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Crypto Exchange Binance Refutes Allegations Of Money Laundering

The crypto sector has been a subject of divided opinions since the inception of Bitcoin and its meteoric rise. While the assets have benefits like fast transactions and decentralization, some risks include fraud and criminal activities.

More recently, during the crypto winter of 2022, some catastrophic events led to negativity among crypto users. The collapse of FTX – one of the world’s largest exchanges, was a pivot point sending shockwaves throughout the crypto world.

Since the event, individuals and bodies have called for crypto regulation. Some individuals now prefer to hold their tokens in personal wallets than leave them in the custody of an exchange. All crypto organizations are under scrutiny, with most governments determined to protect their citizens from fraud at all costs.

Binance, the world’s largest crypto exchange by trading volume; is now facing a possible money laundering investigation. The case has been ongoing since 2018 and has gained popularity in light of recent happenings. Reuters has alleged that Binance was employing different tactics to keep information away from public knowledge.

There have been divided opinions on how far the regulations can go. The prolonged case between Ripple Labs and the Security and Exchange Commission has led to fears for a possibly bleak future for crypto.

Crypto Giant Binance Denies The Allegations

Binance, in a series of tweets, denied any wrongdoing citing it as an attack on their law enforcement team. According to the statement posted on Twitter, Binance made it clear that they have top-notch cyber investigators on their books. Also, the company said that it always cooperates during investigations.

Binance also went further to share its activities in combating ransomware and hacking cases with training organized in different locations. CEO of Binance Changpeng Zhao had tweeted earlier this year on this issue. According to Zhao, the article by Reuters on money laundering is a waste of time.

He also labelled the story as fiction and stated that everyone makes mistakes, but the Reuters story was imbalanced.

Binance Drums Up Praise For Followers

Binance – the world’s largest crypto exchange, had taken to Twitter to celebrate having ten million followers on the Twitter app.

The world’s largest exchange also launched a challenge to reward followers. According to the tweet, all they need to win is to collect three of Binance’s #Binance10M badges and win a share of 10 million Satoshi.

Crypto Exchange Binance Refutes Allegations Of Money Laundering

Binance continues to call for calm in the face of Reuter’s allegations. Changpeng Zhao – Binance CEO, has dismissed the reports as FUD.

Replying to a tweet that the latest allegations seem sponsored, the CEO stated that FUD, although annoying, encourages growth. Also, he believes such reports will unite Binance supporters as they come together to align.

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PancakeSwap (CAKE) Slides Below Range, Is This An Entry Point For Buyers?

PancakeSwap (CAKE) has been trading against the broad market, especially when major market movers have rallied. The coin has lost 0.8% over the last 24 hours and still depicts no decisive price action on the chart. Despite the CPI data release, the coin has remained unaffected by that development. CAKE traders are still wary of the asset’s next price movement.

The technical outlook for the coin has painted a bearish picture on the chart. Although that seems to be the case, there could be a scenario in which CAKE makes a comeback. After rangebound trading for weeks, the coin has finally broken below its lower band, indicating a chance of a price appreciation. This could prove beneficial for traders who are planning to log gains from the crypto.

Risk-averse traders, however, should be careful about investing as the coin still continues to signify a further potential loss over the immediate trading sessions. The asset is still hovering around pockets of high liquidity, which could prove to be a negative point for traders. For CAKE to register further gains, the coin has to breach some vital trading levels.

PancakeSwap Price Analysis: One-Day Chart

PanCakeSwap

At press time, CAKE was exchanging hands for $3.80. The coin just fell below the lower band of the restricted price zone. CAKE was sandwiched between the $4.20 and $3.90 price bands, which represented increased selling. The coin’s immediate price ceiling was $4.08; a move above that could cause the coin to revisit $4.30.

Breaching the $4.30 mark will clear the path for the altcoin to reach $4.90. Over the immediate trading sessions, however, the coin is expected to fall to $3.40 before it bounces back. The aforementioned level could act as an entry point for buyers. The amount of CAKE traded in the last session remained red, signifying bearish strength.

CAKE Technical Analysis

PancakeSwap

The coin has remained under the power of sellers for most of this month. The recent drop in price has pushed CAKE further into the selling zone. The Relative Strength Index was below 40, indicating a strong selling force.

Further selling pressure could cause CAKE to fall below $3.40 and then to $4.30, resulting in a 26% rally. CAKE fell below the 20-Simple Moving Average line due to low buyer demand, indicating that sellers were driving the price momentum at press time.

PancakeSwap

Corroborating that CAKE might start to register gains, the Parabolic SAR sided with the same observation. Parabolic SAR determines the price direction, and the dotted lines below the candlesticks reflect incoming bullishness for the coin.

On the contrary, though, the Awesome Oscillator that exhibits price momentum turned red, marking a sell signal for the coin. The signal was, however, declining in strength.

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Solana Price Shows Signs Of A Breakout After CPI Data Release

The Solana price is up by 6% over the last 24 hours. As the broader market secures upward price movement, most altcoins have followed suit.

