GM, this is The Crypto Explorer, the only newsletter with headlines so hot our writer can't stand the heat! 🥵

Here’s what we got for you today:

• 🛑 Binance.US Halts Dollar Deposits and Withdrawals!

• 🗣️ SEC Chair Warns Crypto Firms: Comply or Face Lawsuits!

• 😱 SEC Links Binance CEO to $12b Redirected Funds.

• 🧱 Around The Block: Moody’s downgrades Coinbase, citing the ‘uncertain magnitude’ of SEC charges.

🩸 Binance.US Halts Dollar Deposits & Withdrawals!

Binance.US is making some changes to its operations.

Starting from June 13, Binance.US will suspend U.S. dollar deposits and pause fiat (USD) withdrawal channels.

The reason?

A massive lawsuit filed by the SEC against Binance, which the company refers to as "extremely aggressive and intimidating tactics” from the SEC.

The company plans to transition into a crypto-only exchange.

We guess desperate times call for desperate measures😢

Now, I know what you're thinking: "What about my USD on the exchange?"

Binance.US has stated that any remaining USD on the exchange may be converted into a stablecoin that can be withdrawn on-chain.

Also, the company cautions that any downtime in processing withdrawals going forward “may be the result of elevated volumes and weekend bank closures.”

🗣️ SEC Chair Warns Crypto Firms: Comply or Face Lawsuits!

SEC Chair Gary Gensler has a stern warning for all crypto firms - “Comply, or you can expect a lawsuit too.”

Speaking at the 2023 Global Exchange and Fintech Conference, Gensler said that "the existing rules are applicable to platforms that trade crypto assets securities, including so-called DeFi systems”.

Thus, there is no need for "regulatory clarity" in the crypto industry, or further congressional action, as laws are already in place.

Did we really expect him to say anything different at this point? 😒

Gensler also stated that issuers, broker-dealers and exchanges should “know exactly how to comply”.

He was possibly referring to recent statements made by Coinbase and Robinhood that they have attempted to engage with the SEC but have been unable to register.

But hold on a minute, there might be a silver lining for them.🤔

Because if Gensler has said exchanges “know how to register”, then that implies there's a registration process in place, right?

Well, we all know that's not the case.

Let's keep our fingers crossed.

You can read the full story here

 😱 SEC Links Binance CEO to $12b Redirected Funds.

The SEC is seeking a restraining order to freeze assets on Binance.US.

In a new court document, the SEC alleges that Binance CEO Changpeng Zhao, and Guangying Chen (Binance's back office and financial manager) received billions of dollars in customer funds through their holding company called Key Vision Development Limited.

And how did they come about this allegation?

It is based on testimony provided by Sachin Verma, an accountant employed by the SEC.

Verma's forensic analysis of bank statements revealed that $12 billion was sent to Zhao and $162 million was sent to a company controlled by Chen in Singapore. Also, Verma's analysis shows that most of the funds received by them are now held in offshore accounts.

What does Binance have to say to this allegation?

CZ responded to the allegations on Twitter, stating that they were "simply false."

Binance issued a statement through a spokesperson, reiterating that the funds in question were corporate funds, used to cover operational costs and facilitate products and services in a compliant manner.

Binance and the SEC are preparing to battle it out in court on June 13.

The outcome of this case will determine the validity of the SEC's allegations and could have significant implications for Binance, CZ, and even the entire crypto industry at large.

We’re itching to see how it unfolds!

You can read more about this story here.

🧱 Around The Block: Moody’s downgrades Coinbase, citing the ‘uncertain magnitude’ of SEC charges.

• 📉 Credit Rating: Moody’s downgrades Coinbase, citing the ‘uncertain magnitude’ of SEC charges.

• 💰 COVID-19 Research Funding: Vitalik Buterin and Polygon co-founder to help send $100M toward COVID-19 research.

• 🤖 AI-Faked Photos: Pro-Bitcoin DeSantis tagged over AI-faked photos in the Trump smear campaign.

• 📑 Report: Crypto Lawyers Say Ripple case more crucial than ever amid Coinbase, Binance SEC crackdown.

That's all we've got for you today.

Please don't forget to rate today's email and let us know what you like about it.

In any case, see you tomorrow, or on Twitter, if you're there: @danielakpobare

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.