GM Brew Crew, the reference of a snow day yesterday backfired on us… looks like we got a crypto winter storm in return. Fire up the snow blower, we got some ground to cover this morning. Let’s dive in ⬇️

On the menu today:

• SEC FILES LAWSUIT AGAINST BINANCE AND CZ 🚨

• FORMER NFL TEAM OWNER SENTENCED FOR CRYPTO ‘SHADOW BANKING’ 🏦

• SEC SLAMS COINBASE 👨‍⚖️

Today’s Charts:

SEC FILES LAWSUIT AGAINST BINANCE AND CZ 🚨

Yesterday, the SEC filed a lawsuit against Binance, as well as its founder and CEO, Changpeng Zhao (CZ). The lawsuit accused them of breaching federal securities laws.

• According to the lawsuit, Binance, Binance.US, and CZ allegedly offered unregistered securities, specifically the BNB token and BUSD stablecoin, to the general public and Binance’s staking service violated securities laws.

• The SEC further alleges that Binance allowed the mingling of customer funds, that CZ had "secret" control over Binance.US, and that a CZ-owned entity artificially inflated Binance.US's trading volume.

• The lawsuit accused Binance of allowing U.S. individuals to trade on its platform while claiming otherwise, and that Binance assisted high-value U.S. customers in bypassing controls, concealing these actions to avoid responsibility.

FORMER NFL TEAM OWNER SENTENCED FOR CRYPTO ‘SHADOW BANKING’ 🏦

Former MN Vikings co-owner Reginald Fowler sentenced to six years for crypto "shadow banking," involving over $700 million in unregulated transactions in 2018.

• The 63 year old was sentenced to a total of 75 months on bank fraud and money laundering charges

• Fowler deceived the Alliance of American Football (AAF) by misrepresenting his net worth to acquire a significant stake in the league, thus victimizing them.

• Fowler successfully executed his crimes by creating Global Trading Solutions (GTS) in February 2018, collaborating with Crypto Capital and other Israeli-based crypto firms.

SEC SLAMS COINBASE 👨‍⚖️

The SEC filed a lawsuit against Coinbase in New York federal court, accusing the company of acting as an unregistered broker and exchange. The SEC seeks a permanent injunction to stop these activities.

• Coinbase shares have fallen 20% premarket, preceded by a 9% drop yesterday after SEC charges against Binance and its founder.

• Regulator alleged that Coinbase's prime brokerage, exchange, and staking programs violate securities laws, accusing the company of defying regulatory structures for years.

• The SEC views Coinbase's staking program as a means for investors to earn financial returns through the company's efforts. The SEC considers five "stakeable crypto assets" as securities, a viewpoint likely to be challenged by Coinbase.

Special Blend: Morning Meme Roast

As the CryptoBrew Daily comes to a close, we invite you to join us on Twitter for more crypto chat. Think of it as a chill gathering of like-minded folks, minus Chad talking about his 1-rep deadlift max and your tipsy uncle who always shares TMI stories. Let’s keep the crypto conversation going!

***DISCLAIMER: Please note that the information provided in this newsletter is for educational purposes only and is not intended to be construed as financial advice or a solicitation to buy or sell any assets. We urge you to exercise caution and conduct your own research before making any financial decisions.