Web3 Daily | SEC discloses lawsuit documents against CZ and Binance; Binance NFT marketplace now supports Bitcoin NFTs.
Top News:
1. SEC filed a lawsuit against CZ and Binance. Binance released legal documents stating that CZ personally received $62.5 million from one of Binance's bank accounts. Sigma Chain, a market maker for Binance, is actually controlled by CZ.
2. CZ, Binance, and Binance.US respond to SEC's baseless accusations.
3. Mining company Marathon Digital completes $14.25 million private placement financing.
4. Data: There is approximately $26.04 million in on-chain lending and settlement volume for Ethereum around $1680.
5. Binance NFT market now supports users to deposit Bitcoin NFTs.
Project Updates
Kraken: BTC, ETH and ERC-20 gateway experienced short-term issues and have been fixed
BlockBeats News, on June 6th, Kraken's Status page displayed that they are investigating issues with several cryptocurrency funding gateways, including BTC, ETH, and ERC-20 gateways. Deposits and withdrawals may experience delays. The platform has already implemented a fix and is monitoring the results.
Pudgy Penguins joint creation Twitter account suspected of being stolen, reminding users to guard against phishing risks.
BlockBeats News, on June 6th, Cole, co-founder of NFT project "Pudgy Penguins", had his Twitter account suspected of being hacked and used to release information about a token airdrop, reminding users to beware of phishing risks.
Atomic wallet attacker has transferred stolen cryptocurrency to mixer Sinbad.io
BlockBeats News, on June 6th, according to Cointelegraph, the Atomic wallet attacker has transferred the stolen cryptocurrency to the mixer Sinbad.io and is being exchanged for Bitcoin. The mixer was previously used to launder over $100 million in cryptocurrency assets stolen by the North Korean hacker group Lazarus Group.
BRC-20 Token MXRC will start free minting at 21:00 today
BlockBeats News, on June 6th, according to official sources, BRC-20 Token MXRC will start free minting at 21:00 today Beijing time, and more than 6,000 whitelist addresses have been collected so far. The minting process is divided into three stages: first-level whitelist, second-level whitelist, and public minting:
- The first-level whitelist (Ordinals Collection Series and selected Bitcoin communities) will start minting at 21:00 today Beijing time, with a total of 10.5 million MXRC available for minting;
- The second-level whitelist (official community award winners and NFT community participants) will start minting at 24:00 today Beijing time, with a total of 10.5 million MXRC available for minting;
- The public minting will start at 6:00 tomorrow Beijing time, with a total of 64 million MXRC available for minting.
BlockBeats News, on June 6th, according to official sources, OKX Web3 wallet plugin has officially launched convenient tools, supporting users to add accounts in batches, transfer funds in batches, and download wallet addresses. Among them, the batch transfer function provides multiple options such as transfer network, transfer currency, transfer amount, transfer time, and network fees, thus meeting the diversified needs of users for Web3 wallets. In addition, OKX Web3 wallet will soon support Ordinals NFT transactions.
Cryptocurrency hedge fund Arca lays off 30%
BlockBeats News, June 6th. According to Coindesk, Arca has laid off 30% of its employees citing the prolonged crypto winter and regulatory uncertainty.
An Arca spokesperson stated, "In this long bear market and uncertain regulatory environment, growth is difficult to predict. Arca's personnel adjustment will allow us to preserve capital and resources, giving us a greater chance of success until the industry experiences a shift in sentiment and clear regulatory conditions."
According to LinkedIn data, Arca currently has 66 employees. The company was founded in 2018 and raised $10 million in Series A funding in 2021. The company has two independent departments, Arca Investments for investment management and Arca Labs for innovation.
Binance NFT market now supports users to deposit Bitcoin NFTs
BlockBeats News, on June 6th, it was announced that Binance NFT market now supports users to deposit Bitcoin NFTs, but batch deposits are currently not supported. The Bitcoin NFT series supported by Binance NFT market includes Bitcoin Bandits, Bitcoin Frogs, Bitcoin Pizzas, Bitcoin Punks, Bitcoin Wizards, Block Legends, BTC DeGods, BTC Machine, Clay Pepes, DogePunks and other 20 Bitcoin NFT series.
Bitget now supports BRC20 withdrawals
BlockBeats News, on June 6th, according to the official announcement, Bitget has completed the integration of BRC20 and now supports the withdrawal of tokens PIZA, NALS, VMPX, PEPE1, MEME, ORDI, and BIP1 on the BRC20 network.
Data
Data: Ethereum has approximately $26.04 million in on-chain lending settlement near $1680
BlockBeats News, on June 6th, according to DefiLlama data, there is approximately $26.044 million in on-chain lending and clearing limit for Ethereum around $1680.
BlockBeats News, on June 6th, according to the monitoring data on the 0xScope chain, the net outflow of assets from Binance from 0:00 to 9:00 today was 2.18 billion US dollars, accounting for about 4% of the total assets of the platform (54.33 billion US dollars). The data shows:
- From 0:00 to 1:00 today, the net outflow of funds was 1.43 billion US dollars, accounting for 2.7% of the total assets;
- From 1:00 to 2:00 today, the net outflow of funds was 417 million US dollars, accounting for 0.78% of the total assets;
- From 2:00 to 9:00 today, the net outflow of funds was 333 million US dollars, accounting for 0.6% of the total assets.
