Binance is under investigation by the Department of Justice for money laundering. In just under a month the Crypto exchange with its own coin loses $6 Billion in outflows. This could be the death spiral for Crypto as its web of collateral and tethering is a mess of unaccountable finances. All eyes on Binance and its CEO.
Binance the faux white knight of Crypto and the largest Crypto exchange handling trillions ($) throughout the COVID pandemic could be about to come undone. With FTX taking the hit because their CEO got greedy and turned into a criminal, fueled by with 2020 and 2021 trillions of $ of pandemic stimulus (cheques and all) which floated around and ended up in Crypto exchanges. Intermixed with very persistent advertising campaigns via pop culture celebrities, wrapped up in the promise of an unregulated, libertarian anti-government and anti-bank rhetoric. A lot of people got bought and sold.
There is continued investigation by the Department of Justice of Binance criminal activity i.e non existent anti-money laundering protocols. If HSBC the mega bank had an issue with being lapse in allowing Mexican drug Cartels to funnel money through its network, the temptation is there, particularly if Changpeng Zhao the founder of Binance wanted to corner the Crypto market by being the largest in capitalization. Its meteoric rise to fame is astounding, considering the company was founded in 2014.
More alarming is the founder and CEO himself, Zhao, is under criminal investigation. With over 30% of his wealth caught up in the Binance exchange and 'coins'.
The above chart (1) shows the inflows and out flows of Binance's BNB Coin as seen in U.S. Dollars. Which, according to reports Binance has stopped withdrawals of USD denominated BNB's. And since Crypto has no worth other than its speculative trading and illusive balance sheets showing the so called "proof of..." assumptions. It is no wonder investors are converting BNB back into U.S. Dollars.
Chart 2 shows the market cap of Binance down $6 Billion since November 2022
Greed is not a financial revolution.
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