hodler

7 Mar 2026, 15:02

Binance Formally Rejects US Senate Claims of Iran Sanctions Violations

The world’s largest crypto exchange has issued a formal response to a letter from US Senator Richard Blumenthal, strongly rejecting claims that its compliance systems are weak or that it enabled any sort of illicit financial activity. Binance indicated that the media reports cited in the Senate inquiry contain “false, unsupported, and defamatory claims” about its sanctions controls and AML procedures. Binance Responds The statement emphasized that Binance operates a robust compliance program supported by more than 1,500 specialists worldwide and advanced monitoring tools designed to detect suspicious activity. In addition, the company said it had been highly cooperative with law enforcement, adding that it processed over 71,000 such requests in 2025 alone. It explained that its team helped authorities seize more than $750 million in illicit assets, including almost $580 million for US agencies. Binance also claimed that its exposure to wallets linked to some sort of illegal activity has declined by nearly 97% since early 2024, which includes a 97.3% drop in exposure to major Iranian crypto trading platforms. Hexa Whale and Blessed Trust, two of the entities named in the inquiry, were proactively investigated and removed from the platform following internal reviews triggered by law enforcement requests. It added that no Binance account conducted direct transactions with Iran-based entities. It also rejected allegations about internal whistleblowers by explaining that employee departures were part of normal turnover. Nevertheless, the company also said it “acknowledges that absolute zero risk is impossible on public blockchains but relies on robust monitoring and controls to minimize and mitigate risks.” The Inquiry 11 Democratic senators, led by Richard Blumenthal, urged the DOJ and Treasury in a letter sent in late February to investigate Binance over alleged Iran sanction violations in 2026. The inquiry cited findings uncovered by the exchange’s own compliance personnel last year, in which they discovered that $1.7 billion in digital assets had flowed to Iranian-linked entities. Some of the names identified in the letter included Iran-backed Houthis and the Islamic Revolutionary Guard Corps. It also claims that a Binance vendor allegedly directed $1.2 billion in one instance to Iran-linked accounts. “We urge you to conduct a prompt, comprehensive review of sanctions compliance on the platform to ensure that it is not once again violating the law and threatening U.S. national security,” wrote the Senators. They added that Iranians had reportedly accessed more than 1,500 accounts on Binance, and further alleged that the exchange may have been used to help Russia evade US sanctions. The post Binance Formally Rejects US Senate Claims of Iran Sanctions Violations appeared first on CryptoPotato .

7 Mar 2026, 15:00

Big banks in top losers; Circle Internet, Coinbase, SoFi among gainers - week's financials wrap

More on Financials Goldman Sachs Remains A Stock To Hold, Despite Uncertainty In Markets (Downgrade) SoFi Is Ready For A New Leg Up (Rating Upgrade) Circle: A Defensible AI-Era Fintech With Explosive Stablecoin Growth (Rating Upgrade) Quant Ratings of BofA Securities' Growth Fund Holdings Quant Ratings of BofA Securities' Top Yield Fund Holdings

7 Mar 2026, 14:52

SEC Files Proposed Settlement to Drop Most Claims Against Justin Sun and Tron

The U.S. Securities and Exchange Commission moved to end its civil case against Justin Sun and the Tron entities on March 5, 2026, after filing a proposed settlement in federal court. Under the deal, Rainberry Inc. would pay a $10 million civil penalty, while the SEC would dismiss its remaining claims against Rainberry and all claims against Sun, Tron Foundation Limited, and BitTorrent Foundation Ltd., if the court approves the resolution. The SEC said the settlement covers its wash trading claim against Rainberry under Section 17(a)(3) of the Securities Act. The agency added that Rainberry would be permanently barred from violating that provision. At the same time, the regulator filed to dismiss a separate pending claim against DeAndre Cortez Way, known as Soulja Boy. The case began in March 2023 and later expanded through an amended complaint in April 2024. The SEC had accused Sun and his companies of illegally distributing Tronix and BitTorrent tokens, inflating trading activity, and hiding payments to celebrity promoters. Reuters reported that the regulator alleged Sun generated about $31 million through fraudulent trades. SEC narrows case to Rainberry wash trading claim In its March 5 litigation release, the SEC said Rainberry allegedly facilitated wash trading in 2018 and 2019 to inflate TRX trading volume. The agency described wash trading as transactions without a real change in beneficial ownership, which can create a false picture of market demand. The proposed judgment does not require Sun or the Tron entities to admit or deny wrongdoing on the settled claim. Reuters said the SEC confirmed that point in a letter to U.S. District Judge Edgardo Ramos in Manhattan. Court approval is still required before the settlement becomes final. This outcome sharply reduces a case that once targeted several parts of the Tron ecosystem. Instead of pursuing the broader complaint through trial, the SEC is now asking the court to approve a narrower resolution centered on Rainberry and then close the rest of the action with prejudice. Why the settlement matters now Reuters reported that the SEC paused the case in February 2025 to explore a possible resolution. The settlement now lands during a wider shift in U.S . crypto enforcement, as the agency has recently pulled back or reworked several digital asset cases filed in earlier years. Sun said on X that the SEC had moved to dismiss all claims against him, the Tron Foundation, and the BitTorrent Foundation, adding that the resolution brought closure. The SEC did not offer further public comment beyond its filing and litigation release. For Tron, the immediate result is legal relief, but the court still has the final word. Until Judge Ramos signs off, the $10 million settlement remains a proposed deal rather than a completed judgment.

