The following is an excerpt from today’s Global Newsletter.
Binance was in the news again this morning; as you might expect, it went from bad to terrible.
The New York Times reported that the SEC filed 13 charges against Binance and CEO Changpeng Zhao.
Reuters earlier published an exclusive alleging the parent company controlled ‘independent’ U.S. affiliate’s bank accounts.
Reuters reported another whopper in February that stated Binance moved $400 million from U.S. partner to a firm managed by Zhao.
These stories shed light on the financial reporting secrecy of Binance and how much the U.S. branch and the parent company were intertwined despite the company declaring that wasn’t the case.
Binance has always maintained they have moved forward from those days (the “parent company control” story referenced actions in 2019 and 2020), but formal charges may spell the end.
We will have more on this breaking news story in the days ahead.
Featured
 Global |
| SEC accuses Binance of mishandling funds and lying to regulators www.nytimes.com The SEC said the world’s largest cryptocurrency exchange mixed “billions of dollars” in customer funds and secretly sent them to a separate company controlled by Binance’s founder, Changpeng Zhao. |
From Fintech Nexus
| USA DeFi integration – Why TradFi may be the missing piece By Isabelle Castro Margaroli TradFi’s adoption of DeFi infrastructure is ongoing, despite its negative press. Could this mean mainstream integration is close? |
| USA The overdraft landscape is in transition By Peter Renton The Financial Health Network released a study on overdraft fees highlighting that it is still a problem for the financially vulnerable. |
| USA Transparency ‘critical’ to earned wage access space By Isabelle Castro Margaroli Earned wage access can provide a solution to an underserved population in need of cash, but fee structures may need clarification. |
| Global How the ecosystem approach can help FIs reimagine digital transformation By Robin Smith Fintech advances, including emerging digital neobanks, embedded banking, AI, and other tools, are expanding consumer options. |
Also making news
- USA: Bitcoin faces fresh challenges after debt deal moves forward, Citigroup warns Just when markets appear to be moving past the months-long drama around the U.S. debt ceiling, holders of risky assets such as cryptocurrencies are likely facing a fresh challenge while the Treasury looks to rebuild its depleted cash balance with an estimated $1 trillion Treasury-bill deluge.
- USA: U.S. House Republicans push for crypto oversight with bill to make SEC play ball Draft legislation from key committee chairs represents this year’s most significant proposal for how the federal government might build guardrails around the digital assets sector.
- USA: Midsize banks face new funding risks after debt deal The end of the battle over the U.S. debt ceiling has brought calm to the financial sector, but some banks may not be out of the woods just yet.
- LatAm/USA: What Latin American fintech startups can teach Silicon Valley As Silicon Valley-based startups contend with the reality of sustained high inflation, here are the lessons that they can learn from their neighbors in Latin America.
- USA: Fed issues consent order to Silvergate to ensure wind-down Silvergate must submit a self-liquidation and wind-down plan within 10 days to the central bank and California’s Department of Financial Protection and Innovation.
- USA: Big banks could face 20% rise in capital requirements Those relying on fees might need bigger buffers to absorb losses under planned rules.
- USA: Online banks winning the deposit war Deposits rose recently at Ally, Goldman Sachs’s Marcus, and Capital One, banks that either don’t have branch networks or have far fewer branches than peers.
- LatAm: Buenas Fuentes: Inversionistas buscan una nueva generación de fintechs Te contamos las noticias más importantes de la semana en banca digital, fintech y pagos en Latinoamérica.