After more than a year in development, Sam Bankman Freed is finished and destined to spend the next 25 years in prison, but in 2024 there are still plenty of high-stakes cryptocurrency courtroom dramas to unfold. There is. In this article, we discuss why the SEC, KuCoin, and Binance could all be important events to watch over the coming year.
Dipping into the pool of cryptocurrencies can be fun. There are many dangers, scams, and hurdles, but it's fun and really… Really settlement.
In some cases, the people behind these crypto scams are brought to justice, but the FTX incident joins an increasing number of law enforcement efforts to pursue justice against perpetrators of crypto crimes. I have proven that there is.
One thing that hasn't changed is the delicate interplay between high-stakes crypto legal drama and price volatility, and FTX co-founder Sam Bankman-Fried's ruling may be just the tip of the iceberg. Only.
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Binance’s legendary former CEO Changpeng “CZ” Chao is awaiting trial, and Do Kwong skips prison in Montenegro to quit a project that was thought to be “blue chip” There will be plenty of crypto legal drama in 2024, as some of these are underway.
Here we introduce the next big lawsuit in cryptocurrencies.
Major Crypto Courtroom Drama #1 – Countdown to Zhao Changpeng’s CZ Trial
Binance co-founder CZ faces up to 18 months in prison, with rumors of up to 10 years in prison.
Simply put, Binance failed to report over 100,000 suspicious transactions to names you may recognize, such as ISIS, Hamas, and Al Qaeda. Laundering money for US-designated terrorist organizations is illegal.
After his guilty plea to money laundering charges, all eyes are on his April 30th sentencing in Seattle, with many predicting a harsher sentence to bring down the price of BNB.
But CZ isn't the only one feeling the heat on the world's largest exchange. Binance and its American counterpart have settled for $4.3 billion over charges including operating without a license.
And this doesn't take into account that the SEC is still going after Binance US over allegations of selling unregistered securities.
Crypto Courtroom Drama #2 – The aftermath and conclusion of the FTX trial
In the aftermath of FTX's collapse, company executives are facing daunting prison terms. Caroline Ellison, who headed FTX's affiliated hedge fund Alameda Research, will receive a prison sentence despite being a key witness in the Sam Bankman Freed trial.
Caroline had a cult of personality in FTX. It gets deeper. Allegis de Ellison, FTX's Jixiao “Gary” Wang, Nishad Singh and Caroline Ellison also face potentially decades in prison for their roles in the exchange fraud case. .
Cryptographic Drama #3 – Terraform Labs Founder Dances with Extradition
Do Kwon, the man behind the seismic collapse of Terraform Labs following the release of Terra USD, has so far narrowly avoided extradition from Montenegro to the United States.
In a further development, this afternoon Montenegro's Supreme Court annulled a decision to extradite Kwon to another jurisdiction, South Korea, leaving his fate from here in the hands of lower courts.
Despite his legal victory in the Balkans, the United States and South Korea are eager to extradite him on fraud charges related to his volatile cryptocurrency ecosystem, Terra Luna, and prosecutors say they will continue to pursue him. Be looked at.
Cryptolegal Drama #4 – SEC vs. KuCoin
The U.S. Securities and Exchange Commission (SEC) continues its attack on a number of crypto companies, including Coinbase, KuCoin, Kraken, Tron, and Gemini, all of which are battling SEC allegations that they sold unregistered securities.
The outcome of these lawsuits could reshape the regulatory landscape of cryptocurrencies and change the CEX market beyond recognition.
Bottom line: Don't forget about other minor crypto legal dramas
While these are the big cases coming up in the year ahead, here are four other notable legal cases happening this year.
- SEC KuCoin: The SEC charged KuCoin founders Chun “Michael” Gan and Ke “Eric” Tang with failing to maintain an anti-money laundering program and operating an unauthorized money transfer business. Both men are Chinese nationals and could be sentenced to up to 10 years in prison, but are currently on the run.
- Abraham “Avi” Eisenberg: Cryptocurrency Bernie Madoff extracted $117 million from DeFi trading platform Mango Market with his “highly profitable trading strategy.” He has been charged with merchandise fraud and other crimes.
- Tornado cache: Tornado Cash developer Roman Storm is gearing up for a September trial. He has been charged with money laundering and other crimes. His co-developer Roman Semenov has not yet been seen and is believed to be in Russia.
- Celsius and Safe Moon Scandal: Celsius' Alex Mashinski and SafeMoon CEO Braden John Kaloney face decades in prison on charges ranging from fraud to money laundering. Each is spending their days in court.
These cases are not just about individual companies or individuals, but for many in the crypto community this forms an important aspect (as seen in the criticism surrounding the Sam Bankman Fried decision). and sets a precedent that could define the future of cryptocurrencies. Cryptocurrency Regulation and Innovation. Keep an eye on how these events unfold.
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Disclaimer: Cryptocurrency is a high-risk asset class. This article is for informational purposes only and does not constitute investment advice. You could lose all your capital.