7 Mar 2026, 14:25

Binance Proof of Reserves Reveals Alarming 8,004 BTC Drop in User Holdings

BitcoinWorld Binance Proof of Reserves Reveals Alarming 8,004 BTC Drop in User Holdings March 5, 2025 – Global cryptocurrency exchange Binance has published its 40th consecutive Proof of Reserves (PoR) report, revealing a notable contraction in user-held assets. The report, based on a March 1 snapshot, shows user Bitcoin (BTC) holdings fell by 8,004 BTC, a decrease representing 1.25% of the total. This decline in Binance’s Bitcoin reserves marks a significant shift from previous reporting periods and warrants a detailed examination of the underlying data and its potential implications for the broader digital asset market. Binance Proof of Reserves Report Details the Decline Binance’s latest Proof of Reserves report provides a verified snapshot of user assets held on the platform. According to the document, total user Bitcoin holdings stood at approximately 631,000 BTC on March 1. This figure represents a decrease of 8,004 BTC from the 639,004 BTC reported in the prior snapshot taken on February 1. The exchange’s Proof of Reserves system aims to provide transparency by cryptographically verifying that customer funds are fully backed. Furthermore, the report indicates similar downward trends for other major assets. User Ethereum (ETH) holdings experienced a more pronounced decline of 7.35%, falling by 307,203 ETH to a new total of roughly 3.87 million ETH. Meanwhile, holdings of the stablecoin Tether (USDT) decreased by about 360 million USDT, a 0.98% drop, bringing the total to approximately 36.4 billion USDT. These concurrent reductions across multiple asset classes suggest a broader pattern of net user withdrawals or asset reallocation. Analyzing the Context of the Reserve Fluctuations Fluctuations in exchange reserves are a normal function of market dynamics. However, the scale and consistency of the declines in this Binance report merit contextual analysis. Several factors could contribute to such a movement. For instance, users may be moving assets into self-custody wallets, a practice often referred to as ‘withdrawing to cold storage,’ in response to market sentiment or for long-term holding strategies. Alternatively, capital could be rotating to other trading platforms or into different financial instruments. It is crucial to distinguish between a decline in user holdings on an exchange and the solvency of the exchange itself. The Proof of Reserves report specifically audits the former. A transparent decrease in reserves, while notable, does not inherently indicate a problem if the exchange maintains a 1:1 backing for all remaining user funds. The report’s publication itself is a positive step for transparency, allowing the market to observe these flows in near real-time. Historical Trends and Market Impact To understand the significance of an 8,004 BTC withdrawal, we must view it historically. Binance’s Proof of Reserves reports have shown both increases and decreases in total holdings since their inception in late 2022. Periods of rising Bitcoin prices have often correlated with inflows to exchanges, while periods of uncertainty or consolidation have sometimes led to outflows. The current decline occurs amidst a specific macroeconomic and regulatory landscape that influences investor behavior. The impact of such a reserve change is multifaceted. Firstly, it reduces the immediate sell-side liquidity available on the Binance order book, which could contribute to increased volatility. Secondly, a large-scale movement of Bitcoin off exchanges is generally viewed by analysts as a bullish long-term signal, as it reduces the supply available for quick sale. The data provides a quantifiable insight into the behavior of a significant segment of the cryptocurrency holder base. Comparative Asset Movements and Stablecoin Dynamics The report reveals that the percentage decline in Ethereum reserves was substantially larger than that of Bitcoin. This 7.35% drop in ETH could reflect specific sector rotations. For example, users might be moving Ethereum to participate in staking on decentralized protocols or to interact with Layer-2 networks directly, actions that require