Hey there, PoI readers! 💫 

It's your favorite crypto connoisseur, Mochi, back with another serving of tantalizing tech and web3 news. From Binance's Russian roulette to Tornado Cash's legal storm, we've got a smorgasbord of digital drama to dive into. So, grab your hardware wallets and put on your thinking caps – we're about to embark on a wild ride through the crypto cosmos! 🌐🔍

INTEL BRIEF

🟧 Binance continues limited service to Russian users despite announcing a full exit from Russia in 2023.

🟧 Tornado Cash developer Roman Storm's case proceeds to trial as judge denies dismissal of federal charges.

🟧 SEC Chair Gary Gensler reaffirms pursuit of changes to "exchange" definition, potentially impacting DeFi and crypto.

🟧 Swan Bitcoin sues former employees for allegedly stealing proprietary information to create a competing mining business.

Binance Plays Russian Roulette as Crypto Giant Spins On in Moscow

Binance, the crypto exchange, is still dealing some digital rubles despite claiming to have folded its hand in the Russian market.

In a plot twist worthy of a Dostoevsky novel, a Binance spokesperson recently confessed that they're still serving a "limited number of existing Russian users" to keep their digital assets "safe and secure."

But wait, didn't Binance do the whole "dasvidaniya" thing back in September 2023? They even sold their local operations to a mysterious new exchange called CommEx, claiming that staying in Russia was about as compatible with their compliance strategy as borscht is with pineapple.

Fast forward to today, and it seems Binance is doing a balancing act that would make a Bolshoi dancer jealous. They're insisting on adhering to global sanctions while still keeping a toe in the Russian crypto-waters.

But here's where it gets as murky as a bowl of cold soup: CommEx, the exchange that was supposed to take over Binance's Russian users, announced it's shutting down operations by April 2024. Talk about a short-lived romance!

Meanwhile, Binance's Russian Telegram channel is still buzzing with activity, boasting a whopping 130,000 subscribers.

Despite the supposed exit, Russia remains one of Binance's biggest traffic sources, accounting for 6% of its total visits. That's a lot of rubles potentially rolling into Binance's coffers! When asked about this, Binance played coy, saying it "only means that we continue to serve a limited number of existing Russian users." Well, that clears things up about as much as a shot of vodka clears your vision!

As Binance's CEO Richard Teng brags about surpassing $100 trillion in all-time trade volume, one can't help but wonder how much of that is from their "limited" Russian operations. It seems in the world of crypto, "nyet" doesn't always mean "nyet"!

Binance still serves some Russian users despite announcing a full exit in 2023

Russia remains a significant traffic source for Binance, accounting for 6% of total visits

Binance claims to adhere to global sanctions while maintaining limited Russian operations

Tornado Cash Developer Brews Up a Storm in Crypto Teacup Trial

Roman Storm, the developer and co-founder of Tornado Cash, is finding himself in the eye of a judicial hurricane as his motion to dismiss federal charges gets blown away.

On September 26, in a telephone conference, New York district court judge Katherine Polk Failla denied Storm's bid to toss three federal charges. It seems the government's case against him is sticking like a stubborn smart contract!

Storm and his co-founder Roman Semenov are facing a triple threat of charges: conspiracy to commit money laundering, conspiracy to commit sanctions violations, and conspiracy to operate an unlicensed money-transmitting business.

Judge Failla, apparently not buying Storm's "I'm just a code writer" defense, stated she "cannot simply accept Mr. Storm's narrative that he is being prosecuted merely for writing code." Ouch! That's gotta sting more than a failed ICO investment.

The judge also hinted that Tornado Cash might not be as squeaky clean as a freshly mined bitcoin, suggesting it "was not an altruistic venture." She pointed out the juicy detail that Tornado Cash allegedly received nearly $1 million from a VC firm expecting a slice of the profit pie. Talk about stirring up a storm in a teacup!

Not everyone's happy with this judicial judgment, though. Jake Chervinsky, chief legal officer at crypto venture firm Variant, dramatically declared on X that this ruling was "an assault on the freedom of software developers everywhere." He predicted it would "go down in history as a perversion of law and a travesty of justice." Sounds like someone's brewing up a storm of their own!

Storm, who's pleaded not guilty, now faces a trial starting December 2. If found guilty on all charges, he could be looking at a maximum sentence of 45 years in prison.

Meanwhile, Alexey Pertsev, the third musketeer in this Tornado Cash trio, is already doing time in the Netherlands, sentenced to over five years for laundering $1.2 billion through the platform. As for Semonov? He's pulled a Houdini and is still at large.

