New Lawsuit Accuses Binance Exchange of Manipulating FTX’s Demise
Cryptocurrency exchange Binance is facing fresh legal trouble after being hit with a class action lawsuit alleging the firm deliberately sparked the implosion of now-bankrupt rival FTX.
Filed in California, the lawsuit spearheaded by plaintiff Nir Lahav claims Binance violated securities law and engaged in unfair competition to undermine FTX’s business.
Specifically, it points to Binance CEO Changpeng Zhao’s November 2022 tweet announcing the firm’s intent to sell its FTX Token (FTT) holdings as a premeditated move to sow distrust and trigger mass FTT sell-offs.
Allegations claim CZ knowingly triggered rival exchange’s collapse
According to the suit, Binance had already offloaded 23 million FTT worth $530 million the previous day, indicating Zhao knowingly sought to manipulate the market and profit from FTX’s demise.
The ensuing FTT crash and loss of user confidence ultimately caused the catastrophic bank run that led to FTX’s abrupt unraveling. Binance then offered to acquire its crippled rival before promptly withdrawing the proposal.
While Binance maintains it acted responsibly in withdrawing from FTX, the lawsuit alleges its public statements and actions were intentionally designed to destabilize and acquire FTX at a cut-rate price.
Binance has yet to comment on the specifics of the litigation. The class action underscores lingering suspicions around behind-the-scenes motivations in FTX’s spectacular collapse. However, proving market manipulation in crypto remains an uphill legal battle.
The coming proceedings promise to further unravel the FTX debacle while testing novel legal boundaries. Regardless of the outcome, the scandal will likely spur tighter industry self-regulation to prevent similar episodes of crypto contagion.
200% Gains for The Next Crypto Exchange
Tradecurve Markets (TCRV) has been making significant waves despite being in its presale phase. Amidst controversies surrounding Binance.US (BNB) and fluctuations in Solana (SOL) market movements, the TCRV token has surged 200% as investors flock to grab the remaining phase-6 tokens. Let’s take a closer look at why this is happening.
>>Register For The Tradecurve Markets Presale<<
Tradecurve Markets (TCRV): 200% Gains for The Next Crypto Exchange
Tradecurve Markets aims to become a symbol of financial inclusion by launching a hybrid exchange that is simple to use and values anonymity. This new strategy departs from the complex registration procedures many conventional trading platforms impose on users.
The sign-up process for Tradecurve Markets is straightforward. You only need to provide your email address and connect your DeFi wallet. By removing the often daunting entry barriers, Tradecurve opens opportunities for a broader population of potential traders.
At Tradecurve Markets, traders have access to a wide range of assets, including cryptocurrencies, stocks, forex, and commodities, all available with a simple click. This is in contrast to Binance, which only offers cryptocurrency trading and is currently facing scrutiny from regulators.
Central to Tradecurve Markets’ ecosystem is the TCRV token, a digital currency that provides utility within the platform and offers various advantages, such as discounts, passive income rewards, and account upgrades.
TCRV is priced at $0.030 in the sixth stage of its presale. With an impressive growth of 200% over the first five stages, investors are rushing to grab the remaining tokens before the rise in price again. Industry analysts are optimistic that the token’s value will increase to $1.00 as it gains traction and adoption within the growing crypto market.
Binance.US (BNB): Under a Cloud of Controversies
Binance.US is the US-based affiliate of Binance, one of the world’s largest and most popular cryptocurrency exchanges. On the 13th of September, it was divulged that approximately one-third of its employees would be laid off, including the CEO of Binance.US.
Binance’s CEO, Changpeng Zhao, has described the recent turbulence within the company as a normal part of doing business. He emphasized the cordial departure of the previous CEO and praised his accomplishments during his two-year tenure.
Zhao expressed his confidence in the newly appointed CEO for Binance.US, Norman Reed, and believes he possesses the necessary skills to navigate the organization through the current challenges.
Internationally, the narrative thickens with the Netherlands halting Binance’s operations, Binance France still on a bank partner hunt, and the Russian arm being sold to an anonymous buyer. All of this casts doubt on Binance’s European future.
Amidst Binance’s tribulations, Tradecurve Markets is gaining traction as a promising rival. Some Binance investors are now eyeing the TCRV token as a diversification avenue while it’s still undervalued.
The unfolding circumstances have impacted Binance’s current market position. The value of Binance’s token has decreased from over $300 in June to its current value of $216. Many analysts are closely monitoring the $200 support level, speculating that it could lead to a further decline to $120 if it’s breached.
Solana (SOL): Liquidation Fears and Potential Impact
The cryptocurrency landscape is yet again trapped in fluctuations. Solana finds itself in the limelight, having experienced a staggering 96% decline during FTX’s crisis in late 2022, descending from $259.96 to just $8.00.
The onset of 2023 brought a semblance of relief for Solana, rebounding to reach the resistance level of $32. Additionally, its ecosystem exhibited significant resilience, evidenced by the Total Value Locked (TVL) on Solana eclipsing $300 million.
However, the FTX scandal is back to haunt Solana once again. The exchange has been authorized by the Delaware Bankruptcy Court to liquidate its digital assets, which include a whopping 55.75 million Solana tokens valued at over $1 billion. This massive influx of tokens can further disrupt Solana’s price stability.
The good news is that a slow liquidation strategy restricts the liquidation amount to $50 million for the inaugural week, incrementally escalating to $100 million in subsequent weeks. Solana holders hope that this gradual process will mitigate any significant impact on the token’s market value.
For more information about the Tradecurve Markets (TCRV) presale:
Website: https://tradecurvemarkets.com/
Buy presale: https://app.tradecurvemarkets.com/sign-up
Twitter: https://twitter.com/Tradecurveapp
Binance resumes crypto exchange in Belgium with Binance Coin and Bitcoin Spark in the spotlight
After a three-month lull due to regulatory concerns in Belgium, Binance, a prominent cryptocurrency platform, has resumed its crypto exchange services. This development has brought the spotlight back on Binance Coin (BNB) and Bitcoin Spark (BTCS) within the Belgian crypto community. Belgians can again engage with these platforms, marking a significant step forward for crypto enthusiasts and investors in the country.
What is BNB?
Binance Coin (BNB) stands at the heart of the BNB Chain ecosystem, representing one of the most widely recognized and utilized utility tokens in the global crypto landscape. Beyond its role as a tradable cryptocurrency, BNB’s versatility earns its use cases and applications across a diverse ecosystem.