withdrawing funds from a centralized exchange. The different rates of change between BTC and ETH highlight how asset-specific factors drive user decisions. The decrease in USDT holdings, though a smaller percentage, represents a massive nominal value of $360 million. Stablecoin reserves on exchanges are often seen as ‘dry powder’ ready to deploy into volatile assets. A reduction could signal that users are converting stablecoins to fiat currency or using them to purchase assets on other platforms. Monitoring stablecoin reserves is a key metric analysts use to gauge potential buying pressure in the crypto market. Bitcoin (BTC): -8,004 BTC (-1.25%) Ethereum (ETH): -307,203 ETH (-7.35%) Tether (USDT): -360M USDT (-0.98%) The Role of Proof of Reserves in Building Trust The very existence of regular Proof of Reserves reports represents an industry evolution toward greater accountability. Following several high-profile exchange failures, major platforms like Binance have adopted these audits to demonstrate they hold the assets they owe their customers. The process typically involves using cryptographic techniques like Merkle trees to prove holdings without compromising individual user privacy. While not a full financial audit, a PoR provides a vital, frequent verification of custodial responsibility. For the ecosystem, consistent reporting allows for trend analysis. Regulators, institutional investors, and retail users can track the health and custody practices of major entities over time. This Binance report, therefore, is not an isolated data point but part of a continuous transparency feed that contributes to market maturity. The ability to publicly observe an 8,004 BTC outflow is itself a testament to improved industry standards compared to the opaque past. Conclusion Binance’s 40th Proof of Reserves report provides clear, data-driven evidence of changing user asset allocation, marked by an 8,004 BTC decline in Bitcoin holdings. While the movement of funds off a major exchange is significant, it must be interpreted within the broader context of normal market cycles, evolving user custody preferences, and the positive transparency offered by the reporting mechanism itself. The concurrent drops in Ethereum and USDT reserves further illustrate a period of portfolio rebalancing among users. Ultimately, the publication of this detailed Binance Proof of Reserves data enhances market transparency, providing all participants with critical information to assess the landscape. FAQs Q1: What does a decline in Binance’s Proof of Reserves mean? A decline in the reported reserves indicates that users have withdrawn more cryptocurrency from the exchange than they have deposited during the reporting period. It is a measure of net user outflow, not necessarily a reflection of the exchange’s solvency, provided the remaining funds are fully backed. Q2: Is it bad if Bitcoin reserves on an exchange go down? Not inherently. Many long-term investors view large-scale withdrawals from exchanges as a bullish signal, as it reduces the immediate available supply for selling and suggests holders are moving assets to long-term storage. It reflects a preference for self-custody. Q3: How often does Binance publish its Proof of Reserves? Binance has committed to a monthly publication cycle for its Proof of Reserves reports. The latest report is the 40th edition, indicating this practice has been ongoing for several years. Q4: Does the Proof of Reserves report include all Binance user assets? The report typically covers major assets like Bitcoin (BTC), Ethereum (ETH), and key stablecoins like USDT. It may not include every single token listed on the platform, but it focuses on the largest by user holding volume. Q5: What is the difference between ‘user Bitcoin holdings’ and ‘exchange reserves’ in this context? In Binance’s report, ‘user Bitcoin holdings’ refers to the total BTC balance of all its customers held in the exchange’s custodial wallets. ‘Exchange reserves’ is a synonymous term for this aggregate amount. It is the total BTC the exchange is safeguarding for its users. This post Binance Proof of Reserves Reveals Alarming 8,004 BTC Drop in User Holdings first appeared on BitcoinWorld .

