🚨 Binance vs The SEC

Gm, this is the doodhwala, the only crypto newsletter that makes you moan, groan, and sometimes puts you in the ZONE! 🔥

Here’s what we moanin’ for today:

• 🚨 Binance vs SEC: Binance gets a notice from the SEC and it’s a bit serious

• 🍿 FTX’s New Drama: Sad that Succession ended? Here’s a new drama to keep you hooked ft. FTX and its frenemies

• 🔥 Ordinal Season: Was it a big fat FAD or was it legit legit?

• 🛠️ Resourcewala: Dive into the DAO deep end

• 🍼 Doodhshots: Kennedy's Crypto Love

📝 Binance gets a notice from the SEC

The SEC is known for dropping lawsuits and allegations.

We’re unsure if a Black Friday Sale is running for dropping them against anyone in crypto rn.⚡

But they sure are behind every exchange now —

And have finally dropped an allegation and lawsuit against big daddy Binance💥**, sending the market for a nosedive last night. 📉**

Let’s look into what the allegations are - Are they even legit?

Time to find out!⏱️

Gotta ask tho…

How the hell is Binance standing up against everything thrown at them? 🤨

1️⃣ The SEC Lawsuit - Explained

On Monday, the SEC filed 13 charges accusing Binance of a bunch of 💩 from the past, along with a few concerning stuff about CZ and his involvement in the regulations of the exchange.👇

What are the allegations?

There are 13 charges pressed on Binance, but here’s what the allegations are—

👉 Running an Unregistered Exchange, Broker, and Clearing Agency.

👉 Unregistered offer and sale of crypto assets.

👉 Failure to restrict U.S. investors from accessing Binance.com.

👉 Misleading Investors.

Let’s try and understand the top 5 biggest highlights and what the concerning issues are right now→

🚨 Binance is/was involved in the sale and promotion of BUSD as a security.

🚨 Sale of unregistered assets such as SOL, ADA, Matic, Algorand, and many more.

🚨 CZ has control over Binance US and isn’t taking control of regulating the migration of users to the international site.

🚨 CZ is commingling funds using a pseudonymous “Sigma chain” through which nearly $200 million of funds are being controlled. (Also being used to boost trading volume on Binance US)

🚨 Binance has been evading regulation from the SEC for a long time.

But wait, here are a couple of points tho—

The charges are not even criminal, the lawsuit is just a civil case - unlike in the case of FTX and BitMEX, where there were criminal charges involved.

The SEC has been dropping an allegation/lawsuit almost every week this year.🤷

We won’t be surprised if the SEC drops a lawsuit on the Doodhwala- accusing us of marginalizing cows.🐄

2️⃣ Binance’s Response to the Lawsuit

Binance released an official statement after the SEC complaint came out.

However, the team is yet to answer the allegations in detail. 📝

Here's what they announced.👇

3️⃣ WTF is happening at Binance?

There are just too many things happening at Binance.

The SEC complaint is just a cherry on top of the load of crap that they are dealing with. 🍒

There has also been an announcement that Richard Teng will be taking over as CEO of Binance in its Regional Markets, thereby replacing CZ.

With changes in Leadership and an extremely rough path ahead for the crypto industry in general, we have no clue of how things will unfold from now onward for Binance.

However, there is no denying that a lot of accusations in the SEC charges seem extremely concerning. (FTX vibes maxxx 😨)

The number of questions that we can ask right now is infinite, but all we can do is wait and watch what happens. ⌛

Doodhwala’s take: The FUD and similarities with the FTX implosion are very similar. We’re gonna sit back, grab a glass of warm doodh and watch the fight go on!🥛

💰A $3.9 Billion Drama

Another day, another dispute. 🙄

This time around, it's got:

• FTX (world's most broke crypto exchange)

• And it’s MAJOR debt issues with Genesis (the bankrupt crypto lender)

FTX is so broke that it’s asking people to return its donations.

Well, you can read how FTX got THIS broke here.

So let's break it down 👇

Imagine lending your neighbour your Nike sneakers.

And one fine day, he's like, "Eh, I don’t have your sneakers." 😲

That's what FTX is facing with Genesis.👇

👉 $3.9 billion claim from FTX 📃

👉 $0.00 counterclaim from Genesis💔

Hold up, what happened here? 🤔

Back in November, Genesis put a stop to allowing withdrawals, partly thanks to their association with FTX's bankruptcy.

Fast forward to now → they're deep into bankruptcy and are trying to reach a settlement with creditors.

As part of its process, there was a mediation kept for the creditors to get their money back.

