Binance

Spreading misinformation about Changpeng Zhao ‘was the norm’ for SBF, says Binance CSO

Binance chief strategy officer Patrick Hillmann claimed former FTX CEO Sam Bankman-Fried was “constantly” using his platform to disparage CZ without considering the FTX Token sale.

Former FTX CEO Sam Bankman-Fried used Twitter and other means to spread “fake rumors” about Binance CEO Changpeng “CZ” Zhao, according to a Binance executive.

In an April 21 Twitter thread, Patrick Hillmann — the chief strategy officer at Binance — said Bankman-Fried, also known as “SBF,” used his influence to label CZ as an “evil Chinese” through “fake rumors” to perpetuate his alleged scams at FTX. Prior to and following FTX filing for bankruptcy in November 2022, SBF and CZ’s public relationship was often antagonistic, though the two exchanges had financial ties.

“Sam denigrating CZ was the norm for us,” said Hillman. “Had nothing to do with deciding to sell the worthless FTT on the company’s books.”

A great read by @WilliamCohan at @PuckNews. One thing they missed, Sam was CONSTANTLY spreading fake rumors about @cz_binance, because shading him as an “evil Chinese” was critical to his scam. You can’t pretend to be Luke Skywalker without Darth Vader.https://t.co/oi9JxsqPyz

— Patrick Hillmann (@PRHillmann) April 20, 2023

In November, CZ announced plans for Binance to liquidate its position in FTX Token (FTT) prior to FTX’s bankruptcy, hinting that Binance would consider purchasing the competitor. When the deal fell apart and FTX filed for Chapter 11, the two industry heads traded barbs through social media, with CZ calling SBF a “fraudster” and the former FTX CEO suggesting that Zhao lied about the buyout discussions.

Zhao continues to lead Binance as CEO and regularly posts messages on social media amid changes to the regulatory environment for crypto firms. Bankman-Fried, in contrast, faces 13 federal charges, including those related to bribery and wire fraud, and has only limited internet access as part of his bail conditions.

Magazine: Can you trust crypto exchanges after the collapse of FTX?

How to stake Polygon (MATIC)

Staking MATIC helps one to generate passive income. Find how to stake MATIC via MetaMask, Binance, Coinbase Wallet and Trust Wallet.

The Polygon network, formerly the Matic network, is an Ethereum-scaling protocol that reduces cost and embeds high security. In a short span, Polygon has gained a high level of traction.

A string of solutions on a single network sets Polygon apart from other Ethereum scaling projects. It empowers developers to zero in on a scaling solution that works best with their applications. Polygon Labs has been consistently working to develop scaling solutions based on plasma sidechains, a blockchain bridge, different types of zero-knowledge proofs and Optimistic Rollups.

Processing bundles of transactions on the Polygon proof-of-stake (PoS) blockchain drastically reduces the burden on the Ethereum main chain, making transactions faster. The throughput rate in the Ethereum base layer is roughly 14 transactions per second, while Polygon has the potential to handle exponentially higher transactions per second.

Anyone wanting to participate in the network by updating transactional data on the system must stake Polygon (MATIC). In the Polygon network, a validator’s job is to ensure the network’s security and add transactions to blocks. Validators stake, allowing users to delegate tokens in exchange for rewards net of any commissions charged by validators.

Staking of MATIC, explained

Anyone looking to stake MATIC has to delegate tokens to a validator. Stakers can earn rewards against the staked funds. For now, there are no minimum staking requirements though validators can decide the minimum acceptable limit for staking. Validators might charge fees or commissions for these services. Staked MATIC tokens have an unlocking period of 80 checkpoints, approximately three to four days. Stakers wanting to exit just need to send an unbound request.

It helps to factor in validators’ credibility before delegating funds to any of them. One can hop to the Polygon staking dashboard to get information about validators, viewing metrics such as active validators, their uptime, commission and the amount required to stake. These metrics are valuable tools to help select reliable validator(s):

Uptime refers to the number of blocks signed in a specific time period. A validator’s uptime should be close to 100%. Otherwise, it indicates the validator is unreliable, as reflected in their public performance metrics.
Commission rate is the percentage of one’s rewards the validator receives for their services.
The stake amount indicates the total number of tokens delegated to a validator.

How to stake MATIC on MetaMask

MetaMask is a decentralized, noncustodial cryptocurrency wallet that interacts with the Ethereum blockchain. The wallet is accessible as a mobile app and browser extension on Google Chrome, Brave, Firefox, Opera and Edge.

Here are the steps to stake MATIC on MetaMask:

Step 1: Add MetaMask as a browser extension.

