Binance JUST Screwed Crypto! [Massive SEC Lawsuit] DANGER.

well this is quite bizarre just a few

hours after we chatted about binance the

SEC has officially sued binance yet

again filing 13 charges against Finance

entities and founder CZ we're gonna go

through the press release we'll look at

a little bit of the actual legal

complaint and then what we'll do in this

video is we'll talk about some of the

other background like the commodity

future trading commissions uh lawsuit

against the binance and some of the

other history that we know about CZ and

how maybe CZ and binance control a lot

more of the Bitcoin Marketplace than

people would like to think in fact this

lawsuit just hit from the SEC and we

basically got an instantaneous red

candle here on a Bitcoin we're down 5.2

percent in the last 24 here strong down

candle still within this trading range

if we were to extend the stem so we

still haven't broken that range if we

pull this out a little bit we're

actually getting we're bouncing off of

that range but boy if we if we break

past this uh this range here would be

about our 25 7-ish level wouldn't be too

great so let's see what happens but for

now let's take a look at this lawsuit

first so this is just the cover letter

here very similar to the cftc the sec's

lawsuit essentially alleges that binance

in America without registration sold

unregistered Securities in fact the

second half of the entire section of the

SEC lawsuit basically just breaks down

the top 10 crypto currencies that were

for sale without registration on binance

they actually go pretty deep well I mean

for the SEC this I actually thought they

did a very impressive summary of each of

the different coins here uh for example

or coins or tokens whatever for example

you want to learn about Solana the SEC

on page eight 89 and 90. 91 and the

first half of 92 gives you a complete

breakdown of Solana you want to learn

about ADA on the cardano blockchain 92

to 93 to 94. want to learn about Matic

and polygon what about axi remember that

one or some other algorand to Central

land they're all in here kind of

incredible the second half of the SEC

lawsuit is really just giving you a

summary on all these different coins

it's quite interesting but it also shows

the SEC is not just targeting binance

but also is clearly trying to establish

the precedent that all of the different

ones mentioned they're coming for you

they're coming for you too just kind of

scary but anyway uh notice actually wait

a minute I wonder did they though

mention Bitcoin see we know that binance

controls about 80 of Bitcoin

transactions but wait a second here we

know they call Bam trading and the BNB

coin Securities we know they're alleging

over here

Solana we've got Ada we've got Matic and

polygon in here we've got file coin in

here we have oh this is kind of Juicy

notice ethereum BTC not in here uh we've

got Ada uh Adam in here we've got from

the cosmos we've got let's see here sand

oh on ethereum on the ethereum

blockchain interesting but not ethereum

itself eh Mana for the central land is

in here as an example algorand is in

here

uh again we had cardano earlier there's

axi which that was a scam then you've

got Cody here then we have uh binance

through bam trading then it goes into

binance and Bam again

fascinating you actually don't have BTC

and ethereum in the listed Securities as

examples of Securities in the SEC

lawsuit maybe this is almost a way of

the SEC suggesting that maybe these are

Commodities and letting the cftc handle

these crypto assets so to speak they

give some definitions of Bitcoin here

and they do reference Bitcoin but they

do not

fascinatingly give Bitcoin as an example

of a security in fact here they

reference when they talk about the

cosmos Hub about how basically they the

cosmos Hub could be a bridge to ethereum

in Bitcoin

uh digital assets but not that those are

securities boy that now makes me want to

jump over

to the Commodities and future trading

commission lawsuit which is right here

and I wouldn't be surprised that the SEC

and cftc

ah look at this I bet you they

collaborated because look what we have

over here

uh digital assets that are Commodities

including Bitcoin ethereum and Litecoin

wow look at how these agencies are

trying to separate this they're

basically saying Bitcoin ethereum and

Litecoin are Commodities and all the

other ones Matic polygon well obviously

that's on the polygon chain uh Solana

cardano Ada in other words uh in other

words all of these those are securities

interesting how they are coming at

binance from both angles there's no

overlap now in these lawsuits the cftc

can go all in on suing binance for

selling unregistered Commodities Bitcoin

ethereum Litecoin the SEC can go all in

against binance for promoting Finance

token and uh these other unregistered

Securities like Ada Solana Matic wow

that's actually a really big deal and

quite quickly in the course of just

filming this in the last six minutes

here I just realized how they segmented

this out and that is actually a very big

deal because now you have the SEC and

cftc finally saying

we'll take these you'll take those

wow this is incredible anyway so beyond

that then of course we get uh some talk

about how basically binance us was

basically just a a shell for a binance

and that the CZ had a lot more control

than people think here's an

organizational chart I actually

recommend that you pause and screenshot

this because I think it's really

interesting because it shows you

basically how Zao owns all this stuff uh

whether it's binance Finance us down

over here or look at that coin market

cap right over here uh fascinating I

think some of the most interesting

comments that came out of my read of the

lawsuit though had to do with this Tai

Chi plan and basically the Tai Chi plan

was this intentional setup of a US

entity to purposefully quote reveal

and resolve enforcement tensions

at a US entity that would keep them

separated from binance so basically the

Tai Chi plan was like yeah yeah let's

create a US version and let's let that

one take the fall for all the regulation

in the meantime let's throw up claims

that the Howie test which evaluates

Securities are going to hold up in our

way even though we don't expect that

they will and even though we'll say you

can't be a us user on the actual uh you

know binance Network we'll just go ahead

and find ways to allow VIPs and other

individuals that we want on the platform

anyway to essentially bypass uh these

terms of services by asking us users to

use the VPN very similar allegation as

in the cftc lawsuit but again this is

groundbreaking here about how they're

separating the clarification of these uh

Securities tokens or whatever you want

to call them at this point but not a

good day for binance here's some more on

background on binance and the cftc

lawsuit before I get into that quick

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free also paid promotion a good old

