SEC Pursues Ether Classification as Security
The United States Securities and Exchange Commission (SEC) has intensified its efforts to classify Ether as a security, as reported by various sources revealing the issuance of subpoenas to several companies.
A recent report highlights an ongoing SEC investigation into the Ethereum Foundation, signaling the potential for the commission to assert regulatory jurisdiction over Ether, deeming it a security.
The Ethereum Foundation hinted at being under investigation by a state authority through its GitHub platform. This revelation has sparked discussions within the crypto community regarding the potential ramifications of such classification.
Additionally, U.S.-based companies have reportedly received requests from the SEC to furnish documents and financial records concerning their interactions with the Ethereum Foundation. This move further solidifies the SEC’s pursuit of a regulatory stance on Ether.
Celsius Pursues Reclamation of $2 Billion in Customer Withdrawals
Celsius, a crypto lending platform now facing bankruptcy, is reportedly endeavoring to recuperate $2 billion from substantial customers who withdrew funds just prior to the platform’s collapse in July 2022.
Recent reports indicate the establishment of a Celsius bankruptcy oversight committee tasked with reaching out to customers who withdrew over $100,000 before the platform’s downfall. The objective is to utilize potentially recovered funds to reimburse customers who did not withdraw their assets in time.
Affected customers subject to clawback offers will be presented with favorable settlement terms, accompanied by the threat of legal action if funds remain unreturned. Furthermore, settlements will entail adjustments to customers’ digital assets based on their valuation during the crypto bear market’s nadir in July 2022.
SEC Faces Sanctions for Misconduct in Debt Box Case
A United States district court has imposed sanctions on the Securities and Exchange Commission (SEC) for its “bad faith” conduct in a lawsuit against Debt Box.
The SEC’s motion to dismiss the case without prejudice was denied by Judge Robert J. Shelby, who criticized the regulator for deliberately misleading the court regarding evidence obtained to secure a temporary restraining order and asset freeze against Debt Box in August of last year.
The lawsuit alleged Debt Box’s involvement in a $50-million fraudulent cryptocurrency scheme under the guise of a software mining license provider. However, the court found that the SEC misrepresented evidence, particularly concerning a $720,000 transfer, which was determined to have occurred domestically rather than internationally as claimed.
Binance Offers Rewards for Insider Trading Reports
Binance, a prominent cryptocurrency exchange, has announced a reward program ranging from $100,000 to $5,000,000 for individuals providing information on potential insider trading or corruption within the exchange.
This announcement comes in the wake of suspicions surrounding insider trading preceding the listing of the Solana-based memecoin, Book of Meme (BOME). Following its listing, a significant price surge prompted community scrutiny, with allegations of insider trading surfacing.
Sam Bankman-Fried Criticizes Proposed Sentence
Sam “SBF” Bankman-Fried, former CEO of FTX, has expressed discontent with the proposed maximum sentence of 50 years in prison put forth by the government. Bankman-Fried’s legal representatives condemned the sentence as medieval, arguing that it misrepresents the severity of his alleged crimes.
In response to the sentencing proposal, Bankman-Fried’s lawyers emphasized what they perceived as a distortion of reality to support the government’s narrative, portraying Bankman-Fried in a vilified light.
Crypto Market Summary
At the close of the week, Bitcoin (BTC) is valued at $65,744, Ether (ETH) at $3,516, and XRP at $0.64, with the total market cap standing at $2.51 trillion according to CoinMarketCap.
Among the top 100 cryptocurrencies, notable gainers include Ondo (ONDO) with a 37.73% increase, Jupiter (JUP) up by 35.27%, and Fantom (FTM) rising by 33.59%. Conversely, the top three losers are Bonk (BONK) down by -31.09%, dogwifhat (WIF) with a -27.28% decline, and Near Protocol (NEAR) down by -26.12%.
Noteworthy Quotes
- “Customers still will never be in the same position they would have been had they not crossed paths with Mr. Bankman-Fried and his so-called brand of ‘altruism.'” – John Ray III, restructuring officer and CEO of FTX.
- “Am I sorry for a company going bankrupt? No. Like, companies go bankrupt all the time.” – Anonymous.
- “It will be interesting to watch what, if any, excuse the SEC uses if it were to delay or deny an ETH ETF, given it has already informed the market on ETH being outside its jurisdiction.” – Unknown.