To stake MATIC on MetaMask, users need to visit the MetaMask website and set it up as a browser extension. Go to “Download.” One can choose between the currently used browser and iOS or Android. Select the download option for the browser to add MetaMask.

Step 2: Connect MetaMask to the Polygon blockchain.

MetaMask is compatible with different blockchains. To connect MetaMask to Polygon, go to “Networks” and “Add network.” In the window that appears, users must populate relevant data regarding the Polygon blockchain.

Step 3: Transfer MATIC tokens to MetaMask.

To transfer MATIC tokens to the MetaMask wallet, copy the address from the wallet and feed it in as the destination address on the exchange or another wallet. Now, transfer MATIC tokens to MetaMask.

Step 4: Connect MetaMask to the Polygon Wallet.

On the following link, click “MetaMask” to connect MetaMask to the Polygon wallet. https://wallet.polygon.technology/

Step 5: Stake MATIC via MetaMask.

Once the connection is established, staking is enabled.

Step 6: Delegate MATIC.

Select a validator to which tokens will be delegated.

One needs to use the control panel for staking. Click on the button “Apps” and then select “Staking.” Put the validator’s name in the search bar and click “Delegate.” All relevant information, such as the number of tokens staked, uptime and commission amount, is visible next to the validator’s name.

Feed in the MATIC amount for staking and click “Continue.” In the pop-up extension window, click “Confirm.” The transaction might take a few minutes to complete, depending on traffic.

To execute a transaction, stake MATIC and begin receiving rewards, users must buy a voucher and pay for gas. Click “Buy Voucher.” Specify details like the gas limit and price, and re-confirm the transaction.

Delegation is now complete. Users can “Stake more” or withdraw the rewards using the control panel. However, note that all transactions on the Ethereum network are paid in Ether (ETH). Therefore, the delegator must have enough ETH in the wallet to pay for the transactions.

How to stake MATIC on Coinbase Wallet

To stake MATIC on Coinbase, users need to use a wallet, as they don’t provide a staking feature on the exchange. If users have funds on the exchange but not in the wallet, they will need to move funds to the wallet. Even though Coinbase Wallet doesn’t have a built-in staking feature, there is a way to do it.

Here are the steps leading to staking MATIC on Coinbase Wallet.

Step 1: Install Coinbase wallet.

Install Coinbase Wallet on your smartphone. If it is an iPhone, go to the Apple App Store; visit the Play Store for Android.

The process includes creating a new wallet, agreeing to the terms of service, picking a username, setting privacy preferences, creating a passcode and backing up the wallet with a recovery phrase to help access the account in case users forget the passcode.

Step 2: Move funds to the wallet.

Open the wallet and go down to the bottom right. Tap there and scroll down the screen that appears. The link “Connect to Coinbase” will be visible. Hit the link, and it will ask for authorization. Once done, the wallet will establish the user’s connection to their wallet.

Hit “Buy or transfer.” When the exchange prompts you to select a coin, select “MATIC wallet.” Now, users can feed in the number of coins they want to transfer. The wallet will ask for a verification code. Once successfully deposited, funds will be transferred. MATIC tokens on Coinbase exchange are ERC-20 tokens, meaning they run on top of the Ethereum network.

Step 3: Stake MATIC.

Visit the Polygon website. On the top menu, click “Use Polygon” and “Staking.” On the next page, click “Become a delegator.”

The user is taken to a page displaying a list of validators and their relevant details. One can sort the list in line with four parameters: performance, commission, stake and random, by clicking a drop-down list on the right of the page. The user can view the validators as a grid or a list. They can also search for a specific validator using a search box on the left.

When users click any of the validators, they are taken to the page displaying further details of the relevant validator, such as MATIC staked, the commission asked, checkpoints signed and health status. Users can go through the list and click any validator.

A different page displays further details of the validator. This includes the amount of MATIC their Ethereum wallet balance holds and its value in dollars, their stake, heimdall fee, rewards earned, performance index, checkpoints signed and more. Heimdall fees refer to the fees the validator has to pay using the Polygon network to submit checkpoints.

The user must log in by clicking the button at the top-right using their credentials. Users without an account on Polygon must create one and click the “Become a Delegator” button.

Users need to populate the number of MATIC coins they intend to delegate and tap “Continue.” When the user clicks “Continue,” a pop-up appears. The user must tap the “Delegate” button to complete the process.

How to stake MATIC on Trust Wallet

Trust Wallet is a decentralized, noncustodial mobile app wallet for storing, exchanging and transferring crypto assets. Here is the process to stake MATIC on Trust Wallet:

Step 1: Set up a Trust Wallet.