The release of the Consumer Price Index (CPI), which is an important measure of inflation, showed that U.S. inflation had slowed to 7.1%, down from 7.7% in the past month, as depicted by the numbers released by the U.S. Bureau of Labor Statistics.

The data has revealed that consumer inflation has fallen, pushing stock futures to rise. Owing to this report, the crypto market has also shown signs of recovery.

Solana, for instance, had been consolidating for the past few weeks; at press time, however, it has been eyeing a breakout on the upside. The technical outlook for the coin has begun to favor the bulls, indicating accumulation on the chart.

As demand for the altcoin is making a recovery, buyers have started to show interest in the chart. Over the last week, the coin lost 1.6%, and the daily gains have managed to undo most of the coin’s loss.

The market capitalization of Solana has also noted an increase, denoting bullish power in the market. It is, however, important for SOL to cross a couple of price barriers in order to continue its upward price trajectory.

Solana Price Analysis: One-Day Chart

Solana Price

SOL was changing hands at $13.80 at the time of writing. The coin has been making intra-day gains after the U.S. CPI data release. The overhead resistance for Solana now awaits at $15, breaching which the coin could move over the $20 mark.

Although buying strength needs to remain consistent in the market, a price pullback scenario is unlikely but not impossible, in which SOL would slip to $12 and then to $10. The amount of Solana traded in the last session demonstrated bullish strength, indicating increased buyers on the chart.

Technical Analysis

Solana Price

The price of the asset has depicted congestion for several weeks now. It has been trading along a descending trendline, but Solana price awaits a breakout now. If that happens, SOL will rise above the $23 price zone. This would mean a 64% price appreciation for the coin.

The Relative Strength Index shot past the 40-mark and inched closer to the half-line, which depicted a considerable rise in buying strength. The indicator even formed a bullish divergence which usually reflects a rise in buying strength.

In regards to the increase in accumulation, SOL moved above the 20-Simple Moving Average line, meaning that buyers were driving the price momentum in the market.

Solana Price

In correspondence with more buyers, SOL logged buy signals on the chart. The Moving Average Convergence Divergence (MACD), which measures price momentum, underwent a bullish crossover. This is good news for buyers, as it acts as an entry point for them to secure gains.

Related Reading: Bitcoin Price Breaks Above $18,200 – CPI Data Comes In Better Than Expected

The Directional Movement Index (DMI) was yet to reflect positive price action as the -DI (orange) line was above the +DI (blue) line. The Average Directional Index (red) was just below 40, marking strength in the bullish price movement.

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SEC Charges SBF Of Allegedly Conducting Fraud Schemes

The crypto community was left shell-shocked in November 2022 when FTX – one of the leading crypto exchange platforms, filed for bankruptcy. Pessimism towards crypto is at an all-time high, with famous investors like Warren Buffet seemingly right about the risks involved.

Investigations into the exchange uncovered gross financial misappropriation and abuse of users’ funds. The disastrous event left many investors seething and funds lost.

According to reports, FTX had allegedly acted unprofessionally and blurred corporate lines between FTX and sister corporation Alameda. The firm supposedly had borrowed funds illicitly from the exchange and sparked an outcry for regulating crypto exchanges. The revelation led to a negative trend in the cryptocurrency market, with exchanges treading cautiously.

In recent events, Sam Bankman-Fried has been arrested in the Bahamas and is facing the possibility of prosecution for fraud.

SBF Arrest And Charges

According to CNN reports, Sam Bankman-Fried, the founder and ex-CEO of FTX, was arrested in the Bahamas on Monday at his apartment. This arrest comes on the heels of criminal charges against him.

According to U.S. attorney Damian Williams, Samuel Bankman-Fried was arrested at the request of the U.S. Government. This arrest resulted from a sealed indictment filed by the SDNY.

His arrests occurred around 6 pm ET on Monday, and he will likely face a Nassau court today, as detailed by the Royal Bahamas Police force.

The Security and Exchange Commission also stated it had created separate charges for SBF for violating securities laws.

Charges against SBF include wire fraud, security fraud, securities fraud, and money laundering.

SBF faces the possibility of extradition to face his charges. According to the United States extradition treaty with the Bahamas, U.S. prosecutors can return defendants to American soil.

The condition for the extradition is that the offense must be considered punishable by at least one-year imprisonment in both countries.

SBF was to appear before the House Committee today to shed light on recent events. However, due to his arrest on Monday, the new CEO of FTX – John J. Ray III, will reveal his findings to the House.

What’s Next For FTX Token Holders?

The FTT token lost most of its value in the heat of the FTX saga that saw investors liquidate positions in droves.

It is now unclear if investors will truly get compensation for their losses. The token price has plummeted, with the SBF arrest set to unfold another chapter in this saga. The former CEO might face prosecution and possible jail time.

SBF Seeks A Chance At Redemption With New Business Plan To Repay FTX Victims