Cryptocurrency News: Key Updates from September 22-28
Binance Founder Changpeng Zhao Walks Free
Changpeng “CZ” Zhao, the founder of Binance, was released from a US federal prison on September 27 after serving a four-month sentence for Anti-Money Laundering (AML) violations. Zhao had pled guilty in November to charges related to failing to implement proper AML controls at Binance, the world’s largest cryptocurrency exchange by daily trading volumes. He stepped down as CEO following the charges. Zhao, who has a net worth of approximately $60 billion, is the wealthiest individual to have served a prison sentence in the United States.
Caroline Ellison Receives Two-Year Prison Sentence
Former Alameda Research CEO Caroline Ellison was sentenced to two years in a minimum-security prison on September 24 for her involvement in the collapse of FTX. Judge Lewis Kaplan of the Southern District of New York also ordered Ellison to forfeit approximately $11 billion she had earned from FTX. Despite the potential for a 110-year sentence, the judge showed leniency, acknowledging her cooperation with prosecutors in the case against Sam Bankman-Fried, her former colleague and alleged boyfriend.
Crypto Company Founder Faces Charges for Bribery and Fraud
Adam Iza, the owner of the crypto trading platform Zort, was charged with fraud, bribery, and involvement with corrupt law enforcement officials. An FBI affidavit disclosed that Iza had funneled wealth through shell companies, spent it on luxuries, and concealed tens of millions of dollars without reporting taxes. Iza allegedly paid Los Angeles County Sheriff’s Department deputies to file unlawful search warrants and access police data to coerce victims into handing over cryptocurrency.
Cardano’s Governance Model vs. Ethereum’s “Dictatorship”
Charles Hoskinson, founder of Cardano, criticized Ethereum’s governance model, calling it a “dictatorship” that relies too heavily on its co-founder, Vitalik Buterin. Hoskinson claimed that Cardano’s new governance model, which uses delegated representatives and a members-based organization called Intersect, addresses the “governance trilemma” of efficiency, effectiveness, and integrity. He argued that this model prevents the anarchy of Bitcoin and the dictatorship of Ethereum, maintaining decentralization while ensuring coherent decision-making.
Kamala Harris Speaks on Cryptocurrency
United States Vice President Kamala Harris made her first public statement about cryptocurrency during her presidential campaign. At a Wall Street fundraiser, she emphasized the need to invest in innovative technologies like AI and digital assets while ensuring consumer and investor protection. Harris promised to create a safe business environment with clear and transparent regulations, aiming to foster America’s competitiveness and future growth.
Winners and Losers in the Crypto Market
As of the end of the week, Bitcoin (BTC) stood at $66,048, Ether (ETH) at $2,685, and XRP at $0.59, with a total market cap of $2.33 trillion. The top three altcoin gainers were Shiba Inu (SHIB) at 48.96%, Wormhole (W) at 34.82%, and Bonk (BONK) at 33.02%. The top three losers included Monero (XMR) at -8.27%, Nervos Network (CKB) at +1.09%, and TRON (TRX) at +2.18%.
Memorable Quotations
- Judge Lewis Kaplan on Caroline Ellison: “You’re a very strong person, Ms. Ellison, in some ways, but not inviolable. Mr. Bankman-Fried had your kryptonite. […] You were vulnerable and you were exploited.”
- Charles Hoskinson on Ethereum’s governance: “Where does this idea of embracing layer 2s or rollups come from? Was it some random Ethereum engineer — or was it Vitalik Buterin writing a blog post about it, talking about it, and advocating for it?”
- Nic Carter on the US government’s impact on the crypto industry: “The government’s desire to decapitate the domestic crypto industry through covert rulemaking aimed at crypto-focused banks both initiated and worsened the banking crisis of 2023, the largest since the great financial crisis in 2008.”
- Aurelie Barthere on crypto market trends: “Keeping crypto allocation or skin in the game makes sense as the Fed has just given more juice to this bull market. But a lot is already in the price of risk assets
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