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  • The R Roundup: CZ Says His Long Expected Goodbyes 👋 - Issue #116

The R Roundup: CZ Says His Long Expected Goodbyes 👋 - Issue #116

Issue #116 : Web 3 News Headlines Of The Week

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The R Roundup
November 26, 2023

The R Roundup: CZ Says His Long Expected Goodbyes 👋 - Issue #116

In a significant development, Changpeng Zhao, the CEO of Binance, has resigned after pleading guilty to money laundering charges.

Zhao admitted to his mistakes, emphasizing that taking responsibility is in the best interest of the Binance community and himself. The U.S. Justice Department has imposed a hefty penalty of $4.3 billion on Binance, the world's largest cryptocurrency exchange, citing its role in enabling users to circumvent global sanctions.

Binance is accused of facilitating transactions totaling nearly $900 million between U.S. and Iranian users, as well as enabling transactions involving users in Syria and the Russian-occupied Ukrainian regions of Crimea, Donetsk, and Luhansk.

The Justice Department revealed that Binance allowed approximately $106 million in bitcoin transfers from Hydra, a notorious Russian darknet marketplace associated with illegal activities.

As part of the settlement, Binance is now obligated to report suspicious activities to federal authorities, aiming to enhance criminal investigations into cyber threats and terrorism financing through cryptocurrency exchanges. Richard Teng, the head of regional markets at Binance, has assumed the role of the new CEO.

Changpeng Zhao, a prominent figure in the cryptocurrency space, expressed emotional difficulty in stepping down.

This development follows earlier regulatory challenges, with U.S. authorities seeking to ban Binance for allegedly operating illegally in the country. The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) both filed lawsuits accusing Binance of violating financial laws and disregarding investor protection rules. The unfolding events underscore heightened scrutiny and regulatory actions within the crypto industry.

Pyth Airdrop 🪂

The eagerly anticipated PYTH token airdrop by Pyth Network, a contender in the blockchain oracle sector challenging Chainlink's dominance, has brought attention to the ongoing competition to enhance the digital asset industry's infrastructure for traditional finance needs.

Positioned as a high-speed oracle service, Pyth Network aims to rival Chainlink as the preferred data source for blockchain finance.

This new cryptocurrency holds a unique role as votes in the protocol's governance system, allowing users to stake tokens to influence Pyth's technological development or contribute data to its oracles.

The PYTH token, distributed to approximately 90,000 crypto wallets that previously engaged with the protocol, is currently trading at $0.33, experiencing a slight decrease from its peak at $0.51. Beyond its market implications, airdrops serve as strategic maneuvers by protocols to garner attention and entice users.

As per DefiLlama, Pyth Network currently stands as the fourth-largest oracle project with a Total Value Secured (TVS) of $1.5 billion. In comparison, Chainlink dominates with a TVS of $14.7 billion, trailed by WINkLink at $7.74 billion and Chronicle at $6.72 billion. The PYTH airdrop signifies a pivotal moment in the ongoing competition for supremacy in the blockchain oracle space, as companies vie to meet the increasing demands of traditional finance within the digital asset realm.

Kraken Enters SEC Battle 👨‍⚖️

In a groundbreaking move, the U.S. Securities and Exchange Commission (SEC) has officially charged cryptocurrency exchange platform Kraken, operated by Payward Inc. and Payward Ventures Inc., for allegedly operating as an unregistered securities exchange, broker, dealer, and clearing agency.

The SEC's complaint, filed in a San Francisco federal district court, asserts that Kraken, since at least September 2018, unlawfully engaged in the trading of crypto asset securities, accruing hundreds of millions of dollars in violation of securities laws.

Kraken stands accused of blending the functionalities of an exchange, broker, dealer, and clearing agency without obtaining mandatory registration, leaving investors without crucial protections mandated by law, such as SEC oversight, recordkeeping standards, and safeguards against conflicts of interest. The complaint also underscores Kraken's questionable business practices, including commingling customer funds with its own and mingling customer crypto assets with the company's holdings, presenting a considerable risk to customer funds.

Director of the SEC’s Division of Enforcement, Gurbir S. Grewal, condemned Kraken for prioritizing illicit profits over investor safeguards, emphasizing the SEC's dual objectives of holding Kraken accountable and issuing a warning to others in the industry to adhere to compliance standards. Seeking injunctive relief, conduct-based injunctions, disgorgement, and penalties, this enforcement action underscores the SEC's commitment to maintaining regulatory oversight in the rapidly evolving cryptocurrency landscape.

Get Ready, BLAST Off💥

In a swift and lucrative move, the newly launched Ethereum Layer 2 network, Blast, has attracted a staggering $30 million from investors, including prominent names like Paradigm and members of "eGirl Capital," mere hours after its bridge went live on Monday.

The substantial inflow underscores the surging demand for Layer 2 solutions that address the speed, cost, and scalability issues associated with layer 1 blockchains, notably Ethereum.

Blast's appeal goes beyond the typical, with its unique design allowing depositors to earn yields on transferred ether along with BLAST points. The platform's innovation lies in native participation in ETH staking, funneling staking yields back to users and decentralized applications (dapps). The team emphasizes a ground-up redesign, promising automatic growth of deposited ETH over time.

However, access to funds and on-chain activities is deferred until Blast's mainnet launch in February, marking an invite-only phase requiring codes from selected users for entry. The redemption of BLAST points is slated for May. Notably, of the bridged funds, over $19 million in ether is staked on Lido, offering a potential 4% annualized yield, while $3 million resides in Maker, and a fraction of $150,000 in dai stablecoins remains dormant.

Blast, led by the pseudonymous @PacmanBlur, a co-founder of the NFT marketplace Blur, secured over $20 million in funding from a round spearheaded by Paradigm and Standard Crypto. The project's strategic approach and strong investor backing signal a dynamic evolution in the Layer 2 landscape.

A Week At RR📆

Check out this week’s content published to stay up to date with the latest research trends & crypto talking points👇

RRUPDATES📍: U.S. Justice Department Pursues $4 Billion Settlement W/ Binance To Conclude Lengthy Investigation 4️⃣

In a significant development, the U.S. Justice Department is actively seeking a settlement exceeding $4 billion from Binance Holdings as part of a comprehensive resolution to a protracted investigation, as reported by Bloomberg News on Monday, citing sources familiar with ongoing discussions.

www.therroundup.com/p/rrupdates-us-justice-department-pursues-4-billion-settlement-w-binance-conclude-lengthy-investigatio

RRUPDATES📍: Blur’s Ecosystem Expands With A Blast - Over $30m Bridged 💥

In a swift surge of investor interest, over $30 million in ether and stablecoins flowed into Blast, the most recent Ethereum Layer 2 (L2) network, mere hours after its launch on Monday night.

www.therroundup.com/p/rrupdates-blurs-ecosystem-expands-blast-30m-bridged

RRUPDATES📍: Guilty CZ Walks Away From Darling Child Binance🚶‍♂️

In a stunning turn of events for the global cryptocurrency industry, Changpeng Zhao, the founder of Binance, the world's largest cryptocurrency exchange, has agreed to plead guilty to money laundering violations.

www.therroundup.com/p/rrupdates-guilty-cz-walks-away-darling-child-binance

Playing Fortnite Made Me Bullish On GameFi👾

Gaming plays a crucial role in social culture & friendship. Some of the most vital relationships I built started in game lobbies, but I never thought an investment thesis could come from the same place.

www.therroundup.com/p/playing-fortnite-made-bullish-gamefi

RR Files🗂️

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