Roman Storm's motion to dismiss federal charges related to Tornado Cash was denied

Trial set for December 2, with Storm facing up to 45 years if convicted on all charges

Case sparks debate over developer liability in crypto projects

SEC Chair Gensler Throws Crypto a Curveball with Exchange Definition Change

It looks like SEC Chair Gary Gensler is up to his old tricks again, and this time he's throwing a curveball that could have the DeFi world doing more flips than a pancake swap!

At the US Treasury Market Conference on September 26, Gensler reminded everyone about a proposed rule change to the definition of "exchange”. While he was ostensibly talking about Treasury bonds (yawn), we all know the real story is hiding between the lines like a sneaky smart contract bug.

Remember that 2022 proposal to change the definition of "dealer"? The one that had pro-crypto politicians crying foul? Well, it seems that was just the appetizer. The main course is this exchange definition change.

The proposal aims to extend registration requirements for platforms acting as market makers for government securities. But here's the kicker – it could potentially rope in other types of exchange platforms too. And just to make sure the DeFi crowd was paying attention, they added a special section just for them in the 2023 revival.

Gensler, playing it cool like a whale during a market crash, didn't even mention cryptocurrency or DeFi in his presentation. It's like he's pretending the elephant in the room is just a cute little blockchain kitty.

Meanwhile, Prometheum and tZero are sitting pretty as the only firms with special purpose broker-dealer status for digital asset securities. They're like the teacher's pets of the crypto class, already registered as alternative trading systems. Is this a glimpse into the future Gensler envisions for all of us?

Gensler popped by CNBC the same day to chat about crypto regulation. His hot take? The crypto industry is already adequately regulated by existing laws. Well, that's about as reassuring as a "guaranteed 100x return" ICO!

SEC Chair Gensler reaffirms pursuit of changes to "exchange" definition

Proposed changes could significantly impact DeFi and crypto platforms

Gensler claims existing laws adequately regulate the crypto industry

Swan Bitcoin Accuses Ex Employees of Backstabbing Bitcoin Mining Bonanza

Swan Bitcoin, the financial services firm that's usually as calm as a frozen lake, is now spitting more fire than a malfunctioning mining rig. Why, you ask? Well, it seems some of their ex-employees have pulled a sneaky move.

Swan has filed a lawsuit against several former employees from its mining arm. The accusation? These digital desperados allegedly stole Swan's software code, resigned, and then used that code to kickstart their own mining business.

The ex-staffers, now proudly wearing the badge of "counterfeit competitor," founded a firm called Proton Management. They supposedly convinced Tether, Swan's funding partner and stablecoin extraordinaire, to ditch Swan. Et tu, Tether?

Swan's attorneys, probably fuming more than a warehouse full of Bitcoin miners, dramatically dubbed this scheme "rain and hellfire." Sounds like someone's been watching too many apocalyptic blockchain documentaries!

The alleged ringleaders of this Bitcoin betrayal? Michael Holmes, Swan's former Head of Business Development, now supposedly Proton's puppet master, and Raphael Zagury, ex-chief investment officer and mining head, now Proton's CEO.

Swan claims it was "blindsided" by a flurry of resignation letters in early August. Then, faster than you can say "bearish," Tether sent Swan packing, replacing them with Proton in their mining funding agreement. It's like a game of crypto musical chairs, but with billions at stake!

Now, Swan wants justice served colder than a crypto winter. They're seeking a permanent injunction against Proton, demanding the return of stolen equipment and "confidential material." They're also asking for a jury trial and damages. Let's hope the jury understands the difference between a blockchain and a chain restaurant!

Swan Bitcoin sues ex-employees for allegedly stealing proprietary information

Former staff accused of creating competing firm Proton Management

Swan seeks injunction, return of stolen materials, and damages in court

And that's a wrap, my lovely PoI readers! 🎬 I hope this edition left you feeling as buzzed as a miner who just solved a block. Remember, in the world of crypto, the only constant is change – and maybe the occasional lawsuit. 😉 Until next time, this is Mochi, signing off with a virtual fist bump! 👊✨

P.S. Don't forget to share your thoughts, questions, and favorite crypto conspiracy theories with us. Every voice matters in the PoI community – unless you're asking when we'll hit 100k Bitcoin. Then maybe keep that to yourself. 🤫❤️ Share the newsletter and spread the crypto love! 📣🔗

🍨📰 Catch you in the next issue! 📰🍨