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BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n

The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n

Previous 1 … 3 4 5 6 7 … 18 Next

Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n

Previous 1 … 3 4 5 6 7 … 18 Next

The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n

The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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December 23, 2024

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\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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December 23, 2024

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\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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December 23, 2024

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\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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November 24, 2024

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December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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December 23, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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November 24, 2024

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December 23, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

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\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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November 24, 2024

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Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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November 24, 2024

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December 23, 2024

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

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\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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November 24, 2024

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December 23, 2024

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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December 23, 2024

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\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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December 19, 2024

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November 24, 2024

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November 24, 2024

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December 23, 2024

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\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

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\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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November 24, 2024

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December 23, 2024

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Follow The Distributed

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\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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ADVERTISEMENT

\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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November 24, 2024

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November 24, 2024

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December 23, 2024

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Follow The Distributed

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\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

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November 24, 2024

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November 24, 2024

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December 23, 2024

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Follow The Distributed

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\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Follow The Distributed

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\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
*See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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November 24, 2024

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December 23, 2024

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Follow The Distributed

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\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
*See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
*See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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December 23, 2024

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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December 23, 2024

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Follow The Distributed

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\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

Subscribe To Our Newsletter

By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

ADVERTISEMENT

\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

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November 24, 2024

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November 24, 2024

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December 23, 2024

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\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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December 23, 2024

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Follow The Distributed

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\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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November 24, 2024

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December 23, 2024

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Follow The Distributed

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\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

Twitter Instagram Youtube LinkedIn Facebook RSS

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\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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November 24, 2024

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November 24, 2024

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December 23, 2024

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\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Follow The Distributed

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\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n***
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

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December 23, 2024

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Follow The Distributed

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ADVERTISEMENT

\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Follow The Distributed

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\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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November 24, 2024

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November 24, 2024

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December 23, 2024

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\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Follow The Distributed

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\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

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November 24, 2024

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December 23, 2024

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\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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December 23, 2024

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\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Follow The Distributed

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\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

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November 24, 2024

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December 23, 2024

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\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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By subscribing, you agree with our privacy and terms.

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Follow The Distributed

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\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

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November 24, 2024

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December 23, 2024

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\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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By subscribing, you agree with our privacy and terms.

Type your email here

Follow The Distributed

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\n
*See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n***
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
*See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n***
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n***
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> *Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n***
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

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December 19, 2024

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December 23, 2024

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\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

Previous 1 … 3 4 5 6 7 … 18 Next

Most Read

Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

Indian Central Bank’s Cloud Computing Venture Aims To Democratize Financial Technology

November 24, 2024

Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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Follow The Distributed

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\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Cryptocurrencies

Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

March 11, 2024

Artificial Intelligence

Introducing Gemini 2.0: Google’s Most Capable Model That Can Power AI Agents

December 19, 2024

Banking

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Artificial Intelligence

Microsoft Updates Microsoft Azure AI Studio: Introducing Microsoft Azure AI Foundry

