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<p class="is-style-lead">This week, Binance agreed to a $4.3 billion settlement and saw founder Changpeng Zhao exit as CEO; the U.S. SEC levels charges against Kraken; and HECO Bridge, another venture affiliated with Justin Sun, suffered an $85 million hack.</p> 
<h2 class="wp-block-heading" id="binance-troubles">Binance troubles</h2> 
<ul> 
 <li>On Nov. 20, the U.S. Department of Justice (DoJ) <a href="https://crypto.news/u-s-doj-seeks-4b-settlement-from-binance-ceo-may-face-criminal-charges/">proposed</a> a $4 billion settlement with Binance, addressing allegations related to money laundering and sanction violations.</li> 
 <li>Binance founder Changpeng Zhao <a href="https://crypto.news/binance-ceo-changpeng-zhao-steps-down-with-response-to-the-sec-following-guilty-plea/" data-type="link" data-id="https://crypto.news/binance-ceo-changpeng-zhao-steps-down-with-response-to-the-sec-following-guilty-plea/">resigned</a> due to the criminal charges. Uncertainty regarding extradition emerged, as Zhao currently resides in the United Arab Emirates.</li> 
 <li>Binance’s influence within the crypto sector is still undeniable; Blur’s recent listing on Binance, for example, <a href="https://crypto.news/binance-listing-triggers-75-price-surge-for-blur-token/" data-type="link" data-id="https://crypto.news/binance-listing-triggers-75-price-surge-for-blur-token/">triggered</a> an upward move in its price.</li> 
</ul> 
<h2 class="wp-block-heading" id="the-aftermath">The aftermath</h2> 
<ul> 
 <li>Meanwhile, Binance’s BNB token <a href="https://crypto.news/bnb-plummets-9-2-amidst-wider-crypto-downturn-in-the-wake-of-u-s-dojs-binance-charges/">plummeted</a> 9.2% in 24 hours. Binance also <a href="https://crypto.news/binance-outflows-reach-1-2b-in-past-7-days/">witnessed</a> outflows amounting to $1.3 billion in a seven-day period amid the reports.</li> 
 <li>In a Nov. 23 report, CryptoQuant <a href="https://crypto.news/bitcoin-flows-from-binance-to-coinbase-after-tumultous-week/">confirmed</a> that some of these funds leaving Binance were making their way to Coinbase Pro. Another factor driving the shift in funds was the anticipation of a spot Bitcoin (<a href="https://crypto.news/price/bitcoin/" data-type="link" data-id="https://crypto.news/price/bitcoin/">BTC</a>) ETF in the U.S.</li> 
 <li>These outflows from Binance were primarily due to widespread concerns on the heels of the $4.3 billion fine. Coinbase director Conor Grogan <a href="https://twitter.com/jconorgrogan/status/1727014343613841443" target="_blank" rel="noopener">explained</a> that Binance’s proof of reserves confirms the company can settle the fine without leveraging users’ funds.</li> 
 <li>Binance’s newly-appointed CEO Richard Teng affirmed Grogan’s disclosure, <a href="https://crypto.news/new-binance-ceo-says-company-fundamentals-remain-strong-despite-4-3b-doj-fine/">reiterating</a> that the company remains financially strong amid the current legal woes.</li> 
</ul> 
<h2 class="wp-block-heading" id="flight-risk">“Flight risk”</h2> 
<ul> 
 <li>Zhao will face his sentencing in a U.S. court on Feb. 23, 2024. The DoJ has <a href="https://crypto.news/doj-urges-judge-to-require-binances-zhao-to-stay-in-the-u-s-before-sentencing/">pushed</a> to keep Zhao in the U.S., preventing him from heading back to the UAE before the sentencing, citing him as a “flight risk.”&nbsp;</li> 
 <li>Zhao’s legal time <a href="https://crypto.news/changpeng-zhaos-legal-team-suggests-home-detention-says-he-is-not-a-flight-risk/">replied</a> to the DoJ’s petition on Nov. 24, calling attention to the former CEO’s willingness to take responsibility for the charges against Binance. They suggested that Zhao does not pose a flight risk, and he is allowed to go back to the UAE and face home arrest and community confinement.</li> 
</ul> 
<h2 class="wp-block-heading" id="heco-bridge-suffers-83m-hack">HECO bridge suffers $83M hack</h2> 
<ul> 
 <li>On Nov. 22, HECO bridge, a product of crypto entrepreneur Justin Sun’s HTX exchange, <a href="https://crypto.news/justin-suns-cryptocurrency-venture-loses-over-100m-in-recent-hack/" data-type="link" data-id="https://crypto.news/justin-suns-cryptocurrency-venture-loses-over-100m-in-recent-hack/">suffered</a> a breach that saw a loss of $85 million. In addition, HTX also suffered an unauthorized outflow of $12.4 million.</li> 
 <li>Amid the troubles, HTX paused withdrawals and promised its customers it would gradually open them on Nov. 23. However, the exchange <a href="https://crypto.news/customers-left-confused-as-htx-reportedly-struggle-to-resume-withdrawals/">failed</a> to keep to this promise on the selected date, raising further concerns.&nbsp;</li> 
 <li>As customers await the resumption of deposits and withdrawals, Sun channeled his inner benevolence in a Nov. 24 post on X. He <a href="https://crypto.news/justin-sun-announces-airdrop-for-htx-and-poloniex-users-after-hack/">announced</a> an airdrop for HTX and Poloniex customers in the wake of the hack incidents.</li> 
</ul> 
