Is There More Than Meets The Eye With The CZ Deal? \ stacker news ~meta

Is There More Than Meets The Eye With The CZ Deal?

3390 sats \ 43 comments \ @siggy47 22 Nov 2023 meta

I can't help but wonder about this CZ binance deal. It seems out of character for him to just show up, consent to huge fines, agree to step down from binance, and subject himself to jail time. He had the financial means to just stay outside U.S. jurisdiction. I don't have answers, just questions. There is always the possibility he made a cooperation deal with the U. S. government, but there's no evidence of that. It just seems curious. Does anyone else feel this way?

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189 sats \ 9 replies \ @quark 22 Nov 2023

It really feels like Binance was too big too fail and they offered this deal to avoid cascade effects in all crypto market just in time before the ETF approval. Very expensive deal. Sending a message that crypto is good now and regulated. One step closer to ETF and green light for crypto institutional investment.

11 sats \ 7 replies \ @siggy47 OP 22 Nov 2023

I agree with everything you say from the establishment's perspective, but why did CZ go along with it? It wasn't such a great deal for him.

278 sats \ 0 replies \ @afterhours 22 Nov 2023

Maybe he paid in BNB

247 sats \ 1 reply \ @elvismercury 22 Nov 2023

That explanation seems too clean to me, but if I run with it: presumably he's got epic bags; and so anything that legitimizes crypto / bitcoin enough to nudge to mainstream adoption via ETF is, on the macro timescale, good for him?

10 sats \ 0 replies \ @siggy47 OP 22 Nov 2023

Yes. That's true. I just have the feeling based on the speed and ease of this deal that there's more to the story.

52 sats \ 3 replies \ @quark 22 Nov 2023

Yeah who knows. He may be so guilty of things we may never know that this could be the best option and wants to start over a new life. Or If he collaborates he gets less jail time if any.

140 sats \ 2 replies \ @siggy47 OP 22 Nov 2023

Under the federal system, if he cooperates with the government he'll get what they call a 4K letter, which allows a judge to ignore the sentencing guidelines and give him no jail. To get this, though, you typically have to provide evidence against someone else about crimes. He may want to start a new life, but he doesn't have to do it in the U.S. There are plenty of countries where he could live like a king without fear of extradition.

11 sats \ 1 reply \ @siggy47 OP 22 Nov 2023

Actually it's a 5K letter! It's been a while since I practiced federal criminal defense law. I'm embarrassed.

247 sats \ 0 replies \ @quark 22 Nov 2023

No worries. 4K sounds good to me too hehe. I understood the concept. Very interesting.

10 sats \ 0 replies \ @kepford 22 Nov 2023

I've thought about this as well. The agencies that claim to exist to protect the public don't really seem to care that much about that. I say that based on their actions. So it seems odd to me.

95 sats \ 4 replies \ @OT 22 Nov 2023

I think he got a good deal.

Now he avoids jail & they can continue to sh$tcoin. They'll make that 4.3b back in a few weeks of the next bull run listing whatever new AI sh$tcoin.

10 sats \ 3 replies \ @siggy47 OP 22 Nov 2023

He likely doesn't avoid jail. He cannot be involved in binance going forward, so he won't share in its future success.

247 sats \ 2 replies \ @OT 22 Nov 2023

I though he just had to step down?

Well... Even if he can't he's potentially the richest man in "cRypT0" so he'll be OK. Lol

10 sats \ 1 reply \ @siggy47 OP 22 Nov 2023

He would be more okay if he avoided the U.S. in the first place and lived like a king elsewhere with his billions.

247 sats \ 0 replies \ @OT 22 Nov 2023

But then he probably wouldn't have had the most popular exchange without the US

327 sats \ 9 replies \ @nemo 22 Nov 2023

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0 sats \ 8 replies \ @siggy47 OP 22 Nov 2023

This guy is the model: https://en.wikipedia.org/wiki/Jho_Low

237 sats \ 7 replies \ @nemo 22 Nov 2023

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0 sats \ 6 replies \ @siggy47 OP 22 Nov 2023

There are a lot of countries that dont extradite to the U.S., especially for allleged non violent crimes which would only be civil matters elsewhere. It's just regulatory stuff. There is not even any theft allegation. https://www.southwestjournal.com/countries-without-extradition/

237 sats \ 5 replies \ @nemo 22 Nov 2023

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0 sats \ 4 replies \ @siggy47 OP 22 Nov 2023

Who knows? I guess my point is not that he should have lived the life of a fugitive, but more why did he make it so easy? I attached an article with a list of countries without extradition to the U.S., but there are many others that won't extradite unless the alleged activity is a crime in their country. I don't think there was even a warrent out for his arrest.