November 24, 2024

Banking

Major Australian Banks Collaborate To Launch Anti-Scam Network

December 23, 2024

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\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
See Related: Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n\n\n\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
The appeals court ruled that the plaintiffs presented plausible allegations regarding the domestic nature of transactions involving the assets in question. This decision challenges Binance's previous claims regarding its lack of physical presence or headquarters. Moreover, the court emphasized that the timeliness of the lawsuit should be measured from the time of token purchase, not the initial filing, offering investors a strategic advantage.<\/p>\n\n\n\n
See Related: Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n\n\n\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n**
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
The ruling<\/a> mentioned: \"We conclude that these claims accrued at the time plaintiffs purchased or committed to purchase the tokens, and thus plaintiffs\u2019 claims arising from transactions in tokens during the year before filing the complaint are timely. Accordingly, we REVERSE and REMAND for further proceedings as to the claims challenged on appeal.\"<\/em><\/p>\n\n\n\n
The appeals court ruled that the plaintiffs presented plausible allegations regarding the domestic nature of transactions involving the assets in question. This decision challenges Binance's previous claims regarding its lack of physical presence or headquarters. Moreover, the court emphasized that the timeliness of the lawsuit should be measured from the time of token purchase, not the initial filing, offering investors a strategic advantage.<\/p>\n\n\n\n
See Related: Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n\n\n\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
Recently, the Second Circuit Court of Appeals reversed a district judge's decision to dismiss a class action lawsuit against Binance initiated by a group of investors in April 2020. The investors alleged that they purchased securities from Binance, including popular tokens like EOS, TRX, ELF, FUN, ICX, OMG, and QSP. The lawsuit challenges Binance's operations and its compliance with U.S. federal securities laws.<\/p>\n\n\n\n
The ruling<\/a> mentioned: \"We conclude that these claims accrued at the time plaintiffs purchased or committed to purchase the tokens, and thus plaintiffs\u2019 claims arising from transactions in tokens during the year before filing the complaint are timely. Accordingly, we REVERSE and REMAND for further proceedings as to the claims challenged on appeal.\"<\/em><\/p>\n\n\n\n
The appeals court ruled that the plaintiffs presented plausible allegations regarding the domestic nature of transactions involving the assets in question. This decision challenges Binance's previous claims regarding its lack of physical presence or headquarters. Moreover, the court emphasized that the timeliness of the lawsuit should be measured from the time of token purchase, not the initial filing, offering investors a strategic advantage.<\/p>\n\n\n\n
See Related: Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n\n\n\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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\n
An appeals court decision has reignited the legal battle between investors and Binance. The ruling overturns a previous dismissal of a class action lawsuit, providing investors with a new opportunity to assert claims against the world's largest crypto exchange and its executives. This development has raised questions about the regulatory framework surrounding digital assets.<\/p>\n\n\n\n
Recently, the Second Circuit Court of Appeals reversed a district judge's decision to dismiss a class action lawsuit against Binance initiated by a group of investors in April 2020. The investors alleged that they purchased securities from Binance, including popular tokens like EOS, TRX, ELF, FUN, ICX, OMG, and QSP. The lawsuit challenges Binance's operations and its compliance with U.S. federal securities laws.<\/p>\n\n\n\n
The ruling<\/a> mentioned: \"We conclude that these claims accrued at the time plaintiffs purchased or committed to purchase the tokens, and thus plaintiffs\u2019 claims arising from transactions in tokens during the year before filing the complaint are timely. Accordingly, we REVERSE and REMAND for further proceedings as to the claims challenged on appeal.\"<\/em><\/p>\n\n\n\n
The appeals court ruled that the plaintiffs presented plausible allegations regarding the domestic nature of transactions involving the assets in question. This decision challenges Binance's previous claims regarding its lack of physical presence or headquarters. Moreover, the court emphasized that the timeliness of the lawsuit should be measured from the time of token purchase, not the initial filing, offering investors a strategic advantage.<\/p>\n\n\n\n
See Related: Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n\n\n\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
The decision by the Second Circuit challenges the dismissal of the investor lawsuit against Binance.<\/li>\n<\/ul>\n\n\n\n
An appeals court decision has reignited the legal battle between investors and Binance. The ruling overturns a previous dismissal of a class action lawsuit, providing investors with a new opportunity to assert claims against the world's largest crypto exchange and its executives. This development has raised questions about the regulatory framework surrounding digital assets.<\/p>\n\n\n\n
Recently, the Second Circuit Court of Appeals reversed a district judge's decision to dismiss a class action lawsuit against Binance initiated by a group of investors in April 2020. The investors alleged that they purchased securities from Binance, including popular tokens like EOS, TRX, ELF, FUN, ICX, OMG, and QSP. The lawsuit challenges Binance's operations and its compliance with U.S. federal securities laws.<\/p>\n\n\n\n
The ruling<\/a> mentioned: \"We conclude that these claims accrued at the time plaintiffs purchased or committed to purchase the tokens, and thus plaintiffs\u2019 claims arising from transactions in tokens during the year before filing the complaint are timely. Accordingly, we REVERSE and REMAND for further proceedings as to the claims challenged on appeal.\"<\/em><\/p>\n\n\n\n
The appeals court ruled that the plaintiffs presented plausible allegations regarding the domestic nature of transactions involving the assets in question. This decision challenges Binance's previous claims regarding its lack of physical presence or headquarters. Moreover, the court emphasized that the timeliness of the lawsuit should be measured from the time of token purchase, not the initial filing, offering investors a strategic advantage.<\/p>\n\n\n\n
See Related: Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n\n\n\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
The ruling doesn't confirm tokens as securities but reopens the debate for investors.<\/li>\n\n\n\n
The decision by the Second Circuit challenges the dismissal of the investor lawsuit against Binance.<\/li>\n<\/ul>\n\n\n\n
An appeals court decision has reignited the legal battle between investors and Binance. The ruling overturns a previous dismissal of a class action lawsuit, providing investors with a new opportunity to assert claims against the world's largest crypto exchange and its executives. This development has raised questions about the regulatory framework surrounding digital assets.<\/p>\n\n\n\n
Recently, the Second Circuit Court of Appeals reversed a district judge's decision to dismiss a class action lawsuit against Binance initiated by a group of investors in April 2020. The investors alleged that they purchased securities from Binance, including popular tokens like EOS, TRX, ELF, FUN, ICX, OMG, and QSP. The lawsuit challenges Binance's operations and its compliance with U.S. federal securities laws.<\/p>\n\n\n\n
The ruling<\/a> mentioned: \"We conclude that these claims accrued at the time plaintiffs purchased or committed to purchase the tokens, and thus plaintiffs\u2019 claims arising from transactions in tokens during the year before filing the complaint are timely. Accordingly, we REVERSE and REMAND for further proceedings as to the claims challenged on appeal.\"<\/em><\/p>\n\n\n\n
The appeals court ruled that the plaintiffs presented plausible allegations regarding the domestic nature of transactions involving the assets in question. This decision challenges Binance's previous claims regarding its lack of physical presence or headquarters. Moreover, the court emphasized that the timeliness of the lawsuit should be measured from the time of token purchase, not the initial filing, offering investors a strategic advantage.<\/p>\n\n\n\n
See Related: Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n\n\n\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit

