Richard Teng became CEO of crypto exchange Binance after Changpeng Zhao agreed to step down as part of a settlement with the U.S. Department of Justice announced on Nov. 21.
Richard Teng, Binance’s former global head of regional markets and now CEO, announced his intention to drive growth at the crypto exchange following Changpeng “CZ” Zhao stepping down.
In a Nov. 27 blog post, Teng said he had the support of CZ and Binance’s leadership following the former CEO’s departure as part of an agreement with United States officials. According to Teng, Binance plans to continue a user-focused approach to its business and “drive growth and the adoption of Web3,” assuring customers they will hear more from him soon.
“I am eager to jump headfirst into my new role and know there will be many more opportunities for me to share my thoughts with the community through blogs like this one, through my social media accounts — Twitter, LinkedIn — and through the many industry conferences and events around the world,” said Teng.
I want to take this opportunity to share immediate focus areas, discuss our responsibility to users and my view on the future of our industry.https://t.co/c6QMS6Ulmm
It’s unclear how Teng will manage Binance’s business as it balances U.S. oversight with a well-known figure like CZ moving out of its leadership. On Nov. 22, blockchain analytics firm Nansen reported that there didn’t appear to be a “mass exodus of funds” 24 hours after the U.S. settlement with Binance, with the exchange’s total holdings increasing to more than $65 billion.
Teng became CEO of the major crypto exchange after Zhao agreed to step down as part of a settlement with the U.S. Department of Justice announced on Nov. 21. CZ pleaded guilty to one felony charge and will pay $150 million to regulators, while the crypto exchange agreed to roughly $4.3 billion in penalties.
Authorities are attempting to restrict travel for Zhao, who is usually based in the United Arab Emirates and has family in Dubai. The former Binance CEO could face up to 18 months in prison following his sentencing in February 2024.
The recent JPEX and Hounax exchange scandals have resulted in losses exceeding $100 million.
A one-year grace period for cryptocurrency exchanges operating in Hong Kong will remain in place despite recent scandals.
According to local news reports on Nov. 27, Julia Leung, CEO of Hong Kong’s Securities and Futures Commission, stated, “Even if the grace period ends tomorrow, fraud will still occur, so there is no intention to modify the grace period and other measures for the time being.”
According to new regulations introduced in June, crypto exchanges operating in Hong Kong must apply for a virtual asset service provider (VASP) license with the city’s Securities and Futures Commission by June 2024 or face deregistration. However, unregistered exchanges can operate in the city during the interim transition period.
Several crypto scandals have rocked the special administrative region recently. In September, Hong Kong crypto exchange JPEX, which was unlicensed at the time, collapsed after allegations of a Ponzi scheme led to 66 arrests and an estimated 1.6 billion Hong Kong dollars ($205 million) in losses.
On Nov. 25, Hounax, another unlicensed crypto exchange, reportedly scammed 131 residents out of 120 million HKD ($15.4 million) through yet another alleged Ponzi scheme. Chan Waikei, superintendent of the Hong Kong Police’s Commercial Crime Bureau, explained that scammers impersonated investment experts and solicited users with the promise of high returns. When users later tried to withdraw the funds, they could not do so.
On Nov. 27, Cointelegraph reported that the Binance-linked HKVAEX exchange is still trying to apply for a license in Hong Kong. Earlier this month, BC Technology Group, owner of Hong Kong crypto exchange OSL, secured a $90 million investment from blockchain firm BGX.
The British bank will provide e-CNY CBDC services to clients and explore its future use in China's financial system.
British multinational bank Standard Chartered will partake in trials of China's digital yuan central bank digital currency (e-CNY CBDC), one of the first foreign banks to do so in the country.
According to the Nov. 27 announcement, Standard Chartered, through its partner City Bank Clearing Services Co., will allow its clients to purchase, exchange, and redeem e-CNY within its bank accounts. "As an international bank rooted in the Chinese market for 165 years, Standard Chartered is optimistic about the development prospects of digital Renminbi," said Xiaolei Zhang, president of Standard Chartered China.
The bank will also join China's e-CNY CBDC pilot testing program, which is currently ongoing within 26 cities and provinces. Standard Chartered stated that its areas of exploration include cross-border merchant payments, trade financing and supply chain financing.
Last year, Standard Chartered participated in the "Multilateral Central Bank Digital Currency Bridge" proof-of-concept test project in Hong Kong for providing cross-border payment settlement services for retail and enterprise clients. In May 2023, Standard Chartered and PricewaterhouseCoopers China jointly released the report "Central Bank Digital Currency to Create a Future Banking Ecosystem," discussing the application prospects of CBDCs in the fields of retail, trade and supply chain finance.