Set up a Trust Wallet on your mobile phone. Select the preferred operating system (iOS or Android) and install the app.

If users have already been using Trust Wallet, they must import the wallet. Otherwise, they have to set up a new wallet. To import an existing wallet, click the “I already have a wallet” button and confirm a six-digit passcode.

If a user is uninitiated with the wallet, they must read and agree to the privacy policy and terms of service, create and confirm a six-digit passcode and back up the wallet with a recovery phrase.

Trust Wallet allows a wallet for several coins, but a multicoin wallet is usually the most suitable. As MATIC staking occurs on Ethereum, one requires an adequate amount of ETH and MATIC on the Ethereum mainnet.

Step 2: Connect Trust Wallet to Polygon.

Log in to the Polygon staking dashboard and click “Become a Delegator.” From the list of wallets, select “WalletConnect” to connect to Trust Wallet on Polygon. A QR code will appear on the screen.

Return to the Trust Wallet app, go to the settings and choose WalletConnect. Click the “New Connection” button. Scan the QR code on the Polygon staking dashboard. Click “Confirm” to establish the connection.

Step 3: Delegate and approve transaction.

Select the validator and click “Delegate.” Feed the number of MATIC coins to be staked and click “Continue.” To approve the transaction, confirm the smart contract call in the Trust Wallet app.

Get back to the Polygon staking dashboard and click “Delegate.” Confirm yet another smart contract call in the Trust Wallet app. Delegation is active and users can begin accruing rewards.

How to stake using Ledger

Ledger is a popular device for storing cryptocurrencies. Before staking MATIC with Ledger, one needs to prepare for it.

Step 1: Prepare for staking.

The process starts with updating Ledger Live to the latest version using the link: https://www.ledger.com/ledger-live/download

Connect the Ledger device to “My Ledger” and install the latest version of the ETH app on the Ledger device. Enable blind signing in the ETH app settings. When the preparation process is completed, Close Ledger Live or problems might arise when working with MetaMask.

Users also need to ensure MATIC is stored in the Ledger Ethereum account and not in the Polygon account, as MATIC staking happens on the Ethereum network.

Step 2: Connect Ledger ETH account to MetaMask.

Connect the Ledger device to the desktop and open the ETH app within. Now, link the Ledger ETH account to MetaMask.

Once the connection is established, go to the Polygon Wallet app.

Connect your Ledger Ether account to MetaMask by following these steps.

Once done, go to the Polygon Web Wallet app, select “Connect to a Wallet” and then MetaMask.

When MetaMask opens in the browser, select the Ledger account, click “Next” and then “Connect.” Ledger displays “Sign message.” Select “Sign message” and simultaneously press both buttons to confirm. Now, MetaMask is connected to the Polygon Wallet app.

Step 3: Select a validator.

Select “Polygon Staking.” In the app’s top-right corner, click the “Login” button and select MetaMask again.

Choose a validator from the list that appears. Users need to consider two parameters: a high score for “Checkpoint signed” and a low “Commission.”

Step 4: Delegate.

Click the “Delegate” button, fill in the amount of MATIC to be staked and click “Continue.” MetaMask displays “Give permission to access your MATIC?”

Review the fee amount; if it looks satisfactory, click “Confirm.” Ledger now displays “Review transaction.”

Select “Accept and send” and press both buttons simultaneously to “sign the transaction.” Ledger now displays “Application is ready.”

Return to the Polygon Web Wallet App, select a validator and click “Delegate.”

Review and confirm the transaction through MetaMask and Ledger devices. When the Ethereum network confirms the transaction, the screen will display “Delegation Completed.”

How to stake MATIC using ZenGo wallet

ZenGo is a self-compatible wallet. It’s compatible with WalletConnect, with no seed phrase vulnerability. Let’s go through how users can stake MATIC using a ZenGo wallet.

Step 1: Install the ZenGo wallet on your mobile phone.

Visit the ZenGo website, select an operating system (iOS or Android) and install the app on the mobile phone. To accelerate the search, one can scan the QR code.

Open the ZenGo app, enter an email address and tap “Continue.” ZenGo requires the user to confirm their email address. For confirmation, reach the inbox by tapping “Open My Email” in the ZenGo app, then tap “Tap to Confirm” in the email received. After email address verification, enable biometrics to make the app even more secure.

Create a Recovery Kit for the safety of funds and easy access when changing devices. As a noncustodial wallet, ZenGo shares an encrypted secret key share. Part of the key stored on the device helps unlock the wallet and use it with a face scan. Once the Recovery Kit is created, tap “Done.”