<h2 class="wp-block-heading" id="bankman-fried-s-leave-request-denied-do-kwon-extradition-approved">Bankman-Fried’s leave request denied, Do Kwon extradition approved</h2> 
<ul> 
 <li>This week, FTX founder Sam Bankman-Fried’s request to gain release before his sentencing date was <a href="https://crypto.news/appeals-court-rejects-sam-bankman-fried-release-request/">denied</a> by a U.S. Court of Appeals. The court called attention to Bankman-Fried’s record of attempting to tamper with the testimony of witnesses in the past.</li> 
 <li>On the other hand, Terra founder Do Kwon, currently in Montenegro, will be on the move soon. On Nov. 24, a Montenegrin court <a href="https://crypto.news/breaking-montenegro-court-approves-do-kwons-extradition/">approved</a> requests from South Korea and the U.S. to extradite Do Kwon, so he could face charges in these countries.</li> 
</ul> 
<h2 class="wp-block-heading" id="sec-comes-for-kraken-amid-regulatory-efforts">SEC comes for Kraken amid regulatory efforts</h2> 
<ul> 
 <li>Besides Binance, U.S. agencies came for Kraken this week. Interestingly, the U.S. SEC <a href="https://crypto.news/sec-sues-kraken-crypto-exchange-due-to-illegal-operation/">alleged</a> that the trading platform Kraken is offering unlicensed securities services. </li> 
 <li>Kraken noted that it would face the SEC in court.</li> 
 <li>Amid these enforcement actions, House Majority Whip Tom Emmer <a href="https://crypto.news/house-gop-whip-tom-emmer-sees-no-need-to-rewrite-laws-for-crypto-following-binances-settlement/">claimed</a> the U.S. Congress does not need to review existing financial laws to accommodate the crypto industry. According to him, the current laws are sufficient to fish out bad actors.</li> 
 <li>While the U.S. discussed its crypto regulatory landscape, Argentina <a href="https://crypto.news/bitcoin-advocate-javier-milei-wins-argentine-presidential-race/">voted</a> in a Bitcoin advocate to address the growing inflation in the country. Javier Milei’s victory in this week’s presidential elections triggered speculation of another Bitcoin-friendly nation like El Salvador.</li> 
</ul> 
<h2 class="wp-block-heading" id="updates-on-etf-discussions">Updates on ETF discussions&nbsp;</h2> 
<ul> 
 <li>Meanwhile, the crypto community saw some updates on the ETF discussions. Bloomberg ETF analyst James Seyffart <a href="https://crypto.news/bloomberg-blackrock-and-grayscale-meeting-with-sec-about-bitcoin-etf-issuance/">revealed</a> that BlackRock and Grayscale, both with pending ETF applications, met with the SEC this week.</li> 
 <li>Shortly after the meeting, Grayscale <a href="https://crypto.news/grayscale-updates-spot-bitcoin-etf-application-after-meeting-with-sec/">updated</a> its ETF filing with the SEC, revealing plans to convert the GBTC Trust to a spot BTC ETF with the ticker BTC.&nbsp;</li> 
 <li>Optimism within the community was rekindled by <a href="https://crypto.news/sec-commissioner-on-spot-bitcoin-etfs-no-reason-to-block/">comments</a> from SEC Commissioner Hester Peirce. According to Peirce, there is no justifiable reason for the SEC to object to a spot BTC ETF.&nbsp;</li> 
</ul> 
<h2 class="wp-block-heading" id="hackers-steal-290-million-in-november">Hackers steal $290 million in November</h2> 
<ul> 
 <li>In addition to the HECO bridge hack, the crypto scene witnessed several other attacks. One of these incidents <a href="https://crypto.news/kyberswap-suffers-multichain-exploit-resulting-in-45m-loss/">involved</a> the KyberSwap DEX, which lost $45 million to an exploit on Nov. 22.</li> 
 <li>Amid the exploits, consolidated data from Lookonchain <a href="https://crypto.news/november-scores-exploiters-290m-over-5-major-crypto-hacks/">disclosed</a> that crypto protocols have lost $290 million to hackers in November alone. These exploits include the Poloniex, HTX and HECO bridge attacks, and the KyberSwap and Kronos Research hacks.</li> 
 <li>As hacks and scams gained steam, a disclosure from the Tether underscored the government’s fight against these bad actors. Tether froze $225 million in USDT in a DoJ enforcement action. The funds were linked to a $3.3 billion scam scheme last year.</li> 
</ul> 
<h2 class="wp-block-heading" id="blast-commands-a-310-million-inflow">Blast commands a $310 million inflow</h2> 
<ul> 
 <li>The chaos of this week did not impede the growth of Blast, a new layer-2 protocol on Ethereum (<a href="https://crypto.news/price/ethereum/" data-type="link" data-id="https://crypto.news/price/ethereum/">ETH</a>). Shortly after launch, the L2 network <a href="https://crypto.news/new-ethereum-layer-2-network-blast-sees-a-massive-310m-inflow/">recorded</a> over $310 million in inflows, suggesting an impressive growth rate.</li> 
</ul> 
<p> Read more: <a href="https://crypto.news/the-future-of-ownership-belongs-to-asset-tokenization-opinion/"> The future of ownership belongs to asset tokenization </a> </p>

Binance CEO exits amid $4b DoJ fine, SEC sues Kraken, Justin Sun’s venture suffers hack | Weekly Recap

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