BNB primarily functions within the BNB Chain ecosystem, facilitating various operations and interactions within its expansive network. Users can buy, sell, trade, and leverage BNB. BNB’s versatility is a major factor contributing to its popularity and widespread adoption. BNB serves as a transactional medium, allowing for seamless and efficient transfers of value within the BNB Chain. Users frequently engage with BNB for these transactions due to its reliability and low transaction fees, making it an attractive choice for moving funds swiftly.
Furthermore, BNB has expanded its horizons into various decentralized applications (dApps). These applications cover decentralized finance (DeFi), gaming, decentralized exchanges (DEXs), etc. Users can employ BNB within these dApps for yield farming, staking, governance participation, and token purchases, enhancing its role within the decentralized ecosystem.
Bitcoin Spark (BTCS)
Bitcoin Spark operates under a unique consensus mechanism called Proof-of-Process, a product of the PoS and PoW merger. This innovative approach efficiently integrates with the Bitcoin Spark application. The application is pivotal to the project’s concept, allowing users to contribute their processing power within a virtual environment. This unique approach facilitates a more inclusive mining ecosystem, unlocking new revenue streams through rentals and advertising.
Bitcoin Spark presents an innovative and distinctive approach to the conventional concept, enabling users to harness the potential of their mining devices by renting out their processing power for various computational tasks. Traditionally, cryptocurrency mining primarily focused on validating transactions and adding them to the blockchain to secure the network. However, Bitcoin Spark expands this paradigm by allowing users to allocate their mining power to diverse computational tasks beyond simple transaction processing. By renting out their processing power, users contribute to a broader ecosystem where computational needs are addressed efficiently and effectively. Bitcoin Spark’s unique model is a testament to the project’s commitment to innovation and sustainability within the cryptocurrency domain. It transforms mining into a versatile and dynamic process, further enhancing the overall efficiency and utility of the BTCS blockchain network.
The platform will support the execution of smart contracts, adding versatility to its functionalities. These contracts enable secure and automated transactions and agreements without an intermediary. Furthermore, smart contract execution contributes to revenue generation through future dApps within the BTCS ecosystem.
BTCS ICO surges through the phases, breaking records, and is currently at $2.75 in phase six, with an 8% bonus offer. The current holders expect returns of 393% upon its Nov 30 launch at $10.
Binance Coin Price Prediction
BNB reached its highest value at $686.31 on May 10, 2021, thanks to a surge in dApps and DeFi in the Binance Smart Chain (BSC). BNB’s current price is $212.74, with a market cap of $32 billion. In early 2022, its price found support around $350 but eventually dropped, forming a strong resistance level. Even the 2023 cryptocurrency rally couldn’t break this resistance, leading to a reversal pattern. Right now, it’s above crucial support at $200, and according to Binance Coin price prediction, a drop below this could be problematic, considering the uncertainty in the cryptocurrency industry and the overall market conditions. Bulls hope to see a change in the pattern, or there could be more challenges ahead.
More on BTCS and ICO here:
Website: https://bitcoinspark.org/
Avantis Labs Raises $4 Million in Seed Funding for Decentralized Exchange!
The post Avantis Labs Raises $4 Million in Seed Funding for Decentralized Exchange! appeared first on Coinpedia Fintech News
Avantis Labs has secured $4 million in seed funding in a round led by Pantera Capital. Other participants include the Founders Fund and Coinbase’s Base Ecosystem Fund, among others. The protocol aims to offer investors the ability to trade cryptocurrencies and real-world assets (RWAs) with up to 100x leverage on its decentralized exchange. This move further bolsters the adoption and utility of decentralized exchanges as more investors seek exposure to cryptocurrencies and other digital assets.
Unpacking Binance’s Legal Troubles: Crypto Expert List the Red Flags Around The Exchange
Binance, one of the largest crypto exchanges globally, has recently been scrutinized for several alarming developments. According to Youtuber – Crypto Rover, here’s a deep dive into the red flags that every crypto investor should know when it comes to Binance.
The Legal Minefield: SEC and Beyond
The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, alleging many issues, from mishandling customer funds to misleading investors. Not just a single charge, this case opens a Pandora’s box of regulatory woes for the company. Legal challenges aren’t confined to the U.S.; France and other jurisdictions have ongoing investigations that may further stain Binance’s reputation.
The CFTC Charges
Adding to Binance’s legal troubles, the Commodity Futures Trading Commission (CFTC) also has the exchange on its radar. The CFTC primarily concerns Binance’s alleged failure to adhere to U.S. derivatives trading regulations.
Departure by Top Executives
Another red flag for Binance is the recent departure of high-ranking executives, including the CEO of Binance.US. Coupled with mass layoffs, these moves indicate potential internal problems that could have lasting repercussions.
Restricted Operations in Multiple Countries
Binance has halted its services in several countries, including Canada, Germany, the Netherlands, and Belgium. This retreat may suggest difficulties in complying with local laws and could limit the platform’s global reach.
Financial Backing and Banking Relationships
Binance has severed ties with multiple banking partners, raising concerns about the stability and reliability of its financial infrastructure. For investors, this means potential difficulties in fiat transactions and converting crypto assets into cash.
Tech Red Flags: Issues with Proof of Reserves (PoR) and More
Binance’s Proof of Reserves (PoR) is self-verified, without any third-party confirmation. This lack of external auditing may raise questions about the exchange’s transparency and security measures.
For existing and potential Binance users, these red flags should be cause for concern. Not only could they influence the security and stability of investments, but they might also signal larger systemic issues within the platform. As the regulatory environment for cryptocurrencies becomes more stringent, it’s increasingly crucial for investors to understand the risks involved.
Breaking: Binance Exchange File Motion to Dismiss SEC Lawsuit
The post Breaking: Binance Exchange File Motion to Dismiss SEC Lawsuit appeared first on Coinpedia Fintech News
Binance, Binance.US, and Changpeng Zhao have filed a motion to dismiss the Securities and Exchange Commission (SEC) lawsuit, asserting that the SEC’s allegations lack plausibility and that the regulator is attempting to extend its authority over digital assets without explicit legislative guidance.
Binance.US Vs SEC Lawsuit: Is The Exchange At Risk Of Potential Downfall Or Just FUD ?
Binance is the world’s largest crypto exchange as per trading and one of the most credible in the cryptocurrency world. With a daily volume of $76 Billion, it caters to more than 90 Million global customers.
