Crypto
US reaches over-$4 billion settlement with world’s largest cryptocurrency exchange, AP source says
WASHINGTON (AP) — The U.S. government has reached a settlement with the world’s largest cryptocurrency exchange worth more than $4 billion, a person familiar with the agreement told The Associated Press on Wednesday.
The settlement with Binance was confirmed on the condition of anonymity ahead of an expected announcement. The value of the settlement was first reported by Bloomberg.
It comes months after the company was accused of operating as an unregistered securities exchange and violating a slew of U.S. securities laws in a lawsuit from regulators.
Binance is a Cayman Islands limited liability company founded by CEO Changpeng Zhao. The charges were similar to practices uncovered after the collapse of the second largest cryptocurrency exchange, FTX, last year.
Zhao has also faced allegations of diverting customer funds, concealing the fact that the company was commingling billions of dollars in investor assets and sending them to a third party that Zhao also owned.
At the time the U.S. Securities and Exchange Commission filed suit against the company, Binance said that it had been cooperating with the investigation but said that the agency “chose to act unilaterally and litigate.”
The cryptocurrency industry has been marred by scandals and market meltdowns. Sam Bankman-Fried, the 31-year-old founder of the failed cryptocurrency brokerage, was convicted earlier this month of fraud for stealing at least $10 billion from customers and investors.
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Associated Press writer Fatima Hussein contributed to this story.
As cryptocurrency continues to mature as an asset class and Bitcoin reaching new highs, more retirees are considering whether digital currencies deserve a place in their retirement portfolios. The debate over investing in crypto for retirement has intensified as inflation and cost of living depletes savings.
However, this decision involves careful consideration of both compelling opportunities and significant risks.
According to Kiplinger, some financial experts now recommend cryptocurrency for diversification in retirement accounts. Cryptocurrency often moves independently of traditional stocks and bonds, potentially providing valuable diversification during market downturns. For retirees who have most of their wealth in conventional assets, a small crypto allocation could reduce overall portfolio volatility.
With retirees particularly vulnerable to inflation’s impact on fixed incomes, cryptocurrency’s potential as an inflation hedge becomes attractive. Bitcoin’s limited supply of 21 million coins creates scarcity similar to precious metals, potentially protecting purchasing power over time. Unlike cash or bonds that lose value during inflationary periods, crypto assets may maintain or increase value as traditional currencies weaken.
Despite volatility, cryptocurrency has demonstrated remarkable long-term growth potential. Retirees focused on leaving a larger inheritance might allocate a small percentage to crypto for its upside potential. Even modest gains could significantly benefit beneficiaries, while limiting exposure prevents catastrophic losses to essential retirement funds.
According to The Wall Street Journal, Fidelity’s decision to allow Bitcoin in 401(k) accounts highlights the tax advantages of holding cryptocurrency in retirement accounts. Crypto held in traditional IRAs or 401(k)s grows tax-deferred, allowing compounding without annual tax consequences. While eventual withdrawals face ordinary income tax rates, the ability to trade between different cryptocurrencies without immediate tax implications provides flexibility that taxable accounts don’t offer.
As governments worldwide increase money printing and debt levels, cryptocurrency offers exposure to an alternative monetary system. Retirees concerned about long-term currency stability might view crypto as insurance against potential dollar devaluation or economic instability over their retirement years.
Truth Social, the social media platform backed by former U.S. President Donald Trump, has submitted an application for a cryptocurrency blue-chip ETF S-1 filing. This move marks a significant shift for the platform, which has been primarily known for its social media presence, into the realm of cryptocurrency investments. The filing indicates that Truth Social is aiming to capitalize on the growing interest in digital assets, particularly among its user base, which includes a significant number of individuals who are already engaged with cryptocurrencies.
The Trust’s assets are primarily composed of Bitcoin (BTC), Ethereum (ETH), Solana (SOL), Ripple (XRP), and Cronos (CRO) held by the Trustee. Under the terms of the Trust Agreement, the Trust will allocate its assets to a percentage of the portfolio assets (allocation ratio) initially expected to be approximately 70% Bitcoin, 15% Ethereum, 8% SOL, 5% CRO, and 2% XRP. This allocation reflects a strategic focus on blue-chip cryptocurrencies, which are seen as more stable and less speculative compared to smaller, more volatile tokens.
The decision to file for a cryptocurrency ETF comes at a time when the cryptocurrency market is experiencing renewed interest. The market has seen a resurgence in activity, driven by factors such as declining interest rates and a more crypto-friendly regulatory environment. This shift has led many investors to reconsider their positions in cryptocurrencies, particularly in blue-chip tokens like Bitcoin and Ethereum.
The filing for a cryptocurrency ETF is a significant step for Truth Social, as it allows the platform to offer its users a more diversified investment option. By providing access to a blue-chip cryptocurrency ETF, Truth Social can attract a broader range of investors who are looking for a more secure and regulated way to invest in digital assets. This move also positions Truth Social as a forward-thinking platform that is adapting to the evolving financial landscape, where cryptocurrencies are becoming an increasingly important part of the investment ecosystem.
The submission of the S-1 filing is a crucial step in the process of launching an ETF. It involves providing detailed information about the fund’s structure, investment strategy, and risk factors to regulatory authorities. Once approved, the ETF will allow investors to gain exposure to a basket of blue-chip cryptocurrencies without having to directly purchase and manage individual tokens. This can be particularly appealing to investors who are new to the cryptocurrency market or who prefer the convenience and security of an ETF.
The filing also highlights the growing integration of cryptocurrencies into mainstream financial products. As more platforms and companies enter the cryptocurrency space, the demand for regulated and secure investment options is likely to increase. This trend is driven by the recognition that cryptocurrencies offer unique benefits, such as decentralization, transparency, and the potential for high returns, which make them an attractive addition to traditional investment portfolios.
In summary, Truth Social’s submission of a cryptocurrency blue-chip ETF S-1 filing is a strategic move that reflects the platform’s commitment to innovation and its recognition of the growing importance of cryptocurrencies in the financial landscape. By offering a regulated and secure investment option, Truth Social can attract a broader range of investors and position itself as a leader in the evolving world of digital assets.
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