Holy Smokes, It happened. We freaking called it. Oh snap I Can't believe it happened. It happened, It happened.

It happened. Cy Pleads guilty, agrees to pay back $4.3 billion Do Holy Smokes? First of all, I made a video a year ago about this: I right here. I'm going to put it up on screen. This video is public.

You could go search on YouTube for it. Look at it. Binance CZ exposes himself as a fraud Crypto collapse was my video right? That was 11 months ago I had a 67% dislike ratio on that. People were really mad at me for making that video and guess what's happening right now? It's official front page of the Wall Street Journal Folks Binance founder agrees to step down, plead guilty.

He also admits, oh wait, Binance itself is also going to admit to wrongdoing and the company is going to pay four $4.3 billion in fines. Holy Smokes, man, they absolutely destroyed here. I Mean we we saw this coming. Let's look at this update though and then we'll look at some of some of the red flags.

but this is this is Huge. Finance Founder Cy Agrees to step down. Remember the Department of Justice had a massive massive investigation into him for fraud regarding not just allowing uh users uh to to basically money launder uh, but also not properly having reserves for their customer funds. These were all allegations allegations that they were potentially using money uh uh, you know like this was the famous trick.

Okay, let me give you the quick bottom line on the trick and then I'll give you the news. What you do is you say you have five tokens and each token let's say is worth1 billion dollar and then you say all of them are backed by a billion dollars of cash. But what you don't tell anybody is you're backing $5 billion of assets by the same $1 billion. So if you look in a snapshot $1 billion dollar for Binance token, let's say the B&B coin or whatever.

uh and align that up with a billion dollars in in a bucket? Yeah, maybe you have that, but do you have it for all the other obligations, customer reserves, other tokens, Whatever. maybe not. Uh, and those were the allegations from the Department of Justice that basically this was a massive fraud. Again, you could watch my video on it when we talk about it.

Binance CZ exposes himself as a fraud 11 months ago and again I got massive hate for this. 67.8% hate. basically. Well, I 67 likes the rest.

hate. But anyway, let's look at the news. Okay, look at this news. This this: Chief Executive Officer of Binance, the largest global cryptocurrency exchange, plans to step down and plead guilty to violating us.

There it is, folks. AML AML Just said it. I haven't even read it yet I That's just I know I Remember what they were alleging? uh, violating criminal Us anti-money Laundering requirements I This This is intense in a deal that may preserve the company's ability to continue operating according to people familiar with the matter. Note this: Look at this: There's a risk that you may not be able to continue operating.

Binance, That's crazy. Uh, no, the video's live Olaf The video's Live. In fact, all my videos are coming back I've I Just created a few archive playlists so you're going to see I'm retitling to make them very clear in the archive and all my full archive is coming back online. So you're going to see every single video.

They're just going to be organized nicely in little archive playlist. but again, you could look that video up. So anyway, CZ is scheduled to appear in Seattle F No way. Dude, he's coming to Seattle Dude, he's going to jail.

then. Oh my God. He has refused to come to the United States because he basically knew he would just go to jail if he came to the United States Oh my Gosh. I Can't believe he's actually coming.

Uh, he's scheduled to appear. I Wonder if he'll actually show up? He's scheduled to appear in Seattle Federal court today this afternoon. That's in like four or five hours man. I Want to go to Seattle I Want to see him? Uh.

Binance, which CZ owns, will also plead guilty to a criminal charge and agree to findes totaling $4.3 billion. Oh my. God which includes amounts to settle civil civil allegations made by Regulators The deal. dude.

the department. This is how the government's getting their money. Holy Smokes Day 4.3 Billies, that's gonna. That's like onethird of the money that's supposed to go to Israel They're just taking it from Binance now.

The deal would end. Long running investigations of Binance Cy Founded the firm in 2017 and turned it into the most important Hub of the global Global crypto Market This is this could be a boon for Coinbase I Wonder how Coinbase is doing? Uh I mean I Think it would be good for Coinbase H Coinbase is going down on this news down about a percent, but Pointbase has been up this year. I mean they're up like 4X three or fourx this year, so they're absolutely kicking butt. Uh, but yeah, bitcoin's dropping a little bit.

like 300 bucks. Like big deal, like 1% the big. The movements here aren't that big. I Think the bigger movement would probably be in the Pance token.

honestly. Uh, BNB BNB is only down three %. That's crazy. I Wonder if there's a limit to how much people are able to sell on Binance right now? But anyway.