The massive exchange supports an entire ecosystem to offer innumerable services. The men behind this mission are Changpeng Zhao, commonly known as CZ, and Yi He created Binance.
However, even giants face challenges. Recent data indicates a concerning trend for Binance. With industry concerns over the declining trading volume of Binance, let’s check this out in detail.
Is Binance Less Dominant With Declining Trading Volume?
In April 2023, as per CCdata, spot trading volume on the platform saw a significant dip, plummeting by 48%.
This decline marked the second consecutive month of reduced trading activity, with the volume dropping to $287 billion, reminiscent of the lows in 2021. Binance’s market share also witnessed a contraction, settling at 46%.
This decline isn’t isolated to Binance. The entire industry of centralized exchanges reported a 40% drop in spot trading volume, the lowest since the previous December.
Financial gurus attribute this downtrend to various macroeconomic factors, including looming recession threats and the collapse of several U.S. banks.
Yet, in the face of these challenges, Binance’s dominance remains unshaken. Its closest competitors, Coinbase and OKX, only managed to capture 5.60% and 5.39% of the total spot trading volume, respectively.
In short, while Binance continues to be a significant player in the crypto world, it is not immune to the challenges and fluctuations of the market. The recent decline in trading volumes serves as a reminder of the volatile nature of the crypto industry.
However, the declining trading volumes are only one of the roadblocks for Binance.
SEC’s Concerns with Binance US
The Securities and Exchange Commission (SEC) expresses concerns about Binance US’s operations. Moreover, the District Court of Columbia recently ordered to unseal the documents on 15th September. This hints at the Court’s belief that the SEC’s argument of Binance US might be misleading about its operation.
The regulatory body has been particularly interested in the deposition requests for key figures like the former Binance US CEO, Brian Schroeder. The SEC’s inquiries stem from suspicions that Binance US might not comply with a consent order the two parties agreed upon earlier.
Adding to the concerns, Binance US has reportedly lost two more high-level executives shortly after the departure of CEO Brian Schroeder. The head of legal and the chief risk officer have exited the company, intensifying the scrutiny the platform is under.
Such high-profile departures in quick succession have led to speculations about the internal workings and health of the company.
While Binance US is a smaller entity than its global counterpart, its recent developments have implications for the broader crypto industry. The platform’s challenges highlight the regulatory hurdles crypto exchanges face and the importance of transparency and compliance in this rapidly evolving sector.
BNB Price Analysis
With the declining social sentiments with multiple regulatory and treading volume troubles, the BNB price is down, too. Trading at 69% below its all-time high, the year-to-date growth of BNB coin price is -12%.
The declining trend forms a falling wedge pattern in the 1-day chart that generally leads to a bullish breakout. Moreover, the BNB price action forms a double bottom pattern at the crucial psychological support of $200.
Currently, the BNB price is trading at $214 as buyers challenge the overhead supply trendline in hopes of a breakout. Considering the breakout occurs, the unleashed trapped momentum will help BNB price in a moonshot.
Potentially crossing the $250 mark, the uptrend might reclaim the $300 level, accounting for almost a 50% jump. On the flip side, a drop below $200 will plunge BNB price to $180 or even as low as $150.
Despite the ongoing troubles, Binance Labs, the venture arm of Binance, remains undeterred. As it focuses on the future and supports the DeFi ecosystem with unwavering commitment.
What’s New With Binance Labs?
Binance Labs, the venture capital and incubation arm of Binance, has been actively supporting the DeFi sector through strategic investments and collaborations.
Reinforcing Security with Curve Finance
In a move that underscores its commitment to enhancing the DeFi landscape’s security, Binance Labs recently invested $5 million into Curve DAO Token (CRV). This strategic investment aims to bolster Curve’s security infrastructure, especially after a recent hack that saw a significant loss.
ColLabs: Building a Web3 Investment Community
Understanding the importance of collaboration and knowledge exchange in the Web3 space, Binance Labs introduced ColLabs. This exclusive Web3 investment community is designed for founders, builders, and investors, serving as a nexus for innovation and growth.
Through ColLabs, members gain access to exclusive content, event invites, and insights, fostering connections and facilitating the sharing of investment opportunities.
Pendle Finance: Redefining Yield Generation
Binance Labs’ investment in Pendle Finance showcases its vision for the future of DeFi. Pendle Finance, a protocol enabling the tokenization and trading of yield, is at the forefront of multi-chain expansion and innovative yield strategies.
With Binance Labs’ support, Pendle aims to redefine yield generation, making it more accessible and efficient for users across various blockchain ecosystems.
Conclusion
Binance, despite its recent hurdles, continues to showcase resilience and innovation. Through strategic investments and a commitment to transparency, Binance is navigating its challenges and laying the foundation for a brighter future in the DeFi landscape.
As legal battles are tough to predict, no one knows where the SEC case might lead. However, with the executives leaving, the SEC might have a stronger case.
Meanwhile, the BNB price ignores the legality for the moment and hints at a bullish reversal. So, if you plan to invest in BNB, be careful and up-to-date with the legal actions.
JPEX Crypto Exchange Faces Trouble!
The post JPEX Crypto Exchange Faces Trouble! appeared first on Coinpedia Fintech News
Hong Kong’s Securities and Futures Commission (SFC) has handed over the Japanese crypto exchange, JPEX, to the authority after it increased its withdrawal fees to 998 USDT. The warning came after the exchange saw an unexplained rise in withdrawal fees. Furthermore, the staff of the JPEX Singapore 2049 booth is also nowhere to be found. JPEX’s fate remains uncertain as investigations continue.
Friend Tech Sets New Crypto Exchange Record for Trading Volume and Fees!
Friend Tech, a decentralized cryptocurrency exchange, set a new record for trading volume and capture fees on 13 September. Trading volume hit $18.51m and capture fees totalled $1.9m, both new highs for the platform. Friend Tech put the achievements down to the number of daily active users, which reached 15,902, and the platform’s own contribution to the gas cost on the Base chain, accounting for 35.1%. The success of Friend Tech has emphasized the growing potential of decentralized exchanges in the cryptocurrency market space.
Hong Kong’s SFC Investigating Unregistered Crypto Exchange JPEX, Cautions Investors
Hong Kong’s Securities and Futures Commission (SFC) has officially issued a grave warning to the unregistered cryptocurrency exchange, JPEX. The SFC has cautioned that JPEX may potentially face criminal charges for openly promoting its services to the public. The commission has also expressed alarm over JPEX’s high-yield service, which promises returns of up to 20% and is suspected to be a highly risky investment.
