Crypto Rot: A Warning Against Digital Delusions
Source: Kitco News
(Kitco News) The legal saga and repercussions for Binance and its founder Changpeng Zhao "CZ," are most likely far from over, according to Cory Klippsten, CEO of Swan Bitcoin.
On November 21 Binance and CZ reached a plea deal with the U.S. Department of Justice, with CZ stepping down and Binance agreeing to pay over $4.3 billion for breaking U.S. anti-money laundering and sanctions laws.
Zhao also agreed to pay $50 million, and his felony charge carries a maximum sentence of ten years in prison. However, with the guilty plea, the former Binance CEO is expected to serve 18 months in jail at most.
"It's been fascinating to watch this unravel," Klippsten told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News, noting the increased scrutiny on Binance in the aftermath of FTX's collapse in 2022.
Discussing the specific charges against Binance, Klippsten pointed out that they stem from the Department of Justice and mainly revolved around anti-money laundering controls and compliance with sanction laws, not the misuse of funds.
"I don't think the SEC is done here. It's been proven by people investigating it that there was a commingling of funds and that there were assets created that were supposed to be backed one to one that didn't have the backing for various periods of time," he said.
Klippsten's advice has remained the same — "I always say get your funds off of exchanges," he said, highlighting the inherent risks of centralized platforms in the crypto space.
Klippsten explained some of the red flags investigators found with Binance.US and warned that the exchange could get shut down. Watch the video above for details.
"There's a good chance that the U.S. exchange gets shut down or is just completely changed as far as ownership management," he said. "You're just going to see Binance as an enterprise dramatically shrink over the coming years."
What it all means for Bitcoin
Klippsten dubbed CZ as Bitcoin's "enemy number one" for the last six years because of all the altcoins he has been pumping.
"He's been the most powerful actor contra Bitcoin because of all of these altcoins that he markets and launches with his Binance accelerators, including token listings and contests to try and get people to buy these things," he said. "[CZ] markets anything but Bitcoin. This is the reason that so many people get so confused about Bitcoin. And it makes it very difficult for Bitcoin to chop through the noise."
For what the Binance news means for Bitcoin going forward, watch the video above.
Klippsten also touched on the potential for spot Bitcoin ETFs in the U.S. in early January, predicting a significant influx of investment into the Bitcoin market.
"It's going to be a deluge of money coming in through these spot Bitcoin ETFs," he said. "We're likely to see quite a ridiculous first half of 2024 for Bitcoin," alluding to the impact of major institutional players like BlackRock and Fidelity on the Bitcoin ETF space.
To find out what a spot Bitcoin ETF could mean for Swan and to learn about the products Swan offers, watch the video above.
Klippsten's long-term Bitcoin price forecast is $1 million per coin in 2030, just over six years away. To get his reasoning and why such a massive move is possible, watch the video above.
Klippsten also shares when he thinks Bitcoin may hit a new all-time high in the video above.
Originally published by: Anna Golubova and Michelle Makori on Kitco News