Step 2: Connect ZenGo wallet to Polygon.

Users need to connect the ZenGo wallet to Polygon. Open the link https://staking.polygon.technology/

Go to the Polygon staking dashboard. In the upper right part of the screen, tap “Login.”

Tap WalletConnect from the list of available connections. WalletConnect protocol enables one to connect ZenGo to Polygon. The QR code will appear.

Go to the ZenGo wallet homepage and tap the “Connect to Apps” button in the upper right corner. Scan the QR code.

Step 3: Select a validator and delegate MATIC.

Now begins the process of delegating MATIC. Make sure to have MATIC in ERC-20 and 0.05–0.1 ETH for fees, as the delegation happens on the Ethereum mainnet.

On the Polygon staking dashboard, scroll down to find information such as the network’s overview, active validators, their amount of stake, uptime, commission, amount of stake and health metrics.

Select a validator after considering the metrics and tap “Delegate” at the bottom-right of the screen.

In the pop-up box that appears, users need to enter the amount of MATIC to be staked and tap “Continue.” You can stake with an amount as low as 1 MATIC. To confirm the transaction, return to the ZenGo app and approve the transaction in the pop-up window.

Revisit the Polygon staking dashboard and tap “Delegate.” In the ZenGo wallet, confirm the transaction and wait for approval.

Once delegation is active, the user will begin receiving rewards. At each checkpoint, rewards get accrued.

Rewards are received in the “My Account” section of the Polygon staking dashboard. Users can also unstake, stake to multiple validators or restake funds. To withdraw the rewards accrued, users must have a minimum of 2 MATIC in their account.

The road ahead

As a prominent layer-2 network, the Polygon protocol is a solution that helps Ethereum expand in size, security, efficiency and use cases. As the unit of payment and settlement in the network, MATIC helps power the system. The Matic network went live in 2020, rebranded to Polygon in February 2021, and is being used by developers to build Ethereum-compatible decentralized applications.

The Polygon protocol has been instrumental in making Ethereum usable and pulling it out of the mess the blockchain found itself in after rapid growth. Transactions were stuck for hours over a lack of scalability, with the cost of executing transactions often more than the transaction amount itself. The Polygon protocol has effectively transformed Ethereum into a full-fledged multichain system with the advantages of Ethereum’s decentralization and vibrancy.

MATIC token is here to stay and keeps playing an increasingly important role in retaining the functionality of Ethereum ecosystem. Staking, meanwhile, will serve as a mechanism to ensure proper governance and security of the network.

Brazilian authorities investigate Binance for guiding clients past stop order: Report

The Brazilian SEC has reportedly turned over screenshots from Binance’s Brazilian website with instructions for evading a stop placed on futures trading on the site.

Binance is under investigation in Brazil by the Federal Prosecutor’s Office and Federal Police, according to a report in Valor Econômico newspaper. The cryptocurrency exchange has allegedly been helping clients evade a stop order on cryptocurrency derivatives investments.

According to the newspaper, the Brazilian Securities and Exchange Commission (SEC) reported to the Attorney General of the State of São Paulo that Binance may have continued to offer cryptocurrency derivatives to its clients after the SEC had issued a stop order on those offerings in 2020. Futures contracts are considered securities under Brazilian law regardless of the nature of the underlying assets.

The SEC presented the police with screenshots made in August 2021 showing instructions for Brazilian users to change their language setting to access the Binance Futures section. The SEC also said there was extensive Portuguese-language content with no notices of restrictions on Brazilian users.

Public information seen by Valor Econômico showed that Binance responded to the charges in February by submitting a proposal for a commitment agreement. No decision has been made on that proposal.

JUST IN Binance under investigation by Federal Police in Brazil for “alleged financial crimes” – Globo pic.twitter.com/EsdDKMpB86

— Radar (@RadarHits) April 20, 2023

Binance told the newspaper in a statement that it “reiterates that it does not offer derivatives in Brazil, that it operates in compliance with the local regulatory scenario and maintains a permanent dialogue with the authorities for the development of the crypto and blockchain segment in Brazil and in the world.”

Binance has faced similar charges before. It operated in the Canadian province of Ontario for months after it told the Ontario Securities Commission it would cease activities. Binance reportedly acknowledged in February that it was working with United States regulators to settle compliance issues. In March, Binance was sued by the U.S. Commodity Futures Trading Commission over alleged trading violations.

