Today I share an article that really touched my heart. The article begins
Zhao Changpeng finally admitted defeat today, brothers, who is he? He is the founder of BInance, the world's largest exchange, the former richest Chinese, and now the pride of Chinese people, Zhao Changpeng.
A generation of heroes has since retired from the world. The specific thing is that on Tuesday, November 21, Zhao Changpeng pleaded guilty to U.S. regulators, admitting that he had violated anti-money laundering regulations and criminal charges of U.S. sanctions, and agreed to pay a sky-high fine of 4.3 billion US dollars, which included confiscation of income of 2.5 billion and criminal fines of 1.8 billion. The United States also made a lot of money this time. This Qin Shihuang won by touching the electric switch. However, this 4.3 billion is just a drop in the bucket for BInance, which has made tens of billions of dollars in a bull market in a year. Well, no matter how BInance faces this 4.3 billion fine, the focus should be on the impact of this incident on our market. What about us as retail investors? Where are our opportunities to make money? Follow the big beautiful wealth code to your home. The same sentence is still below. All content is the original work of our team and is not any form of investment advice.
First of all, let's take a look at this matter. Let's first look at what penalty CZ admitted. According to the bail documents of the Seattle Federal Court of the United States, Zhao Changpeng, your sentencing hearing will be held on February 23, 2024. At that time, you will pay a bail of 175 million US dollars, and you can return to Dubai, but you must attend this hearing.
As for this matter, many old fans know that BInance was founded in 2017. In fact, as early as 2018, the U.S. Department of Justice had been investigating BInance and Changpeng Zhao. They have always suspected that BInance has violated anti-money laundering regulations and anti-sanction regulations. We want to study you, investigate you, and catch you in the act. This arrest lasted for several years. Time flies and it is November 2022. At that time, Changpeng Zhao did a shocking thing, which was to detonate FTx. FTx made a big mistake at the time. He misappropriated customer assets. The misappropriated funding gap was close to 10 billion US dollars. CZ detonated this bomb and also affected the interests behind it.
The Jewish capital behind this said, well, you kid smashed my rice bowl, right? Then, we can see that various regulatory agencies in the United States have united to launch a new round of fierce attacks on BInance. Let's see how fierce it is. On March 27 this year, the Commodity Futures Trading Commission sued BInance and Zhao Peng. On June 5 this year, the Securities and Exchange Commission sued BInance and Zhao Changpeng. This time and again, the United States is really serious. You have to know that after all, our BInance once occupied 70% of the web three trading market. As the saying goes, how can you let others have water in your plan? Different skin colors must have different intentions. Although the United States is determined to manage BInance this time, so in terms of supervision, BInance must pass both emotionally and rationally.
Well, everyone has seen the final result of this stage. Zhao Changpeng admitted the penalty. In the past few years, I did not do a good job in anti-money laundering compliance, but after your investigation, I did not embezzle any customer funds. I did not participate in any market manipulation. I will pay the fine and go to the hearing. Let's settle it and laugh it off. After this solution, the United States can still supervise BInance in the next five years. In the American territory, it will also abide by the corresponding rules of the game and make the company bigger and stronger.
All in all, such a final result actually gave a fair explanation to the US regulators, and the old Fed also got some light in the end. The two sides turned hostility into friendship, and the 4.7 billion was not a loss at all.
Okay, let’s take a closer look at the impact of this incident on the entire market.
You know, this regulatory farce has been going on for a whole year. Today, it has come to a successful conclusion. What is this called? This is called the negative impact. What kind of impact will it have on the market? Da Piaoliang summarized five points
The first point is called risk realization. The market is not afraid of risks, but is afraid of the unknown and uncertainty. Therefore, the realization of risks is called negative impact realization. Moreover, after this, BInance's more compliant development will also be beneficial to the development of the entire web three industry.
The second point is that the funds in our industry are relatively safe. After an investigation by relevant US departments, it was found that there was no final conviction for this crime. There was only one anti-money laundering crime, and no crime of misappropriation of user funds. This shows that BInance still has a conscience. It always focuses on the safety of user funds. The US regulatory authorities have given BInance an endorsement from the side. Well, the user funds on your platform are safe.
The third point of impact on the market, I think it may be due to the new successor, after CZ left, the new person is Richard Teng. So everyone believes that our Zhao Changpeng has a good eye for selecting people, he will definitely lead the entire web three industry to a new height, after all, he has many years of experience working in financial regulatory agencies in Azhabi and Singapore, he is a seasoned boss with very powerful resources.