7 Mar 2026, 14:00

Binance Claps Back At Senator Blumenthal’s Allegations, Denouncing False Claims

Binance has formally responded to US Senator Richard Blumenthal (D-CT) following a congressional letter in which the lawmaker cited media reports alleging the company enabled large-scale violations of US and international sanctions involving Iran. In an open letter published Friday, Binance rejected the claims and accused the senator of relying on what it described as false and defamatory reporting. Binance Denies Enabling Iranian Money Laundering Senator Blumenthal’s inquiry referenced articles published in February 2026 by The New York Times, Fortune, and The Wall Street Journal. Those reports, according to the senator, suggested Binance had disregarded warnings designed to prevent Iranian money laundering schemes and had allowed approximately $1.7 billion in transfers connected to Iran. In its response, Binance said it takes its legal and regulatory responsibilities seriously and shares the senator’s stated interest in maintaining a safe trading platform. However, the company disputed the accuracy of the reports cited in the letter, calling them demonstrably false and defamatory in several significant respects. Binance emphasized that it maintains strict Know Your Customer (KYC) and compliance procedures and expressly prohibits users residing in or located in Iran from accessing its platform. The exchange also responded to claims, repeated in the senator’s letter and attributed to The Wall Street Journal, that Binance compliance had identified 2,000 accounts associated with Iranian entities despite its stated ban on Iranian users. Binance flatly denied making any such determination. The company said it enforces mandatory identity verification for all customers and does not knowingly onboard users with incomplete or inaccurate documentation. It suggested the claim may stem from its ongoing efforts to strengthen controls related to the use of virtual private networks (VPNs). The firm reiterated that any attempt to circumvent eligibility requirements through VPN usage violates its terms of service. Employee Departures Not Linked To Iran Probe In addition to compliance concerns, the senator’s letter referenced media reports about the treatment of certain employees involved in the Hexa Whale and Blessed Trust investigations. Binance said those reports contained significant inaccuracies and rejected suggestions that employees were dismissed for escalating compliance concerns. While declining to disclose specific personnel details due to privacy considerations, the company acknowledged that some compliance staff and contractors have recently departed, most through voluntary resignations. Binance reiterated that its compliance framework is continuously evolving and strengthening. The company said that when credible risk information arises, it investigates thoroughly, removes accounts when necessary, and reports to appropriate authorities. With respect to the matters raised in Blumenthal’s letter, Binance argued that its compliance systems functioned as intended. The exchange pledged to continue cooperating with law enforcement and advancing what it described as its broader mission of building core infrastructure for the global crypto ecosystem. Featured image from OpenArt, chart from TradingView.com

