Law & Policy

What happened in the crypto industry last week (Oct 7 - 13)?

1/ Bitnomial Sues SEC Over XRP Futures:
Derivatives exchange Bitnomial has filed a lawsuit against the SEC regarding XRP futures contracts. The regulator intervened in the launch of XRP futures, labeling it as a derivative of a security and requiring the exchange to register, thereby blocking the contracts’ launch. Previously, the exchange had received approval from the CFTC.

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2/ SEC Accuses Cumberland of Unregistered Dealing:
The SEC has charged market maker Cumberland with operating as an unregistered dealer in crypto assets offered and sold as securities. The regulator stated that since March 2018, Cumberland has bought and sold cryptocurrencies for its own accounts, selling them as securities totaling over $2 billion.

2/ SEC Accuses Cumberland of Unregistered Dealing:
The SEC has charged market maker Cumberland with operating as an unregistered dealer in crypto assets offered and sold as securities. The regulator stated that since March 2018, Cumberland has bought and sold cryptocurrencies for its own accounts, selling them as securities totaling over $2 billion.
https://www.sec.gov/newsroom/press-releases/2024-169

3/ DOJ, SEC, FBI Charge 18 in Crypto Fraud:
The Department of Justice, SEC, and FBI have filed charges against 18 individuals and entities for fraud in the cryptocurrency space. Among the accused are four market makers, including Gotbit and GLS Global, who are charged with market manipulation and fictitious trading.

3/ DOJ, SEC, FBI Charge 18 in Crypto Fraud:
The Department of Justice, SEC, and FBI have filed charges against 18 individuals and entities for fraud in the cryptocurrency space. Among the accused are four market makers, including Gotbit and GLS Global, who are charged with market manipulation and fictitious trading.
https://www.justice.gov/usao-ma/pr/eighteen-individuals-and-entities-charged-international-operation-targeting-widespread

4/ Meta Eagle Club NFT Holders Sue Gallery:
Investors have filed a class-action lawsuit accusing Eden Gallery and artist Gala Yosef of fraud, claiming that the project was mismanaged. Token holders are also seeking compensation for their losses.

4/ Meta Eagle Club NFT Holders Sue Gallery:
Investors have filed a class-action lawsuit accusing Eden Gallery and artist Gala Yosef of fraud, claiming that the project was mismanaged. Token holders are also seeking compensation for their losses.
https://news.bloomberglaw.com/crypto/nft-investors-sue-gallery-over-metaverse-cryptocurrency-scam

5/ CoinGecko Reports US Crypto Enforcement:
Analysts at CoinGecko published a report detailing enforcement actions taken by US regulators against cryptocurrency companies. From January 1, 2019, to October 9, 2024, the top 25 lawsuits resulted in digital asset companies being fined a total of $32 billion.

5/ CoinGecko Reports US Crypto Enforcement:
Analysts at CoinGecko published a report detailing enforcement actions taken by US regulators against cryptocurrency companies. From January 1, 2019, to October 9, 2024, the top 25 lawsuits resulted in digital asset companies being fined a total of $32 billion.
https://www.coingecko.com/research/publications/top-crypto-enforcements-us

6/ Crypto.com Sues SEC After Wells Notice:
Crypto exchange Crypto.com has filed a lawsuit against the SEC following the receipt of a Wells Notice. The company accuses the regulatory body of overreach and unfairness in establishing rules for crypto asset operations.

6/ Crypto.com Sues SEC After Wells Notice:
Crypto exchange Crypto.com has filed a lawsuit against the SEC following the receipt of a Wells Notice. The company accuses the regulatory body of overreach and unfairness in establishing rules for crypto asset operations.
https://crypto.com/company-news/complaint

7/ FTX Approves Bankruptcy Reorganization Plan:
Crypto exchange FTX announced that it has received approval from the bankruptcy court for its asset reorganization plan. Under the plan, 98% of affected users will receive compensation of approximately 119% of their deposits.

7/ FTX Approves Bankruptcy Reorganization Plan:
Crypto exchange FTX announced that it has received approval from the bankruptcy court for its asset reorganization plan. Under the plan, 98% of affected users will receive compensation of approximately 119% of their deposits.
https://www.prnewswire.com/news-releases/ftx-receives-us-bankruptcy-court-confirmation-of-its-plan-of-reorganization-302269152.html

8/ Former Lawyer Sentenced for Crypto Pyramid:
On October 8, 2024, a federal court in Las Vegas sentenced a former lawyer to prison for creating a $15 million cryptocurrency pyramid scheme. Prosecutors stated that the fraudster and his accomplices promised investors returns ranging from 20% to 100% within 30 days.

8/ Former Lawyer Sentenced for Crypto Pyramid:
On October 8, 2024, a federal court in Las Vegas sentenced a former lawyer to prison for creating a $15 million cryptocurrency pyramid scheme. Prosecutors stated that the fraudster and his accomplices promised investors returns ranging from 20% to 100% within 30 days.
https://www.courtlistener.com/docket/68229207/united-states-v-kagel/?filed_after=&filed_before=&entry_gte=&entry_lte=&order_by=desc#entry-40

9/ World Liberty Financial, associated with Donald Trump’s sons, plans to raise $300 million at a valuation of $1.5 billion through the sale of WLFI governance tokens.

9/ World Liberty Financial, associated with Donald Trump’s sons, plans to raise $300 million at a valuation of $1.5 billion through the sale of WLFI governance tokens.
https://www.theblock.co/post/320430/trump-world-financial-liberty-raise

1/ Bitnomial Sues SEC Over XRP Futures:
Derivatives exchange Bitnomial has filed a lawsuit against the SEC regarding XRP futures contracts. The regulator intervened in the launch of XRP futures, labeling it as a derivative of a security and requiring the exchange to register, thereby blocking the contracts’ launch. Previously, the exchange had received approval from the CFTC.
https://x.com/Bitnomial/status/1844544290040451096
https://www.bloomberg.com/news/articles/2024-10-02/use-of-blackrock-tokens-as-collateral-moves-closer-to-mainstream?sref=3REHEaVI