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\n
\n
The ruling doesn't confirm tokens as securities but reopens the debate for investors.<\/li>\n\n\n\n
The decision by the Second Circuit challenges the dismissal of the investor lawsuit against Binance.<\/li>\n<\/ul>\n\n\n\n
An appeals court decision has reignited the legal battle between investors and Binance. The ruling overturns a previous dismissal of a class action lawsuit, providing investors with a new opportunity to assert claims against the world's largest crypto exchange and its executives. This development has raised questions about the regulatory framework surrounding digital assets.<\/p>\n\n\n\n
Recently, the Second Circuit Court of Appeals reversed a district judge's decision to dismiss a class action lawsuit against Binance initiated by a group of investors in April 2020. The investors alleged that they purchased securities from Binance, including popular tokens like EOS, TRX, ELF, FUN, ICX, OMG, and QSP. The lawsuit challenges Binance's operations and its compliance with U.S. federal securities laws.<\/p>\n\n\n\n
The ruling<\/a> mentioned: \"We conclude that these claims accrued at the time plaintiffs purchased or committed to purchase the tokens, and thus plaintiffs\u2019 claims arising from transactions in tokens during the year before filing the complaint are timely. Accordingly, we REVERSE and REMAND for further proceedings as to the claims challenged on appeal.\"<\/em><\/p>\n\n\n\n
The appeals court ruled that the plaintiffs presented plausible allegations regarding the domestic nature of transactions involving the assets in question. This decision challenges Binance's previous claims regarding its lack of physical presence or headquarters. Moreover, the court emphasized that the timeliness of the lawsuit should be measured from the time of token purchase, not the initial filing, offering investors a strategic advantage.<\/p>\n\n\n\n
See Related: Voyager Digital \u2013 Binance.US $1.3 Billion Sale Suspended Pending DOJ\u2019s Appeal<\/a><\/p>\n\n\n\n
Key Rulings and Implications<\/h2>\n\n\n\n
While the ruling does not determine whether the tokens in question are securities, it paves the way for further legal proceedings. If the case proceeds, both parties will have the opportunity to argue their positions regarding the classification of the tokens. The outcome of this case could have far-reaching implications for the broader crypto market and its regulatory landscape.<\/p>\n\n\n\n
Binance retains the option to appeal to the U.S. Supreme Court, though its decision remains pending. Failure to appeal or a denial by the Supreme Court would return the case to the district court, prolonging the legal battle. As the proceedings unfold, the cryptocurrency community awaits the resolution of this landmark case and its impact on investor protections and market dynamics.<\/p>\n","post_title":"Binance Faces Legal Battle As Appeals Court Revives Class Action Lawsuit","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-faces-legal-battle-as-appeals-court-revives-class-action-lawsuit","to_ping":"","pinged":"","post_modified":"2024-03-11 07:46:51","post_modified_gmt":"2024-03-10 20:46:51","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15804","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15751,"post_author":"21","post_date":"2024-03-08 01:38:17","post_date_gmt":"2024-03-07 14:38:17","post_content":"\n
\n
Nigeria wants Binance CEO Teng to answer questions on alleged suspicious fund flows.<\/li>\n\n\n\n
The government will institute legal measures against the exchange if Teng fails to appear.<\/li>\n<\/ul>\n\n\n\n
The Nigerian government wants Binance CEO Richard Teng to appear before its officials to answer queries about its operations in the country. In particular, Nigeria wants<\/a> answers on $26 billion, which it believes comprises suspicious fund flows.<\/p>\n\n\n\n
According to the Nigerian officials, failure to respond to the latest summons would lead to litigation of the exchange. The officials accuse Teng of disregarding prior meetings. Ginger Onwusibe warns that Binance has exploited customers and operated without accountability. He said:<\/p>\n\n\n\n
\u201cYou cannot run a company with over 10 million Nigerians on your platform without paying tax and having a physical office where Nigerians can lodge their complaints when they experience any challenge with your service. The era of exploitation is over, and all culprits must be held accountable.\u201d<\/em><\/p>\n\n\n\n
In addition to illegal operations, Nigeria accuses Binance of playing a role in the weakness of its local currency, naira. Authorities say Binance allowed criminals to engage in unlawful parallel crypto forex trading, which weakened its currency. <\/p>\n\n\n\n
