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The Daily Money: Crypto exchange Binance, CEO plead guilty to money laundering charges


Good morning! It's Daniel de Visé with your Daily Money.

Binance, operator of the world's largest cryptocurrency exchange, pleaded guilty Tuesday to multiple financial crimes and agreed to pay about $4.3 billion, the Justice Department announced.

The company and its CEO and founder, Canadian national Changpeng Zhao, agreed they broke the law by failing to maintain an effective anti-money laundering program, according to federal officials. Binance also pleaded guilty to failing to register as a money transmitting business, and to violating the International Emergency Economic Powers Act. Zhao, who also goes by "CZ," has resigned as CEO.

The developments come just weeks after the department secured a conviction against Sam Bankman-Fried, the founder of cryptocurrency exchange FTX, for committing fraud through a scheme that cheated customers and investors out of at least $10 billion.

The latest fall from grace marks another shockwave to the cryptocurrency industry, which saw FTX collapse in late 2022 after Binance backed out of a plan to buy the rival. Soon after that announcement, cryptocurrency prices plunged.

Consumers take a cautious approach to holiday spending

Americans are turning more cautious ahead of the critical holiday shopping season as they grapple with high pricesdwindling savings and rising debt. Although shoppers are still spending, they’re focused more on essentials and making fewer discretionary purchases, according to Circana, a firm that researches consumer behavior.

“They’re saying, ‘I can’t keep spending like this,” says Marshal Cohen, Circana’s chief retail industry advisor.

That, he says, could make for a more challenging holiday sales season, which officially kicks off this week with Black Friday and makes up about one-quarter of annual sales for some retailers. Cohen estimates seasonal sales will be flat or down slightly this year.

General merchandise sales – meaning discretionary items such as clothing, TVs, computers, appliances and furniture – fell 7% in October from a year earlier, the metric's worst performance since March 2022, Circana data shows.

Broadly, retail sales dipped 0.1% last month after surging over the summer, according to the Census Bureau. Consumer sentiment fell for the fourth straight month in November to its lowest reading since May, according to a University of Michigan survey.

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🍔 Today's Menu 🍔

Many foods come to mind when people think of Thanksgiving. But pizza?

DiGiorno announced Tuesday it is introducing a Thanksgiving pizza, available for customers this November while supplies last.

The pie features turkey, creamy gravy sauce, diced sweet potatoes, green beans, cranberries, mozzarella and cheddar cheeses and is topped with crispy onions, all on a Detroit-style crust. What's not to like?

"From Friendsgiving parties to Turkey Day tables, we're thrilled to provide a bold new way to appreciate the traditional Thanksgiving spread," said Kimberly Holowiak, senior brand manager for DiGiorno.

One last item on today's menu: The Daily Money is taking Thanksgiving off. Guests are on the way, the turkey is wedged into the refrigerator, the oven preheating, a Thanksgiving pizza tucked in the freezer, just in case. Your headlines return on Friday. Have a wonderful holiday.

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from Paste BN. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.