And seeing the court document, FTX (Genesis’ major creditor) was shocked when Genesis declared its $3.9 billion claims as worthless.

It hurts the same as someone saying that "Our milk has no calcium." 😱

And here's the best part→ FTX wasn’t even invited to the mediation.

It alleges that Genesis cherry-picked the creditors for the proceeding.

But why did Genesis do this?

Genesis claims this is a necessary step to move ahead with their Chapter 11 plan by August before their requested 'exclusive period' ends.

Wtf is Chapter 11 now?

And 'exclusive period'? 🧐

It's a set time during which only the debtor (Genesis, in this case) can propose a plan of reorganization.

Genesis stated that sorting out FTX's claims would slow things down*.*

Like pausing your Netflix binge to hear another doodhwala joke. 📺😆

But FTX is not taking this lightly (unlike me who eats momos after a workout).

They're joining forces with other creditors who are equally disgruntled about Genesis' plans.

FTX's rationale? They argue that mediation is a waste of resources without their involvement.

Genesis had to file for bankruptcy this January and has since been scrambling to reach a deal with its creditors. 🤝

But the slow pace is trying the patience of individual creditors.

They're so done with these mediation attempts that they are about to toss their glasses out the window. 🥛💥

And let's not forget about Genesis' parent company, Digital Currency Group (DCG) 🤭

DCG seems to have missed a not-so-tiny payment it owed to Genesis → $630 million

I mean I can understand now what Genesis is going through! 😥

Doodhwala's Take:

Ironically, it seems the only thing that's flowing right now is hot milk, not money. 🥛

We just need to hold our horses and wait for the courtroom drama to unfold.

📈 Cheese and Charts: Ordinals = Fad?

Bitcoin ordinals are going down. 📉

Just like the humor in this newsletter. (Please don’t unsubscribe 😢)

The doomsayers are back at work right now. ⚰️

And they are on a spree to tell everyone they come across online that Ordinals is just a Fad.

But we drank that special A1 quality imported milk from Milan and asked ourselves,

Is it really a fad? 🤔

If we look past the doomsayers and look into the numbers - here’s what we can find👇

👉 Total inscription at ATH of over 10 million.

👉 Average daily inscriptions still stand at over 1,00,000 per day.

👉 Total fees generated to date at almost $45 million.

With the above numbers, ✌️ things are true at the same time—

1️⃣ Bitcoin ordinals are on a slow downtrend.📉

2️⃣ They are in no possible measure destined for doom anytime soon. 💯

Don’t be so early to call it out a fad bois, we’re just getting started!

🛠 Resourcewala: Diving into the DAO deep end

Everybody and their granny is talking about DAOs these days.

I mean, WTF are DAOs anyway?

Today's resource is for everyone who’s like, “A beginner’s guide to DAOs, huh? Sign me up!" 🙋‍♀️🙋‍♂️

Here's what we're uncovering:

• DAOs 101 - What are they?

• How DAOs work?

• Getting started with DAOs

LFG! 🔥🔥🔥

🍼 Doodhshots: Kennedy's Crypto Love

• 🚧 Rumor Rumble: Gate.io is packing a legal punch, ready to counter rumour-mongers spreading FUD. Stop, gossip time!

• 🗳️ Crypto Kennedy?: Robert Kennedy Jr. receives backing from Twitter’s founder Jack Dorsey, for his pro-Bitcoin stance. Make Bitcoin Great Again?

• 🔮 Wood's Election Magic: Cathie Wood echoes Balaji Srinivasan's prediction that crypto will take center stage in the next election. It's not just about the economy, stupid!

• 📈 Retail Rally: JPMorgan bullish on Bitcoin retail demand, predicting a surge ahead of the halving event. Retail therapy, anyone?

• 👨‍⚖️ CryptoCops: UK lawmakers demand a dedicated gov role for crypto regulation oversight. Tea, crumpets, and crypto compliance?

🤣 Milky Meme Of The Day

If you want more doodh then, be sure to follow our Twitter, LinkedIn, and Instagram.

That’s all for today folks! See ya tomorrow!

Yo! Our legal and financial advisors (aka our good ol’ conscience) have asked us to add this boring disclaimer. None of what you read here is financial advice. We aren’t here to get you to buy or sell crypto. We’re only here to tell you what’s up in crypto today and make you laugh. So, if you screwed up on a trade, that’s on you G. Stay safe in the markets.

Today’s edition was brought to you by Ritik Gupta and Sumanth

Edited by: Arvind Krishna and Aakash Athawasya