Cy Founded like there's some manipulation going on there, this Binance token should be like zero right now. Uh, Zhao Founded the firm in 2017 and turned it into the most important hub for the global cryptocurrency market. The criminal probe in particular has shadowed the company. Oops, uh, even as its market share initially grew after the collapse of FTX Uh yeah.

I mean once once teral Luna went under and I was I I talked about stable coins crashing back in like January of 20121 which people also hated me for. I I personally I didn't think the crypto brokerages would go down so I have to say I wasn't perfect but uh I did suspect the Sable coins would crash which obviously took down Celsius Blockfi FTX Voyager right? I mean these are a lot of platforms I lost a lot of money in those I got screwed. Okay I got screwed in many ways. people people mad about FDX and got screwed.

Uh, investing in these companies. So uh, like a lot of people got hurt by these frauds. These are the real frauds. CZ And people like Sam Bankman freed.

they're the frauds. A lot of people got hurt by them. Executives Have recently fled Binance and the Exchange has laid off a chunk of its employees this year as the company struggled to come to terms with us. approves uh.

the deal would allow Zhao to retain his majority ownership of buying Finance Although he wouldn't be allowed to have an executive role at the company, he would face sentencing at a later date. Oh, so he's going to go here. He's gonna get arraigned today. so he's gonna get arraigned on these criminal charges today.

After he get he gets arraigned on the criminal charges. Uh, and since it's a guilty plea, there won't be a trial. Which is unfortunate because I Kind of want to see like all the discovery right? I want to see and that's what he's trying to prevent. Because think about this folks.

if: CZ FES this in court, all of it goes public. That's how the SEC and the Department of Justice they know they can absolutely destroy you. They have massive power over you because it's the same thing that they're trying to do uh, against like Trump or against Elon Musk is they get into lawsuits with you and then you know some of the discovery just happens to get to the media and then it gets out and it turns into a spectacle. That's how they increase their leverage against uh, these these these business owners now in this case I agree FTX and aao deserve to be highly investigated in punch.

This is a massive case though. This is crazy. Uh. so anyway, so he'll get arraigned, he'll get to continue being you know, owning the company uh and obviously being involved in the company.

He can't have a public executive role. Uh, but beyond that, he would face sentencing at a later date. So I would guess probably. Uh, you know you're You're probably looking at some kind of like April May sentencing time frame.

Something like that. The outcome, uh, resembles an earlier case that prosecutors brought against the executives of Bitmex, an exchange for crypto derivatives that was based on or based, uh, okay, based in a different area. uh, its former. CEO Arthur Hayes pled guilty to violating anti-money laundering law and was later sentenced to two years probation avoiding a prible prison term that's actually not that bad.

Like if CZ is able to get off on just Pro probation, this is a good deal because think about it, he's just going to take money from the company, which probably a lot of it might end up being customer assets. we don't know I'd be nervous I wouldn't leave a dime on the platform, but anyway, uh, wherever he's goingon to get the money from, somehow Binance has to pay $4.3 billion doll back I don't think they have the money to do that, especially since they fired their Auditors Uh, Anyway, we'll see, and Cz's crimes are, probably, or at least allegations are probably substantially more severe. So I would not be surprised to see Cy get sentenced to somewhere between 5 to 10 years in in prison and then maybe negotiate that down to some kind of like serve sometime and some probation. But there's going to be some kind of hit here.

uh, like, and the fact that he's coming to the United States I Think he knows he's going to jail. but anyway, the deal to be announced on Tuesday doesn't include a settlement with the SEC Yeah, oh, you still have the Sec's lawsuit going going, which sued Binance and Zhao in June and alleged it violated investor protection laws. Uh, people said uh. People familiar with the matter said a major crypto.

Major crypto exchanges such as Binance have decided to litigate with the SEC Excuse me believing that they can show that cryptocurrencies don't qualify for the kinds of Investments overseen by the the Department of Justice looked at Binance's programs to detect and prevent money laundering and whether or while would allow individuals in sanctioned countries such as Iran and Russia to trade with Americans on the exchange. The Journal previously reported AML is a really big deal. They will come after you hard, come after you real hard. Uh.

Anyway, Okay, so then you have a separate agreement. Would resolve a civil lawsuit filed against Binance and Z earlier this year by the Cftc. Okay, so you have three things Department of Justice Cftc that'll get settled. However, the SEC lawsuit is still going so the SEC could come out and say we also want $4 billion.

So the SEC and investor protection rules. That part's not even get getting settled here. This case isn't even about investor protection laws. This settlement this pleading guilty is literally about anti-money laundering and and uh, you know potential fraud around or alleged fraud uh or or illegal activi around money laundering and sanctions violations.