On Nov. 25, China's central bank published a white paper titled "A cross-border e-commerce business-to-business digital renminbi application solution." The document called for commercial payment processors to integrate the e-CNY CBDC for consumer transactions. Since its inception in 2020, e-CNY transactions have surpassed 1.8 trillion Yuan ($253.6 billion), while the number of wallets has surged to 120 million.
Paradigm, one of Blast’s seed investors, criticized the protocol’s decision to launch a bridge before its L-2 and withdraw capability.
Crypto venture capital firm Paradigm criticized Blast’s protocol marketing strategy, claiming the startup “crossed lines in both messaging and execution." The VC firm is a seed investor in Blast.
The head of research at Paradigm, Dan Robinson, shared a statement on X (formerly Twitter) expressing disagreement about Blast’s decision to launch a bridge before its layer-2 network and to not allow withdrawals for three months. “We think it sets a bad precedent for other projects,” Robinson wrote, adding that “much of the marketing cheapens the work of a serious team.”
There are a lot of components of Blast that I’m excited about and would be interested in engaging with people on. That said, we at Paradigm think the announcement this week crossed lines in both messaging and execution. For example, we don’t agree with the decision to launch the…
Paradigm has been in touch with Blast about its concerns, Robinson noted, emphasizing that “there are still many points of disagreement” between the companies.
Despite the criticism, the head of research also acknowledged that Blast’s team is formed by “world-class builders,” with demonstrated “ability to build great products.” Blast's governance structure is unclear, as is Paradigm's role in the startup's decision-making process. According to Robinson:
"We invest in strong, independent founders who we don’t always agree with. But we understand that people may look to us to set an example on best practices in crypto. We don’t endorse these kinds of tactics and take our responsibility in the ecosystem seriously."
In addition, Watts noted that Blast "is just a 3/5 multisig”, meaning that if an attacker gains access to three out of five team members' keys, they can steal all cryptocurrency deposited into Blast's contracts.
Watts also claimed that Blast “is not a layer 2,” but simply “accepts funds from users” and “stakes users’ funds into protocols like LIDO” without using any bridges or testnet. Additionally, he criticized the lack of withdrawal functionality. To withdraw in the future, users must trust that developers will add withdrawal functionality in the future.
In spite of the controversy surrounding its launch, Blast has amassed over $555 million in total value locked (TVL) since its launch a few days ago. The protocol claims to be “the only Ethereum L2 with native yield for ETH and stablecoins.” An airdrop is scheduled for January.
Bitcoin is facing resistance at $38,000, but UNI, IMX, VET and ALGO may extend their up-move in the short term.
Bitcoin (BTC) rose above $38,000 on Nov. 24, but the bulls could not build upon this strength. This suggests hesitation to buy at higher levels. Bitcoin is on track to form a Doji candlestick pattern on the weekly chart for the second consecutive week. This signals indecision among the bulls and the bears about the next directional move.
With Bitcoin maintaining near its 18-month high, BitMEX co-founder Arthur Hayes retained his bullish stance. In a X (formerly Twitter) post, Hayes said that the United States dollar liquidity was increasing, which is likely to push Bitcoin higher.
Another bullish projection came from PlanB, creator of the stock-to-flow family of BTC price models, who said in a post on X that Bitcoin may not stay at the current levels for long. PlanB expects Bitcoin to maintain an average price of at least $100,000 between 2024 and 2028.
Analysts have turned increasingly bullish in the past few days, but traders should exercise caution because every uptrend is bound to have corrections.
Could Bitcoin soar above $38,000 or start a corrective phase? Let’s look at the charts of the top 5 cryptocurrencies that may outperform in the near term.
Bitcoin price analysis
Bitcoin’s march higher has hit a wall near $37,980 but the bulls are not hurrying to close their positions. This shows that traders expect the uptrend to progress further.
The immediate support on the downside is the 20-day exponential moving average ($36,546). If the price snaps back from this support, it will signal that every minor dip is being purchased. That will increase the possibility of a break above $37,980.
If that happens, the BTC/USDT pair could rally to $40,000. This level may pose a strong hurdle to the bulls, but if buyers flip the $38,000 level into support on the downside, the rally could stretch to $48,000.
Conversely, if the price plummets below the 20-day EMA, it will indicate that traders are booking profits. The pair may then dump to $34,800.
