Posted April 03, 2023
By Chris Campbell
Crypto Buzz: Legal Woes and an Anti-Crypto Army
You know the story by now. Regulators are regulating and Sam Bankman-Fried is getting himself in trouble.
Old faces, new charges.
Let’s get started…
Even More Charges Against SBF
Another week, another new charge against Sam Bankman-Fried.
The former CEO of FTX allegedly bribed Chinese officials at least $40 million to unlock accounts containing over $1 billion worth of cryptocurrencies.
SBF now faces a total of 13 charges relating to the fraud of FTX and its sister-company, Alameda Research.
You can read the full story here.
Binance Gets Sued
The crypto exchange Binance and its CEO Changpeng “CZ” Zhao are being sued by the Commodity Futures Trading Commission (CFTC) for several trading violations.
The exchange is facing the common charge of “not properly registering a security”, as well as skirting “Know Your Customer” (KYC) requirements, which allegedly facilitated criminal activity.
These charges could potentially be a devastating blow to the largest active cryptocurrency exchange.
You can read the full charges and their potential consequences here.
Do Kwon Not Extradited
In even more “legal woes” news: Do Kwon, the former CEO of Terraform Labs - the company behind Terra and its $40 billion collapse - will not be extradited following his arrest in Montenegro.
That is at least until he stands trial for traveling with a fake passport in Montenegro itself.
Kwon may even serve time in prison before he faces extradition, which is currently being contested by the United States and his home country, South Korea.
You can read more on the story here.
“An Anti-Crypto Army”
Massachusetts Senator Elizabeth Warren (D) is arguably crypto’s most outspoken antagonist.
She has taken her crusade against cryptocurrency to another level, embracing a quote from Politco claiming that Warren was “building an Anti-Crypto Army” in a Tweet for her re-election campaign.
The Senator is recruiting Republican lawmakers and bank lobbyists who stand opposed to the use of cryptocurrency in the US.
You can read more here.