That could be a situation where there would be a permanent ban for both trading and registration in the U.S by the USC FDC Because this was an ongoing fraud going back to 2019, an ongoing violation of the Commodity Exchange Act. they complaint: it's pretty clear that this was to use your word, orchestrated and there was an intent to evade U.S law and there are Communications that are documented in the complaint as well. Well, Binance is getting sued and in this segment, we're going to go through the lawsuit and response from CZ himself. I've also covered this Finance Saga for quite a while with just two days ago breaking down a video from CNBC where CNBC alleges that Binance basically helps people skirt Chinese laws to make sure that Chinese individuals can actually invest in crypto by skirting the rules or purposefully closing their eyes to regulations to let people sign up for binance in China even though they're not allowed to do that.

even going as far as basically allowing people to upload Chinese passports and identifying documents but saying they're from Taiwan even though their documents clearly safe they're from China but then purposely ignoring those documents that was a CNBC cover just a couple days ago. Going back a year ago, we have a Bloomberg story talking about how CZ purposefully lives in Dubai and refuses to come to the United States potentially because he's afraid of getting arrested, stays in Dubai because they don't have extradition treaties most of his companies are based out of uh, either, uh, well, foreign countries. There are over 150 different entities, but many of them based in the Cayman Islands Very difficult to actually figure out which company or entity to sue if you're an individual trying to Sue Binance. And so there's been a lot of coverage obviously around Binance and every time we cover Binance, there are an army of either the crypto enthusiasts or Bots who refuse to provide any kind of data, data, or fax and just provide their opinion of why they think it's wrong.

the government or or entities might potentially be sued. Uh, regarding crypto. Now something to keep in mind as well. On top of this, sort of just summarize some of the things we've recently talked about.

We also know that now up to about 80 percent of Bitcoin trading volume takes place on Binance. A lot of that may be due to the fact that Binance removed all trading fees are on Bitcoin, which was a smart thing to do right around the collapse of other brokerages. Brilliant move, but it also makes you question that this is a company that's removed a proof of reserves audits which could have been the same bucket of a billion bucks to multiply and Reserve out multiple different stable coins which we don't actually think are fully backed at. uh, Binance because we've never seen a complete audit over at Binance.

So I Personally find it very difficult to trust any part of Binance, but let's take a look at now Cz's response to The Commodity Future Trading Commission's lawsuit against them. We're going to start with Cz's response, then we're going to dive into the actual lawsuit. So today, the Commodity Future Trading Commission filed an unexpected and disappointing civil complaint. despite our working cooperatively with the Cftc for over two years, upon initial review, the complaint seems to be an incomplete uh, basically list of facts: Binance has developed best-in-class technology to ensure compliance.

Binance is the first non-us exchange to implement mandatory know your customer programs and remains to high and has high standards in anti-money laundering and Know Your Customers. We block U.S Users IP addresses VPN endpoints, mobile carrier device, fingerprints, bank deposit, and withdrawals. Basically, they talk about all these fantastic things that they do to make sure that they cooperate with the law. We are aware of no other company using systems more comprehensive and effective than in Binance, and basically a full response will come in the future.

This is Cz's response to a massive lawsuit by the Cftc seeking to permanently ban Binance from being able to operate in the United States And there's some massive Quant funds that operate using Binance in the United States. That's what's important to remember is there are massive trading firms trading billions of dollars in the United States with Binance as the platform. and they're using algorithms that they tweak every single day just a little bit to make sure that they can dump and pump on normies as they wish. So if you're trading less than a thousand BTC you're almost irrelevant.

Unfortunately, in the world of the Quant funds using Binance to manipulate a trade markets. Now, what is the Cftc's complaint? Well, first, the Cftc alleges fraud against Uh Binance and suggests that Binance much like FTX did it could potentially be using customer deposits in ways that are not appropriate, such as potentially investing them. But let's go through the actual lawsuit here. and let's look at some of the highlights because there are some pretty juicy pieces in the actual lawsuit.

Let's start with some of them right over here. So we're going to go to page 32 of the lawsuit here and take a look at this. There's the Chief compliance Officer Lim that you're going to see referenced and then you're going to see a Zao which is a CZ the CEO of Binance, whom, according to the Cftc basically controls all of Binance and listen to this Finance intentionally trying to hide the scope of its compliance program ineffectiveness from its business partners. For example, around October of 2020, Binance underwent a compliance audit to satisfy a request from Paxos.

But according to the Chief Compliance officer, Lim Binance purposely in engaged a compliance auditor that would quote just do a half-assed individual sub audit on geofencing to buy us more time. Oh, here's my I'm getting I'm getting hit by the the Chinese uh who really like Binance? There we go. All right, fixed. As part of the audit, the Binance employee who held the title money laundering reporting officer lamented that she quote needed to write a fake Mlro report to the Binance Board of Directors.

