Crypto Exchange Binance Former CEO Jailed for Money Laundering

This week's top crypto news includes former Binance CEO Changpeng Zhao sentenced to four months in prison for failing to maintain anti-money laundering protocols; the SEC and Gensler deeming Ether a security for over a year; an FBI warning targeting privacy-focused crypto tools; Bitcoin potentially entering a two-month price consolidation period; the debut of Hong Kong's Bitcoin and Ether ETFs with over $200 million in assets.

Former Binance CEO Changpeng Zhao Sentenced to Prison for Anti-Money Laundering Violations

On April 30th, former Binance CEO Changpeng Zhao, known as "CZ", was sentenced to four months in prison by Judge Richard Jones of the U.S. District Court for the Western District of Washington. The sentence stems from Zhao's guilty plea in November to charges of failing to maintain an effective Anti-Money Laundering (AML) program at Binance, the world's largest cryptocurrency exchange.

Prosecutors initially sought a three-year prison term, but Judge Jones opted for a shorter sentence, citing the lack of evidence indicating that Zhao had direct knowledge of specific illegal activities taking place on Binance.

SEC Viewed Ether as Unregistered Security for Over a Year

Court documents made public during a lawsuit filed by Consensys against the U.S. Securities and Exchange Commission (SEC) reveal that the agency and its chair, Gary Gensler, have considered Ether (ETH) to be an "unregistered security" for at least a year. The assertion is part of Consensys's response to a Wells notice from the SEC.

FBI Warning Targets Crypto Mixers

An advisory issued by the U.S. Federal Bureau of Investigation (FBI) on April 25th, cautioning against using unregistered cryptocurrency money-transmitting services, is believed to specifically target smart-contract privacy tools known as mixers. The FBI highlighted that it had taken action against unlicensed cryptocurrency services and warned that users could face financial disruptions if their funds were mixed with those obtained illegally.

Bitcoin Price Consolidation Expected Post-Halving

Bitfinex analysts predict that Bitcoin (BTC) may enter a period of price consolidation lasting one to two months following the recent halving event. Price fluctuations of up to $10,000 are anticipated, with Bitcoin serving as a market benchmark and indicator for the broader cryptocurrency market.

Hong Kong Bitcoin and Ether ETFs Attract $200M

Spot Bitcoin and Ether exchange-traded funds (ETFs) in Hong Kong debuted on April 30th, attracting over $200 million in total assets. Data shows that Bosera HashKey's spot Bitcoin and Ether ETFs have acquired assets worth $71.94 million, while ChinaAMC's spot BTC and ETH ETFs have secured $123.61 million.

Weekly Crypto Market Performance

At the end of the week, Bitcoin (BTC) stands at $61,769, Ether (ETH) at $3,081, and XRP at $0.52. The total market capitalization is valued at $2.29 trillion, according to CoinMarketCap.

The top three gainers among the top 100 cryptocurrencies are Helium (HNT) at 25.86%, Wormhole (W) at 24.16%, and Optimism (OP) at 22.34%.

The top three losers are Stacks (STX) at -17.57%, Pendle (PENDLE) at -12.90%, and Neo (NEO) at -12.89%.

Zhou's Quotation

"I will do my time, conclude this phase, and focus on the next chapter of my life (education)."

Held's Quotation

"Good. [Roger Ver's] been a net negative for Bitcoin."

Chhugani and Sapra's Quotation

"We don’t expect the Bitcoin ETF slowdown to be a worrying trend, but believe it is a short-term pause before ETFs become more integrated with private bank platforms, wealth advisors and even more brokerage platforms."

Lane's Quotation

"The judge has sent a message, not to CZ individually but to the entire industry, that Anti-Money Laundering compliance must be taken seriously."

Blatteis's Quotation

"The [United Arab Emirates] government is gradually doing for crypto what Silicon Valley did for tech. The country is quickly becoming the Coachella of the crypto world."

Swick's Quotation

"Anything that increases usage and adoption of the Bitcoin blockchain is good for miners, and good for the Bitcoin ecosystem as a whole."

Hayes's Prediction

"Bitcoin bottom in, now headed for a ‘slow grind higher’"

FUD of the Week: US Justice Dept Charges Roger Ver with Tax Fraud

Authorities in Spain arrested early Bitcoin investor Roger Ver, also known as "Bitcoin Jesus," based on criminal charges in the U.S., including mail fraud, tax evasion, and filing false tax returns. Ver allegedly defrauded the Internal Revenue Service (IRS) of approximately $48 million by failing to report capital gains on Bitcoin and other asset sales. The government aims to extradite Ver to the United States for trial.

US Probes Jack Dorsey's Block, Inc. over Financial Transactions

U.S. federal prosecutors are investigating Jack Dorsey's fintech company, Block Inc., following allegations of compliance violations in its payment divisions, Square and Cash App. Documents provided by a former employee to prosecutors reportedly show that the company processed transactions for users in sanctioned countries and facilitated crypto transactions for terrorist groups. Several small-dollar transactions were allegedly not reported to the government.

Nigerian Court Postpones Binance Money Laundering Trial

The trial of Tigran Gambaryan, a Binance executive detained in Nigeria, has been postponed to May 17th due to a delay in court proceedings. Binance lawyers did not receive the necessary documents to proceed with a money laundering case involving Gambaryan and regional manager Nadeem Anjarwalla.