After a Week of Cryptocurrency Chaos, Bitcoin Reaches Its 2023 High
Following a turbulent week in other cryptocurrencies, Bitcoin has reached its highest point in 2023.
On Friday, the price of Bitcoin surged above $38,000 for the first time this month, marking a significant milestone. Bitcoin had not reached these levels since the summer of the previous year, and it has been on an upward trajectory since a decline in the second half of 2022.
Coinbase also achieved a 2023 high at the end of the year, reaching its highest point since spring 2022. However, despite the optimism of some investors, this week has witnessed volatility in the cryptocurrency market.
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CNBC Reports Compromised Cryptocurrency Platforms
According to CNBC, two cryptocurrency platforms have suffered security breaches, potentially resulting in a loss of $115 million. The affected platforms are the HTX online currency exchange, formerly known as Huobi, and the Heco Chain cryptocurrency platform, both of which are associated with businessman Justin Sun.
CNBC reports that HTX is actively investigating the source of the hack and has committed to fully reimbursing any losses incurred as a result of the security breach.
Binance and CEO Plead Guilty to Federal Money Laundering Charges
The Department of Justice (DOJ) announced on Tuesday that Binance, one of the world’s largest cryptocurrency exchanges, and its CEO, Changpeng Zhao (CZ), have pleaded guilty to federal money laundering charges. As part of the plea agreement, they will pay more than $4 billion.
Binance had become the largest cryptocurrency exchange in the world, partly due to its questionable activities. The DOJ’s statement, issued by Attorney General Merrick Garland, noted that the company is now facing one of the most significant financial penalties ever imposed on a business in the United States.
The DOJ’s statement also emphasized its efforts to crack down on the cryptocurrency market, sending a clear message to other crypto platforms.
Attorney General Garland remarked, “The message should be clear: using new technology to break the law doesn’t make you an industry leader; it makes you a criminal.”
In the same statement, Secretary of the Treasury Janet L. Yellen stated that any organization, regardless of its location, must adhere to the rules that safeguard against illicit activities, or face the consequences if it wishes to benefit from the U.S. economic system.
Since the news broke, Binance users have reportedly withdrawn over $1 billion from the exchange, according to CNBC.
All of these developments come in the wake of the recent revelation of fraud by FTX founder Sam Bankman-Fried, making it a tumultuous month for the cryptocurrency industry.