But wow. $4.3 billion doll. My goodness, The Cftc claimed that Binance for years didn't have a program to detect terrorist financing and money laundering. It also said Binance gave Americans access to derivatives such as Futures and swaps that can only be traded on the US if they're offered on regulated platforms.

Binance never registered with Us Regulators making it uh, making its risky leverage Products Off limits to American traders see if FTC declined to comment Zhao resides in the UAE I think Dubai and has curtailed his travel This year, the UAE does not have a mutual extradition treaty with the Us. although uh, uh, last year country signed a treaty that enhanced law enforcement evidence sharing, the UAE welcomed remained welcoming to crypto. even as countries such as China and the US have cracked down. Zhao's status was a sticking point in negotiations between the government and Binance from month.

Wow, this is a really big deal and what's crazy about this is this isn't even over yet. This is just getting started. But I Want to remind you of this video that got 67.8% dislikes My Binance CEO exposes himself as a fraud. Listen to some of the clips from this video.

You ready for this? Uh, here we go, but artists don't reveal every problem. No, but an audit from a big four auditor would reveal that Cez if you could get a big four auditor to say that if if you're saying that some of them don't want to work with you, that raises questions too. They don't want to work with you because you don't have the files and the data. That would make them feel comfortable signing off and and giving that stamp of approval.

Actually, many of them don't even know how to audit crypto exchanges. Um, they don't. They don't. They don't really when they so Becky's face is like bro, you're saying Auditors don't know what to do now.

A lot of people who are supporters of C Yeah, that's right, they don't That's the same thing the Hex Coin guy said okay I did my interview with the Hex Coin guy I'm like release your audit bro and he's like no man. the Auditors don't they don't get it. Okay who? Okay, Oh, B&B token's finally crashing I think they're manipulating that coin. They're not allowing that to freeall the way it should.

Something's being manipulated over there. But anyway. yeah. look at Hex Coin, That thing's worth not even a penny anymore.

It's worth half a penny because that guy's a giant fraud too. Uh, anyway, what do we got here when they audit? They're very used to auditing a firm. Just take a moment here to yeah. okay.

and then I want you to hear the beginning I Just want to give you some highlights here. We want to be transparent. We want to set the golden standard for reliability solidness in this space. Would you be able to handle it if somebody asked you for 2.1 billion dollars back? Would that be okay? Would you be able to still withstand things We're financially okay including you have $2.1 billion doll to give away.

If somebody tamed to recw to claw that back, you'd still be fine. We'll let the lawyers handle it are we are financially strong you see? CNBC Oh I Love that that was so good. Look, this is we I've been covering this guy for a long freaking time and uh, it's it's finally happening. he's finally coming to America to go get or or to go plead guilty and probably go to jail.

We'll find out. Uh but T So TBD on that. Uh, you know people have been sentenced to jail for much much much much much much much smaller violations. Uh 4 point.

You know. uh um here. let's look at it. Uh, 4 point.

something. billion dollars? Okay, yeah, look at this. Oh my gosh. Okay, so Bitmex, you know how much they agreed to pay? So I want you to align this for a moment? Okay, Bitmex, the one.

Uh where the CEO got sentenced to two years probation and a possible prison term of uh, six to 12 months. You know how much they settled for $100 million? Okay, 4 point. what is it? Six $4.3 billion do is 43 times the penalty and settlement for binance 43x. That's insane.

That's absolutely insane. So a 43x punishment uh uh is is potentially U possible for Cy here. But I mean then you're looking at potentially 20 to 40 years in prison so we have no idea. All we know at this point is that he's expected to show up to get arraigned, which is where you go to hear the charges against you.

Uh, today? Uh, this afternoon in Uh in Seattle Looking for more here? Richard Tang A top Contender for New Binance CEO Just stepped down as well. Thank you so much Moon for joining as a member here. Uh, world's largest cryptocurrency exchange to pay over four billion in agreement AP Crypto. Let's see CZ admits guilt.

Okay, dog settlement. o Uh this is interesting. Here's a a comment by Wired uh and it suggests that the Doj being willing to settle is a sign that maybe Binance is too big to fail that so many people would lose money if Binance goes BK that they have to settle now. What they could do because I don't think they have $4.3 billion do available at least out of their own money.

