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GM to all crypto enthusiasts, collectors, entrepreneurs, enjoyers, and curious people. This is Tokengraph, where you can catch the biggest NFT news and crypto current events every week. We’ve got a packed weekly recap for you today, so grab a cup of coffee, settle in — and enjoy the ride.
On today’s agenda:
On-Chain Sleuth ZachXBT Sued
Binance Strikes Deal with the SEC
Beeple: “Delete All Remaining JPEGs”
Is Blackrock’s BTC ETF Legit or Not?
The Weeknd + Binance Collab
And more…
Renowned blockchain detective ZachXBT, known for his unpaid investigations into potential financial wrongdoings in the crypto space, has been sued by tech entrepreneur Jeffrey Huang, an individual ZachXBT once investigated. Huang, a Taiwanese-American musician and tech executive, has accused ZachXBT of defamation, claiming the sleuth falsely implicated him in the embezzlement of around $37.8 million in Ethereum from a now-defunct cryptocurrency treasury management platform.
1/ It’s unfortunate I have to make this thread but I am being sued by MachiBigBrother for an article I published in June 2022.
Today Machi filed the defamation lawsuit. The lawsuit is baseless and an attempt to chill free speech. I intend to fight back & defend free speech. http
— ZachXBT (@zachxbt)
Jun 16, 2023
The defamation lawsuit has unexpectedly unmasked ZachXBT's identity, a detail that remained a well-guarded secret despite his longstanding influence in the crypto community. In response to his doxxing, ZachXBT denounced the lawsuit as a baseless ploy to suppress freedom of speech, stating, “The price of telling the truth is sometimes people dislike what you say.”
4/ Donation wallet address
ETH: 0x6eA158145907a1fAc74016087611913A96d96624
(All EVM Chains are accepted and stablecoins are preferred)
— ZachXBT (@zachxbt)
Jun 16, 2023
To contest the charges, ZachXBT, who anticipates legal costs exceeding $1 million, has solicited financial aid from his extensive Twitter following of over 403,000. In a remarkable display of community support, a digital wallet dedicated to his legal defense fund has already accumulated more than $1 million from over 500 donors within a short period. Donations ranged from well-known cryptocurrencies like Ethereum and USDC to a smattering of meme tokens.
#Binance will contribute $50k. Keep up the fight. Keep the industry transparent. 💪
— CZ 🔶 Binance (@cz_binance)
Jun 17, 2023
Legal counsel for ZachXBT has been secured with Brown Rudnick, a Boston-based law firm known for their representation of actor Johnny Depp in a successful defamation suit and advising the Bahamian government on FTX's collapse.
Along with Jess Meyers and the team at Brown Rudnick, I’m honored to represent @zachxbt in his ongoing mission to speak truth to power.
— Palley (@stephendpalley)
Jun 16, 2023
ZachXBT’s fundraising effort has seen support from high-profile crypto leaders such as Binance CEO Changpeng "CZ" Zhao and Tron founder Justin Sun, each contributing to the defense fund while advocating for transparency in the crypto industry.
I'm pleased to pledge a donation of 10k #TUSD to @zachxbt. Despite not being a legal expert myself, I highly value Zach's substantial contributions to blockchain security and his crucial role in guiding our users to safeguard their funds. twitter.com/i/web/status/1…
— H.E. Justin Sun 孙宇晨 (@justinsuntron)
Jun 17, 2023
While this legal showdown unfolds, ZachXBT's anonymity may have been compromised, but the support from the crypto community underscores his vital role in maintaining the industry’s integrity. He has promised to return any unused funds to contributors based on their initial donation, symbolizing his commitment to accountability and transparency.
As this saga continues, it is clear that the crypto community stands with ZachXBT, applauding his unrelenting dedication to truth and transparency.
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Binance.US has arrived at an extensive agreement with the U.S. Securities and Exchange Commission (SEC), dodging an asset freeze in exchange for increased transparency and oversight. The decision comes after the SEC’s recent emergency order to halt the assets of Binance.US holding firms and return them to the U.S.
🚨 BREAKING 🚨
JUDGE HAVE APPROVED BINANCE
AND SEC SETTLEMENT & REJECTED
SEC’s REQUEST TO FREEZE ASSETS.— Ash Crypto (@Ashcryptoreal)
Jun 17, 2023
As a result of the agreement, Binance.US is now obliged to ensure two of its holding companies maintain possession, custody, and control of all crypto and fiat currency held, traded, or accrued by U.S. customers. The settlement was hailed by Binance CEO Changpeng "CZ" Zhao, who reassured customers of the safety and security of their funds on all Binance-affiliated platforms.
