🥛 The SEC drops the hammer on Binance 👀

PLUS: OG wallet platform gets hacked 🚨                                                                                                                                                                                                                                                                                                                                                                                                                 June 06, 2023 | [Read Online]( Today's edition is brought to you by the daily newsletter that makes you smarter about everything crypto - all in under 5 minutes. Calling for sponsors [here](. GM, this is Milk Road. We're like the local ice cream truck - we cool down the hot crypto market and always bring you something sweet. It’s Tuesday, Roaders. It’s taco time. - The SEC just sued Binance/CZ 👊 - 5 BIG wallets got exploited 🚨 - 2 ways BTC mining is sustainable 🤝 - $200M of liquidations in one hour 🍪 Prices as of 7:30 AM ET THE SEC SUES BINANCE & CZ 👊 It was a calm Monday morning. I was on my 2nd cup of coffee. My dog was snoring on the couch without a care in the world. And then, I got hit with a two-punch combo: 1/ My dog farted (aka The Silent Killer™) 2/ News broke that the SEC was suing Binance and its CEO (CZ) What for? A bunch of stuff. In fact, 136-pages worth of stuff…That’s right, the SEC dropped a mfing novel. But don’t worry, the Milk Man read through [every single page]( (ok, almost every page) - just so you wouldn’t have to. Here are the allegations: 1/ Binance offered the sale of securities, without a license 2/ Binance knew they were selling securities, unlawfully Just check out this absolute stunner of a comment from Binance’s CCO in late 2018, bro: 3/ Many popular tokens have been named “securities” Not named a security: ETH. Vitalik somewhere… 4/ BNB Vault & Simple Earn, which let users generate yield by staking crypto, are also investment schemes AKA they qualify as securities. 5/ Binance intermingled funds The SEC says Binance/CZ took the billions it made via returns from its yield-earning programs and secretly mixed them in an account at a separate company that CZ controlled: Merit Peak Limited. Then he transferred those assets to third parties. CZ also personally received $62.5M from a Binance bank account between October 2022 and January 2023. CZ really went and pulled an SBF… 6/ Binance.US inflated trading volume by using another company to wash trade The company name? Sigma Chain. Which was also the name of my frat’s short-lived rap group For example, Sigma Chain accounted for ~35% of all trading volume in the first 11 days that a token was listed ($COTI) on Binance.US. At least $190M was transferred from 2 Binance entities to Sigma Chain in 2021. The company used $11M from the account that received those funds to buy a yacht. So, what’s next? Well, the SEC wants: - Binance blocked from participating in crypto & acting as a broker/clearinghouse - Civil monetary penalties - Disgorgement of ill-gotten gains TLDR - The SEC wants to fine the sh*t out of CZ. How did the Binance team react? CZ tweeted his signature “4,” which means he’s claiming this is all bullsh*t. Binance posted a [blog post]( too in response saying the same thing. How did everyone else react? It looked a little like this… Plus, there has already been[$900M+ in net outflows]( from Binance since the announcement. And BNB tanked by 8% on Monday. It’s Dump O’clock, folks. Not only is this [the second gov’t agency to lob a lawsuit at the exchange](, but it just all feels familiar. A little [too]([familiar]( (cough FTX cough) [tw profile: Adam Cochran (adamscochran.eth)] Adam Cochran (adamscochran.eth) @adamscochran [tw] Yeah - that's not good. This won't just be a SEC filing. Mishandling funds, fraud, lying to regulators. That's bound to have a DoJ component at some point. Not like the CB case at all. db @tier10k The SEC has accused Binance of mishandling customer funds as well as lying to regulators and investors about its operations in 13 charges filed Monday. The regulator said Binance had been mixing “billions of dollars” in customer funds and secretly sending them to a separate… Jun 5, 2023 112 Likes 15 Retweets 10 Replies [tw profile: Jacquelyn Melinek] Jacquelyn Melinek @jacqmelinek [tw] people can make all the jokes they want about regulators not understanding crypto but a lot (if not all) of these US gov lawsuits & filings are extremely well researched, dense and come with a LOT of receipts --whether you agree with them or not Jun 5, 2023 22 Likes 5 Retweets 5 Replies And if things couldn’t get crazier, the SEC also just sued Coinbase this morning for being an “unregistered exchange”. Let’s not forget they gave them a green light to IPO back in 2021. The Milk Man’s gonna need a few more cups of coffee to get through it all, but we’ll keep Roaders updated with all important findings in tomorrow’s edition. [TODAY'S MILK ROAD IS BROUGHT TO YOU BY..... MILK ROAD](🥛 We have one goal at Milk Road: make you smarter about crypto. We do this by keeping it short, sweet, to the point, and without all the fluffy BS. If you wanna take this sponsorship spot in the future and get in front of the Milk Roader Nation* - [hit us up here]( and we'll be in touch. Plus, we’ll write the ad for you. It’s like getting someone to do your homework. You just get to sit back, relax, and cruise your way to an easy A+ ad. [Reach 265k+ subscribers!]