esteemed CZ is apparently considering

selling out of at least a lot of his

ownership of binance

how convenient right as all the vultures

of regulators are coming coming in and

circling around the rat that is CZ all

of a sudden it's easy wants to get out

what a surprise what a horrible surprise

actually it's not really a surprise at

all now obviously binance survived last

year's insanity and Madness uh which

other crypto brokerages did not a lot of

them went uh went down but a lot of

folks have been asking Hey Kevin why

recently has it seemed like the stock

market has been doing so well and uh

Bitcoin has not it's returned pretty

decently year to date uh we're at 26 700

right now up from that sixteen thousand

level uh but but why has it felt like

it's been sort of bleeding out in the

last few weeks as the stock market's

been rallying on AI and otherwise and a

lot of folks believe that this has to do

with lower trading volumes and finances

potentially well The Regulators are

coming in not only is it likely that The

Regulators are coming in but there's a

pretty big piece in writers that just

came out a couple hours ago touching on

how binance potentially through their

binance dot us arm operated bank

accounts here that they weren't supposed

to and utilized loopholes to basically

have Direct Control of customer cash

which would be big big no-nos uh for a

company like binance on top of that

you've got plenty of arguments right now

being made that basically sees these

getting ready to uh well let's just say

make a run for it and this is not a

surprise we've seen the CZ guy uh

supposed founder majority owner of

binance uh refused to come to the United

States for Fears of being arrested super

sketchy interviews he's had on CNBC

alleging that oh don't worry our assets

get audited we're good and then it's

like well what about your life abilities

nope we don't audit our liabilities

don't worry though our assets are great

and then of course they make this

argument that all of our coins are

backed by cash but then what has

secretly come out is that you're using

the same basket of cash to back multiple

different tokens so it's like yes if one

token withdrew all of its money and

needed all the cash backing it that

would work but then that would leave all

of the other tokens not backed by cash

because you're multi-counting and

because you're multi-counting is exactly

why you don't want to audit your actual

full company because your proof of

reserves audits which are just single

glimpses of asset checks first of all

your auditor quit because you all are

probably a blatant fraud uh and second

of all people like uh nobody believes

these reports anymore anyway anyway I'm

obviously pretty bearish on this guy and

so now apparently look at this finances

regulatory woes pay his path for cz's

Heir Apparent in other words because The

Regulators are coming in CZ wants to

dump out of binance and pick somebody

else to run the company now of course

they'll Spin The Narrative and be like

oh we want to show that we're turning a

new Leaf but really what it is is cz's

gonna make off with Billy's and uh yeah

anyway let's see what we got here in

mid-may cryptocurrency exchange buying

has got some bad news in the far-flung

corner of the sprawling Universe Finance

payments Partners were cut off in

Australia we saw a lot of this cutting

off in by other Banks as well binance is

really losing a lot of its on and off

ramps and so now you've got someone new

this guy Richard Tang oh oh hold on hold

on a sec there Bloomberg there we go

Richard Tang this guy might end up being

the front Runner to take over as CEO and

this is being speculated on specifically

because of the regulation that's

circling around basically was out's home

over in Dubai and even though they're

trying to take this argument of hey

we're a tech company you know we move

fast and break things in the finance

space you have to be really really

careful and so they're trying to

basically put this new figurehead in to

try to show or prove that this is a

reputable company and that they're

willing to work with compliance

authorities now apparently uh what's

what's Wild is that according to the

financial times and another piece over

here uh binance which the financial time

says has no headquarters at all

controlled 57.5 percent of the average

volume of the world's crypto exchanges