See Related:<\/strong><\/em> Bloxmith Launches Raiders Rumble, A Mobile Strategy Game for Both Web2 and Web3 Gamers, on the Flow Blockchain<\/a><\/p>\n\n\n\n
A Difficult Time for Binance<\/h2>\n\n\n\n
Nigeria\u2019s crackdown on Binance adds to its recent battles<\/a> as the exchange struggles to become compliant in key jurisdictions. This comes after the US Justice Department fined the exchange $4.3 billion for criminal culpability. The then CEO Changpeng Zhao was forced to resign and is personally facing criminal charges in the US.<\/p>\n\n\n\n
Recently, Nigeria detained two Binance executives as the country continues to implement financial market reforms under President Bola Tinumbu. Their retention saw Binance stop naira trading in Bitcoin and Tether.<\/p>\n","post_title":"Binance In A Fresh Legal Battle As Nigeria Summons CEO Over $26M In \u201cSuspicious Flows\u201d","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-in-a-fresh-legal-battle-as-nigeria-summons-ceo-over-26m-in-suspicious-flows","to_ping":"","pinged":"","post_modified":"2024-03-08 01:38:22","post_modified_gmt":"2024-03-07 14:38:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15751","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15597,"post_author":"1","post_date":"2024-02-28 04:17:08","post_date_gmt":"2024-02-27 17:17:08","post_content":"\n
\n
The settlement involves selling FTX Europe back to its founders.<\/li>\n\n\n\n
FTX Europe was found to be non-operational at the time of purchase.<\/li>\n<\/ul>\n\n\n\n
Bankrupt crypto exchange FTX has settled a lawsuit involving its failed European expansion, agreeing to pay $33 million instead of the initially sought $323 million, Reuters <\/em>reported.<\/p>\n\n\n\n
FTX Europe, acquired by FTX in 2021, was deemed not operational at the time of purchase. Despite counterclaims and legal complexities, the settlement marks a resolution as FTX navigates its bankruptcy proceedings and attempts to reimburse creditors.<\/p>\n\n\n\n
Subsequently, FTX has settled the legal dispute<\/a> resulting from its European expansion efforts. The exchange, having acquired Zurich-based Digital Assets DA AG and rebranded it as FTX Europe in 2021, found itself embroiled in a lawsuit after deeming the acquisition a significant overpayment.<\/p>\n\n\n\n
FTX alleged that the European subsidiary reportedly lacked substantial operational presence at the time of acquisition and was merely a concept on paper.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Coinbase Approved As Virtual Asset Provider in France<\/a><\/p>\n\n\n\n
European Expansion and Legal Fallout<\/h2>\n\n\n\n
FTX has agreed to sell back FTX Europe to its founders for $32.7 million, significantly lower than the initial sought amount. The settlement represents a fraction of the sum initially pursued by FTX.<\/p>\n\n\n\n
FTX and its US counterpart, FTX US, filed for bankruptcy<\/a> in 2022. The announcement came swiftly after Sam Bankman-Fried (SBF), the CEO of FTX, stepped down from his position. Notably, subsidiaries like LedgerX LLC and FTX Digital Markets Ltd. were excluded from the bankruptcy proceedings.<\/p>\n","post_title":"FTX Settles European Expansion Dispute For $33M","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftx-settles-european-expansion-dispute-for-33m","to_ping":"","pinged":"","post_modified":"2024-02-28 04:17:24","post_modified_gmt":"2024-02-27 17:17:24","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15597","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15603,"post_author":"1","post_date":"2024-02-26 03:52:39","post_date_gmt":"2024-02-25 16:52:39","post_content":"\n
\n
Binance's founder, Changpeng Zhao, pleaded guilty to money laundering violations and is required to pay a fine of $50 million.<\/li>\n\n\n\n
Zhao has been free on a $175 million bond but faces additional legal challenges.<\/li>\n<\/ul>\n\n\n\n
A US judge has accepted Binance's guilty plea and the staggering $4.3 billion penalty for violating federal anti-money laundering and sanctions laws. The plea followed years of scrutiny over lapses in internal controls at the world's largest cryptocurrency exchange.<\/p>\n\n\n\n
The guilty plea<\/a>, which includes a criminal fine of $1.81 billion and forfeiture of $2.51 billion, was approved by US District Judge Richard Jones in Seattle, Reuters<\/em> reported. The plea resolves a lengthy investigation that uncovered Binance's failure to report over 100,000 suspicious transactions involving designated terrorist groups like Hamas, al Qaeda, and ISIS.<\/p>\n\n\n\n