No SFC License for JPEX
This caution is part of the SFC’s broader effort to crack down on unregistered cryptocurrency exchanges and fraudulent activities in the region. The SFC has observed that JPEX has been actively promoting its services through various channels, including social media influencers, key opinion leaders (KOLs), and over-the-counter virtual asset money changers.
It’s essential to note that none of the entities within the JPEX group hold a license from the SFC to operate a virtual asset trading platform in Hong Kong, nor have they applied for one.
Concerns Raised by the SFC
The SFC has highlighted several concerns about JPEX, including deceptive claims about licenses, offering exceptionally high returns, and reports of investors facing difficulties in withdrawing their assets. Additionally, some of JPEX’s products appear to be fishy and may involve dealings that do not comply with the SFC’s regulatory framework.
However, SFC has also informed relevant KOLs and over-the-counter shops about their concerns and has requested them to cease promoting JPEX and its services. The step is taken to minimise the user losses in the process.
Enforcement Measures SFC Can Take, Investors To Stay Alert
It is quite evident that the SEC can take control over such entities which engage in fraudulent or deceptive practices involving virtual assets against the law, and they are fully prepared to take enforcement actions against individuals and entities not adhering to their regulations.
In the whole process, investors need to stay alert when they get such scam offers that are too lucrative, especially those promoted on social media platforms by KOLs who may not have professional investment expertise. The SFC also warns against trading virtual assets on unregulated platforms, as investors may face significant risks.
It is of utmost importance to verify the licensing status of any virtual asset trading platform by referring to the SFC’s list of licensed platforms. Detailed information about JPEX, which has been on the SFC’s Alert List since July 8, 2022, is also provided for reference. Also, check on the SFC-listed exchanges to trade.
Hong Kong’s SFC Warns Unregistered Crypto Exchange JPEX!
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Hong Kong’s Securities and Futures Commission (SFC) has warned unregistered cryptocurrency exchange JPEX that it may face criminal charges for marketing its services to the Hong Kong public. The SFC also expressed concern over JPEX’s high-earning service, which offers a return of up to 20% and is suspected of being an extremely risky investment. The warning is part of the SFC’s broader crackdown on unregistered cryptocurrency exchanges and fraudulent activities in the region. Investors are advised to exercise caution and report any suspicious activities to the authorities.
Breaking News: Binance.US CEO Resigns, Is the Exchange On Brink Of Collapse?
As per Bloomberg reports, Brian Shroder, the CEO of Binance.US, has stepped down from his position. Alongside this significant change in leadership, the exchange has taken the measure of reducing its workforce by one-third.
Recently, Binance has faced staff layoffs and notable departures of top executives this year. On September 6th, the exchange had parted ways with several executives in charge of its operations in Russia. In July, Binance garnered attention when its Chief Strategy Officer, Patrick Hillman, announced his departure, along with Steven Christie, a compliance officer who had joined the company in May 2022.
Why Top Executives of Binance Are Resiignig?
Binance.US has faced an increasingly challenging landscape in the United States. Earlier this year, both the SEC and the Commodity Futures Trading Commission took legal action against Binance, Binance.US, and the exchange’s co-founder Changpeng “CZ” Zhao. These legal actions involved a range of allegations, including the operation of an illegal exchange, the sale of unregistered securities, violations of commodities laws, and mishandling of customer funds. These legal challenges emerged against the backdrop of increasing regulatory pressures, with a notable lawsuit filed by the SEC in June, accusing Binance of violating securities laws.
$27M Worth of Crypto Stolen from CoinEx Exchange in Suspected Hack!
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CoinEx, a digital asset exchange, has suffered a suspected hack resulting in the loss of $27 million worth of cryptocurrencies. The exchange’s team reported that a hot wallet was used to transfer various tokens to a wallet with no previous history, leading to what they described as “anomalous withdrawals”. The company has assured customers that the remaining assets are safe and that they are working with law enforcement to investigate the incident. This marks yet another blow to the digital asset industry’s reputation as incidents of cybercrime continue to plague the sector.
Is Binance Exchange on the Brink? The Slow Train Wreck: Troubling Timeline Since December
Binance, the giant cryptocurrency exchange, is caught in an inevitable downturn. From regulatory crackdowns to executive walkouts, the firm’s multifaceted issues could have industry-wide implications. Here’s a comprehensive look at how one of the biggest crypto exchanges in the world is becoming an FTX-like cautionary tale.
January: The BUSD blunder
The year kicked off with Binance owning up to a $1 billion collateral shortfall in its stablecoin, BUSD. While the company claims to have “fixed” the issue, regulators and investors are left asking: How did this happen in the first place?
February: The Paxos Drama
Just when you’d think it couldn’t get worse, the New York Department of Financial Services and the SEC turned their eyes toward Paxos, the issuer of BUSD. The scrutiny led Binance to initiate a “phased wind-down” of BUSD, causing Coinbase to promptly suspend its trading.
March: Accusations Fly
Then the CFTC filed a lawsuit against both Binance and its CEO, Changpeng Zhao, alleging severe regulatory violations. The case has escalated both the legal complications and public scrutiny
April to May: Withdrawals and Investigations
April saw Binance U.S. back out of a significant acquisition deal with Voyager Digital. By May, the platform decided to shut its Canadian operations amid more serious allegations of mingling customer funds with company revenues.
June: The SEC Suit
A lawsuit filed by the SEC in June, presenting 13 charges with compelling evidence, hinted at a bleak future. Speculation erupted that CZ might be stepping down, with Richard Teng possibly in line to replace him.
July: The Great Executive Exodus
In a startling show of internal disarray, three top Binance executives—including the general counsel—resigned, citing disagreements with CZ’s handling of regulatory interactions.
August to September: Partnerships Severed, Executives Leave
Mastercard cut ties with Binance, and its credit card processor, Checkout.com, also halted its services. Meanwhile, Binance struggled to produce financial records as demanded by the SEC. On top of that, the firm’s head of product exits.
Now, the Questions on Everyone’s Mind
- With his personal fortune, could CZ prevent Binance from collapsing?
- CZ has a more solid reputation in Asia. Could this blind spot keep Binance afloat?
- Given the lack of clarity on customer deposit liabilities, is Binance about to collapse?
The coming months should provide some answers, but until then, all eyes remain fixed on this slow-moving train wreck.
HashKey Partners with imToken for Virtual Asset Exchange Market in Hong Kong!
