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  • Crypto Week: Binance Founder Steps Down, SEC Targets Kraken, Worldcoin’s Altman Turbulence

Crypto Week: Binance Founder Steps Down, SEC Targets Kraken, Worldcoin’s Altman Turbulence

Bitcoin (BTC) is loosing 1.1% to $36,600 per coin this week. This week’s decline was even bigger at 3.5% to $35,611, but the major cryptocurrency has stabilized despite very nervous news and high volatility.

The decline started on November 21 after Founder and CEO of Binance, the world’s largest crypto exchange, stepped down and pleaded himself guilty in violating U.S. anti-money laundering laws. He has to pay $50 million in fines to CFTC, and he is also prohibited from operating or managing business for three years. Binance has to pay one the largest penalty in corporate history. The $3.4 billion to FinCEN , the financial crimes bureau within the U.S. Treasury department, and a $968 million fine to OFAC, the Office of Foreign Assets Control. However, this settlement doesn’t involve U.S. Security and Exchange Commission (SEC) that has its own claims to the exchange.

This is rather positive news for the crypto exchange, as it can now recover its positions in the industry. Binance had controlled 38% of the global cryptocurrency spot trading in Q3 2023 compared to 55% in the Q1. It is a bad news for the industry in a short run as the U.S. SEC could increase its pressure on crypto exchanges. The watchdog has recently filed a suit against Kraken crypto exchange alleging it in operating an unregistered securities business in the U.S. and mixing its own funds with its customers’ to pay its own operational expenses.

Binance Coin (BNB) has lost 7.0% on the news, XRP – 3.7%. Investors didn’t like the story. Whales have decreased their exposure to cryptocurrencies. ProShares Bitcoin Strategy ETF (BITO) saw first capital outflows in the last four weeks. The EFT has lost $18.6 million during the last week, the largest since mid-September, after inflows of $15.1 million, $140.7 million and $75.9 million in the previous three weeks.

The overall negative agenda could be slightly offset by the comedy with Sam Altman, ousted and reappointed CEO of OpenAI. He was fired last Friday. Worldcoin, which is one of the Altman’s projects, lost 22% to $1.85. Altman was offered a position of the team lead of Microsoft’s new advanced AI research division, while 700 of 770 employees of OpenAI promised to quit if Altman will not return to the company. Finally, he was reappointed as CEO on Wednesday. Worldcoin prices immediately recovered with Nasdaq 100 futures rising by 0.1% today after a 0.6% slump on Tuesday. This may improve investor’s sentiment ahead of the Thanksgiving celebrations in the U.S.