge's decision that would allow Zhao to return to his home in the United Arab Emirates (UAE) on $175 million bail on the condition that he return to the United States two weeks before his sentencing in February 2024. In a proposed order, prosecutors wrote that Zhao "presents an unacceptable flight risk," arguing that his ties and privileged status in the United Arab Emirates, along with the lack of an extradition treaty with United States, are reasons to prevent him from leaving the country. country.

KyberSwap Hacker Offers $4.6 Million Reward for Return of $46 Million Loot

The decentralized exchange KyberSwap has offered a 10% reward to the hacker who stole $46 million on November 22 and left a negotiation note. The exchange wants 90% of the loot returned. The hacker rudely done $20 million in wrapped Ether, $7 million in Lido wrapped Ether, and $4 million in Arbitrum tokens. The hacker then siphoned the loot across multiple chains, including Arbitrum, Optimism, Ethereum, Polygon, and Base.

The editorial staff

Cointelegraph magazine writers and reporters contributed to this article.