BTC/USDT 4-hour chart. Source: TradingView
The bulls are trying to maintain the price above the moving averages but are finding it difficult to overcome the obstacle at $37,980. The relative strength index (RSI) is just above the midpoint, indicating that the bullish momentum is weakening.
If the price slips below the 50-simple moving average, the pair may plunge to the uptrend line. The bulls are expected to defend this level with vigor. On the upside, a break and close above $38,500 will indicate that bulls are in the driver’s seat.
Uniswap price analysis
Uniswap (UNI) fell below the 20-day EMA ($5.44) on Nov. 21, but the lower levels attracted aggressive buying by the bulls. That started a sharp rally on Nov. 22, which pushed the price to $6.60 on Nov. 24.
UNI/USDT daily chart. Source: TradingView
The up-move is facing selling near the overhead resistance of $6.70. The UNI/USDT pair has pulled back to the 38.2% Fibonacci retracement level of $5.92, and the next stop could be the 50% retracement level of $5.71.
A strong bounce off this zone will suggest that traders view the dips as a buying opportunity. That may enhance the prospects of a breakout above $6.70. Such a move will complete a double bottom pattern, which has a target objective of $9.60. The bullish momentum is likely to weaken below the 61.8% Fibonacci retracement level of $5.50.
The bulls tried to protect the 20-EMA, but the bears had other plans. They pulled the price below the 20-EMA, starting a deeper correction. If the price sustains below the 20-EMA, the pair may tumble to the 50-SMA.
If the price turns up from the current level or bounces off the 50-SMA, it will suggest that lower levels are being bought. The bulls will then again try to propel the price to the overhead resistance of $6.70. If this resistance is surmounted, the pair may skyrocket to $7.80.
Immutable price analysis
Immutable (IMX) has been sustaining above the breakout level of $1.30 for the past several days, suggesting that bulls have the edge.
IMX/USDT daily chart. Source: TradingView
The price may pull back to the zone between $1.30 and the 20-day EMA ($1.20). This zone is likely to witness a tough battle between the bulls and the bears, but If the buyers prevail, the IMX/USDT pair could climb to $1.86.
Instead, if sellers tug the price below the support zone, it may trigger stops of short-term traders. That could accelerate selling and result in a sharper correction to the psychological level of $1.
The 20-EMA on the 4-hour chart has flattened out, and the RSI is just below the midpoint, indicating a possible consolidation in the near term. The first support on the downside is $1.30. If buyers maintain the price above this level, it will suggest that the $1.30 is acting as a new floor.
On the upside, a break above $1.50 will signal the resumption of the up-move. The pair may travel to $1.59 and then to $1.63. Contrary to this assumption, a fall below $1.20 could tilt the short-term advantage in favor of the bears.
Buyers propelled VeChain (VET) above the overhead resistance of $0.023 on Nov. 26 but are struggling to sustain the higher levels as seen from the long wick on the candlestick.
VET/USDT daily chart. Source: TradingView
Sellers will try to trap the aggressive bulls and pull the price to the 20-day EMA ($0.021). If the price rebounds off this level, it will suggest a positive sentiment. The bulls will then again attempt to overcome the obstacle at $0.023. If they can pull it off, the VET/USDT pair could rise to $0.027 and thereafter try to reach the pattern target of $0.031.
On the contrary, if bears sink the price below the 20-day EMA, it will indicate that the pair may remain stuck inside a large range between $0.014 and $0.023 for a while longer.
The pair has slipped back below the breakout level of $0.023, indicating that the bears have not given up and are selling at higher levels. The pair could next reach the 20-EMA, which is an important level to watch out for.
If the price rebounds off the 20-EMA, the bulls will make another attempt to drive the price above $0.023 and start the next leg of the rally to $0.027. On the other hand, a break below the 20-EMA may start a deeper correction to $0.020.
Algorand price analysis
Algorand (ALGO) reached the overhead resistance of $0.14 on Nov. 25, where the bears are expected to mount a strong defense.
ALGO/USDT daily chart. Source: TradingView
If the bulls do not give up much ground from the current level, it will suggest that traders are holding on to their positions, expecting a move higher. That increases the likelihood of a rally above the $0.14-$0.15 resistance zone. If that happens, the ALGO/USDT pair will complete a cup-and-handle pattern. This reversal setup has a pattern target of $0.20.
If bears want to prevent the up-move, they will have to drag the price below the critical support at $0.12. If this level gives way, the pair may tumble to $0.11 and then to $0.09.
