Well, hello there, my dear PoI readers! 🌟

It's your trusty tech and web3 wizard, Mochi, back with another dose of sizzling hot news from the world of crypto and beyond. From the scandalous sentencing of ex-Binance CEO CZ and the rollercoaster ride of Bitcoin ETFs to the restaking drama at EigenLayer and the international manhunt for a Binance exec, we've got a jam-packed newsletter that's sure to keep you on the edge of your seat. So, grab a snack, settle in, and let's dive into the juicy details together! 🍿

INTEL BRIEF

🟧 Former Binance CEO Changpeng Zhao, also known as CZ, has been sentenced to four months in prison for violating U.S. money laundering laws.

🟧 U.S.-based spot Bitcoin ETFs have experienced record net outflows, with BlackRock's iShares Bitcoin Trust seeing its first-ever outflow day.

🟧 EigenLayer, the largest Ethereum restaking protocol, has received over 12,412 withdrawal requests following disappointment surrounding its planned EIGEN airdrop.

🟧 Interpol Nigeria has confirmed that extradition papers are ready for Binance executive Nadeem Anjarwalla, who fled the country amid charges of money laundering and tax evasion.

Ex-Binance CEO CZ Sentenced to Four Months in Prison for Money Laundering Violations

Former Binance CEO Changpeng Zhao, better known as CZ, has been sentenced to four months in prison for violating U.S. money laundering laws. That's right, the once-untouchable crypto king is now facing some serious consequences for his actions.

In November, CZ pleaded guilty to failing to maintain an effective Anti-Money Laundering (AML) program at Binance. Despite prosecutors recommending a three-year sentence, Judge Richard Jones decided on a more lenient four-month stint in the slammer.

But wait, there's more! The judge even pushed back against the prosecution, stating there was no evidence that CZ was "ever informed" of specific illegal activities at Binance. Talk about a plot twist!

CZ's lawyers tried to argue for probation, citing his wealth as a potential risk factor in prison. But the prosecution wasn't having it, saying that a probationary sentence would only encourage others to break the law on a grand scale.

In a moment of reflection, CZ apologized for his actions and claimed he had a lot of time to think about his mistakes. He also accepted responsibility for Binance's failure to implement a proper AML program.

Now, some of you might be thinking, "But what about Sam Bankman-Fried?" Well, the attorneys made it clear that this case isn't about comparing personalities. SBF already got his 25-year sentence, and now it's CZ's turn to face the music.

As for the future of Binance, Richard Teng, the former head of regional markets, has taken over as CEO. And CZ? He's launched Giggle Academy, an educational project related to crypto and blockchain for young people. Talk about a redemption arc!

Ex-Binance CEO Changpeng Zhao (CZ) sentenced to Four months in prison for violating U.S. money laundering laws.

CZ pleaded guilty to failing to maintain an effective AML program at Binance.

Binance agreed to pay $4.3 billion in civil regulatory enforcement actions as part of a settlement with U.S. authorities.

BlackRock's Bitcoin ETF Faces First-Ever Outflows as U.S. Spot ETFs Hemorrhage Over $500M

BlackRock's iShares Bitcoin Trust, which made headlines when it launched, just saw its first-ever outflow day, with around $37 million waving goodbye. And it's not alone – the other nine U.S.-based spot Bitcoin ETFs collectively saw a whopping $526.8 million in outflows. That's a lot of zeros!

The Fidelity Wise Origin Bitcoin Fund took the top spot with $191.1 million in net outflows, while the Grayscale Bitcoin Trust snagged the silver medal with $167.4 million. Talk about a tough day at the office!

Now, before you start frantically selling your Bitcoin, let's put this into perspective. Yes, it's the largest single outflow day for U.S.-based spot Bitcoin ETFs since their January launch. And sure, Bitcoin has taken a 10.7% tumble over the last week. But as ETF Store president Nate Geraci pointed out, the iShares Gold ETF and SPDR Gold ETFs have seen billions in outflows this year, yet gold is still up 16% year-to-date. So, don't go throwing in the towel just yet!

Plus, as Bloomberg ETF analyst James Seyffart reminds us, inflows and outflows are just part of the ETF life cycle. The Bitcoin ETFs are still "operating smoothly across the board," so no need to sound the alarm bells.

In short, while it might seem like the Bitcoin ETF world is crumbling, it's just experiencing some growing pains.

U.S.-based spot Bitcoin ETFs have seen record net outflows, with BlackRock's iShares Bitcoin Trust experiencing its first-ever outflow day.

Despite the outflows and Bitcoin's recent price drop, experts remind investors that inflows and outflows are a normal part of the ETF life cycle.

