Kamala Harris may continue the Biden administrations crypto crackdown

Harris is preparing to unveil plans about her economic policy in a mid-August speech. 

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Crypto Exchange Garantex Co-Founder Arrested In India Over Extradition Request

Authorities in India have apprehended Aleksej Besciokov, the alleged co-founder of Garantex, a cryptocurrency exchange reportedly implicated in extensive money laundering activities (MLA).”  $60 Billion In Transactions Linked To Criminal Activity Besciokov, a 46-year-old Lithuanian national, was reportedly arrested while vacationing with his family in Varkala, a coastal city in the Indian state of Kerala. His arrest comes after an indictment unsealed by the US Department of Justice (DOJ) on March 7. The DOJs indictment charges Besciokov and his co-founder, 40-year-old Aleksandr Mira Serda, a Russian national residing in the United Arab Emirates, with conspiracy to commit money laundering.  Related Reading: This Is The Last Opportunity To Buy Dogecoin Relatively Cheap, Predicts Analyst Garantex, which launched in 2019, was sanctioned by the US Treasury’s Office of Foreign Assets Control in April 2022 for its role in facilitating the movement of criminal proceeds.  Reports indicate that the exchange has processed over $60 billion since sanctions were imposed, raising significant concerns regarding its operations. According to the blockchain analysis firm Elliptic, Garantex has been involved in various forms of unlawful activity, including facilitating ransomware attacks, drug trafficking, and evading sanctions imposed on Russian elites.  The firm noted that the exchange has enabled Russian oligarchs to transfer their wealth abroad, particularly following the invasion of Ukraine. DOJ Alleges Garantex Co-Founder Operated Under Hacker Alias “Proforg” The US Department of Justice also alleges that Besciokov served as Garantexs primary technical administrator, responsible for maintaining critical infrastructure and approving transactions.  In conjunction with the indictment, German and Finnish law enforcement agencies seized servers that hosted Garantexs operations, and US authorities have frozen over $26 million linked to the exchange’s money laundering activities. In a notable twist, Besciokov is said to have operated under the hacker handle proforg, a nickname associated with a long-running Russian-language forum known for its explicit content.  The charges against him include conspiracy to violate the International Economic Emergency Powers Act, which carries a maximum sentence of 20 years in prison, and conspiracy to operate an unlicensed money transmitting business, which could lead to an additional five years of imprisonment. Related Reading: Bitcoin Price Risks Further Crash As S&P Monthly LMACD Turns Bearish, Why Bulls Have Only 20 Days Besciokov is scheduled to appear in a Delhi court on March 14, where he will face these serious charges. If found guilty of any offenses alleged, he will forfeit to the United States any propertywhether real or personalthat was involved in the commission of the offense or any property traceable to such assets.  Furthermore, if convicted of the offense detailed in Count II of the indictment, Besciokov will also forfeit any property that constitutes or is derived from proceeds traceable to the offense. Featured image from DALL-E, chart from TradingView.com

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‘US has left a vacuum that other countries are eager to fill’: Coinbase

With Coinbase seemingly on the verge of a court battle with the Securities and Exchange Commission (SEC), the firm has emphasized that the U.S. government’s hawkish approach to crypto regulation has “left a vacuum that other countries are eager to fill.’ The SEC issued Coinbase a wells notice on March 22 outlining that SEC staff [...]

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US Lawmakers Press Treasury Secretary Janet Yellen on Crypto Oversight Gaps

Four U.S. lawmakers have pressed Treasury Secretary Janet Yellen regarding crypto oversight gaps. The Financial Stability Oversight Council (FSOC), which Yellen chairs, has issued “repeated warnings about the lack of oversight of the digital asset markets,” the lawmakers detailed, questioning Yellen how the council believes existing laws should apply bitcoin, ether, and non-security crypto assets. [...]

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Major Win For Memecoins: SEC Affirms They Typically Do Not Qualify As Securities

In a recent statement, the US Securities and Exchange Commission (SEC) provided insights into the classification of memecoins within the context of federal securities laws.  This move, a part of the SEC’s attempt to make clear how these regulations apply to different assets, could prove to be a significant victory for these altcoins and the exchange-traded funds (ETFs) that have been filed with the regulator. Memecoins Not Subject To Federal Securities Laws According to the SECs criteria, a memecoin is generally characterized as a type of cryptocurrency that draws inspiration from internet memes, cultural phenomena, or current events, with promoters aiming to cultivate a vibrant online community that engages in buying and trading these assets. Related Reading: Data Shows Bitcoins 11% Drop Is Still ModestHeres Why The SEC’s Division of Corporation Finance delineated that while individual memecoins may exhibit distinct features, they typically share common traits. Their value largely hinges on market demand and speculative trading, akin to collectibles rather than traditional investments.  As such, the agency asserted that memecoins usually lack substantial functionality or practical use beyond entertainment, leading to significant price volatility driven by speculative behavior. Importantly, the SEC concluded that transactions involving these types of memecoins do not constitute the offer and sale of securities as defined under the federal securities laws.  This means that individuals participating in the sale of meme coins are not required to register their transactions under the Securities Act of 1933, nor do they need to rely on any exemptions from registration.  Fraudulent Activities Still Subject To Enforcement The SEC’s analysis draws from the definitions of “security” enshrined in federal statutes, which include various financial instruments such as stocks and bonds. Since memecoins do not yield income or confer rights to profits or assets, they do not fit into these established categories.  The SEC evaluated whether memecoins could be classified as investment contracts under the “Howey test,” a legal precedent that determines if an arrangement qualifies as a security based on economic realities. The key factors examined include whether there is an investment in an enterprise with the expectation of profits derived from the efforts of others. Related Reading: Dogecoin Discount Incoming: Analyst Reveals When To Start Buying The SEC found that purchasers of memecoins are not investing in an enterprise, as their funds are not pooled for development by promoters. Instead, the value of memecoins emerges from speculative trading and public sentiment, without any involvement of managerial efforts that could generate profits.  However, the statement made clear that this classification does not apply universally to all memecoins. The SEC will scrutinize any offerings that deviate from the outlined characteristics or that attempt to bypass securities laws under the guise of being meme coins.  Plus, the regulator clarified that while memecoins may not be subject to federal securities regulations, any fraudulent activities associated with their sale could still be pursued under other federal or state laws. Featured image from DALL-E, chart from TradingView.com