The SEC request to freeze Binance US assets has been rejected
the court has ordered the SEC to work with Binance to protect customer assets while allowing the business to continue as usual
the SEC is now asking for all US client funds to be moved to the US, and not transferred… twitter.com/i/web/status/1…
— Crypto Tea (@CryptoTea_)
Jun 14, 2023
John Reed Stark, a cybersecurity consultant and former SEC Office of Internet Enforcement chief, dubbed the agreement "unprecedented, exhaustive, and burdensome," highlighting the SEC’s now consultant-like role with Binance, a status typically only granted after an SEC enforcement victory.
The extensive deal involves numerous obligations for Binance.US. The company must submit a list of every wallet or account under its management since December 1, 2022, along with associated financial institutions and account numbers, to the SEC within 45 days. Binance is also required to produce records of asset transfers exceeding $1,000, including recipient names and the purpose of the transfer.
The @SECGov, @binance and @BinanceUS have announced a proposed agreement to ensure that U.S. customer funds can only be accessed by the U.S.-based crypto trading platform. The agreement needs judicial sign-off.
@nikhileshde reports
trib.al/365zTpT
— CoinDesk (@CoinDesk)
Jun 17, 2023
Furthermore, Binance.US must address SEC concerns regarding its solvency, providing information on any limitations affecting assets’ transfer or withdrawal availability for customers, and affirming that it holds enough assets to meet customer liabilities and claims.
As part of the settlement, Binance.US must not allow any access or control of assets to Binance, CEO Changpeng Zhao, or any entity owned or controlled by Zhao. Binance.US is also tasked with supplying the SEC with monthly reports detailing its regular business expenses.
Although we maintain that the SEC's request for emergency relief was entirely unwarranted, we are pleased that the disagreement over this request was resolved on mutually acceptable terms.
User funds have been and always will be safe and secure on all Binance-affiliated… twitter.com/i/web/status/1…
— CZ 🔶 Binance (@cz_binance)
Jun 17, 2023
These measures are set in place as the SEC's civil action against Binance.US advances to trial, granted a 90-day expedited discovery by Judge Amy Berman Jackson. Violations of any provision of the order could lead to obstruction-related charges filed by the U.S. Department of Justice, warned Stark.
Which of these cryptocurrencies aims to offer completely private and untraceable transactions?
A. Bitcoin
B. Monero
C. Ethereum
D. Ripple
Scroll down to the bottom to see if you're right!
⚡ Lightning Round: Weekly Updates
Despite speculation that NFT popularity is waning, a piece of NFT art, "The Goose", sold for $6.2 million at Sotheby's, inciting mixed reactions in the digital art community and rekindling debates about the future of the NFT market.
In response to speculation that this was only the NFT space’s “last hurrah,” Beeple, the artist responsible for the most expensive NFT sale of all time, hopped on Twitter to sarcastically write “Please delete all remaining jpegs by 5pm EST,” and “Thanks to everyone who played along with our silly little nothing!!” Again, this was all sarcasm — Beeple is a huge proponent of NFTs.
BlackRock, the world's largest asset manager, has applied to the US Securities and Exchange Commission (SEC) for a Bitcoin exchange-traded fund (ETF). This move, amidst a regulatory crackdown, is bringing new optimism to the crypto community due to BlackRock's successful track record with the SEC — A rare thing to find for any organization within the crypto industry.
Binance, a leading cryptocurrency exchange, and pop artist The Weeknd have launched an interactive online game, the "Metaverse Dimension," expanding their partnership. Players can engage in a treasure hunt to unlock exclusive content and rewards, with successful puzzle solvers potentially winning concert tickets and exclusive merchandise. This venture accompanies The Weeknd's Binance-sponsored "crypto-powered" world tour.
❓ Trivia Answer
Answer: B.
Launched in April 2014, Monero's primary emphasis is on ensuring the privacy of its users. It uses a technology known as ring signatures to shuffle users' public keys to eliminate the possibility of identifying a particular user, which makes every transaction untraceable.
Web3 Resource of the Day
BlackRock Goes ALL-IN On Bitcoin | Video from Anthony Pompliano
If you’re interested in understanding the buzz around Blackrock’s Bitcoin ETF at a deeper level, be sure to check this video out. Pomp sits down with two ETF authorities at Bloomberg, Eric Balchunas and James Seyffart, to analyze BlackRock's recent move to apply for a public bitcoin trust, designed to offer investors the advantages and market exposure akin to a spot bitcoin ETF. They clarify the difference between this fund and Grayscale's, its potential market impacts, possible shifts in the regulatory landscape, and speculate on the fund's approval prospects as well as the anticipated capital influx into the fund upon approval.
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