Binance in Hot Water, Crypto Sweats 😓

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GM and BRRR.

Following the weekend, we start this week covering crypto news, specifically the drama unfolding around Binance, the world’s largest cryptocurrency exchange, and its effects on Bitcoin, ETH, and others.

In a Reuters report, a senior executive operated bank accounts for their supposedly independent U.S. affiliate, raising questions about their control. The SEC has sued Binance for operating an illegal exchange with the company's founder is named as a defendant. Cryptocurrency prices have fallen, and their Australian partner has cut ties. Despite handling massive trading volume, Binance's future is uncertain.

In other news, the European Union (EU) has taken a stand against the rise of AI-generated disinformation on online platforms. They're pushing tech giants like Google, Meta, Microsoft, and TikTok to amp up their efforts in combating this digital menace, wanting these platforms to implement safeguards against malicious actors spreading fake news and to label content created by AI. Free speech proponents eagerly await further developments.

Here’s what we’ve BRRR’d:

• Crypto Control Freak: Binance Executive Juggles Five Bank Accounts Like a Pro

• AI-generated Fake News: The EU Wants Platforms to Stop Bots Gone Wild

Crypto Control Freak: Binance Executive Juggles Five Bank Accounts Like a Pro

• Binance Executive Operated Bank Accounts of U.S. Affiliate: In an exclusive Reuters reports, bank records reveal that Guangying Chen, a senior Binance executive, controlled five bank accounts belonging to Binance.US, the cryptocurrency exchange's independent U.S. affiliate. This included an account holding American customers' funds.

• Tight Control over Binance.US Finances: Despite claiming independence, Binance exerted significant management control over Binance.US's finances, as shown by previously undisclosed bank records and messages. This contradicts Binance.US's assertions of exclusive control over its accounts.

• Binance's CEO Directed U.S. Expansion: By retaining control over Binance.US's finances, CEO Changpeng Zhao ensured influence over the company's expansion in the U.S. crypto market, while keeping it separate from Binance's global exchange under scrutiny from U.S. regulators.

• Binance.US Faces Closer Scrutiny: Binance.US's operations have attracted increased attention from regulators. The U.S. Commodity Futures Trading Commission (CFTC) charged Binance and Zhao with willful evasion of commodities laws, alleging intentional avoidance of U.S. regulations.

• Customer Funds and Financial Rules Breached: Binance.US faces allegations of breaching U.S. financial rules by commingling customer funds with corporate revenues and not keeping client money separate. Binance denies these claims, stating that customer deposits were used to purchase a dollar-linked crypto token.

  Reuters

AI-generated Fake News: The EU Wants Platforms to Stop Bots Gone Wild

• Calls for Action Against AI-Generated Disinformation: EU urges Google, Meta, Microsoft, TikTok, and others to combat AI-generated disinformation. Safeguards needed to prevent malicious actors from spreading disinformation. EU regulations prioritize free speech but not at the expense of combating AI-generated disinformation.

• Europe Leads AI Regulation with AI Act: The legislation aims to regulate AI's impact across various domains. The AI Act addresses concerns regarding the rapid development of generative AI. Tech companies will face legal obligations, including safeguard implementation.

• Digital Services Act Enhances Policing and Regulation: Compels major tech companies to improve platform policing. Commitments from the disinformation code will become legally binding. Urgent implementation of AI-generated content labeling is encouraged. Act aims to protect users from hate speech, disinformation, and harmful material.

• Twitter's Departure Draws Strong Criticism: EU criticizes Twitter for leaving the disinformation code. Jourova deems it a mistake, warns of rigorous scrutiny. Compliance with EU law in combating disinformation will be closely monitored. Signatories of the code must report on their progress regularly.

• Rapid Growth of AI Raises Urgency: Generative AI's rapid growth causes concerns for the EU. The AI Act reflects Europe's proactive approach to regulate AI. EU focuses on addressing challenges posed by the rapid advancement of AI technology. Swift action required to protect users from the harmful impact of AI-generated content.

  APNews

AI ART OF THE DAY

Today’s AI Art of the Day features Elizabeth Warren as a crypto YouTuber, pump and dumping memecoins.

The BRRR’s Portfolio

Big Tech offsets, while crypto shudders following Binance news…

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The BRRR is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.