Web3🌗Buzz: Bitcoin Dips, Binance Lawsuit, Zenrock's DeFi Boost & China's Crypto Crackdown

Happy Wednesday! We’ve got your daily dose of Web3 news, packed with the latest updates and developments. Today’s headlines feature some major movements and changes in the crypto world. Read on for a closer look at these key stories and what they mean for the future of Web3!

1. Bitcoin Drops Below $60K as Mt. Gox Transfers 13,265 BTC

Mt. Gox, the defunct cryptocurrency exchange, recently moved 13,265 BTC worth $784 million, sparking concerns of potential selling pressure on the market. However, only 1,265 BTC, valued at around $74.5 million, is expected to be offloaded, according to Galaxy Digital's Alex Thorn. The remaining 12,000 BTC has been moved to cold storage. Despite these developments, Bitcoin's price has remained steady above $59,000. The movement of coins from Mt. Gox has been a source of concern, but it appears this latest transaction may have a limited impact on the broader market.

Mt. Gox Moves $700M in Bitcoin, BTC Unmoved at $59K

According to Galaxy’s Alex Thorn expects only 1,265 BTC, woth over $70 million, may be offloaded in the market.

CoinDeskOmkar Godbole

2. Binance Faces New Class Action Lawsuit Over Money Laundering

A new class action lawsuit has been filed against Binance, alleging the exchange and its founder, Changpeng Zhao, allowed widespread money laundering through negligent compliance practices. The plaintiffs argue that Binance's lax anti-money laundering protocols facilitated the laundering of stolen crypto, causing financial harm to U.S. users. The lawsuit claims Binance operated as an unlicensed money-transmitting business, evading U.S. regulations to grow rapidly. This legal action follows a recent settlement where Binance paid over $4 billion and Zhao was fined $50 million for failing to maintain effective compliance programs. Binance has yet to comment on the lawsuit.

Binance Hit With Fresh Class Action Lawsuit Over Money Laundering Allegations - Decrypt

The lawsuit alleges that Binance’s negligent compliance practices allowed bad actors to use the platform to launder stolen crypto.

DecryptSebastian Sinclair

3. Zenrock Addresses DeFi Concerns with Enhanced Custody Solutions

Qredo rebrands as Zenrock after being bought out by 10T Holdings and 1RoundTable Partners. Zenrock aims to boost DeFi security with decentralized private key management, addressing concerns over centralized custody risks. The platform, leveraging MPC wallets and hybrid security, will soon launch and offer innovative solutions for crypto custody.

Zenrock Aims to Calm Users’ DeFi Wobbles With Decentralized Custody Offering

Crypto custody upstart Qredo has got a new lease of life after being bought out of administration by Dan Tapiero’s 10T Holdings and 1RoundTable Partners. The company is soon to relaunch as Zenrock.

CoinDeskWill Canny

4. China Strengthens AML Regulations to Tackle Crypto Money Laundering

China's top legal authorities have updated their judicial interpretation to include virtual asset transactions as a method for money laundering. This change, announced by the Supreme People’s Court and the Supreme People’s Procuratorate, allows for easier investigation and prosecution of crypto-linked money laundering cases. The interpretation defines using virtual assets to transfer or convert criminal proceeds as money laundering under Chinese law. However, it doesn't criminalize holding or trading cryptocurrencies by individuals. The move aims to provide clearer legal grounds for law enforcement while targeting specific illegal activities rather than broadly cracking down on all crypto transactions.

China heightens AML rulebook, making it easier to probe crypto-linked money laundering

China’s top legal authorities have classified the use of virtual assets to conceal illicit funds as a method of money laundering, according to a judicial interpretation.With the new judicial interpretation in place, traders may face greater legal risks if they receive illicit funds when trading, lawyers said.

AICoinTheblock

Thanks for catching up with today’s Web3 Buzz! From Bitcoin’s fluctuations to legal challenges and advancements in crypto custody, we’re covering it all. Stay tuned for more updates and in-depth analysis on these evolving stories. Until next time, keep exploring and stay informed!

WEB3 AI ML