( Stay thirsty, my friends. - The Milk Man *Here are 3 milky, cold-hard facts about the Roader Nation: 1/ Our daily readership can fill up any stadium in the world (110,000+) 🏟️ 2/ Over ⅔ are investors/traders 📈 3/ It’s the best concentration of smart, funny, good-looking readers in crypto 💃🕺 4/ Re-read #1-3 ATOMIC WALLET’S IN TROUBLE 🚨 Houston, we have a problem…another popular crypto wallet [got hacked]( over the weekend. Who? Atomic Wallet - a decentralized wallet that’s been around since 2017 (OG status). It has 5M+ users. Here’s everything you need to know about the hack: - $35M+ has been stolen thus far - Only 1% of daily monthly users were affected (according to Atomic Wallet) - Big wallets were targeted (i.e about $17M was taken from just 5 wallets) Not to mention that Atomic Wallets Twitter bio has turned into a walking meme: The worst part? No one knows how the hack happened, or if users are still at risk. The Atomic Wallet team and some of the top internet detectives like ZachXBT are investigating the exploit, but no big news yet. Sigh Another week, another crypto storage player goes down… [Trusted exchanges]( have gone bankrupt. [Hardware wallets]( have lost trust. Platforms are getting hacked. Looking for a good place to store your crypto looks a lot like this… Stay safe out there, Roaders! BITCOIN MINING 🤝 THE ENVIRONMENT Look, we know [mining crypto]( gets a bad rap. It eats up a lot of energy to create each coin, etc. But there are two words that will bring joy to environmentalists around the world: sustainable mining. Here are two ways its being done now 1/ El Salvador is mining with geothermal energy. There are about ~30 volcanoes spitting out geothermal energy on the reg in El Salvador. Well, the nation wants to use all that power to run its mining operations. [tw profile: Bitcoin News] Bitcoin News @BitcoinNewsCom [tw] A first look at 🌋 geothermal #Bitcoin mining in 🇸🇻 El Salvador 🙌 Jun 3, 2023 1.54K Likes 326 Retweets 73 Replies Cool, huh? Plus, there’s a new [$1B]( project that’s investing in solar & wind energy to create one of the world’s largest Bitcoin mining farms in El Salvador. And back stateside.. 2/ A North Dakota farm is using excess methane gas to mine BTC. Check it out: [tw profile: William K⚡Santiago🔑☢️] William K⚡Santiago🔑☢️ @WilliamSantiago [tw] In remote North Dakota, these computers are mining #bitcoin at gas wells. Powered by the leaking methane, they recycle the harmful greenhouse gas. This technology lowers the carbon impact and helps solve a century-old environmental problem. Jun 2, 2023 0 Likes 0 Retweets 1 Replies We all need a good reminder of what this space can do every once and a while. MILK & COOKIES 🍪 [The Milk Man has a new favorite podcast: The Money Movement.]( Listen to Circle Co-Founder and CEO Jeremy Allaire discuss the future of money and the latest industry trends with business leaders, economists, and government officials.* [More money was lost in rug pulls than exploits last month.]( One of the darker statistics to come out of May’s meme coin mania. [Mercado Bitcoin received a license to operate as a payment provider in Brazil.]( The license will enable them to offer digital banking services such as staking, fixed income and debit cards. [$200M of liquidations were caused in one hour by the Binance news.]( Impacting 110,000 traders and offering up a playground for others to get in on the fun. [Ethereum co-founder Jeff Wilcke moved $40M of ETH to Kraken yesterday.]( Causing lots of speculation online about his next move. *This is sponsored ad content MILKY MEMES 🤣 Share Milk Road You currently have 0 referrals, only 1 away from receiving The Next 10x Opportunity in Crypto for 2023. [The Next 10x Opportunity in Crypto for 2023]( [Click to Share]( Or copy and paste this link to others: HIT THE INBOX OF 250K+ CRYPTO INVESTORS Advertise with Milk Road to get your brand in front of the Who's Who of crypto. The Roadies are high-income crypto investors who are always looking for their next interesting product or tool. [Get in touch today](. What'd you think of today's edition? - [🥛🥛🥛🥛🥛 F**king great]( - [🥛🥛🥛 Meh, do better]( - [🥛 You didn't bring the heat]( ROADER REVIEW OF THE DAY VITALIK PIC OF THE DAY [tw profile: Milk Road Images] Milk Road Images @MilkRoadImages [tw] Jun 6, 2023 0 Likes 0 Retweets 0 Replies DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. [tw]( [ig]( [yt]( [tk]( [in]( Update your email preferences or unsubscribe [here]( © Milk Road 603 Munger Avenue Suite 100 #1006 Dallas, Texas 75202, United States