Additionally, Binance's platform was found to facilitate the sale of child sexual abuse materials and received substantial ransomware proceeds. In response to the plea agreement, Binance<\/a> issued a statement acknowledging its responsibility and highlighting upgrades to its anti-money laundering and \"know-your-customer\" protocols. The company emphasized significant progress toward meeting the agreement's requirements.<\/p>\n\n\n\n
See Related: Binance's $3.9 Billion USDT Transfer Sparks Speculation Amidst CEO's Guilty Plea<\/a><\/p>\n\n\n\n
Binance's Guilty Plea and Penalties<\/h2>\n\n\n\n
Meanwhile, Binance's founder, Changpeng Zhao, who has been free on a $175 million bond, faces additional legal challenges. Zhao, who pleaded guilty to money laundering violations, was required to pay a $50 million fine and step down as Binance's chief executive.<\/p>\n\n\n\n
The approval of Binance's guilty plea coincided with proposed changes to Zhao's bond, sparking objections from his legal team. Prosecutors sought modifications reflecting Judge Jones' orders for Zhao to remain in the continental United States and under court supervision until his sentencing in April.<\/p>\n\n\n\n
The proposed conditions include providing advance notice of travel plans, surrendering passports, and adhering to specified residency requirements, with pretrial services officers recommending location monitoring.<\/p>\n","post_title":"Binance's $4.3 Billion Plea Deal Approved amid Bid to Amend Zhao's Bond","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binances-4-3-billion-plea-deal-approved-amid-bid-to-amend-zhaos-bond","to_ping":"","pinged":"","post_modified":"2024-02-26 03:52:44","post_modified_gmt":"2024-02-25 16:52:44","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15603","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15545,"post_author":"21","post_date":"2024-02-22 11:30:52","post_date_gmt":"2024-02-22 00:30:52","post_content":"\n
\n
The bill has been presented to the parliament for debate and approval.<\/li>\n\n\n\n
Japan has taken a cautious approach to crypto, with recent moves highlighting a softer stance.<\/li>\n<\/ul>\n\n\n\n
Japan\u2019s capital firms and investment funds could soon start holding crypto assets in their portfolio. This came after the cabinet approved<\/a> a bill that proposed amendments to Japan\u2019s Industrial Competitiveness Enhancement Act. According to the bill,<\/p>\n\n\n\n
\u201cmeasures will be taken to add crypto assets to the list of assets that can be acquired and held by investment limited partnerships.\u201d<\/em><\/p>\n\n\n\n
Following the approval, Japan will submit the bill for debate in the country\u2019s parliament. If legislators pass it into law, venture capital firms could start funding Web 3.0 startups. The proposed law is part of the broader measures taken by Japan to spur innovation in strategic sectors, including electric vehicles, green energy, and semiconductors.<\/p>\n\n\n\n
See Related:<\/em><\/strong> Binance Italy's Registration Has Been Approved(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
Move Cements Japan\u2019s Growing Role As A Capital Firms And Investment Funds<\/h2>\n\n\n\n
Japan has been making critical inroads<\/a> in the crypto sector as it positions itself to become a hub of innovation. In September 2023, the government started allowing businesses and startups to raise funds by issuing crypto assets.\u00a0<\/p>\n\n\n\n
On December 24, 2023, Japan\u2019s Osaka Digital Exchange Co. began allowing the trading of digital securities. Earlier this year, Mercari<\/a>, a leading Japanese e-commerce store, started allowing purchases of in-app listed products through Bitcoin.<\/p>\n\n\n\n
However, Japan is still viewed as a crypto-rigid jurisdiction, with the country preferring the regulatory route to digital asset exploration. The recent easing of restrictions is positive, as the government seeks more competition and innovation in the emerging sectors.  <\/p>\n","post_title":"Japan\u2019s Government Approves Bill Allowing Venture Capital Firms To Hold Crypto","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"japans-government-approves-bill-allowing-venture-capital-firms-to-hold-crypto","to_ping":"","pinged":"","post_modified":"2024-02-22 11:30:57","post_modified_gmt":"2024-02-22 00:30:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15545","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15496,"post_author":"1","post_date":"2024-02-19 02:07:55","post_date_gmt":"2024-02-18 15:07:55","post_content":"\n
\n
The bankrupt crypto exchanges sued S&C over alleged involvement in fraud.<\/li>\n\n\n\n
