(1/) Analyze and share some views on the SEC’s complaints and cz:

1. The SEC filed a civil lawsuit against Binance and cz (Shen Liu Ji, collecting protection fees). Historically, the SEC has filed civil lawsuits against Ripple, Tether, Telegram, Sun Ge, etc. The final result is basically the same for everyone. We are sincere, as long as we are willing to spend money or drag it on, then things will last for a very long time (1-3 years or even longer)

(2/) To facilitate understanding of the difference between civil litigation and criminal litigation: ① The purpose of civil litigation is to resolve civil disputes, including contract disputes, torts, etc. Its purpose is to protect the rights and interests of the parties and pursue financial compensation or other relief measures. The purpose of criminal proceedings is to punish criminal behavior and maintain social order and public interests. ②Consequences: Civil litigation judgments are usually in the nature of compensation, while criminal litigation judgments are fines, imprisonment, etc.

(3/) From the above differences, you can understand why civil litigation is a hooliganism. Historically, the SEC has made more than 7 billion U.S. dollars in cumulative revenue from the encryption market. Is this protection fee not good?

2. Are there any serious inside stories in the SEC prosecution? Let’s briefly list the reasons why the SEC sued. The SEC mainly made three accusations this time: ① It accused Binance of providing securities services, and also characterized more than 10 currencies such as SOL and ADA as securities.

(4/) It is also a commonplace accusation that Binance does not have a registered securities license, so it has filed lawsuits against it in advance. ② It accuses Binance and Bam Trading, with cz as the main controller, of illegally providing and selling securities, including bnb vault, staking, etc. This has been done by many previous transactions. The similar accusations against Gemini and Kraken are somewhat hard-hit crimes, but within the jurisdiction of the SEC, whatever he says is what he says and there is no way to refute it.

(5/) ③ Accused binance and trading of manipulating compliant binance us and obtaining more than 200 million US dollars in investment and billions of dollars in transactions (this was the source of previous rumors that binance confused user funds. Now In fact, it was also explained that the incident did not happen) The most important ones are these three accusations. In fact, if you look carefully, there is not much big news and information. It is a routine prosecution, so why did it drop so much?

(6/) Because I just happened to catch up with the cz substitution, the SEC just made the substitution last night, which caused a certain amount of panic and some fud rumors. It doesn't seem to have much impact now. Of course, we don't know whether there is a possibility that cz will take the opportunity to retreat to the second line. Then, we can peek into the initial reasons for its behavior through the ultimate purpose of the SEC. The SEC’s final civil lawsuit against binance and cz has the following four claims:

(7/) ① Prohibit cz-centered binance, bam trading and other related companies and individuals from participating in transactions ② Confiscate approximately US$11.6 billion in revenue from 2018 to 2021 (this is the SEC’s estimated revenue, the actual revenue has yet to be studied) ③ Civil fines will be imposed on Binance for engaging in securities services in order to register for a securities license ④ cz will be prohibited from serving as an executive of any company that has registered a securities license. It is not difficult to see the SEC's ideas from the purpose and motivation.

(8/) The SEC’s appeal is ultimately for fines, and the specific amount must still be negotiated. At this stage, there are no serious violations or loopholes, so there is a high probability that there will be no black swan or gray rhino incidents. It is a normalized prosecution behavior by the SEC. On the contrary, CZ's intention to withdraw from the second line has caused a greater emotional impact. The combination of the two is secretive and false, so I suspect that there is a possibility that CZ will take the opportunity to withdraw from the second line.

Final summary:

The interpretation of this SEC incident has been completed. In the short term, there is no greater negative side. On-chain data feedback shows that binance has not experienced a large amount of capital flight or run, and the overall operation remains stable. Therefore, I personally defined this decline as a gold pit, and carried out cover-up actions. From June to July, I was still optimistic about the slight market trend, but from August to December, I was very pessimistic. If you want to participate in the market, be sure to do risk control and set a stop loss.