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Hong Kong-based compliance exchange HashKey has partnered with imToken, a non-custodial wallet service. Through the agreement, imToken users will be able to trade virtual assets on HashKey’s platform and perform direct bank transfers for fiat on and off-ramps. The partnership aims to boost the accessibility of Hong Kong’s virtual asset exchange market for imToken users while ensuring that the trading experience remains seamless and secure, thanks to HashKey’s technology and regulatory compliance and imToken’s user-friendly wallet.
HashKey Launches Hong Kong’s First Licensed Cryptocurrency Exchange!
HashKey, the licensed retail cryptocurrency exchange, has launched in Hong Kong, becoming the first of its kind to operate legally in the city. With the growth of the Web3 industry anticipated in the special administrative region, this launch could open the door for more cryptocurrency exchanges to follow suit. HashKey has expressed confidence in Hong Kong’s ability to embrace the digital economy and hopes to play a role in supporting the region’s growth in this area. As cryptocurrencies continue to gain popularity and recognition worldwide, this move is a significant step towards establishing Hong Kong as a hub for emerging digital technology.
Hong Kong’s First Retail Crypto Exchange Goes Live in Web3 Milestone
Hong Kong continues aggressively promoting virtual asset development and merging financial technology with traditional finance. This vision took a leap forward as the city’s first licensed crypto exchange for retail investors, HashKey, officially launched its trading platform on Monday.
The launch marks a significant milestone in Hong Kong’s emerging Web3 economy. HashKey and OSL recently became the only two platforms to receive Securities and Futures Commission (SFC) approval for upgrading their licenses to serve retail crypto investors. This regulatory green light cements Hong Kong’s intentions to be a global hub for regulated virtual asset innovation.
HashKey’s unveiling follows Hong Kong’s October policy statement outlining the city’s plan to foster a thriving virtual asset industry. It established a new licensing regime requiring crypto platforms targeting local users to be regulated by the SFC and meet custody, AML, and risk management standards.
Crypto exchange licensing has been accelerating since the regime took effect in June. SFC negotiations are reportedly underway with over 100 virtual asset companies to promote Hong Kong’s favorable crypto development environment.
Hong Kong implements greater confidence
The robust regulatory climate gives investors greater confidence in accessing crypto through transparently licensed platforms compared to unregulated alternatives. Industry leaders believe bringing discipline and oversight to exchanges protects retail participants while enabling broader virtual asset adoption.
With other major Asian cities also vying to be crypto hubs, Hong Kong’s head start in regulated infrastructure could help cement its status as the continent’s premier virtual asset marketplace. The SFC estimates crypto exchange registrants represent over 85% of current local trading activity, underscoring the traction already achieved.
As more users migrate trading into the regulated environment, HashKey’s timely market entry leverages this first-mover advantage and the readiness among Hong Kong investors to engage with virtual assets through reputable channels. With more exchanges awaiting SFC approvals, Hong Kong’s vision of becoming a thriving crypto hub appears to be firmly in motion.
Bitcoin’s Exchange Balances: Unveiling Investor Sentiment Shifts – Research Report
With Bitcoin’s price experiencing fluctuations in a range, there’s a noticeable shift in how it’s being traded on exchanges. Some are holding onto their assets, while others are making calculated moves, all against a backdrop of global economic factors and market predictions.
Dive into this article to comprehensively understand the current Bitcoin landscape, decoded through key on-chain metrics and market behaviors.
Key Takeaways
- Bitcoin stands at $26,057, navigating a cautious sideways trend after a notable 12% drop.
- Bitcoin’s balance on exchanges hits a five-year low, reflecting shifts in investor sentiment.
- Despite reduced inflows to exchanges, long-term holders are showing increased confidence in Bitcoin’s future.
Bitcoin’s Price Dynamics
Bitcoin’s (BTC) price today is $26,057, with the weekend giving a cold shoulder to any big price movement. Even before the cold weekends, Bitcoin, over the week, maintained a sideways trend following the sharp 12% downfall week, one of the worst since the FTX fiasco.
Within the sideways trend, Bitcoin price movements are choppy within shorter timeframes as it takes hits from bulls and bears. The long wicks and tails and the lack of clear momentum increase the chances of a sharp turn on either side.
Bitcoin’s Exchange Balance: A Historical Perspective
As of 25 August 2023, the total balance of Bitcoin on all exchanges plummeted to a five-year low, standing at 2,256,335 BTC, valued at $58.79 Billion. This starkly contrasts the peak in March 2020, when exchanges held over 3,207,431 BTC, worth $19.21 Billion.
This shift in Bitcoin’s exchange balance can be analyzed in the context of the broader economic landscape, particularly the rising inflation in the US and the Federal Reserve’s repo rate policies.
In periods of low interest rates, traditional investments often yield lower returns. This pushes investors to seek alternative assets that promise higher returns, even if they come with increased risk.
With its decentralized nature and potential for significant gains, Bitcoin has become an attractive option.
However, in the present day of high interest rates, traditional investments like bonds become more appealing due to their perceived stability and guaranteed returns. This leads to a reduced demand for volatile assets like Bitcoin.
But it’s not all gloomy. The decreasing Bitcoin’s balance on exchanges might indicate other dominant factors at play like increased institutional HODLing with Halving coming closer.
Exchange Net Position Change
A metric that stands as a testament to the transformation in the “Total balance of Bitcoin on all exchanges” is the “Exchange Net Position Change.” 
Recent records paint a vivid picture as this metric descends to its lowest point in the past three months, clocking in at an intriguing -29,968 BTC. This negative figure signals a pronounced net outflow of Bitcoin from exchanges, suggesting that withdrawals are outstripping deposits by a significant margin.
Hodler Behavior: Confidence in Bitcoin’s Future
The Hodler Net Position Change metric provides insights into the behavior of long-term Bitcoin holders. The recent value stands at a notable 41,492.7 BTC, marking an increase of 2.909% in the last 24 hours.
This uptick suggests that long-term investors, or ‘hodlers’, are accumulating more Bitcoin, reinforcing their confidence in the asset’s future prospects. Such behavior often indicates a bullish sentiment, as these investors anticipate a potential price surge in the near future.
Decoding On-Chain Exchange Metrics
Exchange Inflow Volume: Bitcoin inflows to exchanges have decreased by 19.771% to 21,192.66 BTC in 24 hours, indicating a potential reduction in selling intent. Investors might be anticipating a price increase or are being cautious due to recent market volatility.
