Month: August 2023

“The exchange Fundsz and associated individuals were recently accused by the CFTC of fraudulent cryptocurrency trading, misleading over 14,000 individuals with exaggerated return projections. The CFTC alleged Fundsz’s entire business model was built upon fabricated profits, never actually trading with customer funds.”

U.S. Senator Cynthia Lummis and crypto experts assert that the SEC’s examination of crypto trading platforms, like Coinbase, as unregistered securities exceeds their jurisdiction. The SEC’s authority question, they believe, should rest with Congress. Much debate exists around immediacy and breadth of crypto regulation, with an emphasis on establishing comprehensive, globally mindful approaches to build trust in the market.

“A significant crypto scam in South Korea swindled approximately $651 million from nearly 8,000 people, highlighting the need for stringent regulatory measures. The scam promised enticing payouts through a cryptocurrency platform, leading to financial turmoil for investors. The incident underscores the potential dangers within the crypto arena and amplifies the call for robust legal framework surrounding cryptocurrencies.”

Senator Cynthia Lummis filed an Amicus Brief supporting Coinbase’s initiative to dismiss the SEC lawsuit, arguing the SEC is using its lawsuit to control the growing cryptocurrency sector, bypassing Congress’s role. The SEC’s approach could bring digital assets under its scope, categorizing them as securities and bypassing other agencies’ authority, which critics regard as overstepping its jurisdiction.

“Co-founder of Three Arrows Capital, Kyle Davies, avoided contempt charges in US Bankruptcy Court due to Singaporean citizenship. This development could impact the recovery efforts of liquidators seeking $1.3 billion from Davies. Meanwhile, PayPal’s new stablecoin PYUSD faces potential regulatory challenges, signaling a pivotal role of regulation in the future of cryptocurrencies.”

“The SEC’s recent decision to postpone and seek public opinion on Ark Invest’s Bitcoin ETF application reveals the uncertainties that potential regulatory implications pose to the crypto universe. Crypto assets such as Fantom, Shibie, Rocket Pool, Chimpanzee, and Sui have attracted attention, displaying the ongoing tug between bullish optimism and regulatory caution.”

“Federal Judge Lewis Kaplan has revoked Sam Bankman-Fried’s bail, citing alleged fraudulent activities at FTX and misconduct since his arraignment. This pivotal case raises fundamental questions about fairness in trials involving significant crypto figures in the evolving blockchain era.”

The SEC’s delay over a decision on a Bitcoin ETF is causing anticipation, with implications for major Wall Street players like BlackRock and Fidelity. Currently, eight applications are awaiting approval, representing over $15 trillion globally managed assets. This mass approval could reduce chances of market manipulation, possibly introducing over $70 billion in liquidity to the Bitcoin market.

“The Gemini-DCG feud underscores the delicate line between corporate responsibility and independent operational functions in crypto conglomerate subsidiaries. It poses critical questions about corporate accountability in the crypto ecosystem. All eyes are on the court, as the outcome of this case has the potential to set a precedent in shaping future blockchain-based market practices.”

“Sam Bankman-Fried, a renowned cryptocurrency figure, faces allegations of manipulating evidence and intimidating witnesses in a fraud case. Prosecutors suggest his untruthful narratives, attempts at tampering with witnesses, and use of VPN software to hide digital footprints could be misleading potential jurors and distorting the real story.”