As of 9:00 today, the total assets of the Binance platform were 52.15 billion US dollars.
BlockBeats Note: The net outflow of assets is calculated in US dollars and the data will be affected by the decline in coin prices. (Bitcoin fell by about 1.58% during the day, and Ethereum fell by about 0.9% during the day.)
Data: ETH whale bought 8800 ETH at 1:30 am this morning in a trading wave
BlockBeats News, on June 6th, according to on-chain data analyst Yu Jin's monitoring, after the market fell last night, a certain ETH whale address monitored by him transferred 15.9 million USDT to Binance platform at 1:30 am today, and half an hour later withdrew 8,800 ETH from Binance, with a possible average buying price of 1,807 US dollars.
It is reported that the address previously transferred 23,085 ETH (worth about 44.16 million US dollars) to Binance on May 29th when ETH rose, when the price of ETH was 1,913 US dollars.
BlockBeats News, on June 6th, according to Lookonchain, after the news of SEC's lawsuit against Binance came out, the crypto market maker Cumberland withdrew 67.9 million USDC from Circle and deposited 67.1 million USDC into Coinbase. Cryptocurrency broker FalconX received 37 million USDC from Circle and deposited 29.5 million USDC into Binance. These two institutions deposited a total of 96.6 million USDC into the trading platform.
Data: About 53.71 million USDT transferred from Binance to Hotbit via an intermediary address
BlockBeats News, on June 6th, Whale Alert monitoring data showed that 53,715,808 USDT was transferred from an address marked as Binance to a certain intermediate address, and then transferred from the intermediate address to an address marked as Hotbit.
BlockBeats previously reported that on May 22nd, the cryptocurrency trading platform Hotbit announced the suspension of operations, and users need to withdraw their remaining assets before 12:00 on June 21st.
Financing
矿企 Marathon Digital completes $14.25 million private placement
BlockBeats News, on June 6th, Marathon Digital Holdings (NASDAQ stock code: MARA), a cryptocurrency mining company, announced that it has signed a securities purchase agreement and plans to sell 15,000 shares of Series A redeemable convertible preferred stock in a private placement. It is expected that the total gross revenue from this issuance will reach approximately $14.25 million, excluding the fees of the placement agent and other expected issuance expenses. The issuance is expected to be completed around June 8, 2023.
区块链电子票据提供商 WaveBL 完成 2600 万美元融资，NewRoad Capital Partners 领投 Translation:
BlockBeats News, June 6th, according to prnewswire, blockchain electronic bill provider WaveBL has completed a $26 million financing round, led by NewRoad Capital Partners, with participation from ZIM, Marius Nacht, Contour Venture Partners, Frank Sica, Techstars Central LLC, and Reefknot Investments.
WaveBL, led by former technology leaders and experts of the Israeli Defense Forces, has become the leading digital platform for the electronic transmission of trade documents. WaveBL's proprietary blockchain technology enables instant, secure, and authenticated transmission of unique electronic trade documents, ensuring compliance with standard procedures and regulations.
BlockBeats News, June 6th, according to Technode, Oxalus, a Vietnamese NFT social commerce platform development company, has completed a $1.1 million seed round of financing, led by IDGCVB and Kyber Ventures. The new funds will be used to accelerate Oxalus platform data development and expand the engineering team.
Oxalus' NFT social commerce platform allows users to interact online, learn about market news, and buy and sell NFT collections. Users can also directly comment, like, follow, and share on the platform, express themselves through creative content, and manage their own NFT collections.
Regulation
SEC: CZ personally received $62.5 million from a bank account of Binance
BlockBeats News, on June 6th, SEC pointed out in the accusation document against Binance and CZ that CZ personally received 62.5 million US dollars from a bank account of Binance from October 2022 to January 2023.
Meanwhile, the SEC stated in the charging document that as of 2021, at least $145 million had been transferred from BAM Trading to Sigma Chain accounts, and an additional $45 million had been transferred from BAM Trading's trust account B to Sigma Chain accounts. Sigma Chain is an active market maker for the Binance.US platform. From this account, Sigma Chain spent $11 million to purchase a yacht.
BlockBeats News, on June 6th, SEC mentioned in the lawsuit against Binance that CZ and Binance established BAM Management and BAM Trading in the United States to evade regulation of CZ, Binance, and Binance's website in the United States. These entities publicly claimed to independently control the operation of the Binance US platform.
BAM Trading and BAM Management, controlled by CZ and Binance, lied to investors about the control measures they implemented on the Binance US platform. They raised approximately $200 million from private investors of BAM Management and attracted billions of dollars in trading volume from investors (including retail and institutional investors) who hoped to trade on the Binance US platform.