Magazine: $54B fund partner runs women-only DAO, LatAm blockchain gaming guild

Bitcoin ignores US jobs data as BTC price dip puts $28K support at risk

Eyes are on $28,000 support to hold in the event of continued downside, but Binance order book data warns that even this may be “rugged.”

Bitcoin (BTC) recovered from new 10-day lows at the April 20 Wall Street open as the United States jobs data boosted investor confidence.

*BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView*

BTC price: “Lights out” at $28,000?

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD reversing upward after hitting $28,360 on Bitstamp.

Amid an ongoing correction, the pair nonetheless failed to reclaim even $29,000 as support as U.S. unemployment data hinted that tighter financial conditions were working to cool inflation.

Spot gold became the main risk asset beneficiary, climbing back above $2,000 on the day.

*XAU/USD 1-hour candle chart. Source: TradingView*

U.S. equities opened higher but subsequently reversed their uptick, with the S&P 500 and Nasdaq Composite Index down 0.6%.

With BTC/USD circling $28,800 at the time of writing, popular Twitter trader and analyst Adam warned over the current range failing to hold.

“This seems like a ‘lose this level, and it’s lights out’ type of scenario,” he admitted alongside a chart showing the support range.

“Participation-wise, at lows pretty muted for my liking to get aggressive long here. Happy to buy reclaim above local S/R.”

*BTC/USD annotated chart. Source: Adam/Twitter*

Fellow trader Pierre, meanwhile, eyed a retest of a “no-trade zone” extending down to $27,000.

A few days later, and here we are retesting the “DO NOT TRADE HERE” zone from above, in confluence with D1 trend that has been defended since 20.5-21.8k. https://t.co/q2km1uyfgu pic.twitter.com/VwPKC3FKM4

— Pierre (@pierre_crypt0) April 20, 2023

An additional post explained the likely upside and downside targets should BTC/USD fail to preserve a trend in place for multiple weeks on daily timeframes.

price > D1 trend (defended since low 20s) & 28,000-28,500 (May 2022 support // March 2023 resistance) confluence == good

price
Voilà, that’s it. GL HF https://t.co/k50u8cwR6a pic.twitter.com/Bjzhq7DgZ9

— Pierre (@pierre_crypt0) April 20, 2023

Data from the Binance order book showed bid liquidity thinning below spot an hour before the jobs data, with the nearest substantial support now at $28,000.

“Note: Local support just got rugged,” monitoring resource Material Indicators, which produced the data and uploaded it to Twitter, wrote in part of accompanying commentary.

“Some was placed to absorb a dump just above $28k. If it gets hit, expecting $28k to get rugged.”

*BTC/USD order book data (Binance). Source: Material Indicators/Twitter*

Crypto liquidations cool after 2023 record

With funding rates negative, long liquidations took a breather on the day after April 19 saw the largest tally of 2023.

According to data from Coinglass, cross-crypto long liquidations on that date totaled $262 million, with the April 20 number at just $34 million.

*Crypto liquidations chart. Source: Coinglass*

Magazine: Bitcoin in Senegal: Why is this African country using BTC?

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Binance users get new ETH deposit addresses: Here’s what to do

Binance said retiring old deposit addresses on multiple blockchains is part of its infrastructure upgrade, with the new addresses offering better security and efficiency.

The world’s largest cryptocurrency exchange by trading volume, Binance, is disabling multiple old deposit addresses as part of its infrastructure upgrade.

In an announcement on April 18, Binance said it would retire selected deposit addresses and memos in batches on multiple blockchains, including Ether (ETH), Tron (TRX), BNB (BNB) and Stellar (XLM). The crypto exchange said that the retirement of old addresses is a routine and a part of enhancing security and efficiency for the users.

*List of retired deposit addresses on various blockchain networks. Source: Binance*

The users of these impacted deposit blockchain addresses will be notified via email, and the exchange strongly encouraged that all impacted users obtain a new address and memo upon receiving the notification. The notification email will include the expiration date for any outdated deposit addresses. When users get a new address, old deposit addresses will become invalid.

To obtain a new deposit address, users must log in to their Binance account and follow the instructions mentioned in their email notification. The migration is scheduled for between April and June 2023.

The crypto exchange also assured that the funds wouldn’t be lost if someone mistakenly sent assets to expired addresses. However, payments made to addresses that have already expired will not be immediately reimbursed. Users must manually credit the deposits from the old address using the “transaction history” page.

Binance regularly upgrades and maintains its infrastructure from time to time. The exchange recently raised the alarm against 191 high-risk, untrustworthy decentralized applications and fake tokens on its native blockchain network called BNB Chain.