Binance didn't even have a board of directors Lim The Chief compliance officer was aware of that and replied and says, yes, it's fine I Can get management to sign off on that fake report The Chief Compliance officer themselves literally sent the following message I has no confidence in our Geofencing and then they're literally caught joking about illegal terrorist organizations like Hamas trading sums of money that might not even be enough to buy AKs with. But they're joking about how we basically see crime happening on the Binance platform, but they just keep their eyes closed to that activity. In fact, when they would talk about quote, we're very closely associated with illegal activity or rather recent transactions by a certain uh by a certain customer. Were quote very closely associated with illicit activity and over five million dollars USD worth of his transactions were indirectly sourced from questionable sources.

When an employee asked about this, the Chief compliance officer responded with the following: can let him know to be careful with his flow of funds, especially from darknet like Hydra He can come back with a new account, but the current one has to go. It's tainted. You literally have fraud documented inside Binance. Now we know right now.

These are all just allegations, but the Cftc is alleging via these chats that they got from employees even though they use signal and most of the chats get deleted. You literally have fraud from within Binance about how they know people are illegally operating within within Binance. I'm just like I just have them use a different account so they know about it. We don't need to be strict because CD doesn't like off-boarding Off-boarding is a reference to people leaving and going to a different platform or whatever.

Here the chief compliance officer says, hey, I know it's a pain in the butt, but my duty is to constantly remind you and they basically talk about sanctions and the potential International risk of getting caught if they're doing uh Shady things basically and an investigation could blow up big on the world stage. and uh, basically they acknowledge these problems and what they do is they just take out any references to the United States uh on their uh uh on their platform. So that way they could potentially skirt uh regulations even more. So here's just how they use Vpns much like the CNBC story broke to try to encourage people to get around.

uh, the know your customer rules. But take a look at this: Binance's revenues reportedly rely on Datatron from Binance's internal databases monthly reports from revenue from 2020 and they have more from 2021 as well. Basically show that a certain number of customers were from locations labeled U-n-k-w-n which is supposed to imply unknown, But actually listen to this. The same month, rival Digital Asset Exchanges were sued by the Cftc Zao Direct.

so the CEO directed Binance Personnel to replace U.S values in data fields with the value unknown. As a result, Binance says: October monthly revenue reports identified 2.83 million customers in locations known as unknown while omitting any reference to the United States. In other words, listen to this. It's widely understood by Binance Personnel that unknown is a code word for the United States Dang it.

Uh, let me fix that really quick. There we go. Uh, and it's basically purposefully used to skirt the fact that they have exposure. There's a stupid cable here.

They basically use a a unknown to purposefully skirt the fact that they have customers in the United States They say quote Everyone in the future will see uh, will not see our U.S data except for very few people. Instead, we'll just use the word unknown every time the US is referenced. That's on page 46 of the complaint here from the Cftc. so it's very obvious that they know what they're doing is wrong and they're not providing Uh the reporting that they should to U.S authorities.

In fact, the Cftc alleges that Binance has never once submitted a suspicious activities report, which is something if you actually had good compliance procedures or cared, you would do. But we already know that Binance says they have compliance and they don't care about actually following through with their compliance. They themselves don't care about their compliance. Now some people say hey, who really cares like let crypto be crypto and decentralized but the whole point of having regulation is to make sure that people's deposits aren't affected and that stable coins that are, uh, actually backed by a dollar are actually backed like a dollar.

Uh, or backed by a dollar. But we don't know that that's true. So it's a really dangerous platform to be on. You know, I Understand, some people internationally have to use it because they don't have another choice and they want to get their money into crypto.

But golly not your keys, not your crypto here I'd have my money off of Binance for sure I'd have my money off of any exchange if I was in crypto which I'm not I think it's too manipulated by stuff like this? Look at this. Uh, here. there's a whole section about how Binance employees basically talk about how they have to keep an eye on gamifying crypto trading and they say the following: good Lord I'd never have this many problems. It's just as soon as I talk about a crypto video.

Uh, right now, most of the gamification trading are based on some complex derivative financial instruments such as binary options, exotic options, or Perpetual swaps. The reason why we did the Futures battle is we wanted to lower the battle or lower the barrier of complex Financial products. So here's basically where Binance is talking about. Uh, this this gaming feature they have called Futures a battle where you can like fight people on a one minute battle period in terms of which direction Crypto is going to go on potentially as much as 125 x Leverage and Binance employees themselves say usually this kind of products look like gambling.

That's actually, by the way, a very common misspelling. Uh, for somebody who's who's where English isn't their first language. Usually this kind. These kinds of products, right? Anyway, usually this kinds of products look like gambling, which may bring us some compliance and reputation risk, so we need to make sure the product does not look like a gambling game.

User might be easier to get addicted to these products. so we need to enhance responsible trading or you could say playing as well. So so they know these products are gambling, they know there are dangers with these, but listen to this. At various times during the relevant period, some of the entities have entered into over-the-counter transactions with Binance customers, such as settling trades into setting, basically moving deposits directly into counterparty accounts.