BlockBeats News, on June 6th, SEC mentioned in the lawsuit against Binance that Sigma Chain is a cryptocurrency trading company registered in Switzerland. CZ is the actual owner of Sigma Chain, and multiple Binance employees are responsible for its operation. Among them, Binance's logistics management personnel also have the signing authority for the bank account of BAM trading company while serving as the president of Sigma Chain.
Sigma Chain is an active trader on the Binance platform and claims to be "Binance's main market maker". When Binance US was launched, CZ instructed Sigma Chain to be one of its first market makers. In addition, since Binance US began offering over-the-counter (OTC) trading, conversion trading, and one-click buy/sell (OCBS) services to its customers, Sigma Chain has been a counterparty to Binance US platform customers, sometimes even the only counterparty.
BlockBeats News, June 6th. According to the report of Dazhong Net, Jinan's new and old kinetic energy conversion starting area has introduced eight policies for the metaverse. The starting area will support the construction of innovative platforms for the metaverse. For platforms newly recognized at the national, provincial, and municipal levels, they will be given financial subsidies of 30%, 20%, and 10% of the actual investment amount, respectively, with a maximum reward of 10 million yuan, 8 million yuan, and 5 million yuan, respectively.
The policy encourages enterprises to collaborate with universities, research institutes, and space computing, holographic fields, digital twins, blockchain, neuromorphic perception and cognition, computer vision, and human-machine natural interaction in the metaverse field. For metaverse projects with R&D expenses of more than 5 million yuan in the current year, a subsidy of 10% of the growth in R&D expenses will be given, with a maximum of 1 million yuan.
CZ and Binance's official response to SEC accusations
BlockBeats news, on June 6th, CZ responded on his social media platform to SEC's classification of SOL, ADA, MATIC, FIL, ATOM, SAND and other tokens as securities, stating that "we need to stand together (Strong together.)". At the same time, CZ replied to Cardano founder Charles Hoskinson regarding the "SEC's lawsuit against Binance and CZ for violating US securities regulations", saying that "this is an excellent opportunity for the entire industry to set a set of common sense rules and guidelines by putting aside its fragmented nature and standing together."
Meanwhile, Binance has issued a response to the series of allegations made by the US SEC today, stating that Binance has been actively responding to and cooperating with the SEC's investigation, but the SEC has abandoned and refused to communicate, and still made unilateral accusations and tough regulations. The SEC's unilateral labeling of certain tokens and services as securities will only make these issues more complex, and Binance will do its best to defend the platform.
In addition, Binance stated that any allegations that user assets on the Binance.US platform have been at risk are completely false. All user assets on Binance and its affiliated platforms (including Binance.US) are safe, and Binance will actively defend against any false accusations. On the contrary, the SEC's actions seem to be eager to obtain jurisdiction from other regulatory agencies, and protecting investors does not seem to be the SEC's top priority. Due to Binance's current scale and global reputation, it is now easy to become a target in the tug-of-war of US regulation.
BlockBeats News, on June 6th, Binance.US tweeted that the lawsuit filed by the US Securities and Exchange Commission (SEC) is baseless and they plan to defend themselves. Binance.US stated that they have had sincere communication with the SEC for the past two and a half years, hoping to establish a clear and practical regulatory framework in a constructive manner, so that similar companies can grow, create job opportunities, and provide safe access to digital assets for American consumers.
Binance.US stated that although they are still willing to compromise, the SEC seems to be "trying to eliminate our industry." Binance.US called on Congress to intervene and pass bipartisan legislation to create a feasible regulatory system for digital assets and control excessive bureaucracy.
Coinbase, Robinhood, CFTC will testify in the US Congress on the draft cryptocurrency bill.
BlockBeats News, June 6th. According to Cointelegraph, Coinbase, Robinhood, and CFTC will testify on the proposed cryptocurrency bill in the US Congress on June 6th. The three parties will share their views on the proposed bill, which may classify certain cryptocurrency tokens as digital commodities.
The "Digital Asset Market Structure Discussion Draft" was released on June 2nd as part of a push by Republican Congressmen Patrick McHenry and Glenn Thompson to provide a "statutory framework for digital asset regulation to provide clarity, fill regulatory gaps, and promote innovation while providing adequate consumer protection."
Earlier today, Coinbase's Chief Legal Officer testified in Congress on the "Digital Asset Market Structure Discussion Draft."
美 SEC 官网已删除其前官员、Ripple 诉讼案关键人物 Hinman 的大部分简历
The US SEC website has deleted most of the resume of its former official and key figure in the Ripple lawsuit, Hinman.BlockBeats News, June 6th. According to Decrypt, the US Securities and Exchange Commission (SEC) has removed most of the personal resume of its former director of the finance department, William Hinman. Although Hinman's personal profile page on the SEC website used to provide a detailed introduction of his career experience, now there is only one line of introduction, stating that Hinman served as the director of the SEC finance department from May 2017 to December 2020. The introduction of other personnel on the SEC official website remains unchanged.
William Hinman has become a key factor in the lawsuit between the US SEC and Ripple Labs. In 2018, Hinman stated at the FinTech Week conference that selling ETH does not constitute "securities trading".
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