Over time, the U.S. government, through its regulators, has brought lawsuits against several crypto companies to demand compliance for their products and services.
The list is extensive, but a few cases stand out, including those against decentralized protocols like Uniswap, cryptocurrency mixing platforms like Tornado Cash, and large companies like Binance and Coinbase.
US fights virtual currency
Last year, the U.S. government's battle against virtual currency entities further intensified. Within 48 hours in early June, the Securities and Exchange Commission (SEC) filed charges against Binance and Coinbase, the world's and largest domestic cryptocurrency exchanges. The allegations against both companies were similar, including failure to register as a broker, national stock exchange, or clearinghouse, and violations of U.S. securities laws.
Two months after the Binance and Coinbase lawsuit, the Department of Justice (DOJ) indicted the co-founders of Tornado Cash for allegedly laundering more than $1 billion in criminal proceeds. This comes a year after the Office of Foreign Assets Control sanctioned the cryptocurrency mixer for its ties to cybercrime groups.
Towards the end of last year, the SEC filed charges against cryptocurrency exchange Kraken on the same charges it brought against Binance and Coinbase. Around the same time, the Department of Justice indicted Binance and its founder Changpeng Chao (CZ) for willfully violating the Bank Secrecy Act. As a result of this lawsuit, the cryptocurrency exchange paid a $4.3 billion fine, and CZ was fined $50 million and resigned as CEO.
The fight against DeFi
In March 2024, the Department of Justice indicted virtual currency exchange KuCoin and its founders on charges of violating the Bank Secrecy Act and operating an unauthorized money transfer business.
Last month, the SEC filed a notice of intent to sue Uniswap Labs, which operates the largest decentralized cryptocurrency exchange Uniswap, for reasons that have not yet been disclosed. Around the same time, blockchain software technology company ConsenSys received a Wells Notice from regulators indicating enforcement action for violations of securities laws through its Metamask wallet.
In the same month, the Department of Justice arrested and indicted the founders of the privacy-focused Bitcoin wallet Samurai for allegedly enabling the laundering of more than $100 million. As of this writing, the wallet's services have been shut down and its website seized. Additionally, the Department of Justice recently arrested early BTC investor Roger Ver, widely known as Bitcoin Jesus, on charges of tax evasion of up to $50 million.
Meanwhile, one notable case in the industry is the SEC's lawsuit against Ripple, which has helped the cryptocurrency community clarify crypto securities.
