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Crypto's Richest Man Shifts to Dubai After US Regulators Target Exchange

Published Mon, Jun 27 2022 06:54 am
by The Silicon Trend

 

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During the initial months of 2022, the crypto exchange Binance promoted a low-risk method to participate in finance's bright future. It advocated for its consumers to invest in something TerraUSD, a type of crypto that functions similar to a savings account and promises to be worth $1. Unfortunately, as crypto enthusiasts know well, and as anyone conventional to the standard finance policies can probably guess, Terra turned out to be neither high yield nor safe.

Critics state that the token was a Ponzi scheme - a start of collapse that sent Bitcoin prices plunging and caused organizations across the sector to lay off personnel and freeze customer withdrawals rapidly. Bitcoin is down around 70% from its peak in November, and the industry has named the slump the crypto winter. On May 16, CEO - Changpeng Zhao revealed the extent of Terra-based losses. The organization's share had been worth $1.6Bn but was now near zero.

 

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Back in January, Zhao - CZ to the cryptoconversant had been one of the top 10 wealthiest people in the world. According to Bloomberg Billionaires Index, his net worth has slumped along with the rate of Bitcoin, falling from $96Bn to $11Bn. So last year, Zhao shifted to Dubai, where he bought a flat, got a minivan, moved his possessions, and leased an office as part of a novel stage of Binance.

Binance is currently the target of probes by almost every primary American financial regulator, i.e., the Department of Justice, the Internal Revenue Service, SEC, the Commodity Futures Trading Commission, and others worldwide. The company displays these probes as part of a good-faith negotiation it has with governments, which, in its visual, just haven't known what to make of cryptocurrency.

 

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