The 4-hour chart shows that the pair is oscillating inside the $0.12 to $0.15 range for some time. In a range, traders usually buy near the support and sell close to the resistance. It is difficult to predict the direction of the breakout with certainty; hence, traders may consider waiting for the breakout before taking large bets.
If the price breaks above $0.15, the pair is likely to start the next leg of the up-move. The pair may first rise to $0.18 and then to $0.20. This positive view will be invalidated if the price turns down and falls below $0.12.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
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According to the U.S. Sentencing Guidelines, CZ could receive a 12-18 month sentence, but the Department of Justice is willing to fight for a longer term.
A recent court filing suggests that Changpeng "CZ" Zhao's legal challenges are just beginning, despite pleading guilty to violating the United States Anti-Money Laundering requirements in a settlement with the Department of Justice.
Zhao is expected to be sentenced in February 2024. He is currently challenging the government's efforts to prevent his return to the United Arab Emirates (UAE) while awaiting sentencing with his family. In a filing from Nov. 24, however, authorities indicated that he may face a harsher punishment than initially anticipated:
"The defense claims that Mr. Zhao faces merely a “brief” sentence and has no incentive to flee. The reality is that the top-end of the Guidelines range may be as high as 18 months, and the United States is free to argue for any sentence up to the statutory maximum of ten years."
A potential lengthier sentence opposes legal experts' consensus. According to an analysis from former Securities and Exchange Commission official John Reed Stark, Zhao would possibly receive a 12–18-month sentence at a minimum-security prison under the U.S. Sentencing Guidelines. Although his legal team is likely to ask for no jail time or an alternative sentence, combining prison time with home detention and probation.
Zhao's relevance to the crypto industry may also influence his fate. Stark believes that if the "DOJ does not secure a sentence for CZ that deters future money laundering conduct in the cryptoverse (and elsewhere), then this "plea deal" could end up backfiring on DOJ."
Screenshot: Government's reply to motion for review Zhao's travel restrictions. Source: Reuters.
For the DOJ, seeking longer jail time for Zhao may not be as easy as it seems. According to Stark's analysis, the government officials would have to produce more substantial evidence implicating him in criminal activity. "Hopefully, DOJ has got something up their sleeve, or perhaps the Binance monitoring and other remedial requirements will reveal more egregious and chargeable crimes," he wrote on X (formerly Twitter).
Zhao was released under a $175 million bond that requires him to return to the U.S. 14 days before his sentencing date scheduled for Feb. 24, 2024. In his comments, Stark noted that Judge Richard A. Jones is expected to consider the government’s motion on Nov. 27, with the possibility of strengthening the bail requirements through additional bond conditions or delaying a decision.
Binance-CZ's case is stirring controversy among legal and business experts. According to Omid Malekan, author and adjunct professor at Columbia Business School, the DOJ's approach to the exchange differs significantly from what is seen in traditional finance.
“If [banks] they’d been held to the Binance Standard there’d be hundreds of managing directors in jail and less money for shareholder buybacks (or lobbying). But the bankers were smart enough to never question the game.”
On Nov. 21, Zhao reached a $4.3 billion settlement with the U.S. government for allegedly allowing individuals engaged in illicit activities to transfer funds through the exchange. He stepped down as CEO as part of the settlement.
In a recent report, California Governor Gavin Newsom emphasized the significance of preparing for the next generation of skills essential to thrive in the GenAI economy.
California Governor Gavin Newsom has stressed the importance of people staying ahead of the curve in generative artificial intelligence (GenAI) by acquiring new skills and becoming acquainted with the emerging technology.
As outlined in the report, there is a suggestion that residents of California should have access to educational and training opportunities in GenAI, noting:
"To support California’s state government workforce and prepare for the next generation of skills needed to thrive in the GenAI economy, agencies will provide trainings for state government workers to use state-approved GenAI to achieve equitable outcomes.”
It stated that this is considered essential in response to the notable employment impact indicated by recent reports on GenAI.
The report cited Goldman Sachs' forecast, indicating that GenAI is expected to affect 300 million jobs worldwide, despite the potential productivity gains expected to be achieved.
“As such, the State must lead in training and supporting workers, allowing them to participate in the AI economy and creating the demand for businesses to locate and hire here in California,” it noted.
It further stated that GenAI education initiatives should commence at higher education institutions and vocational schools.
— OECD ➡️ Better Policies for Better Lives (@OECD) July 11, 2023
The research goes on to label “high-skill, white collar jobs” as the most exposed to AI.
Furthermore, the areas showing the most progress are those areas requiring “non-routine, cognitive tasks such as information ordering, memorization, and perceptual speed.”