I Think what they'll probably do is they'll have to operate basically as a money losing company for the next, you know, 20 years or whatever unless they get a substantial amount of investor money. Uh, and they raise money during the next crypto bull cycle. That's how they're going to be able to get out of this, but that's very interesting. Wired is suggesting that Binance is too big to fail and by being too big to fail, uh, we are actually seeing the potential motivation to settle with Binance Have CZ agree to step down and basically make it so that the company can still operate and try to bring that profit.

The company needs to uh to actually pay the $4.3 billion in fines. This is a massive, massive fine. Uh, this is also breaking news. All of this just broke I'm looking for to see if there are any kind of new updates that just came through, but this is the Doj investigation.

Remember the SEC investigation will be ongoing. Uh, so this does not settle the Sec's Investor Protection rules. That's very important because the Sec's allegations are the ones that are investor protection based. That's a big deal Investor protection.

Mees Are they actually keeping your money safe? Probably not. And so that'll keep going. So there are now pictures circulating of Uh Sam bankman freed and CZ wearing uh, prison outfits together. So uh, here's a leaked photo of two frauds together.

Okay, looking for some more information here? Us authorities? uh, plan to detail their s settlement with Binance getting some more Intel here. Uh, there's no way he's going to be able to afford this $4.3 billion Doar I'm convinced of that. Okay, now people are saying this is actually great news for the Bitcoin ETF that once that basically you needed to get Binance and FTX out of the way to approve the Bitcoin spot ETF so it could actually end up being bullish for Bitcoin I Don't actually disagree with that. Uh I think that you do still need that SEC lawsuit to be cleared out.

Uh, okay. okay, here's somebody that okay, it doesn't does. I I I Don't believe this. But okay, well, we let's let's the problem with Proof of Reserves Audits is: you have no idea what liabilities the company has liabilities in terms of customer assets, right? So here's somebody on and I'm going to reply to this: What about customer assets? Uh, asset liabilities.

Proof of Reserves do Not show liabilities I Want to see if the person replies and we'll see what they say. But anyway, Connor here says I backed out Binance corporates crypto Holdings from their proof of reserves 6.35 billion in total assets 3.19 of which in stable coins doesn't include offchain balances or funds held in wallets not in proof of reserves. Most likely able to pay the full 4.3 billion in Doj fine with zero asset sales. But that doesn't account for the fact that again, Proof of Reserves doesn't show liabilities.

So if those are all customer deposits, you can't use customer deposits to pay for a freaking fine. You know this is like, look, okay, let me be super clear about this. I'll show you this. Okay, we're going to do this together.

Robin Hood Investor Relations I Want to show you what a regulated brokerage looks like and I'm not here to shill Robinhood I I have I have no skin in the game I'm not short or long Robin Hood I Really don't care? Uh, but I want to I'm just opening up their 10 q and then what I'm going to do is I'm going to go to a financial statement I'm going to go to the balance sheet. All right. You see this right here. Cash and Cash equivalence: $6.3 billion.

Okay, you see this right here. Cash segregated under Federal Regulations Okay, that means money that you have to set aside to make sure that if you go BK people have access to at least $2.9 billion of customer. Assets In addition to that, they have a liability offset here of 8.4 billion which is basically all their the crypto Holdings that the company has and they have payables to users of $4.7 billion. This is an example of Robin Hood So like the cash that it looks like these brokerages have uh, is not just pure money that they have available to do whatever the hell they want with.

these are investor assets. So the same is going to be true for Binance. You can't just do a proof of reserves audit and be like oh yeah, you know everything's going to be totally fine. It doesn't freaking work that way.

You have to you, you are literally holding and safeguarding people's assets. It's simple, so proof of Reserve is such a joke, but that's why the whole crypto industry desperately needs regulation to get to the next new highs like I'm a big fan of of you know, going like seeing regulation because it actually will free Bitcoin and Ethereum and and you know, legit tokens and coins from actually being able to succeed. Uh, anyway. Okay, so uh, looking for some more updates here again? Richard Tang Stepping down as well CZ steps down $4.3 billion settlement is only with the Doj.

This again does not include uh, uh, any kind of repayment, term, or jail sentence yet sentencing will probably be I'm guessing somewhere between March and May of next year. Uh, the Uh or news publication Wired actually thinks that this is a company that is going to, uh, that is too big to fail and that's why, rather than shutting them down, they are just getting a 4.3 Just, they're getting a $4.3 billion do fine, which they'll likely have to pay back over a long period of time. This could be potentially over 20 years of profits for this company. The only way they can pull this off is if the company stays alive and gets investor funding to basically bail them out of a hole like this and again, it doesn't close and complete the SEC violation uh and lawsuit that the SEC alleges.

