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In a significant move that caught the attention of the global cryptocurrency community, Nigeria has recently spotlighted Binance, the world’s leading cryptocurrency exchange, amidst allegations of facilitating illegal financial flows and evading taxes. With an astounding $26 billion reported to have moved illicitly via Binance in 2023, the Nigerian government, under the guidance of its central bank governor, claims significant tax losses from unregistered crypto activities.

The issue escalated when Nigerian authorities summoned Tigran Gambaryan and Nadeem Anjarwalla, key Binance executives, for discussions, demanding information on Nigerians trading on the platform. Despite their detention not leading to charges, their arrest underlines Nigeria’s firm stance against unauthorized cryptocurrency operations, especially against the backdrop of the naira’s dramatic depreciation.

Amidst these developments, Binance faces a broader global challenge, with various countries expelling the exchange and its CEO, Changpeng Zhao, stepping down following a substantial fine from the U.S. Department of Justice. Nigeria’s actions, particularly the blocking of crypto platforms and potential hefty fines, reflect a broader attempt to regulate the cryptocurrency market and protect its economy.

The situation with Binance in Nigeria is a complex narrative of regulation, economic pressures, and the potential of cryptocurrencies to offer alternative financial pathways in times of economic distress. While the Nigerian government aims to tighten its grip on the crypto market for fiscal reasons, the evolving scenario underscores the delicate balance between innovation and regulation in the dynamic world of cryptocurrencies.

Cryptocurrency exchange KuCoin and two of its founders were charged Tuesday by the United States Department of Justice with conspiring to violate the Bank Secrecy Act by failing to operate a compliant anti-money laundering program. As a result, they allegedly enabled money laundering and terrorist activity to funnel through the platform.

u201cAs alleged, in failing to implement even basic anti-money laundering policies, the defendants allowed KuCoin to operate in the shadows of the financial markets and be used as a haven for illicit money laundering, with KuCoin receiving over $5 billion and sending over $4 billion of suspicious and criminal funds,u201d said U.S. Attorney Damian Williams in a statement.

KuCoin founders Chun Gan and Ke Tang, both Chinese citizens, were charged alongside Flashdot Limited, Peken Global Limited, and Phoenixfin Private Limited. The founders remain at large. KuCoin was also operating an unlicensed money transmitting business.

The firm is alleged to have sought business from U.S. customers for both its spot and futures exchanges. The DOJ says that KuCoin failed to register as a money transmitting business with the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), and as a futures commission merchant with the U.S. Commodity and Futures Trading Commission (CFTC).

“Today, we exposed one of the largest global cryptocurrency exchanges for what our investigation has found it to truly be: an alleged multibillion-dollar criminal conspiracy,u201d said HSI Acting Special Agent in Charge Darren McCormack.

Feds allege that KuCoin did not implement a know-your-customer (KYC) program until July 2023, and only for new customers. It did not request such data from existing customers, the DoJ claims. Feds further allege that KuCoin directly appealed to U.S. customers in its marketing efforts, yet also tried to conceal its knowledge of having customers in the country.

The news of the Department of Justice’s charges against KuCoin and its founders had a strong impact in the exchange’s native crypto ecosystem, causing the value of KuCoin Shares (KCS) to plummet.

Within hours of the announcement, KCS experienced a flash crash of over 12%, dropping from $14.40 to $12.55. This marks the worst day for KCS since December 2023, and puts the coin’s support at the exponential moving average of the last 55 days (EMA55) to the test. So far, the EMA55 appears to be holding strong, but the long-term impact of the charges on the exchange and its native token remains to be seen.

Do Kwon, the former CEO of Terraform Labs, finds himself in a legal limbo as Montenegrin authorities have placed him in a “reception center” for foreigners following the end of his prison term on March 23. The move comes after a five-hour interrogation by a local inspector, as Kwon awaits a new court decision regarding his extradition.

Kwon’s legal representative, Goran Rodić, has criticized the treatment as illegal and plans to file a complaint with a local administrative court. Meanwhile, Kwon’s passport has been confiscated, adding to the uncertainties surrounding his legal situation.

The Montenegrin court has shown indecision regarding Kwon’s extradition in recent weeks. The Supreme Court delayed his expulsion to South Korea after local prosecutors challenged the decision, arguing that the court had overstepped its authority. Initially, Kwon was set to be extradited to the U.S., but that decision was overturned on appeal.

In the backdrop of these legal proceedings, the crypto world is still reeling from the collapse of Terraform Labs’ Terra and Luna cryptocurrencies in May 2022, which wiped out over $40 billion in market value. Both U.S. and South Korean authorities are pursuing charges of fraud and securities law violations against Terraform Labs and Do Kwon. The U.S. civil trial on the Securities and Exchange Commission’s fraud charges is scheduled to commence on March 25.

Global investors, including sovereign wealth funds, are demonstrating strong interest in acquiring a significant stake in AI startup Anthropic, previously owned by the now-defunct cryptocurrency exchange FTX. This stake, purchased in 2021 for $500 million, has doubled in value, now estimated at $1 billion, underscoring the rapidly growing valuation of cutting-edge AI firms.

FTX, alongside Alameda, had acquired an 8% share in Anthropic, a direct competitor to OpenAI, highlighting the exchange’s strategic investment in the burgeoning field of artificial intelligence. However, following FTX’s bankruptcy, a New York court authorized the sale of these shares, with proceeds aimed at reimbursing FTX investors.

The anticipated sale of Anthropic’s shares is nearing completion, with several global entities, excluding investments from Saudi Arabia due to national security concerns, showing keen interest. Anthropic, on its part, remains open to investments from other sovereign wealth funds, including the United Arab Emirates’ Mubadala, signaling a wide array of potential investors for its next growth phase.