The change in deposit addresses of multiple blockchains, including that of Ethereum, comes just a day before Binance is set to open ETH withdrawal for users. Millions of Ether are now unlocked after the Shapella upgrades on April 12, with major exchanges and custodians having already made arrangements for users to unstake their ETH from the Beacon Chain nearly three years after staking it.

Magazine: Crypto audits and bug bounties are broken: Here’s how to fix them

BNB Chain issues list of 191 high-risk, untrustworthy DApps and fake tokens

BNB Chain’s proactive alert does not represent the risk level of the underlying DApp project. Instead, it is aimed at helping users in their research before making investment decisions.

BNB Chain, the blockchain developed by crypto exchange Binance, updated its red alarm list to include 191 high-risk projects and decentralized applications (DApps) currently hosted on the blockchain.

BNB Chain’s red alarm list — updated every Friday — includes projects and DApps deemed risky investments purely based on smart contract assessment. The 191 new projects on BNB Chain that have been added to the list are either suspected of issuing fake tokens, high or opaque tax fees or simply because their websites or Twitter handles don’t work.

*A snippet of the risky projects on BNB Chain. Source: dappbay.bnbchain.org*

The above screenshot shows a portal wherein users can scan any BNB Chain projects for risks. Out of the lot, three projects — CycGo, Piston token and Shorter Finance — were flagged after being suspected of being funded by assets originating from Tornado.

*BNB Chain smart contract-based risk scanner. Source: dappbay.bnbchain.org*

“Make sure to review our weekly Red Alarm list to familiarize yourself with suspicious actors on our network,” read BNB Chain’s announcement on the matter. It is important to note that BNB Chain’s proactive alert is not investment advice and does not represent the risk level of the underlying DApp projects. Instead, it is aimed at helping users in their research before making investment decisions.

On April 10, BNB Chain began testing BNB Greenfield, an in-house attempt to deliver decentralized storage solutions.

We’re celebrating the BNB Greenfield testnet release!

Read the article below, then complete the following steps and we’ll pick 5 entries to share a prize pool of $500 on April 19th.https://t.co/O5BkyIJDSq

♥️ Like
♻️ RT
Share your thoughts on testnet using #BNBGreenfield pic.twitter.com/gmIvwCSvvB

— BNB Chain (@BNBCHAIN) April 12, 2023

As Cointelegraph reported, BNB Greenfield allows users to create wallets and manage data, while developers can exercise control over data assets.

Magazine: Crypto audits and bug bounties are broken: Here’s how to fix them

CFTC chair says Binance intentionally broke rules concerning futures, commodities

The head of the CFTC, Rostin Behnam, recently spoke out against Binance and its leadership at a public-facing event held at Princeton University.

Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), recently spoke out about the allegations levied against Binance, claiming that the beleaguered cryptocurrency exchange’s leadership knowingly operated outside of U.S. laws governing the exchange of commodities and futures.

Speaking at a fireside chat that took place at the DeCenter Spring Conference at Princeton University on April 14, Bloomberg reports that Behnam told those in attendance that Binance leaders had intentionally flouted the rules concerning operations, including knowingly allowing U.S. citizens to participate on the exchange through the use of virtual private networks (VPNs) and other obfuscation tools.

@Princeton DeCenter Spring Conference kicks off with CFTC chair Rostin Behnam on crypto as commodity, and now a panel on what widespread adoption would mean for regulation and governance. pic.twitter.com/pkHhOWuScj

— Andrew Chignell (@AndrewChignell) April 13, 2023

“These are not unsophisticated individuals,” Behnam said at the event. “They are starting large companies and offering futures contracts and derivatives to U.S. customers.” The CFTC head later added “If you are going to offer futures contracts in the U.S., there is a clear understanding that you are registered with the CFTC and comply by the law.”

The comments stem from the CFTC’s lawsuit against Binance and its CEO Changpeng “CZ” Zhao for alleged trading violations. Per a report from Cointelegraph, “The CFTC is pressing seven counts for executing unregistered futures transactions, providing illegal commodities options, failure to register as a Futures Commission Merchant, Designated Contract Market or Swap Execution Facility, failure to supervise diligently or implement AML/KYC measures and law evasion.”

The nuts and bolts of the CFTC’s suit against Binance — the exchange also faces legal action from the IRS and federal prosecutors — relies on supposed evidence that Binance and CZ continued onboarding U.S. customers despite a policy prohibiting such actions and that the company knowingly engaged in illegal futures trading, allegedly running the business afoul of U.S. anti-money-laundering laws.