Exchange Deposits: Despite the reduced inflow volume, there’s a 3.606% rise in deposits totaling 48,556. This suggests that more investors, possibly smaller ones, are depositing Bitcoin in smaller amounts. This could be due to new investors exploring the market or experienced traders diversifying.
Exchange Outflow Volume: Bitcoin outflows from exchanges have decreased by 17.118% to 25,980.9 BTC. This suggests a prevailing holding sentiment among investors, possibly in anticipation of a bullish market or due to market uncertainties.
Exchange Withdrawals: There’s been a 9.486% increase in individual withdrawal transactions, totaling 66,897. This indicates that more investors are moving their Bitcoin off exchanges, possibly for security reasons, long-term holding, or other off-exchange activities.
Exchange Balance: The total Bitcoin balance on exchanges has slightly decreased by 0.322% to 2,256,858.97 BTC. This, combined with the outflow data, suggests a trend of more Bitcoins being withdrawn than deposited, indicating reduced selling pressure.
Bitcoin’s recent price movements show that investors are both cautious and hopeful. While fewer people are selling Bitcoin, more individuals are buying it. This could mean that investors are waiting for the right time to sell or that they believe Bitcoin’s price will continue to rise.
On the other hand, more Bitcoin is being taken out of exchanges, which means that many people are choosing to hold onto their assets, possibly because they expect the price to go up in the future.
Whale Moves $15 Million XRP to Bitstamp Exchange!
In an interesting development, a massive transfer of 29.3 million XRP worth over $15 million has been made to the Bitstamp exchange by a significant whale during a price dip. The transfer was observed and reported by Whale Alert on August 24, and has raised speculation regarding the intentions of the large holder. XRP’s price has been facing a notable decline, approaching its support level, and this move could potentially have a significant impact on the coin’s value. The market eagerly awaits further updates on the situation.
Nigerian Exchange Launches PTK Token Amid Doubts!
Nigerian cryptocurrency exchange Patricia has announced the launch of its native token, Patricia token (PTK). However, the news has been met with mixed reactions from the local cryptocurrency community. While some have welcomed the move, others have expressed doubt about the viability of the token given the already saturated nature of the cryptocurrency market. Patricia’s CEO, Fejiro Hanu, remains bullish on the prospects of the token, which he says will enable users to enjoy even more benefits on the platform.
China Unveils Blockchain Data Exchange at Hangzhou Conference!
Hangzhou unveils a blockchain-based data exchange platform aimed at revolutionizing enterprise IT data trading. Developed by officials in the city’s High-tech Zone, the avant-garde platform is expected to redefine the way businesses handle data. Chen Chun, an academician of the Chinese Academy of Engineering, describes the new platform as a pivotal development for enterprise data trading dynamics. The unveiling of the platform coincided with the 2023 Hangzhou Summit, which showcased the city’s progress in the tech industry.
Ethereum’s Bullish Breakout Looms As Exchange Reserve Hits 5-Year Low! Where’s ETH Price Heading Next?
After the market downturn, Bitcoin experienced a decline of over 10% from its crucial $28K mark, with Ethereum reflecting a similar pattern. Presently, despite being aware of the upcoming launch of Ethereum futures ETF in October, both investors and large-scale holders are actively liquidating their holdings. Yet, a promising metric remains that is bringing confidence, suggesting Ethereum could be on the brink of a breakout.
Bullish Signal For Ethereum As Exchange Reserve Touches 5-Year Low
As per Coinglass, traders are consistently offloading their positions, even during slight upticks. In just the past two days, positions worth over $10 million were liquidated, with bullish traders accounting for approximately $6.5 million of that amount. This indicates that Ethereum could encounter significant sell-offs if it tries to climb from its current level, potentially keeping the price confined within a specific range.
However, there’s a bullish metric that is holding promises of a breakout in the ETH price. Data from CryptoQuant reveals that the Exchange Reserve metric has been declining steeply this year, now reaching its 5-year low of 148 million ETH. This level was previously reached on 6 August 2018, when the Ethereum price was trading around $400.
The graph above illustrates that Ethereum’s exchange reserve experienced a decrease in 2021, but the decline became more pronounced in 2022. The metric in this context is the “all exchanges” variant, getting data from both spot and derivative trading platforms.
When this metric rises, it indicates holders are moving their coins to exchanges, likely to swap ETH or cash out. This can increase the asset’s selling supply, potentially driving prices down. Conversely, a decrease suggests reduced selling supply, indicating holders are accumulating and remain bullish on Ethereum. Despite low prices, more ETH is being bought and withdrawn from exchanges, intensifying the supply shock, a bullish scenario for Ethereum.
What’s Next For ETH Price?
Ether’s recovery is facing significant resistance at $1,695, suggesting that sellers are still active and taking advantage of small price surges. However, buyers continue to defend the $1,645 level strongly. As of writing, ETH price trades at $1,656, declining over 0.7% in the last 24 hours.
A weak rebound often points to a lack of energy from buyers. This increases the possibility of an immediate decline below the strong support. If the price decreases and falls below $1,645, it would indicate the continued dominance of the bears. Following this, the ETH price might approach the recent low of $1,550.
On the other hand, if the price surges from its present position and surpasses the upward trend line at $1,700, it could signal the beginning of a strong recovery. The initial target might be above the 50-day EMA at $1,720. If the price goes beyond this, it could aim for $1,860.
Gemini Exchange Responds to SEC Lawsuit: Dismissal Motion Filed
After Coinbase and Binance, Gemini too followed suit by filing a response to dismiss a lawsuit initiated by the U.S. Securities and Exchange Commission (SEC). In the lawsuit, SEC has claimed that Gemini’s service called “Gemini Earn,” which facilitates lending digital assets such as Bitcoin to Genesis, is violating securities regulations by offering unregistered securities.
To reject SEC’s claim, Gemini has filed a brief outlining its argument for dismissal. The crypto exchange claims that the SEC has failed to present a clear case. Like Coinbase they have a similar notion where they want to dismiss the motion because SEC has not laid any valid classification that may constitute what comes under “Security”. Treating everything as securities is vague and unjustified.
Gemini’s cross-motion transpired from the fact that SEC should focus on asking straightforward questions to determine if it’s a security. These questions must include when the alleged security was sold, who the buyer and seller were, and the price offered. They want SEC must first point out the unregistered security and then identify the sale. The SEC hasn’t done this according to Gemini.
