The Dark Night Online | FROM GLYN MACLEAN - TDNO FOUNDER - I am being inundated with requests from TDNO members who want to understand how the SEC action against Binance last week could impact RECOVERY ACTIONS and RESTITUTION. I am also fielding questions about what people should do with any funds they have in Binance. I will speak to the second point first of WHAT TO DO ABOUT FUNDS YOU HAVE IN BINANCE, because it is more important that you protect the remaining funds you have (a bird in the hand is worth two in the bush), and less urgent that you worry about the impacts of Binance on your recovery action.
PICTURE SOURCE: FINANCIAL TIMES I apologise for how rushed and imperfect this article is. The urgency and necessity overrides quality control. Some housekeeping before I get started. Please first read the disclaimer. Disclaimer:
This is not financial advice. I am not a financial advisor. You should seek independent financial advice from entities and persons who that are trained and certified financial advisors in the jurisdiction that you are located. You take this advice at your own risk, understanding that this advice is intended for the purpose of mitigating potential losses at a time in which quite literally, anything could happen and the outcomes can not be known. As you will decide on a course of action for yourself TDNO and TDNO personnel are not liable for your decisions. With that said, this information is shared from the perspective of genuine care for every TDNO member. In my view, it would be morally irresponsible for me to know what I know, and then to not advise the TDNO community to be precautionary, at least while Binance works their way through the dire circumstances they find themselves in.
Timing: The information below is TIME SENSITIVE and should be acted on according to your own determination by JUNE 12, 2023.
GET OUT NOW - It is my personal view that if you have funds in Binance you should get it out now.
The logic for this is based on the DE BANKING of BINANCE in several territories, including USA from JUNE 13.
We don't want another FTX situation, where there is no exit ramp for you and your funds are frozen in legal action.
Let's stay focused on what to do about any digital assets you have in Binance now.
TWO THINGS MATTER HERE
The Unbanking of Binance means that funds in Binance have no off ramp from Cryptocurrency and into FIAT (traditional) currency that you can actually spend.
If you have funds in Binance USA, you may not be able to get them out to a bank, unless you transfer the funds to another exchange that still has bank access. Considerations: COINBASE is also in the firing line. ALTERNATIVES I can't make recommendations about exchanges that you can trust or that you can access in your jurisdiction, and so for the time being my primary recommendation is to get your funds into FIAT and somewhere safe. BITCOIN HALVING Crypto hodlers (HODL) and Crypto Bulls may want to get back into crypto later, at least six months before the Bitcoin halving. You may want to simply relocate your digital assets to another platform that you trust.
BITCOIN HALVING Why mention Bitcoin halving? Crypto markets typically receive the benefit of the new levels of scarcity that combines with higher than normal demand from the Bitcoin halving months in advance of the actual halving event which is 280 days away.
In my opinion, there is wiggle room for 3-months of conservatism before you jump back in and benefit from the halving event.
If you have an exchange you can trust, that is regulated by government with strong KYC/AML/CTF adherence, that is a legitimate legal entity in a legitimate legal jurisdiction, then you may shift your cryptocurrency from Binance to somewhere you think is safe.
There is no guarantee that the Bitcoin halving will have any benefit at all this time around, due to the volatile regulatory and prosecution timeline.
Delisting Trading Pairs means that you can no longer trade or swap those pairs within Binance with other traders.
Once trading pairs are delisted, that cryptocurrency is on the path to becoming a virtual coin like OneCoin, which could only be traded between people. If Binance is not careful, they could end up becoming like OneCoin, a virtual currency network through which members can only trade with each other across trading pairs. There is a long way to go before that happens to Binance, but unbanking in Australia and USA is very, very serious and should not be taken lightly at all.
Impacts of Binance on Recoveries.
WHAT IF BINANCE GOES THE WAY OF FTX?
Firstly, criminals do use Binance, but typically move the funds on from Binance to other exchanges in less regulated territories. In my article about this on Quora I explain that rats (criminals) are always the first to leave a sinking ship. We have been able to track and trace cross chain cryptocurrency asset movements from Binance to other exchanges. The prime objective here is to use forensic blockchain track and trace methods to identify the regulated cryptocurrency exchange that your funds has gone into. Law enforcement armed with sufficient evidence will then subpoena the exchange for identity details. A change to Binance does not change this methodology, but could impact some cases that have funds on chain in Binance wallets. With that said, commonwealth legal standards apply to both Civil and Criminal actions. In the worst case scenario, if Binance went the way of FTX and became bankrupt a Trustee is appointed to manage a bankruptcy and process creditor claims. If there are creditor claims by the courts and law enforcement, the trustee will be legally bound to abide by the rule of law and respond to law enforcement court orders. As a Trustee has to be beyond reproach, that situation might potentially improve responsiveness to court orders, since Binance is not particularly helpful, by comparison. The SEC Vs. Binance situation has created additional complexity, in terms of funds flow movement and will have an impact on some cases, where the funds could exit. However, this does not stop the process of track and trace of digital assets to regulated exchanges and therefore to Personally Identifiable Information of the criminal. If funds flow exits a regulated cryptocurrency exchange and into the real world, we can then trust law enforcement to execute search and seizure warrants, then seize and liquidate real world assets. Funds restitution is not a given. As we work worldwide the reality on the ground varies greatly, and not all law enforcement departments operate to shared standards. The real issue is that this Binance situation adds complexity to case work and potentially longer time frames to go through legitimate law enforcement and court processes.
FOLLOW MY INSIGHTS ON QUORA
WHY SHARE MY INSIGHTS ON QUORA?
Quora is the Q&A website where most regular folk go to get answers on Crypto Investment and then Crime. It is also the main platform through which fake crypto recovery scammers and fake investors promote their fake knowledge and appeal to emotionally susceptible people. I have been fighting criminals in Quora for more than 5 years and fighting Quora moderators that appear to be supporting criminal activity. TDNO has a team of former victims actively working in Quora to drop truth bombs and disrupt criminals. We are fighting the platform itself.