As #Binance has grown as a company, we’ve continued to increase our investment of resources towards compliance.

Watch the video below to discover more about our dedicated team and the growth of our compliance efforts.

— Binance (@binance) April 11, 2023

It’s unclear at this time why the CFTC head would participate in what appears to be flippant public discussion of ongoing investigations. Binance, for its part, continues to assert its participation in good-faith efforts at global compliance.

OPNX quips about its early dismal volume after reporting 90,000% surge

OPNX exchange has joked about its earlier low trading volume before experiencing a big surge in volume during the last 24 hours.

Open Exchange (OPNX) has claimed to have experienced a massive surge in trading volume and has joked about its dismally low volume on its opening day.

According to an April 10 tweet by OPNX, its day one trading volume on April 4 hit a total of $13.64 but has since apparently seen a surge to $12,398 on April 9, an increase of over 90,000%.

We’re thrilled to announce a significant increase in trading volume at OPNX! On day 1, our volume was a hard-fought $13.64. Today on day 5, it has surged to a magnificent $12,398. That’s a remarkable percentage increase of over 90,000%. We are incredibly proud of our team’s hard… pic.twitter.com/0rG9F28xzl

— OPNX (@OPNX_Official) April 10, 2023

However, new data suggests the trading volume has seen a far bigger increase during the last 24 hours.

According to CoinGecko data, OPNX’s 24-hour trading volume as of April 10 has exploded to over $179,000, representing a gain of around 24,500% since April 9.

The vast majority of the volume has come from the trading pair for Bitcoin (BTC) and Tether (USDT), with more than $178,000 worth coming from the pair.

It’s unclear what exactly sparked the increase but it could be connected to the April 9 announcement from OPNX about a new market-making program to help increase its volume.

After launch, the OPNX community & journalists provided us with valuable feedback about our inadequate liquidity, which admittedly may have contributed to low trading volume. We are grateful for this insight & have taken swift action by instituting the OPNX Market Maker Program: pic.twitter.com/V1Aamfpfeg

— OPNX (@OPNX_Official) April 9, 2023

OPNX’s trading volumes may also be a result of the steady climb in the price of BTC, which has seen the largest crypto by market cap cruise past $30,000 for the first time since June.

OPNX CEO Leslie Lamb announced the exchange was open for business on April 4. The firm is the result of a partnership between the co-founders of crypto investment firm Coinflex and the co-founders of the collapsed hedge fund Three Arrows Capital, Su Zhu and Kyle Davies.

The crypto community has had a mixed response to the unveiling of OPNX and its reported trading volume.

Some comments criticized the exchange’s connection with Davies and Zhu, whose whereabouts have remained unclear since the 2022 collapse of 3AC, which once held $10 billion worth of assets.

Do you sell claims on 3AC?

— sir macintosh (@macgregor_now) April 10, 2023

Others, meanwhile, ridiculed OPNX’s still relatively low trading volume, joking that Changpeng “CZ” Zhao, the CEO and founder of Binance, would be worried about the project.

CZ shaking rn

— Awawat (@Awawat_Trades) April 10, 2023

In contrast, Binance posted a 24-hour volume of over $11 billion compared to OPNX’s $179,000, as per data from CoinGecko.

Magazine: Zhu Su’s exchange did $13.64 in volume akshually, Huobi in crisis: Asia Express

Binance.US unable to find bank partners in the United States: Report

The United States arm of global crypto exchange Binance has faced challenges in establishing a new bank partner.

The United States arm of global crypto exchange Binance has been facing challenges in establishing a new bank partner to serve as a fiat on-ramp and off-ramp for its clients in the country, according to a Wall Street Journal report on April 8.

The recent failures of Silvergate and Signature Bank left Binance.US without banking services, depending on middleman banks to store funds on its behalf, according to the WSJ, citing “people familiar with the matter.“

The regulatory crackdown on banks with crypto clients is another factor contributing to the exchange’s struggles. In March, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance Holdings and its CEO, Changpeng “CZ” Zhao, for alleged trading violations. The cryptocurrency exchange has been the focus of a CFTC investigation since 2021.

Binance.US needs a bank to directly hold its client’s U.S. dollars, but recent attempts to establish direct banking relationships with banks, such as Cross River Bank and Customers Bancorp, have failed.

Binance.US customers have been affected by the absence of a direct bank. In a recent status update, the exchange said it “was transitioning to new banking and payment service providers over the next several weeks,” adding that some U.S. dollar deposit services would be temporarily impacted during the transition.

