🗡️ Binance strikes back

Hello, Nutty Family! 🥜

Another great week is coming to an end. What better way to end it than with movies? Today's newsletter will feature the premieres of two iconic films! So get your popcorn and soda ready, because it's going to be a wild ride. 🍿 🍷

Today we will cover:

• Binance strikes back 🗡️

• A crypto-love story 💑

• Some other NEWS in a nutshell 🥜

• Nutty meme 🥜

Binance strikes back 🗡️

Right now, the Web3 space is at war. On one side, we have Binance, and on the other, FUD (fear, uncertainty, doubt). 🆚

The FUD has been pressuring Binance for quite some time, attacking key areas repeatedly. Binance has now had enough of it and has decided to broadcast a blog to the entire universe, focusing attention on 7 strategic strongholds. 7️⃣

They broadcasted it in Chinese; however, we have translated it to English for you. (with the help of Google Sensei) 💻

Do note that all points below are claims made by Binance themselves. 🧂

Point 1: USDC reserves 👛

a. Why is there no mention of USDC reserves? 🤔

All the reserves have been converted to BUSD according to the guidelines issued on September 5, 2022. Any USDC withdrawal requires us to convert BUSD to USDC. ⭕

b. Why does conversion take so long? 🤔

All conversions need to go through a bank in New York, USA. This limits the conversion time to the bank's working hours. This issue will be resolved in the future. ⏲️

c. Is there an issue with liquidity? 🤔

No, there is no liquidity issue. If USDC withdrawals are suspended, please withdraw in BUSD, USDT, etc. 🎉

Point 2: Sufficient Reserves 🏦

All user assets are supported 1:1, and anyone can withdraw their deposits 24/7. 🫡

Binance’s business model is simple and debt-free. They make profits by charging transaction fees and have enough funds to cover daily operations and economic cycles. 💪

All investments made by Binance come from Binance Labs, which was established in 2018 and has made profits since inception. Along with that, it has assets under management worth US$7.5 billion. 😯

Point 3: Mazar controversy and the Big Four auditing Coinbase 4️⃣

Mazar has ceased ties with all crypto companies, not just Binance. 👣

The Big Four do not have the necessary infrastructure to assess on-chain companies. It has been assessing the financial status of Conibase, not their overall reserves. Both scenarios are fundamentally different. ⛔

Point 4: Why only BTC verification? 🤔

It is not easy to verify assets on the chain and requires time and effort. They are working on releasing reports for all major cryptocurrencies soon. 🔜

Point 5: Financial black box 📦

Binance is not a listed company and is not required by law to disclose its reports. However, they have been complying with numerous local regulatory authorities across countries and disclosing relevant information. 😏

Point 6: Investigation by the US Department of Justice ⚖️

The issue has been blown beyond proportions by media houses with catchy lines. They are currently unable to release more information about it. 😶

However, they said that they have processed over 47,000 law enforcement requests since November 2021 and participated in over 70 anti-law enforcement requests. 🧐

Point 7: Binance crashed FTX? 🔪

CZ claims he never said, "I have the high ground!" to Sam. 😜

According to CZ, nobody has profited from the FTX collapse. They do not see centralised exchanges as competitors but rather believe in cooperation. 💪

Nutty Take 🥜

Web3 media was awash with reports about troubles around Binance. We believe this was a necessary step. It is a good reply, especially the way they addressed all of the major pain points. ✅

However, with so many companies that were deemed "too big to fail" falling like dominoes, it becomes hard to trust anything right now until concrete proof is present. 👻

The safest heaven is still self-custody in cold wallets. 👜

May the odds be in Binance’s favor. 🫡

The Crypto love story 💑

We got all the ingredients for our love story. Romeo as SBF. Juliet as Caroline .Their child, FTX. Caroline’s new partner, Gary Wang. The person breaking them, SEC 🧂

Nobody is prepared to take responsibility of their child. Caroline was presented with 2 options. 2️⃣

• Prison for 100 years

• Cooperate with a government agency and talk behind Sam’s back. 🥹

Well, she picked the second option. 👍

While Sam was convincing his parents in the Bahamas that Caroline is a good girl, things did not going according to plan. 😭

The recent updates on the love story: 📥

• Sam got extradited back to the US without resistance. 😂

• Gary Wang pleaded guilty to four charges, while Caroline pleaded guilty to seven. 🥳

• Gary and Caroline have agreed to fully cooperate with law enforcement. 👏

• Both have been granted a bail of $250k 💸

• Sam has gotten a $250 million bail as well. 💰

All 3 are facing travel ban as well. (of course!) ✈️ ⛔

Additionally, Caroline agreed to several more allegations. ✅

• Admitted manipulating FTT prices by buying tokens on exchanges.📉

• She knew that she was effectively gambling with FTX users' money. 🎲

• Her tweet on November 6th about buying FTT for $22 was misleading. 🐦

• She was aware of the backdoor from FTX to Alameda which helped diver billions.🔍

Caroline is defintely not getting gifts this Christmas.

According to her, she did it ALL under SBF’s directions. 🌞

Whoosh. It looks like the cat is out of the bag! 🐈

I hope we NEVER have to see a story similar to FTX happen in space ever again. ⛔

Some other NEWS in a nutshell 🥜

• Brazilian president passes crypto bill and is looking to explore cryptocurrency as alternate means of payment.

• Core Scientific, the BTC mining company gets a credit line so that they can restructure.

• FTX CEO requests court to freeze $450 million in Robinhood shares so that it is not mis-used.

Nutty Meme 🥜

That is a wrap for today! Hope everyone has an amazing Christmas! Take time off, meet your family and drink with friends!

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