SEC Weak Case Against Gemini, Lawyers Say its SEC is “Floundering”
Interestingly, the two theories by SEC between classifying Loan Agreement itself as a security and asserting that the entire Gemini Earn program is a security is somewhat misleading and the company’s lawyer says it is “absurd”.
In response to the recent filing, Jack Baughman has openly outlasted the SEC’s move and said that they are unable to provide any valid arguments against the exchange and on another scoop of losing a case. The important fact he highlighted here is that the regulator cannot even determine what the security in question is.
He raised his doubts over the SEC’s broad interpretation of the term “sale,” noting that it relies on vague points that Gemini and Genesis “sold” their commitment to pay interest in exchange for crypto assets. Baughman rejected this notion, underscoring the distinction between a sale and a loan.
Notably, Baughman, said in previous court filings, Gemini has already clarified that the transactions in their Gemini Earn program are more like loans and shouldn’t be seen as violating securities laws. With no clear rules and regulations, SEC seems confused and inconsistent in its arguments, making SEC look weak in their own stance in the case.
Also, there’s another case happening at the same time. Genesis, the other company in the SEC’s case, is facing issues too. Genesis’ parent company, Digital Currency Group (DCG), wants to get rid of Gemini’s lawsuit. Gemini says DCG didn’t give them the right information about how well Genesis was doing financially.
Three Arrows Capital Co-Founders Slapped with a Hefty $2.7M Fine by VARA Over New Digital Asset Exchange, OPNX!
According to a recent notice, the co-founders of the once-prominent crypto hedge fund, Three Arrows Capital, have been hit with a massive $2.7 million fine by Dubai’s regulatory authorities. The fine is a result of their involvement in the new digital asset exchange, OPNX.
VARA Makes The Biggest Fine Since Inception
Dubai’s Virtual Assets Regulatory Authority (VARA) has imposed a fine of close to $2.8 million on the cryptocurrency exchange OPNX and its founders, as revealed in a recent Wednesday announcement.
OPNX, established by Kyle Davies and Su Zhu — people behind the unsuccessful hedge fund Three Arrows Capital (3AC) — had previously faced VARA’s censure in May. Following the decline of 3AC, Davies and Zhu faced criticism for launching OPNX, a platform that enables investors to trade bankruptcy claims of firms including FTX and CoinFLEX.
The Virtual Assets Regulatory Authority (VARA) announced that they had levied a fine of 10 million dirhams ($2.7 million) against the company in May, which remains unsettled. The authority confirmed that Su Zhu, Kyle Davies, OPNX co-founder Mark Lamb, and CEO Leslie Lamb have each settled penalties of 200,000 dirhams ($54,451) due to non-compliance with marketing, advertising, and promotional regulations.
Given the outstanding fine, VARA stated, “Based on the company’s failure to clear the fine, VARA will decide on the subsequent measures to be taken against OPNX. This could encompass additional fines, penalties, or any necessary steps to ensure payment and decisively address the misconduct.”
In its initial 24 hours of operation, the exchange conducted trades valued at less than $2. Meanwhile, trading entities that were claimed to be significant investors in the OPNX project refuted any association.
Dubai’s Crypto Initiatives So Far
This year, Dubai has intensified its regulatory scrutiny on crypto, introducing a new framework that mandates firms serving retail investors to obtain a license from VARA. This move follows the plan of the United Arab Emirates to be removed from the Financial Action Task Force’s “gray list” – a list of regions deemed inadequate in detecting illicit financial activities.
Zhu and Davies were main in establishing OPNX this year, promoting it as a platform for trading cryptocurrency claims. The co-founders of Three Arrows, who have been in disputes with liquidators aiming to retrieve funds for the creditors of their collapsed fund, have chosen Dubai as one of their main operational hubs following its downfall last summer.
The penalty imposed on OPNX is the highest fine disclosed by VARA since its inception the previous year. In February, VARA noted that the company was actively seeking customers for its platform and gathering personal information.
By early May, the regulator had publicly admonished Zhu, Davies, Mark Lamb, Leslie Lamb, and another individual for running OPNX without the necessary authorization. In May, Leslie Lamb informed that the company had not made any marketing efforts towards Dubai or in the UAE. She mentioned that OPNX was collaborating with VARA’s inquiry and was confident that they hadn’t breached any regulations.
Dasset Crypto Exchange in Liquidation, Customers Stranded!
Auckland-based crypto exchange Dasset has started liquidation proceedings, leaving its customers unable to access their funds. CEO Stephen Macaskill said the exchange had been unable to find a new banking provider after its previous one stopped working with the firm in January 2023. Some customers had been trying unsuccessfully to withdraw funds for months, initial reports suggested. The company’s websites still appeared to be functioning, however, and no news about the liquidation was featured on its official social media accounts.
Binance Becomes the First Fully Licensed Crypto Exchange in El Salvador, Receives Two Licenses From Regulators
El Salvador’s status as a leading crypto nation has been further strengthened as Binance, one of the world’s leading cryptocurrency exchanges, has become the first to gain full licensing approval within the country. This step is not just a win for Binance amid regulatory challenges but also brings a bullish wave for El Salvador’s growing crypto market.
Binance Received BSP And DASP Licenses
Binance announced its acquisition of two licenses in El Salvador, establishing itself as the premier “fully licensed” cryptocurrency exchange in the country.
The duo of licenses, namely the Bitcoin Services Provider (BSP) from the Central Reserve Bank of El Salvador and the inaugural non-provisional Digital Assets Services Provider (DASP) from the National Digital Assets Commission of El Salvador, empower Binance to introduce specialized products and offerings within the nation, the firm reported on Tuesday.
While Binance had previously operated in El Salvador via an offshore platform, these new licenses enable a more comprehensive expansion of its services, according to a company representative.
Daniel Acosta, general manager for Colombia, Central America and Caribbean at Binance, said,
“These licenses allow Binance to expand the products and services offered including options tailored to the needs of our customers in El Salvador. It is also a great opportunity to collaborate closely with government authorities to support the adoption of crypto assets in the country, foster financial inclusion, innovation and ensure customer protection.”
In January, El Salvador’s Legislative Assembly approved legislation governing digital securities, laying the groundwork for the nation to introduce bitcoin-backed securities, commonly referred to as “Volcano Bonds.” By April, Bitfinex announced that they had been awarded the first digital asset service provider license in the country.
Binance is presently engaged in a legal dispute with regulators in the United States. Even amidst regulatory challenges, the cryptocurrency exchange continues to hold its strong market presence and has recently crossed over 150 million registered users.