The fourth point I think is the deterrent effect. You said that BInance cannot escape the long-arm jurisdiction of the United States. So this incident is also a reminder to practitioners around the world not to stretch out your hands. If you do, you are breaking the law and will definitely be beaten. Especially those dog dealers, as long as you are on the earth, no matter you go to the sky or hide underground, I can carry you back with the long-arm jurisdiction of the United States. Hey, dog dealers, you have to add some tails to behave yourself.
The fifth impact I think is that after such an incident, the spot ETF will be approved soon. You should know that there are four US regulators that have reached a settlement with Binance, including the Commodity Futures Trading Commission of the US Department of Justice, the Office of Foreign Assets Control, and the Financial Crimes Enforcement Network. With these four, who else is missing?
The U.S. Securities and Exchange Commission (SEC) sued BInance and Coinbase in June. The lawsuit has not been concluded yet. In addition, there is a con base, which has a direct relationship with ETF spot, that is BlackRock. Who is the third-party fund custodian of the spot ETF applied by these institutions? It is this con base. What is the result of the settlement of BInance today?
In fact, it gave the SEC some confidence. What kind of confidence? After the four-party investigation, it was shown that B An did not misappropriate user assets and did not manipulate the market. So why is the SEC still worried about market manipulation? It is estimated that this lawsuit will be settled soon. So what obstacles are there on the road to the approval of the spot ETF?
Well, the above five points are the possible impacts on the market that we have summarized. Now let’s talk about our money-making opportunities. This time it does seem to be a crisis, but Churchill said that a good crisis should never be wasted. BInance’s crisis has come to an end, which means our money-making opportunities are coming. There are probably three types of big beautiful
The first one is that we should invest in mainstream assets. We have to invest. Why? Although it seems that BInance has bad news this time, it is actually harmless. It has not hit users' confidence in BInance. On the contrary, it proves the security of BInance and allows users to use this platform with more confidence. Therefore, this bad news can only be called a correction, not a plunge.
The second reason is that the probability of spot ETF passing is high. What is the next key time node? It is January 10th. We need to make a decision on January 10th. If there is another bottom on January 10th, then the final decision time will be March 15th. In the meantime, if there are no other black swan events, then the short-term correction is an opportunity for us to invest in mainstream coins such as Bitcoin. Don't mess around. We must first earn the most stable income.
Let's talk about the second trading opportunity. The second trading opportunity comes from on-chain transactions. For example, BInance recently launched the web three wallet BRC20 inscription, and there should be another wave of popularity. The entire ecosystem is still in a relatively early stage. At least a relatively large Layer2 will be produced. Well, about the opportunities in this competition, Da Piaoliang will give you a detailed ecological analysis in the next issue. These small sectors are often high-risk and high-return, and anything like ten times or a hundred times is possible.
Well, what about the third opportunity point, called the fine concept, what does it mean? Let's refer to the experience of FTx's bankruptcy before. The bankruptcy led to a decline, but later there was news that FTx restarted 2.0, and it went crazy and soared. So there is a deep rebound here. The meaning of this deep rebound for BInance is different, because BInance has many high-quality projects invested in early, and its ecology is still developing. We can ambush them. These are not yet online, or are locked, and its launch pad is here. Let's not elaborate on it.
The above is the whole story of this incident. Finally, I want to say that Tsui Hark once said this in the movie Oriental Invincible: The world's storms are created by our generation. The world's storms are created by our generation. We have entered the world of martial arts, and we are working hard to achieve hegemony. We are drunken in the midst of laughter and conversation.
The biggest sacrifice behind this is none other than Zhao Changpeng. Zhao Changpeng immigrated to Canada with his family when he was 11 years old. He worked as a worker at McDonald's and a gas station in Vancouver, sold securities system codes in Tokyo, and developed futures trading software in New York. He worked hard all the way until he founded BInance at the age of 40. After the establishment, he was determined to be the first in the industry. He was very radical in the early stage of the industry. Now he is the only one who has to take all the beatings and stand at attention, and has retired from the world. Looking at the content of the agreement, it says that Zhao Changpeng will face 18 months in prison. Whether he will be imprisoned or not cannot be concluded rashly. A decision will be made next year. Even so. Zhao Changfeng has already resigned. Is he not determined to be imprisoned? It is all his personal behavior and has nothing to do with the company. This is the real hidden merit and fame.
Finally, we also thank him for his countless contributions to our web3 industry, and thank him for supporting the Chinese people for many years. As for BInance, from today on, it is no longer Zhao Changpeng's BInance, nor is it a unified BInance. It is the BInance of all Web3 people. We insist on building in this track. Brothers, let's work hard together. Article from Da Piaoliang
