FTX founder gets 25 years in prison, SEC demands $2 billion from Ripple, Bitcoin demands $70,000 back
Last week saw significant legal developments across the cryptocurrency sector, including the conviction of Sam Bankman-Fried, regulators' demand for $2 billion from Ripple, and an indictment against KuCoin.
Meanwhile, Bitcoin (BTC) rallied around $70,000 as spot BTC ETFs recorded inflows.
FTX founder sentenced to 25 years in prison
- FTX founder Sam Bankman-Fried was sentenced to 25 years in prison.
- Shortly before the verdict was announced, the US Department of Justice (DoJ) presented a document containing 52 statements from victims of the FTX collapse to underscore the damage caused by the company's former CEO.
The US Securities and Exchange Commission (SEC) is demanding $2 billion from Ripple
- The US Securities and Exchange Commission (SEC) has filed its opening brief for the discovery phase of the SEC v. Ripple litigation. The court previously stated that Ripple did not violate securities laws in its SEC sales, with the exception of previous sales to institutions.
- Following the summary judgment, the case moved into the remedial phase, with the SEC announcing this week that it wants the judge to impose a $2 billion fine on Ripple for sales of nearly $800 million to institutions.
- Ripple is expected to submit its response letter in response to the SEC's request next month. The company's executives – including CLO Stuart Alderoty and CEO Brad Garlinghouse – responded to the SEC's demands. See below.
Gensler's SEC has repeatedly violated the law – not unnoticed by judges who admonished the agency for a “gross abuse of the powers delegated to it by Congress” (DEBT Box case) and for acting without “fidelity to the law” (Ripple case). . Let’s also not forget… https://t.co/vay6WDBfJc
— Brad Garlinghouse (@bgarlinghouse) March 25, 2024
KuCoin, Coinbase under scrutiny
- The U.S. Department of Justice collaborated with the CFTC on March 26 and filed charges against KuCoin, alleging that the exchange facilitated money laundering transactions.
- According to the charges, which included KuCoin's two co-founders, KuCoin knowingly allowed U.S. residents to use its exchange to transact without imposing extensive AML and KYC requirements.
- Shortly after the charges were filed, customers began withdrawing $350 million worth of Ethereum (ETH) and stablecoins in the 24 hours ending March 27.
- KuCoin assured its customers of the security of their assets. According to reports on March 28, KuCoin had repositioned its organization and given more priority to its US compliance team following the allegations from the US Department of Justice.
- A CFTC commissioner, Caroline Pharm, publicly criticized her agency for the allegations against KuCoin, suggesting that the commodities and futures regulator may have gone too far.
- The SEC vs. Coinbase lawsuit made headlines this week when the court ruled on Coinbase's motion to dismiss the SEC's charges.
- The judge granted the request regarding its wallet and staking projects, but denied the request regarding its crypto exchange offerings. Following this decision, the court granted both parties the opportunity to present their arguments in the litigation.
Binance executives vs. Nigerian authorities
- The battle between Binance managers Nadeem Anjarwalla and Tigran Gambaryan and Nigeria continues. Notably, Anjarwalla, Binance’s regional representative for Africa, was reported to have fled Nigeria on March 22.
- In another twist, the two Binance executives arrested by Nigeria sued the Nigerian authorities in a local court, claiming they violated their rights. The leaders demanded their release from detention, the return of their passports and a public apology.
- Binance is also facing regulatory issues in Southeast Asia. The Philippine SEC received approval from the National Telecommunications Commission of the Philippines to block local access to Binance's websites.
Bitcoin reclaims $70,000 as spot BTC ETFs see inflows
- After a period of sustained bearishness the previous week, the crypto market saw a resurgence of optimistic sentiments. The inflows recorded by spot Bitcoin ETFs added to this bullish sentiment.
- On March 25, these investment products recorded net inflows of $15 million, breaking the previous week's five-day losing streak. This inflow trend continued into the next day, with the products recording $418 million worth of inflows on March 26th.
- On March 27, spot BTC ETFs recorded inflows for the third consecutive day this week, recording $214.5 million in positive flows. Interestingly, the biggest contributor to this figure was the ARK 21Shares Bitcoin ETF, which saw inflows of $200 million, a record high. Bitcoin sentiment gradually shifted to a bullish trend as the digital asset finally broke through the $70,000 mark, rising 5.4% to $70,500 on March 26.
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