In other words, deposit mismanagement. This is pretty pretty scary. Uh, some of these allegations here by the Cftc And so it's going to be a little oopsy-doopsy for Binance to deal with, especially since the Cftc is basically going for their throats trying to potentially completely ban Binance. They say here that since the launch of Binance in 2017, Binance is taking a calculated phased approach to increase its U.S customer presence despite publicly stating that it intends to block or restrict customers.

this is the same thing that they always do. They tell you they have the best and world-class know your customer rules and VPN blocking rules at your to your face but then behind closed doors They basically allow people to just they show people where the back doors are and skirt compliance programs. They know the programs are ineffective and the reason they know the programs are ineffective is because their position is. well, it's a business decision.

The more customers we have, the more money we make. Look in August 2020 they made 63 million dollars in fees, in May of 21 they made 1.1 billion dollars in fees and the Cftc is basically saying they're purposely trying to avoid regulation A deliberately skirting rules because it's profitable to do so and to some extent. Yeah, that's true, it's extremely profitable to do so, but it also sets up a potential house cards that basically CZ runs and there are a ton of bots who suggest this guy's like some kind of hero for crypto or whatever. But what he really is is potentially, as the Cftc said, a fraud.

He's probably very little different from Sam Bankman Freed who was a complete fraud. Uh, and people like this deserve to be in jail. And there's a reason this guy uh is uh, is not uh, willing to come to the United States because he knows he'd end up in prison he's hiding in Dubai for a reason and you know what people like this do I mean just look at what? um what the last dude did uh Mr Kwan who was just arrested. Basically what they do is they wait uh, the United States Waits until these people are arrested and then they actually file the criminal charges against them.

This guy Quan was on his way to Dubai almost made it to Dubai on his fake passports, gets caught in month and aggro an Eastern European country the day after he's arrested. what happens, Boom gets all the criminal indictments against him from the United States. So I think one of the reasons the US is so anti crypto right now is because the entities that are running it are are basically in your face frauds and the US is just gearing up to try to do whatever they can to take down the to stop the fraud. and they don't want people to lose money.

They're going as far here as actually calling BTC Eth LTC liquid and a two Fiat backed stable coins, tether and binance commodities. Uh, basically allowing them to have jurisdiction over the regulation for all of this So rip binance Uh, it's uh I I I Don't know. there's a reason I've been uh, very interested in good cash flowing companies lately. Uh, and uh, you know I know people like, oh, but you know there's all this fraud and regular stocks and manipulation as well.

Yeah, well. One, you know. yeah, two wrongs doesn't make a right as they say so. Uh, but but this I mean more and more everything that snacks up about these these crypto companies that are off.

Uh, U.S Shores Binance FTX More and more about them. It's just pure fraud. I Have much more empathy for a company like Coinbase. where, uh, Coinbase at least is here.

U.S Regulated U.S listed and they're trying. Uh, now, just because they're trying, doesn't mean that they're actually going to win over here at Coinbase. Uh, especially since now they're getting sued by the SEC Which is quite unfortunate for them because they have a pretty long response letter about how frustrating and painstaking it's been for them to to work with the SEC and how many proposals they've given to the SEC to try to basically publicly be able to list. ETFs.

Here's their their piece on this. Now, this is obviously the coinbase side of it. Uh, where they they really try to get proper regulation complete? You know, Coinbase is trying to go in the legal direction. Binance is going in the illegal direction.

and you can't really blame Coinbase because they've had so many frustrations and so much money. Uh, on on dealing with the SEC Uh, now they're getting this Wells notice about a potential investigation coming. Uh, the the problem is I Really think you need Congress to dictate Are these Commodities Are they Securities Who should regulate these and what should the rules be for regulation around crypto and then people should be able to follow the rules right? I Think it's very difficult to to say like there are no rules and if people do something that after the fact we don't like, then they get sued, right? I Think that's problematic and that's probably not the best form of democracy. But then again, you know democracy is really based on these kind of people like Kevin McCarthy over here talking on CNBC And the problem with them is they can't get anything done.

So the politicians Are hamstrung Congress therefore is hamstrung and therefore the agencies are hamstrung. Nobody can really do anything. So basically what they're trying to do is they're trying to litigate the regulation for coinbase and uh, uh, and and Binance through courts. That's what they're trying to do.

They're trying to create law through the courts you ever heard of case law, right? So you take the SEC make all of their complaints against Coinbase for things that they want law. The Cftc make all of their complaints for things that they want law against Binance and then get a Court potentially eventually the Supreme Court to rule on it. And now you can actually get rule of Law without the act of Congress So that's really what's happening here, but some of the allegations against Coinbase will probably just clean up Coinbase. Some of the allegations against finance will probably lead CZ to have an arrest warrant out for him for the fraud that's being perpetrated at Binance, so it'll be really interesting to see how it all, uh, evolves I Think it's quite interesting, but anyway, that gives you an update on all the insanity that's happening with Binance.

And if any of that makes you nervous, make sure to get life insurance in as little as five minutes via the link down below. So one of the sponsors here check take a look at this. You can also go to meet Kevin.com learn about my courses. You can now use Buy Now pay later for the actively managed ETF real estate startup Affiliates and all that good stuff.

So that gives you a little bit of insight into the finance suit.