Last week saw significant legal developments across the crypto industry, including the Sam Bankman Fried verdict, regulators demanding $2 billion from Ripple, and indictments against KuCoin.
At the same time, Bitcoin (BTC) regained $70,000 as the Spot BTC ETF recorded inflows.
FTX founder sentenced to 25 years in prison
- FTX founder Sam Bankman Freed was sentenced to 25 years in prison.
- Shortly before the sentencing, the U.S. Department of Justice (DoJ) submitted a document containing 52 statements from victims of the FTX collapse to highlight the damage inflicted by the company's former CEO.
US SEC demands $2 billion from Ripple
- The US SEC has filed opening briefs for the remedy discovery phase of the SEC v. Ripple litigation. The court previously declared that Ripple did not violate securities laws in its SEC sales, except for past sales to institutional investors.
- Following summary judgment, the case moves to the relief stage, with the SEC revealing this week that it is asking a judge to fine Ripple $2 billion for nearly $800 million in sales to institutional investors. did.
- Ripple has responded to the SEC's request and plans to file a written response next month. Company executives, including CLO Stuart Alderotti and CEO Brad Garlinghouse, applauded the SEC's request. Please refer to the following.
KuCoin and Coinbase are under surveillance
- On March 26, the U.S. Department of Justice, in cooperation with the CFTC, filed charges against KuCoin, alleging that KuCoin facilitated money laundering transactions.
- The charges, which also include KuCoin's two co-founders, allege that KuCoin knowingly allowed U.S. citizens to use its exchange for transactions without adequate AML and KYC requirements. .
- Immediately after the accusations were made, customers began withdrawing $350 million worth of Ethereum (ETH) and stablecoins in a 24-hour period ending March 27th.
- KuCoin guaranteed the safety of their assets to their customers. According to a report on March 28th, it was revealed that in response to the Justice Department's indictment, KuCoin has implemented a reshuffle within its organization and prioritized its US compliance team.
- CFTC Commissioner Caroline Farm has publicly criticized her agency over the KuCoin accusations, suggesting possible overreach by the commodities and futures regulator.
- The SEC v. Coinbase case made headlines this week as the court decided on Coinbase's motion to dismiss the SEC's charges.
- The judge granted the claims regarding the wallet and staking projects, but rejected the claims regarding the provision of a cryptocurrency exchange. Following this decision, the court allowed both parties to present their claims in the lawsuit.
Binance executives vs. Nigerian authorities
- The battle between Binance executives Nadeem Anjarwala and Tigran Gambalyan and Nigeria continues. In particular, Anjarwala, Binance's head of Africa, reportedly fled Nigeria on March 22nd.
- In the twists and turns that followed, two Binance executives who were detained in Nigeria sued the Nigerian authorities in local court, accusing them of violating their rights. The executives demanded release from detention, return of passports and a public apology.
- Binance has also faced regulatory issues in Southeast Asia, with the Philippine SEC obtaining approval from the Philippine National Telecommunications Commission to block local access to Binance's website.
Bitcoin recovers $70,000 due to inflows into Spot BTC ETF
- Cryptocurrency markets have seen a resurgence of bullish sentiment after a sustained period of weakness last week. Inflows recorded by Spot Bitcoin ETFs contributed to this bullish sentiment.
- On March 25th, these investment products had net inflows of $15 million, ending the previous week's five-day losing streak. This inflow trend continued into the following days, and on March 26th, the product received $418 million worth of inflows.
- On March 27, the Spot BTC ETF recorded its third consecutive day of inflows this week, with $214.5 million in positive inflows. Interestingly, the ARK 21Shares Bitcoin ETF contributed the most to this number, posting a record $200 million in inflows. Bitcoin sentiment gradually moved into bullish territory, with the digital asset eventually breaking above $70,000 and rising 5.4% to $70,500 on March 26th.