Uh, I again I covered this fraud a long time ago. Binance CZ exposes himself as a fraud crypto collapse but I got a bunch of dislikes for making that video. Whatever, it ended up being right. Uh, it's just the way it works.

Okay, so looking at and again I think it's very interesting that bit Bitmex had a $100 million fine and about six to 12 months in jail for the CEO whereas this is a $4.3 billion fine 43x the size of that uh, it looks like Bu Bance token is now down 7.3% H Bitcoin is only down about what 5600 bucks here or something like that. So you're seeing less movement on coin market cap for Binance. if we look at the last 24 hours, let's go to coin market cap together here. Uh, let's call some of these tabs out here for segregated assets over at Robin Hood As a comparison, let's look at moves in the last.

Oh whoa. look at that. the FTX token is up 133% f this. What? Okay, wow.

weird Binance token. Definitely taking the lead here for biggest drop in the last hour. I Expect this to drop very very quickly in plummet. Uh, it is.

It is highly likely that there is some kind of gatekeeping that is going on that is preventing true price discovery of BNB right now. I'm sure Binance is doing everything they can to limit uh, sales or uh, you know, oh, the systems are overwhelmed. Yeah, whatever. this, this is about to drop substantially I Think uh SEC is doing this because CZ brought down SPF FTX which was their boy toy.

Hey, you know, uh, CZ did say they were GNA bail out FTX and then they rug pulled on that which I don't blame them FTX was trash which we obviously now know in hindsight. Uh, but when the collapse was happening, uh, before the collapse actually went through I Remember we had five days straight of screaming on this channel. Get your money out of the the exchanges as soon as possible. Let's see.

Uh, let's see, never hold crypto on exchanges. That's a great lesson. Absolutely keep your money on cold on a cold wallet. ASAP ER Let's see is CNBC Now talking about this I'm sure they are, but this is a big deal.

Let's see here. Thank you Jon for the buck 99 Appreciate that I Love Biden's Justice Department shut down all crypto exchanges. Well, this should be good for coinbase. Honestly, this should be a catalyst to the upside for coin stock.

Uh, so the stock's down about 1% on the day. But honestly, I see this as a massive Catalyst for Coinbase because like they're the only ones that are like right here in the face of Regulation So the swamp is being cleaned up As Opstar says here: ER only 4.3 billion paper change? Yeah right man. yeah right. like this will bankrupt them if they don't have realistic, uh, repayment terms.

Uh uh. Beach Guy Dave says it's absolutely disgusting to me that Kevin would be happy about somebody trying to protect identities and fighting Kyc laws. Oh my gosh, would you take the stick out of your butt? Listen, if you're a terrorist scumbag who kills Americans suck it. you don't get to play with any of our Americans money.

So Mr Beach Guy: go support terrorists somewhere else. but we're not doing that around here. So if you're a terrorist, suck it. Get the hell out of here.

God Stupidest comment I've ever seen in my life. Oh yeah, let's not Kyc Freaking. The only reason you don't want to get Kyc is because you're a fraud hiding from the US government. That's it.

You're terrorist. Simple. Okay, so uh, so otherwise this, uh, this binance, uh, uh, collapse is, uh, just about the same level of hu hubis hubus of a collapse. Let's get that word right as what we saw with hex Coin.

although I still I still can't believe that hex coin actually still sits here as existing. Uh, you know it's down at what half a cent right now. but whatever. All right, that's what I got for right now.

Thank you so much for being here for live coverage of the Downfall of Binance. Appreciate yall Make sure to check out Meetkevin.com for the Black Friday sale we have going on. Every single video by the way, is coming back in the archive playlist. so I'm going to be working on that now for the next hour here before the Fed fomc me meeting minutes.

Keep that in mind. We have the Feds Fomc meeting uh, minutes coming out in 59 minutes? So I highly encourage you to check out that video. Uh, we will be live covering the minutes. Uh, that live stream is already scheduled.

so you're going to see a redirect link as soon as I press uh, finish on this live stream, there's going to be a redirect link that pops up. You could click that redirect and when you click that redirect, you're going to be able to hit like a little reminder. If you want to, uh, watch the Fomc live stream, hope to see you there again. go to Meetkevin.com for the programs on building your wealth in the Black Friday sale.

Appreciate yall! We'll keep bringing you live news at the various different channels and all of the archive videos are getting sorted and they'll all be public so you can see every single call I've made. good, bad, ugly. Great, you name it. Thanks so much! Goodbye.