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US Lawmakers Call on Congress to Pass Crypto Law Following SEC v Ripple Ruling on XRP

Several U.S. lawmakers have called on Congress to pass crypto legislation following the court ruling on the U.S. Securities and Exchange Commission (SEC) v. Ripple case regarding XRP. “Gary Gensler’s SEC cannot continue to pursue its regulation by enforcement approach, which only harms investors and creates uncertainty,” said one lawmaker. US Lawmakers Call on Congress [...]

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Market structure bill on agenda in first 100 days Rep. French Hill

The FIT21 market structure bill passed the House of Representatives in May 2024 with bipartisan support by a 278-136 margin.

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ALGO, FLOW rebound from all-time lows, others rebuff SEC securities label

The United States securities regulator designated a slate of cryptocurrencies as securities in recent lawsuits including Algorand (ALGO) and Flow (FLOW) which hit all-time price lows following the declaration. On June 10, ALGO and FLOW hit their respective historic lows of $0.098 and $0.46, having dropped around 30% in the past seven days according to [...]

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BREAKING: BitMEX Fined $100 Million For US Money-Laundering Violations

Federal judge John G. Koeltl has directed BitMEX to pay a $100 million fine, representing the latest development in an ongoing legal dispute regarding money laundering infractions in the US. BitMEX Faces Major Legal Setback The legal challenges for BitMEX stem from activities between 2015 and 2020, during which the exchange reportedly failed to adhere to the United States Bank Secrecy Act (BSA). The BSA requires financial institutions to assist government agencies in detecting and preventing money laundering.  Related Reading: What Bitcoin Election Patterns Could Signal For Its Price Ahead Of January 20 Inauguration Despite BitMEX’s attorneys arguing that a previous $110 million fine and earlier guilty pleas from the exchange’s founders were sufficient punishment, Judge Koeltl deemed additional financial penalties necessary. In 2022, BitMEX’s founders, Arthur Hayes, and Benjamin Delo, admitted guilt to comparable charges, with both consenting to pay a $10 million criminal penalty.  Exchange Implements Enhanced KYC And AML Measures In a statement following the ruling, the company expressed disappointment over the additional financial penalty but noted that the amount was significantly lower than the Department of Justice’s (DOJ) initial demands, which exceeded $200 million during plea negotiations and rose to approximately $420 million during sentencing discussions. The exchange emphasized its commitment to compliance, stating that it has made significant improvements to its operations since the period covered by the BSA charges.  This includes implementing a robust user verification program and comprehensive Know Your Customer (KYC) and Anti-Money Laundering (AML) systems. BitMEX asserts that these advancements have been recognized by users, partners, and regulatory stakeholders. Related Reading: Pundit Says Bitcoin Price Will Break Above $100,000 If This Happens We stand firm by the statement that the BSA charge is old news, the company remarked in its statement. BitMEX expressed a desire to move past these legal challenges and focus on innovation and service delivery for its users.  The exchange aims to maintain its position as a leading, trusted, and financially stable crypto derivatives platform, continuously launching new products and innovations to meet user demands. Featured image from DALL-E, chart from TradingView.com

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Coinbase, Robinhood, CFTC to testify in Congress over draft crypto bill

Paul Grewal reiterated that the “U.S. is falling behind” and is at risk of driving jobs, innovation and investment overseas.

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Aussie crypto exchange kicks off US expansion despite ‘regulatory risk’

“Where other exchanges see regulatory risk, we see opportunity,” says Coinjar CEO and co-founder Asher Tan.

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Crypto Exchange Bittrex Shuts Down US Operations Due to Regulatory Uncertainty

Cryptocurrency exchange Bittrex is shutting down its U.S. operations due to “continued regulatory uncertainty” as U.S. regulators increase their enforcement efforts against cryptocurrency trading platforms. Regulatory requirements currently “are often unclear and enforced without appropriate discussion or input, resulting in an uneven competitive landscape,” Bittrex described. Bittrex Exiting U.S. Crypto Market Cryptocurrency exchange Bittrex announced [...]

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