at its peak in February now they control

about 43 that's still a lot but I

remember one of the moments we actually

just recently popped to a new high at uh

at Bitcoin I think where it was right

around thirty thousand was when binance

decided to move uh money they had about

a billion dollars they had in stable

coins into

Bitcoin uh and and so you it at one

point the financial times that a

separate piece had also argued that

Finance controls 80 percent of all

Bitcoin transactions which is also

pretty remarkable uh you've got a cftc

lawsuits against binance and actually I

think I have the peace the financial

times based this off of right

here this is Morgan uh Morgan Stanley

you know I don't really love Morgan

Stanley I remember talking about this

one when we reviewed this last time as

well but they talk about Bitcoin uh here

it is 81 of BTC traded on exchanges in

February was traded on only one Exchange

Finance our conclusion is that Traders

on binance now set the daily price for

BTC I don't disagree with Morgan Stanley

on this now I disagree with a lot of

things but I don't disagree with this at

all and they also talk about how a

stable coin market caps have actually

with the exception of tether fallen on

average about 16 percent uh and so some

some softness Happening Here in the

crypto space you know the meme coin game

is still alive and well but something to

pay attention to because a lot of The

Regulators are swarming in now or as as

they quite frankly should on stable

coins mostly because and I'm made this

argument for for years that I believe

that stable coins

or inherently unstable and that that's

why they offer these larger yields

because we we don't know how many times

this money is re-hypothecated and who

owns you know the debt

unfortunately the problem was you know I

thought stable coins might collapse but

brokerages would survive the opposite

happened right a lot of the brokerages

fell and some of the stable coins

actually survived although we did see

some some pretty pretty big blow-ups uh

with with all this said the rolling

Rolling Stone magazine actually just put

out a big piece on uh Assisi I think

it's worth looking at let's take a look

at what the Rolling Stone has to say so

uh crypto's richest man is waiting out

the chaos

CZ has always avoided the spotlight but

after spf's extraordinary fall all eyes

are on the on crypto's mysterious

Kingpin

uh and so I I went through this article

already

uh I know I'm not going to read this

whole thing because it is it is quite

extensive but uh I did highlight a

section here that was interesting uh

binance has been hit with this lawsuit

by the cftc uh in March alleging a

massive scheme to intentionally invade

evade U.S laws and it's worth bringing

this up I actually have the cftc lawsuit

it is right yeah it's a 74 page lawsuit

it's actually right here one of the

things that you find that binance

according to the CFC TC was really good

at was basically allowing teaching

people how to set up vpns to bypass laws

to be able to invest in binance from

jurisdictions they're not supposed to

whether that was mainland China or the

United States or or otherwise and uh

they basically call binance's compliance

programs ineffective and they have a

pretty thorough case here and make some

pretty strong allegations against buying

Finance for example here Finance

intentionally tried to hide the scope of

its compliance program ineffectiveness

from its business partners at one point

binance purposely engaged another

compliance auditor that would quote just

do a half-assed individual sub audit on

geofencing to buy us more time and I

think that's kind of been the thesis

here of BZ it's like or is it busy CZ

and binance is like let's just keep

kicking the can down the road until

we're fully flushed out uh in fact you

even have CZ here replying uh I think it

was easy let's see here uh lim who was

aware that binance did not have a board

of directors nevertheless assured her

yeah it's fine I can get management to

sign off on the fake report around the

same time as the referenced half-assed

compliance audit in November

uh an individual explain okay so not CZ

an individual exclaimed to Lim in the

chat I has no confidence in our Geo

fencing they also talk about Hamas

transactions being facilitated like

buying AKs uh uh you know and basically

laundering money on binance and how

