This summary text is fully AI-generated and may therefore contain errors or be incomplete.
Binance, one of the largest cryptocurrency exchanges, has reached a settlement with the United States Department of Justice (DOJ) over criminal and civil cases. The co-founder of Binance, Changpeng Zhao (CZ), will plead guilty to one felony charge as part of the agreement. The DOJ accused Binance of allowing criminals to move “stolen funds” through the exchange. CZ has stepped down as CEO and will be replaced by Richard Teng. Despite the settlement, CZ is battling government efforts to prevent his return to the United Arab Emirates. The sentencing is scheduled for February.Representatives from BlackRock and Nasdaq recently met with the U.S. Securities and Exchange Commission (SEC) to discuss the listing of a spot Bitcoin exchange-traded fund (ETF). BlackRock presented a proposal on how it could structure its iShares Bitcoin Trust. The SEC also met with Grayscale representatives to discuss a Bitcoin ETF. Fidelity and VanEck are among the firms with spot crypto ETF applications awaiting a response from the SEC.In a surprising transaction, a Bitcoin user paid a whopping $3.1 million in fees for transferring 139.42 BTC. This marks the eighth-highest fee in Bitcoin’s history. Unfortunately, the destination address only received 55.77 BTC, while the mining pool Antpool pocketed the rest. This transaction fee sets a new record for the largest ever paid in dollar terms.The SEC has taken legal action against Kraken, alleging that the exchange commingled customer funds and failed to register as a securities exchange. According to the SEC, Kraken’s business practices and internal controls put its clients at a “significant risk of loss.” Kraken, however, denies these allegations and argues that the commingling accusations are simply the exchange spending fees it has already earned.Meanwhile, Sam Bankman-Fried, the former CEO of FTX, will remain in jail as he failed to convince an appellate court to release him while his legal team appeals his conviction. Bankman-Fried was found guilty of fraud and money laundering-related charges. He now awaits sentencing in March.These recent developments shed light on the ongoing regulatory challenges and legal hurdles faced by major players in the cryptocurrency industry.