7 Mar 2026, 13:25

Bybit Proof of Reserves Reveals Crucial 2.41% Drop in User Bitcoin Holdings

BitcoinWorld Bybit Proof of Reserves Reveals Crucial 2.41% Drop in User Bitcoin Holdings In a significant move for exchange transparency, Bybit has published its 29th consecutive Proof of Reserves report, revealing a notable shift in user asset holdings. The report, based on a Merkle tree-verified snapshot from February 26, 2025, shows user Bitcoin (BTC) holdings at approximately 59,000 BTC. This figure represents a decrease of 2.41% compared to the prior report dated January 27. Conversely, the data indicates a substantial 11.4% increase in user Ethereum (ETH) holdings, which now stand at around 520,000 ETH. The latest disclosure provides critical, verifiable data for users and market observers seeking assurance in the post-FTX regulatory landscape. Bybit Proof of Reserves Report: A Detailed Breakdown Bybit’s commitment to monthly Proof of Reserves (PoR) publication represents a core tenet of modern exchange operation. The latest report offers a granular look at three major asset classes held in custody for users. The primary finding centers on Bitcoin reserves. Specifically, the 59,000 BTC figure marks a reduction from the previous month’s total. This change equates to a withdrawal of roughly 1,457 BTC based on the reported percentage. Meanwhile, Ethereum holdings experienced significant growth. The addition of 53,607 ETH brought the total to approximately 520,000 ETH. Furthermore, total Tether (USDT) holdings were reported at about 6.12 billion USDT, reflecting a modest 1.71% decrease. The following table summarizes the key changes between the January 27 and February 26 reserve snapshots: Asset Feb 26 Holdings Jan 27 Holdings Change Bitcoin (BTC) ~59,000 BTC ~60,457 BTC (est.) -2.41% Ethereum (ETH) ~520,000 ETH ~466,393 ETH (est.) +11.4% Tether (USDT) ~6.12B USDT ~6.23B USDT (est.) -1.71% This transparent accounting allows users to independently verify that the exchange holds sufficient assets to cover all client balances. The process relies on cryptographic Merkle tree proofs, which enable individual users to confirm their specific assets are included in the total reserve without revealing other users’ information. Consequently, this mechanism builds essential trust in the platform’s solvency. Analyzing the Shift in Cryptocurrency Reserves The divergent movements between Bitcoin and Ethereum reserves invite analysis from a market structure perspective. Several interrelated factors could explain the 2.41% decline in BTC holdings. First, users may have initiated withdrawals for self-custody, a trend often associated with increased market uncertainty or a desire for long-term storage in hardware wallets. Second, the decrease could reflect a reallocation of assets by users moving into other cryptocurrencies or traditional markets. Third, broader market volatility in late February likely influenced user behavior. Notably, the decline in BTC contrasts sharply with the surge in ETH. The 11.4% jump in Ethereum holdings is particularly striking. This increase could signal growing user confidence in the Ethereum ecosystem, potentially driven by developments in layer-2 scaling, staking yields, or upcoming network upgrades. Alternatively, it may represent institutional or large-scale depositors choosing Bybit as a preferred venue for ETH trading and services. The simultaneous changes highlight how reserve reports act as a real-time barometer for user sentiment and asset preference across different blockchain networks. The Broader Context of Exchange Transparency The practice of publishing Proof of Reserves has evolved from a niche feature to an industry standard following major exchange failures. Regulatory bodies worldwide now increasingly mandate or strongly encourage such disclosures. For instance, the Markets in Crypto-Assets (MiCA) regulation in the European Union imposes strict custody and reporting requirements. Similarly, legislative efforts in other jurisdictions emphasize the need for verifiable solvency. Bybit’s consistent monthly reporting positions it favorably within this regulatory framework. Experts in cryptocurrency compliance stress the importance of these reports. “Regular, auditable Proof of Reserves is no longer optional for credible exchanges,” notes a financial technology analyst. “It provides the foundational layer of trust required for mainstream adoption. The data allows the market to distinguish between exchanges practicing sound custody and those operating with excessive leverage or fractional reserves.” Therefore, the detailed figures from Bybit contribute to a healthier, more transparent digital asset ecosystem overall. Impact on User Trust and Market Perception Transparency reports directly influence user trust and an exchange’s market reputation. A consistent history of verified reserves strengthens an exchange’s brand as a secure custodian. For users, the ability to cryptographically verify their funds are included provides peace of mind. This is especially crucial for institutional clients who require rigorous proof of asset safety before committing significant capital. The monthly publication cadence also creates a routine expectation of accountability, which can deter risky behavior by the exchange itself. From a market-wide perspective, aggregated reserve data from major exchanges like Bybit, Binance, and Coinbase offers valuable macro insights. Analysts can track aggregate exchange balances to gauge whether investors are moving coins into custody (accumulation) or withdrawing them for sale (distribution). A net decrease in exchange BTC reserves, as partially seen here, can sometimes precede reduced selling pressure, as fewer coins are readily available on the market. However, analysts caution against drawing direct causal conclusions from a single exchange’s monthly report, emphasizing the need to view data in a broader, multi-platform context. Conclusion Bybit’s 29th Proof of Reserves report delivers essential transparency, revealing a 2.41% decrease in user Bitcoin holdings to 59,000 BTC alongside an 11.4% surge in Ethereum. These figures provide a verifiable snapshot of user asset movement and exchange solvency. In the current regulatory climate, such disclosures are fundamental to building and maintaining user trust. They also offer analysts critical data points on cryptocurrency holder behavior. As the industry matures, the consistent and clear publication of Proof of Reserves will remain a key indicator of an exchange’s commitment to security and operational integrity, directly impacting its standing with both users and regulators. FAQs Q1: What is a Proof of Reserves report? A Proof of Reserves report is a cryptographic audit that proves a cryptocurrency exchange holds enough assets to cover all client balances. It uses a Merkle tree to allow individual users to verify their funds are included without exposing other users’ data. Q2: Why did Bybit’s Bitcoin holdings decrease by 2.41%? The decrease could result from several factors, including users withdrawing BTC for self-custody, reallocating to other assets, or reacting to broader market conditions in late February. It reflects net user withdrawals from the exchange’s custody. Q3: What does the large increase in Ethereum holdings indicate? An 11.4% increase in ETH holdings suggests growing user demand to hold or trade Ethereum on Bybit. This could be driven by positive developments in the Ethereum ecosystem, attractive staking yields, or institutional depositors choosing the platform. Q4: How often does Bybit publish these reports? Bybit has established a monthly cadence for its Proof of Reserves reports, with this being the 29th consecutive publication. This regular schedule promotes consistent transparency and accountability. Q5: Can users personally verify the report’s data? Yes, a core feature of a Merkle tree-based Proof of Reserves is that individual users can use a provided cryptographic tool to verify that their specific account balance is included in the total reserve hash, confirming the exchange’s claim. This post Bybit Proof of Reserves Reveals Crucial 2.41% Drop in User Bitcoin Holdings first appeared on BitcoinWorld .