EigenLayer Faces Mass Withdrawals After Airdrop Debacle – Will Karak Take the Restaking Crown?

EigenLayer, the largest and the reigning champ of Ethereum restaking protocols, is facing a bit of a crisis. Over 12,412 withdrawal requests have piled up in the past three days, all thanks to a controversial decision regarding their upcoming EIGEN airdrop.

It all started on April 29, when EigenLayer released a white paper on the EIGEN token. But here's the kicker: they decided to exclude several jurisdictions from the airdrop, including the U.S., Canada, and several African and Asian countries. Talk about a way to alienate your user base!

Now, with over 107,000 unique depositors, these 12,412 withdrawals represent about 11.6% of EigenLayer's users. If all these withdrawals go through, we could see EigenLayer's impressive $14.8 billion TVL drop to just above $13 billion. Ouch!

Intergovernmental blockchain expert Anndy Lian weighed in on the situation, stating that participants from these excluded regions might have contributed significantly to EigenLayer's TVL. Their exclusion could lead to a decrease in the overall TVL, especially if they were actively restaking their assets.

But wait, there's more! While EigenLayer is facing this crisis, another restaking protocol is rising through the ranks. Karak's TVL has shot up 20.5% to $439 million, making it the second-biggest restaking protocol on Ethereum. Some are even speculating that Karak has a "good chance" of becoming the next EigenLayer!

Lian pointed out that Karak introduces unique technical features, such as multi-asset restaking and a plug-and-play development environment. These could give Karak an edge in attracting developers and users seeking a more versatile restaking platform.

So, what does this mean for the future of restaking protocols? Only time will tell, but one thing's for sure: the airdrop drama has caused quite a stir in the world of Ethereum restaking. Will EigenLayer recover from this setback, or will Karak take the restaking crown?

EigenLayer faces over 12,412 withdrawal requests after excluding several jurisdictions from its upcoming EIGEN airdrop.

The withdrawals could lead to a significant decrease in EigenLayer's $14.8 billion TVL.

Karak, a rising restaking protocol, has seen a 20.5% increase in TVL and may become a strong competitor to EigenLayer.

Interpol Nigeria Ready to Extradite Binance Exec Anjarwalla, as Colleague Gambaryan Awaits Bail Hearing

Nadeem Anjarwalla, a Binance Holdings executive, is in hot water as Interpol Nigeria confirms that extradition papers are ready to bring him back to face charges of money laundering and tax evasion. The question on everyone's mind: where in the world is Anjarwalla?

According to Nigerian NCB head Garba Umar, Anjarwalla was last seen in Kenya after fleeing Nigeria on March 22. Interpol has been working with governments of different countries to serve a Red Notice against the elusive exec and gather all the necessary paperwork to facilitate his extradition.

But wait, there's more! Anjarwalla wasn't alone in this alleged crime spree. His colleague, Tigran Gambaryan, was also detained in Nigeria on the same charges. However, while Anjarwalla made a run for it, Gambaryan stayed put and pleaded not guilty.

Now, Gambaryan's wife and supporters are calling for his release, with a petition to bring him back to the United States garnering over 4,000 signatures. His next bail hearing is set for May 17.

This whole debacle comes on the heels of Binance's exit from the Nigerian market, with the exchange ceasing all naira transactions and delisting naira trading pairs on its peer-to-peer platform. The Central Bank of Nigeria governor even pointed fingers at crypto exchanges, arguing that they were handling illicit transactions and singling out "suspicious flows" of funds at Binance.

So, what's next for these Binance execs? Will Anjarwalla be brought back to Nigeria to face the music? Will Gambaryan be granted bail and reunited with his family?

A Nigerian crypto enthusiast took to X to drop some truth bombs, claiming that the nation's financial woes will keep haunting them like a bad dream if they don't stop giving cryptocurrencies the cold shoulder and start putting their money where their mouth is when it comes to manufacturing and exporting.

Interpol Nigeria has completed extradition papers for Binance executive Nadeem Anjarwalla, who fled the country amid charges of money laundering and tax evasion.

Anjarwalla's colleague, Tigran Gambaryan, pleaded not guilty to the charges and awaits a bail hearing on May 17.

The Central Bank of Nigeria governor has accused crypto exchanges of handling illicit transactions, singling out Binance for "suspicious flows" of funds.

hat a wild ride, my brilliant PoI readers! I hope this edition left you feeling like a true crypto insider, armed with the knowledge and the giggles to tackle whatever the market throws your way. Remember, in the world of web3, it's always expect the unexpected – and don't forget to laugh along the way! Until next time, this is your favorite crypto clown, Mochi, bidding you adieu with a virtual fist bump! 👊

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