*Binance.US status update on U.S. dollar deposit services. Source: Binance.US*

Currently, Binance.US is holding customer funds via the financial technology firm Prime Trust. A spokesperson for Prime Trust stated that all funds received from clients are stored through its banking partners.

“We work with multiple U.S.-based banking and payment providers and continue to onboard new partners while upgrading our internal systems to create a more stable fiat platform and offer additional services,” a spokesman for Binance.US told the WSJ.

Binance.US is operating in a similar environment to what crypto firms are experiencing in the United Kingdom, where banks are moving away from accepting clients from the crypto sector. The few banks still working with crypto firms in the U.K. are requesting more documentation and information about how they monitor clients’ transactions.

Magazine: US enforcement agencies are turning up the heat on crypto-related crime

Bitcoin derivatives favor further BTC price rally toward $30K

Bitcoin’s price might have held near $28,000, but the absence of shorts using margin and futures markers is a bullish indicator.

Despite regulatory pressure and worsening macroeconomic conditions, Bitcoin (BTC) demonstrated bullishness, holding near $28,000 for the past week. Furthermore, professional traders have maintained leveraged long positions on margin and in futures markets, indicating strength.

On the regulatory front, on April 4, the Texas Senate Committee on Business and Commerce agreed to move forward and remove incentives for miners operating within the state’s regulatory environment. If passed, Senate Bill 1751 would cap compensation for load reductions on Texas’ power grid during emergencies.

Risk of recession grows against rate hikes

The risk of a recession in the United States grew after applications for unemployment benefits in the week ending March 25 were revised to 246,000, up 48,000 from the initial report.

Furthermore, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), stated on April 6 that the economies of the U.S. and Europe should continue to struggle as higher interest rates weigh on demand.

Regarding the banking crisis, Georgieva advised central banks to keep raising interest rates, adding, “Concerns remain about vulnerabilities that may be hidden, not just at banks but also non-banks — now is not the time for complacency.“

On the other hand, on April 6, St. Louis Federal Reserve president James Bullard downplayed concerns about the impact of financial stress on the economy. Bullard stated that the Fed’s reaction to the banking sector’s weakness was “swift and appropriate,” and that “monetary policy can continue to put downward pressure on inflation.“

Let’s look at derivatives’ metrics to better understand how professional traders are positioned in the current market conditions.

BTC price derivatives reflect traders’ neutral sentiment

Margin markets provide insight into how professional traders are positioned because they allow investors to borrow cryptocurrency to leverage their positions.

For example, one can increase exposure by borrowing stablecoins and buying Bitcoin. On the other hand, borrowers of Bitcoin can only take short bets against BTC/USD.

*OKX stablecoin/BTC margin lending ratio. Source: OKX*

The chart above shows that OKX traders’ margin lending ratio has remained near 28x in favor of BTC longs over the last week. If those whales and market makers had perceived increased risks of a price correction, they would have borrowed Bitcoin for shorting, causing the indicator to fall below 20x.

The top traders’ long-to-short net ratio excludes externalities that might have solely impacted the margin markets. Analysts can better understand whether professional traders are leaning bullish or bearish by aggregating the positions on the spot, perpetual and quarterly futures contracts.

Because there are some methodological differences between different exchanges, viewers should focus on changes rather than absolute figures.

*Exchange’s top traders’ long-to-short ratio. Source: Coinglass*

Between April 1 and April 7, the top traders’ long-to-short ratio at Binance slightly declined from 1.17 to 1.09. Meanwhile, at the Huobi exchange, the top traders’ long-to-short ratio has stood near 1.0 since March 18. More precisely, the ratio slid from 1.00 on April 1 to 0.95 on April 7, thus relatively balanced between longs and shorts.

Lastly, OKX whales presented a very different pattern as the indicator declined from 1.25 on April 3 to a 0.69 low on April 5, heavily favoring net shorts. Those traders reverted the trend, aggressively buying Bitcoin using leverage for the past two days as the long-to-short ratio returned to 0.97.

Absence of Bitcoin shorts is a bullish indicator

In essence, both the Bitcoin margin and futures markets are currently neutral, which should be interpreted positively given that the Bitcoin price rose 41.5% between March 10 and March 20, holding the $28,000 level.

Given the enormous regulatory uncertainty caused by the SEC’s Wells notice against Coinbase on March 22, the absence of shorts using margin and futures markets currently favors further price appreciation.

Unless the economic crisis unfolds faster than expected, inflation will remain a top concern for investors, and Bitcoin inflows should be enough to keep $28,000 as a resistance level.

The views, thoughts and opinions expressed here are the authors’ alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.