El Salvador’s Crypto Adoption Rises
Since 2021, El Salvador has demonstrated a favorable approach towards cryptocurrency. That year, it made history by becoming the first nation to officially adopt bitcoin as legal tender. Additionally, earlier this year, El Salvador established a law governing the issuance of digital assets beyond just bitcoin.
This legislation provides a clear regulatory framework for tokenized securities, alternative cryptocurrencies, and enterprises eager to engage in transactions or services centered around non-bitcoin digital assets.
Having secured licenses in El Salvador, Binance now boasts regulatory clearances and registrations across 18 global markets, encompassing countries such as France, Italy, Spain, Sweden, and Dubai. This puts them ahead in terms of regulatory approvals compared to other crypto exchanges, as highlighted by Binance.
Huobi Wants to Be the First Exchange to List PayPal’s Stablecoin PYUSD
Famous cryptocurrency exchange Huobi has signaled its intent to be at the forefront in supporting PayPal’s foray into the digital currency arena with its stablecoin PYUSD.
Huobi’s Commitment to Industry Excellence
According to its press statement, the exchange platform is set to champion the launch of PYUSD, taking the lead in supporting PayPal’s innovative leap into stablecoin. Furthermore, to sweeten the deal for traders, Huobi pledges to offer PYUSD/USDT trading pairs with zero fees – an offer that stands indefinitely.
While the crypto community eagerly anticipates this integration, Huobi has assured traders they’re gearing up to kick off trading as soon as market liquidity and circulation metrics align favorably. Prospective traders should stay tuned for Huobi’s imminent announcement regarding the PYUSD/USDT trading initiation.
The launch of PYUSD marks PayPal’s strategic venture into stablecoin, targeting transfers and payments pegged to the U.S. dollar. Ensuring utmost credibility, the coin is backed entirely by U.S. dollar deposits, short-term U.S. treasury bonds, and cash equivalents. Presently, there’s a circulating issue of 26.9 million PYUSD.
Justin Sun’s Clarion Call
In related developments, the illustrious Huobi advisor, Justin Sun, took to Twitter with an enticing proposition for PayPal. He extended an open invitation, advocating for PayPal to mull over launching PYUSD on TRON – a platform acclaimed for its speed, security, and cost-effectiveness, boasting a whopping 12 billion USD in daily transactions. Sun’s pitch hints at a symbiotic partnership, promising shared advantages in the evolving digital payment space.
It’s noteworthy that PayPal’s ambitious push into crypto payments hasn’t been deterred by the increasingly watchful eyes of U.S. regulators. Even as many firms pull back from crypto engagements due to regulatory pressures and growing investor concerns, the financial giant embarks on an expansion spree, fortifying its offerings in the digital currency domain.
Huobi Exchange Faces $64 Million in Outflows over the Weekend!
Huobi, one of the largest cryptocurrency exchanges, faced a tremendous outflow of $64 million, contributing to the long-term decrease in its total value. According to DeFiLlama, the exchange’s TVL has dropped from $3 billion to $2.5 billion in just a month. This is a significant blow to Huobi, which has been facing regulatory issues in China and struggles to maintain its market share. Many cryptocurrency investors are concerned about the safety of their assets on Huobi and are moving their funds to other platforms.
Is Huobi Exchange Insolvent? TVL Crashes to $2.5B as Chinese Authorities Start Investigation
Cryptocurrency exchange Huobi is currently facing challenges and concerns over its financial stability, leading to a significant outflow of funds and sparking rumors about its operations. The exchange has been in the spotlight recently due to ongoing speculations about its reserves and an alleged investigation by Chinese authorities.
Huobi Insolvency Charges? Is Tether Sell Off a Hint?
The recent breakthrough came in the span of just two days, from August 5 to August 6, Huobi experienced a total outflow of $64 million. The abrupt transfer of funds has resulted in a decline in the exchange’s total value locked (TVL), which dropped from $3.09 billion on July 6 to $2.5 billion at present.
Over the top, there are clouds of rumors regarding the arrest of Huobi’s leadership in China surfaced on August 4. However, all these rumors were linked to an alleged investigation into the exchange’s involvement with gambling platforms.
However, a Huobi spokesperson has dismissed these claims as false, stating that the exchange is operating smoothly. These rumors come at a time when Chinese authorities are reportedly increasing their scrutiny of cryptocurrency exchanges within the country.
With the effect of the rumors there are internal changes in Huobi as well. Some key executives, including at least one C-level executive, have reportedly left the company in recent weeks. It remains uncertain whether these departures are linked to the ongoing investigations. But on Platform X, Huobi officials denied these rumors and claimed the company is doing well.
Analyst: Binance Sold Bulk USDT Amid Huobi Insolvency Rumors
However, Huobi’s Tether (USDT) holdings concern fintech executive and investor Adam Cochran. Huobi’s USDT holdings are inconsistent, according to Cochran, suggesting the exchange may not have as much as it claims. Huobi’s “Merkle Tree Audit” reveals that on August 5, Huobi had less than $90 million in USDT and USD Coin (USDC) assets, despite though consumers think they control $631 million.
He also suspects Tron network founder Justin Sun. Cochran claims that Sun may have used Huobi customers’ funds to fund his own decentralized finance (DeFi) projects, jeopardizing Huobi’s finances. He also said Sun turned half of Huobi users’ 141,000 ETH into stETH.
The analyst also suggests that Binance may be selling Tether to weaken Huobi. Binance may promote additional stablecoins it controls and profits from. Cochran thinks Binance may be aware of possible concerns with Huobi’s Tether holdings and wants to shield itself against a Huobi user sell-off.
These issues and Malaysian securities regulators’ enforcement action that forced Huobi to close its Malaysian operations earlier this year have prompted concerns about Huobi’s financial health and solvency.
FTX Proposes an Offshore Exchange for Non-US Users in its Reorganization Plan.
FTX, a cryptocurrency exchange, has proposed a plan to establish a “rebooted” offshore exchange available to non-US users, according to a draft plan submitted to the court. If approved, the reorganization plan will sort claimants into different groups, identifying FTX.com offshore exchange users as “dotcom customers” and FTX US users as “US customers”. The plan proposes that each dot com customer will receive a pro-rata share of the proceeds from a pool of assets associated with the FTX.com exchange, net of expenses. Claims from non-customers, such as regulatory penalties and taxes, would be subordinated.