FTX's creditors have cited S&C's financial benefits from FTX's misconduct.<\/li>\n<\/ul>\n\n\n\n
The embattled cryptocurrency exchange FTX has launched a legal action against law firm Sullivan & Cromwell (S&C) over allegations of fraud involvement. The creditors are accusing S&C of playing a role in FTX's alleged multibillion-dollar fraud scheme.<\/p>\n\n\n\n
According to court documents<\/a> filed on February 16, S&C is accused of being complicit in FTX's deceptive practices and financial mismanagement, purportedly benefiting from the exchange's illicit activities.<\/p>\n\n\n\n
The class-action lawsuit by FTX creditors seeks reparation for various counts, including civil conspiracy and aiding and abetting fraud and fiduciary breaches.<\/p>\n\n\n\n
Ryne Miller, a former partner at S&C who later transitioned to FTX Group as general counsel, is at the center of this controversy. Miller's alleged funneling of cases from FTX to S&C amplifies concerns regarding potential conflicts of interest and ethical breaches within the legal space.<\/p>\n\n\n\n
See Related:<\/em><\/strong> BRICS Currency Against The U.S. Dollar; International Trade And De-Dollarization(Opens in a new browser tab)<\/a><\/p>\n\n\n\n
FTX's Former CEO Close Ties With Sullivan & Cromwell\u00a0\u00a0<\/h2>\n\n\n\n
FTX's former CEO Sam Bankman-Fried's close ties with S&C blur the boundaries between legal representation and corporate affiliations. Reports suggest Bankman-Fried frequented S&C's New York offices, raising questions about the relationship between FTX and its legal advisors.<\/p>\n\n\n\n
S&C has denied any wrongdoing, emphasizing its limited engagement with FTX's entities before the bankruptcy proceedings. The firm contends that it never served as primary outside counsel to FTX, seeking to dispel allegations of impropriety.<\/p>\n\n\n\n
However, concerns regarding S&C's impartiality persist. Calls for an independent examination of the bankruptcy case underscore the need for transparency and accountability in navigating complex legal disputes within the cryptocurrency sector.<\/p>\n","post_title":"FTX's Creditors File Lawsuit Against Sullivan & Cromwell Amid Bankruptcy Proceedings","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"ftxs-creditors-file-lawsuit-against-sullivan-cromwell-amid-bankruptcy-proceedings","to_ping":"","pinged":"","post_modified":"2024-02-19 02:07:59","post_modified_gmt":"2024-02-18 15:07:59","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15496","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15297,"post_author":"21","post_date":"2024-02-08 18:35:17","post_date_gmt":"2024-02-08 07:35:17","post_content":"\n
\n
The talks center on the spot Bitcoin ETF and crypto regulation.<\/li>\n\n\n\n
More countries have been joining the spot Bitcoin ETF market after the US.<\/li>\n<\/ul>\n\n\n\n
The South Korean head of the Financial Supervisory Service (FSS) is reportedly<\/a> eyeing talks with the US SEC regarding spot Bitcoin ETF. Lee was quoted by local reporters on Monday saying:\u00a0<\/p>\n\n\n\n
\"I met with SEC Chairman Gary Gensler (this year) and there are areas where we will focus on issues such as virtual asset issues and bitcoin spot ETF.\"<\/em><\/p>\n\n\n\n
The meeting comes after, in December, reports emerged that Lee was seeking a meeting with the SEC to discuss crypto regulation<\/a>. The meeting was supposedly meant to strengthen cooperation between the two regulators in digital assets.\u00a0<\/p>\n\n\n\n
See Related:<\/em><\/strong> Bitcoin Targets $3,300; Ethereum Is Eyeing $2,300 Following The Overall Bullish Trend<\/a><\/p>\n\n\n\n
Increased Interest in Spot Bitcoin Products<\/h2>\n\n\n\n
South Korea's move to seek discussions with the SEC comes after the US regulator approved the first spot Bitcoin ETF. Other regulators worldwide are borrowing a leaf from the US amid concerns over the potential risks that the products pose.<\/p>\n\n\n\n
China's asset manager, Harvest Global Investments, recently filed<\/a> a spot Bitcoin ETF with the Hong Kong regulator. The ETF is expected to debut in the Spring, with Hong Kong positioning itself as a major Asian crypto hub.\u00a0\u00a0<\/p>\n\n\n\n
More jurisdictions are expected to join the spot Bitcoin ETF bandwagon even as regulators study the US case before making a move. The US approval is also seen as an endorsement of Bitcoin as an asset class despite the regulator showing less enthusiasm to allow such products. Instead, the SEC approved the spot ETF under legal pressure<\/a>.<\/p>\n","post_title":"South Korean Regulator To Hold Talks With SEC On Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"south-korean-regulator-to-hold-talks-with-sec-on-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-02-08 18:35:22","post_modified_gmt":"2024-02-08 07:35:22","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15297","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15167,"post_author":"21","post_date":"2024-01-31 01:07:40","post_date_gmt":"2024-01-30 14:07:40","post_content":"\n