237 sats \ 3 replies \ @nemo 22 Nov 2023

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2 sats \ 2 replies \ @siggy47 OP 22 Nov 2023

I'm just speculating. He just never gave me the impression of a guy who would surrender so easily

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327 sats \ 2 replies \ @byzantine 22 Nov 2023

the US wants binance to continue as it is used by them in addition to everyone else. there is definitely data sharing agreements already in place as part of this "plea" deal.

where there are bees there is a honeypot

remember: fully decentralized systems are a threat to the US gov but centralized exchanges, even "off shore" ones are intelligence and surveillance assets

1 sat \ 1 reply \ @siggy47 OP 22 Nov 2023

Agreed. There are a zillion reasons why it's good for the U.S. How is it good for CZ?

406 sats \ 0 replies \ @byzantine 28 Nov 2023

he gets to start clean

326 sats \ 0 replies \ @Superbadger 22 Nov 2023

He knows it’s all going to collapse so this is great timing to leave the party

84 sats \ 3 replies \ @kepford 22 Nov 2023

Isn't CZ a Chinese citizen? Does he have US citizenship? Where does he reside? I don't get how the US has legal power over him if he doesn't live in the US or have US citizenship. Maybe I'm just ignorant.

137 sats \ 0 replies \ @siggy47 OP 22 Nov 2023

You're right. They don't. He's a Chinese citizen. He grew up in Canada, and I don't think he has ever lived in the U.S. He has always been secretive about his residence, but I think he has acknowledged that he owns a condo in Dubai. He has a history of ignoring the U.S. government.

11 sats \ 1 reply \ @quark 22 Nov 2023

He was born in China but he is Canadian.

0 sats \ 0 replies \ @xz 23 Nov 2023

Does that just not mean that he is a dual passport holder and non-domicile?

In some ways this kind of seems reminiscent of the Justin Sun, Tron case, just on a slightly larger scale. I didn't read anything about jail time.

I thought the whole admission of guilt/fine was the plea bargain that keeps him out of maximum security wing on Alcatraz with SBF.

237 sats \ 2 replies \ @eduardopro 23 Nov 2023

I think there's a lot that they're not telling us, yes.

Check Bent's opinion out --> https://tftc.io/charges-against-binance-and-cz-are-a-misdirection-play/

0 sats \ 1 reply \ @siggy47 OP 23 Nov 2023

Thanks for posting this. So Marty says that CZ can keep operating in the shadows and gets a slap on the wrist? That doesn't seem so obvious to me. I guess it remains to be seen. I agree with the article in general.

42 sats \ 0 replies \ @eduardopro 25 Nov 2023

It remains to be seen, yes. However, as you said in the original post, it's out of character for CZ to just show up and agree to everything. Something has to be up. And Bent's theory makes sense.

Time will tell, though.

1052 sats \ 4 replies \ @brave 22 Nov 2023

It all boils down to Blackrock's ETF approval

0 sats \ 0 replies \ @nym 23 Nov 2023

I think it will happen next year, but I won't be using it because...not your keys, not your coins.

0 sats \ 2 replies \ @siggy47 OP 22 Nov 2023

Maybe Larry offered CZ a job after he gets off parole. It had better be a well paying job! In all seriousness, even if you accept that's it's all about the ETF, what's in it for CZ?

42 sats \ 1 reply \ @brave 22 Nov 2023

What CZ was making from Binance can be hardly match on any payroll

0 sats \ 0 replies \ @siggy47 OP 22 Nov 2023

Very true, of course.

43 sats \ 0 replies \ @kepford 22 Nov 2023

I find it odd as well. As an attorney you have more experience with deals that are made. Thanks for sharing. Something seems sus to me about it for the reasons you list.

0 sats \ 0 replies \ @cyberpunk03 23 Nov 2023

Sounds like a scam.