Binance Navigates Legal Challenges; Virginia Senate Advances Crypto Bill; Spain Halts Worldcoin's Operations
Summary:
Binance faces ongoing legal troubles in the U.S, including staff layoffs and accusations from the SEC over inadequate information on customer assets. A dismissed class-action lawsuit against the firm is reinstated by a U.S appeals court. Terraform Labs co-founder, Do Kwon's extradition to the U.S is blocked by a court in Montenegro. Meanwhile, Virginia's Senate passes a bill creating a group to study and recommend strategies for the crypto industry. Lastly, Worldcoin faces a data collection ban in Spain over concerns about user consent violations.
Binance, the major cryptocurrency exchange, is confronted by persistent legal issues, primarily within the United States. In June 2023, it faced a severe setback due to a lawsuit initiated by the United States Securities and Exchange Commission (SEC), which resulted in the firing of more than 200 employees as revenues drastically reduced, as stated by the COO, Christopher Blodgett. The SEC has accused Binance of either refusing or being incapable of responding to queries regarding customer asset security. The SEC requested court assistance to hasten the inquiry. The SEC's main concern is whether Binance's foreign employees had access to Binance.US customer assets. Binance.US disputed the SEC's claims by maintaining that it had cooperated with the broad information requests and requested the court to terminate the rushed investigation process. In other news, a US appeals court reinstated a class-action lawsuit that was previously dismissed. The lawsuit, brought forward by investor Chase Williams in April 2020, alleged that Binance sold securities without the necessary registration as a securities exchange. The lower court dismissed the lawsuit, stating it fell outside of the statute of limitations, but the appeals court ruled in favor of the plaintiffs.
The co-founder of Terraform Labs, Do Kwon, continues to face legal battles, with a Montenegrin court overturning a lower court's decision to extradite him to the US. The Montenegrin appellate court decided to annul the earlier approval by the High Court of Podgorica for Kwon's extradition to the US, citing significant violations of local criminal procedure laws. Kwon's extradition process continues following his arrest in Montenegro in March 2023, leading to ongoing disputes between the US and South Korea over his destination.
The Virginia Senate in the United States passed a pioneering bill that establishes 13-member workgroup dedicated to analyzing cryptocurrency trends and proposing strategies for its development. The workgroup is expected to offer their findings by Nov. 1, 2024.
The Spanish Agency for Data Protection (AEPD) commanded Worldcoin to halt its data collection and processing activities within Spain. They imposed a temporary three-month ban and are currently investigating complaints claiming that Worldcoin has extracted data from underage users and users unable to revoke consent. This comes on the heels of similar concerns voiced by Hong Kong's Office of the Privacy Commissioner for Personal Data. The issues reside in Worldcoin's use of biometric identification technology named "orbs", that scans user's eyes for identification purposes.
Published At
3/11/2024 11:00:00 PM
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