\n
Asset manager Harvest Global Investments made the filing.<\/li>\n\n\n\n
The spot Bitcoin ETF comes after similar approvals in the US.<\/li>\n<\/ul>\n\n\n\n
China\u2019s asset manager, Harvest Global Investments, has reportedly filed<\/a> for a spot Bitcoin ETF with the Hong Kong Securities and Futures Commission (SFC). Local reports indicate that SFC intends to speed up the approval of the spot ETFs, with the first product expected to go live after the Spring Festival.<\/p>\n\n\n\n
The filing comes a few weeks after the US Securities and Exchange Commission approved spot Bitcoin ETFs. Reports indicate that the Hong Kong regulator may approve multiple spot ETFs like the US SEC did to level the playing ground. Several Hong Kong financial entities, including Venture Smart Financial Holdings, have shown interest in a spot Bitcoin ETF in 2024. <\/p>\n\n\n\n
See Related: Hong Kong Invests Over $6.4M Into Web 3 Development<\/a><\/p>\n\n\n\n
Hong Kong Is Attractive Due To Its Pro-Crypto Status<\/h2>\n\n\n\n
The filing of the first spot Bitcoin ETF underlines Hong Kong\u2019s growing role as a crypto-friendly jurisdiction<\/a>. In 2023, the city\u2019s regulator, SFC, issued crypto-related regulations, allowing retail and institutional investors to participate more in digital asset activities.<\/p>\n\n\n\n
Hong Kong\u2019s crypto friendliness sharply contrasts China\u2019s hard stance on the asset class. Many other countries globally maintain a cautious approach to the asset class. <\/p>\n\n\n\n
Crypto exchanges also maintain a keen eye on Hong Kong as the city positions itself as a digital asset hub<\/a> in Asia. In May 2023, Huobi Exchange began offering retail trading services after submitting a license request to the Hong Kong regulator. Gate.io has also applied for a virtual asset license with SFC.\u00a0<\/p>\n","post_title":"Hong Kong\u2019s Regulator Receives The Initial Filing For The First Spot Bitcoin ETF","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"hong-kongs-regulator-receives-the-initial-filing-for-the-first-spot-bitcoin-etf","to_ping":"","pinged":"","post_modified":"2024-01-31 01:07:46","post_modified_gmt":"2024-01-30 14:07:46","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15167","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15067,"post_author":"15","post_date":"2024-01-22 00:51:52","post_date_gmt":"2024-01-21 13:51:52","post_content":"\n
Coinbase, a leading cryptocurrency exchange, seems to be on the brink of a significant triumph in its ongoing legal face-off with the U.S. Securities and Exchange Commission (SEC). This sentiment was echoed by legal experts after a critical court hearing this week.<\/p>\n\n\n\n
Bloomberg\u2019s Senior Litigation Analyst, Elliot Z. Stein, offered insights via a tweet <\/a>on Friday. After attending Coinbase\u2019s presentation in court on Wednesday, Stein assessed the exchange\u2019s chances of winning its motion to dismiss the SEC\u2019s accusations at a robust 70%. He notably stated, \u201cWe think Coinbase is likely to win this motion,\u201d in a research note shared on Twitter.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>SEC's Last-Minute Moves Could Pave The Way For Bitcoin ETFs<\/a><\/p>\n\n\n\n***
SEC's Lawsuit<\/h2>\n\n\n\n
In June, Coinbase asserted in a legal motion that the tokens implicated in the SEC\u2019s lawsuit do not fit the conventional definition of an investment contract. Consequently, the company argued, these tokens shouldn\u2019t be classified as securities, and Coinbase itself shouldn't be labeled an unregistered securities exchange.<\/p>\n\n\n\n
Judge Katherine Polk Failla, presiding over the case, challenged the SEC to define \u201cinvestment contract\u201d in a way that wouldn\u2019t inadvertently include non-threatening collectibles like Beanie Babies. Conversely, Stein found Coinbase\u2019s<\/a> definition, which requires crypto investors to buy into a \u201cbusiness\u201d rather than just an ecosystem, more convincing. This definition could potentially exempt both the cryptocurrency sales and staking services on Coinbase\u2019s platform from SEC regulation.<\/p>\n\n\n\n