basically Finance just closes their eyes

to questionable services like for

example they would take they would teach

people

when they were associated with

questionable purposes to quote come back

with a new account this current one has

to go it's tainted yeah it's tainted

uh you know so anyway but that's because

uh off boarding is viewed as bad in cz's

eyes in other words we don't want to see

terrorists leave binance because that's

going to lower our numbers it it's

really kind of like one of the most

disgusting companies that I think could

possibly exist that still exists and

that's not to say that others were any

better I mean we've already seen there

have been blatant frauds rug polls in

crypto brokerage frauds there's been so

much fraud in crypto it's been

disgusting

uh you know I I feel embarrassed that at

one point I I thought you know even

three percent of a portfolio going to

crypto was remotely reasonable obviously

that's not like personalized advice for

people but I you know it was never a big

like oh all in crypto or whatever but I

mean some of these things are just it's

just crazy how this organization still

exists

but anyway

uh let's see here Forbes had an expose

on CZ fine okay we already know that I

want to go to there was another section

here the Rolling Stone hat

so they talk a little bit about how

basically he can live nowhere but

anywhere finances role in evading

Regulators moving assets for criminals

and sanctions Invaders and hiding basic

financial information there's actually

talk about people using binance to bribe

Russians during this whole Russian and

Russia and Ukraine disaster which is not

great either murky divide between

binance and finance us is part of what

has Regulators worried well they're

probably if it's anything like FTX

they're probably really one of the same

and I think that's why they're getting

sued by you know the SEC and the uh cftc

yeah but uh but anyway

what CZ In fairness to them what they're

trying to do is they're trying to set up

this idea that hey they're going to

focus more on compliance and they're

just going to say that anybody who says

anything negative about them is just

fighting or fake news or whatever fine

okay whatever everything I'm saying is

just my opinion whatever who cares so

anyway there are some really red flags

when you look at binance like if if you

buy on finance I I would just be a big

fan of taking my money off the exchange

you know not your keys not your crypto

right but anyway I think it's very

interesting that they want to focus so

heavily on compliance this is what CZ

tweeted at the beginning of the year and

I think this is consistent with their

their move of really trying to get a new

CEO because CZ is Tainted so what

they're trying to do is they're trying

to get uh this new guy Richard Tang to

basically be this fill-in with a cute

resume that uh that could oversee

binance and hopefully get them to be

regulated I have to say Kevin O'Leary in

my interview with him had a really great

point and and he suggested that binance

is likely to continue to get squeezed

into jurisdictions that aren't

regulating them and they're going to see

the the jurisdictional pressure come

from all angles until they're really

only able to operate in very very few

areas but even those few leftover areas

will eventually squeeze them out until

they're either forced to comply or go

bankrupt he had a very great argument

just type into YouTube meet Kevin Kevin

O'Leary uh and uh and and you'll see it

I thought he had a really great argument

and I think so far that's playing out to

be true so uh I think if it is true that

binance is controlling about 81 at least

as of February of Bitcoin coin volumes

in case you're wondering why Bitcoin is

falling I think the Frank bottom line is

because binance is starting to falter

and the more BTC Falls the more in my

opinion it's actually evidence of BTC

faltering uh sorry not a BTC filtering

of Finance faltering uh and the more you

see pain and finance the more in my

opinion you'll end up seeing pain in

Bitcoin at least until the issues

resolve themselves so we'll see but

that's just my take now I want you to

know this when it comes to AI

time is what's going to make you money

and if you can prove that value to an

employer you'll always be able to be

employed so this is another way of

making sure that you don't get replaced

but