Legal disputes in the crypto world are casting shadows on the reputation of key players in the sector. Wheeling and dealing behind digital currencies can be equally thrilling and terrifying, and sadly, incidents of fraudulent activities are not rare. Take, for instance, the recent allegations swirling around FTX’s former external legal team. This United States law firm, Fenwick & West, found itself disputing claims of purported involvement with the now-defunct cryptocurrency exchange FTX.
A lawsuit accuses the legal team of aiding Sam Bankman-Fried, alleged to have been involved in fraudulent activities within FTX. The plaintiffs argue Fenwick knowingly overstepped the typical legal services norms in its dealings with FTX. But in a counter-argument, Fenwick & West denies the accusations, maintaining its conduct was within the scope of representation for its client.
How events turn out in the court remains, as it were, a quintessential court drama. However, it is salient to note that despite being toyed around in allegations, FTX made a bold step and initiated a $157.3 million claims suit, alleging illicit withdrawal of funds right before the exchange was declared bankrupt.
On legitimization and regulation, the crypto field is not all gloomy. Recently, Coinbase secured an Anti-Money Laundering (AML) compliance registration from the Bank of Spain. Spanish users are now able to custody their crypto assets on Coinbase and trade crypto assets against their national legal tender. This could be interpreted as a substantial stride towards regularizing and facilitating crypto activities in the country. In consolidation of its global presence, Coinbase seems to be cementing its regulatory compliance across the globe.
One can’t help but comprehend the thinly disguised legal battles and regulatory compliance issues posing hurdles for these crypto entities. Different stakeholders seek to enforce their regulatory frameworks in non-EU jurisdictions as the Markets in Crypto-Assets Regulation (MiCA) act nears its implementation deadline. What unfolds in these incidents could serve as critical lessons in the pursuit of checks and balances between the often gritty reality and optimist visionaries of the emerging crypto market.
Source: Cointelegraph
