Best Twitter threads of the day – March 27th

1/23

Oh boy https://t.co/2JnbfirRrp

Case is up and it's bad.

This is the CFTC attempting to strike *fatal* blow to Binance, and at first read through… I think they actually have really strong chances here of succeeding in toppling the Binance empire.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

2/23

This is the case we've long heard rumored that Binance denied, and it is going straight for the jugular.

Points out specific action to broker US exposure to leveraged products despite access controls. pic.twitter.com/gcU56u7xmO

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

3/23

It notes "Defendants have disregarded applicable federal laws while fostering Binance's US customer base because it has been profitable for them to do so" and points to internal reporting of their products revenue being derived from what they knew were US customers. pic.twitter.com/YZZIrhh27l

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

4/23

Binance, CZ and Lim are all listed in 7 violations of CEA/CFC/USC and suggest all of CZ's held Binance entities are under "CZ" for this case aiming to pierce corporate veil

It also specifically targets Binance's US trading arm Merit Peak and BAM (Binance US)

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

5/23

They've got chat records and other documentation from CZ directly on these matters: pic.twitter.com/cpCzuWDZUR

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

6/23

They also go after the fact of manipulation and self-dealing, identifying there are more than 300 "house accounts" owned by CZ, Merit Peak and Sigma chain used in proprietary trading and note it takes no reasonable anti-fraud or anti-manipulation steps. pic.twitter.com/2SzDwASUK3

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

7/23

It also specifically ties in Trust-Wallet, Binance Labs (due to US exposure) and many Binance employees with US exposure, including volunteer "Binance Angels" as grounds for a US filing.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

15/23

-Plus Binance team will never legally hold another US commodity or access US securities again in their life.

Now that all assumes the trial finds them guilty and applies the CFTC requests but it would for sure kill off Binance with those make whole & disgorgement clauses.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

16/23

If CZ, Lim and binance fail to engage with US courts, and fail to defend themselves in a trial it's likely the CFTC would win flat out, and some criminal contempt/obstruction charges would be added which would extend issues to other countries.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

17/23

If they do show up and engage, then the discovery process will be opening all their books internationally to US regulators from all entities including those personally owned by CZ to churn up other issues.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

18/23

Only semi-safe path for Binance here is likely a settlement which CFTC would still push for the billions in make whole, disgorgement and civil penalty payments but may allow CZ et al to avoid admission of guilt.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

19/23

That still would likely kill off Binance.

Returning all fees, salaries, earnings, liquidations etc for all US exposed individuals and entities all the way back to 2017 + civil penalties?

No way they can stomach that.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

20/23

This will take time to play out, but make no mistake, this is the CFTC going for the jugular.

As I said earlier, the CFTC doesn't go after small frequent cases like the SEC.

It's a different beast and it's cases are often fatal.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

21/23

They've positioned Binance, CZ, Lim and other executives at odds with each other, and put them in the squeeze of either paying back tons of money, or pulling back the curtain on everything they've ever done.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

22/23

With each exec and entity having their own exposures, there is likely infighting as well.

Even if they fight this and had no other skeletons in the closet, the legal fees here are going to be insane with all the international entities tied in.

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

23/23

I know I'm a bit of a pessimist at times, but I think there is a decent chance that this could land as a death blow for Binance.

Because if they don't play ball it will only get worse!

— Adam Cochran (adamscochran.eth) (@adamscochran) March 27, 2023

1/ With the pace of #AI development and utilization showing no signs of slowing down, rising costs and increasing resource demands need to be addressed.@Old_Samster explores how crypto is addressing these issues.👇🧵 pic.twitter.com/dLyiixp393

— Messari (@MessariCrypto) March 27, 2023

2/ While the advancement of AI is driven by three main factors (algorithmic innovation, data, compute), two problems have come to the forefront.

+Compute bottleneck
+Inefficiencies and lack of collaboration

— Messari (@MessariCrypto) March 27, 2023

3/ Training foundational machine learning models requires extensive resources, often involving the use of large numbers of GPUs over extended periods of time.

The high cost of computing for AI creates significant obstacles for researchers and organizations pursuing advancements.

— Messari (@MessariCrypto) March 27, 2023

4/ How is crypto addressing the need for affordable, on-demand compute?

Decentralized compute networks connect entities seeking compute resources to systems with idle compute.

With no additional costs, decentralized networks can offer an affordable option. pic.twitter.com/iwY00U1Av0

— Messari (@MessariCrypto) March 27, 2023

5/ On the topic of collaboration and inefficiencies, a significant proportion of AI development is being carried out behind closed doors.

This lack of collaboration has resulted in major inefficiencies, putting smaller ML research labs at a disadvantage.

— Messari (@MessariCrypto) March 27, 2023

6/ @bittensor_ is addressing inefficiencies in machine learning while transforming the way researchers collaborate by incentivizing the production of knowledge on an open-source network with a standardized encoding of inputs and outputs for model interoperability. pic.twitter.com/nPRmEbtr9N

— Messari (@MessariCrypto) March 27, 2023

7/ For more on AI and machine learning (ML), a look at the problems arising in the AI and ML industry, and crypto-based solutions to issues with compute resources, inefficiencies and lack of collaboration, check out the full Pro report from @Old_Samster.https://t.co/1gKJzNWMst

— Messari (@MessariCrypto) March 27, 2023