The Howey Test, established in the 1940s, serves as the benchmark for identifying investment contracts. It involves four criteria: an investment of money, in a common enterprise, with the expectation of profits, primarily from the efforts of others. University of Kentucky law professor Brian L. Frye underscored that while the SEC has the authority to regulate collectibles under Howey, it has opted not to do so.<\/p>\n\n\n\n
In June, Coinbase filed a detailed motion to dismiss the SEC\u2019s case, contending that the SEC lacks statutory authority over the exchange. Paul Grewal, Coinbase\u2019s Chief Legal Officer, emphasized the untenability of the SEC\u2019s position regarding its powers.<\/p>\n\n\n\n
Experts have mixed views on the outcome. While some, like Frye, lean towards the district court favoring Coinbase, others, such as Joe Carlasare of Amundsen Davis law firm, are more cautious, estimating a less than 30% chance of Coinbase achieving a complete dismissal of all charges.<\/p>\n","post_title":"Is Coinbase Set To Overturn SEC\u2019s Allegations In High-Stakes Legal Battle?","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"is-coinbase-set-to-overturn-secs-allegations-in-high-stakes-legal-battle","to_ping":"","pinged":"","post_modified":"2024-01-22 00:51:55","post_modified_gmt":"2024-01-21 13:51:55","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15067","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"},{"ID":15068,"post_author":"1","post_date":"2024-01-22 00:23:54","post_date_gmt":"2024-01-21 13:23:54","post_content":"\n
\n
SEC accuses Binance of rule-breaking, inflating volumes, and misleading investors.<\/li>\n\n\n\n
The hearing, postponed due to snow, is rescheduled for Jan. 22, 10 a.m. EST.<\/li>\n<\/ul>\n\n\n\n
Binance, the world's largest crypto exchange, is gearing up for a high-stakes face-off against the US Securities and Exchange Commission (SEC) in a Washington courtroom, according to a report by Reuters<\/em>.<\/p>\n\n\n\n
The SEC has filed a lawsuit<\/a> accusing Binance of breaking its rules, inflating trading volumes, diverting funds, and misleading investors, among other allegations. This legal showdown, set to unfold next week, has far-reaching implications for the regulatory future of the entire cryptocurrency sector.<\/p>\n\n\n\n
The SEC alleges that Binance, its CEO Changpeng Zhao, and its U.S. arm engaged in deceptive practices, including artificially inflating trading volumes, diverting customer funds, and facilitating trading of unregistered securities.<\/p>\n\n\n\n
*See Related: <\/em><\/strong>FTX Sues Bybit In $900 Million Legal Clash<\/a><\/p>\n\n\n\n***
The SEC Allegations And Binance's Defense<\/h2>\n\n\n\n
Binance, however, strongly contests these accusations, seeking the dismissal of the lawsuit. The hearing, initially scheduled for Friday, was delayed due to adverse weather conditions but has now been rescheduled for Monday, January 22, at 10 a.m. EST.<\/p>\n\n\n\n
This courtroom drama<\/a> follows a similar case against Coinbase, another major U.S. crypto exchange, reinforcing the SEC's scrutiny of crypto platforms. The regulatory authority asserts oversight over crypto tokens, a stance challenged by the crypto sector. Binance.US argues, akin to Coinbase, that the SEC lacks authority in overseeing crypto assets.<\/p>\n\n\n\n
BAM Trading, the operator of Binance.US, contends that the SEC overreaches its jurisdiction. Unlike previous settlements with other agencies, Binance is reluctant to settle with the SEC, fearing an acknowledgment that the tokens in question are securities. This legal stance reflects Binance's belief in having a strong case against the SEC's alleged overreach.<\/p>\n\n\n\n
The SEC's lawsuit against Binance is part of a broader crackdown on crypto firms. Initially targeting companies issuing digital tokens, the SEC has shifted focus to trading platforms and broker-dealers. While the SEC has secured victories, the recent partial loss in the Ripple case underscores the evolving nature of legal battles in the crypto space.<\/p>\n","post_title":"Binance And SEC Set For Legal Clash In Washington Over Alleged Deceptive Practices: Report","post_excerpt":"","post_status":"publish","comment_status":"closed","ping_status":"closed","post_password":"","post_name":"binance-and-sec-set-for-legal-clash-in-washington-over-alleged-deceptive-practices-report","to_ping":"","pinged":"","post_modified":"2024-01-22 00:23:57","post_modified_gmt":"2024-01-21 13:23:57","post_content_filtered":"","post_parent":0,"guid":"https:\/\/www.thedistributed.co\/?p=15068","menu_order":0,"post_type":"post","post_mime_type":"","comment_count":"0","filter":"raw"}],"next":false,"total_page":false},"paged":1,"class":"jblog_block_13"};

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Regulation

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