Crypto Stirs as Governments Transfer Funds, Roaring Kitty Faces Lawsuit, SEC Sues Consensys
Summary:
The German and U.S. governments have shifted significant sums of Bitcoin and Ether, creating a stir in the crypto community. Stock trader Keith Gill, also known as "Roaring Kitty," faces a class-action lawsuit over claims of securities fraud from social media posts. The U.S. Securities and Exchange Commission has filed a lawsuit against Consensys, the developer of MetaMask, alleging the company operated as an unregistered broker and sold unregistered securities.
The German and American governments have recently created a stir in the world of digital currency by relocating substantial sums of Bitcoin and Ether in various transactions, drawing the gaze of the entire crypto community. Meanwhile, Keith Gill, colloquially recognized as "Roaring Kitty," faces a collective lawsuit due to his flurry of social media activities. Furthermore, the American Securities and Exchange Commission (SEC) has declared a lawsuit against Consensys, the company responsible for creating the well-known MetaMask.
In the global crypto arena, the actions taken by the German and American governments have captured quite a bit of attention. The German state has been involved in significant transactions with Bitcoin (BTC), whereas the American state has shifted Ether (ETH) from confiscated resources. The German state recently transported 1,500 BTC, roughly equivalent to $95 million, across various digital currency exchanges. Simultaneously, the American state relocated 3,375 ETH, worth about $11.75 million, to an unidentified address.
Observing onchain analytics, the German state had shifted a total 2,700 BTC to multiple exchanges over the past fortnight. Meanwhile, the US state has noted sizable transactions, particularly from the funds seized from Estonian cryptopreneurs Sergei Potapenko and Ivan Turogin. Following a move of around $743 thousand from another set of seized funds on June 30, the US government has relocated its entire $11.75 million ETH holdings to a previously unrelated address. These repetitive transfers highlight a potential plan to manage funds strategically, suggesting Germany may aim to liquidate its holdings across primary exchanges.
Keith Gill, a widely recognized figure during the 2021 Gamestop short-squeeze, stands accused of security fraud through a collective lawsuit regarding his latest series of social media updates leading to major fluctuations in the value of Gamestop (GME) shares. Despite this, a former federate prosecutor suspects the lawsuit will likely be unsuccessful. An accusation has been filed against Gill, claiming he carried out a "pump and dump" scheme through consecutive social media updates. The plaintiff, Martin Radev, represented by the Pomerantz law firm, claims Gill failed to adequately inform his followers about his purchase and sales of Gamestop options calls, resulting in financial losses for multiple investors.
The SEC has filed a lawsuit against Consensys for allegedly functioning as an unregistered broker and for the sale of unregistered securities via its MetaMask platform. The regulatory body claims Consensys amassed over $250 million in brokerage fees via MetaMask while failing to secure the necessary registrations. The SEC seeks to impose a permanent injunction, monetary penalties, and other relief for the company's alleged infractions. In addition, the SEC has classified staking services as investment contracts, mentioning programs offered by Rocket Pool and Lido. Earlier this year, the SEC agreed on a $30 million settlement with cryptocurrency exchange Kraken about its staking program. In response, a Consensys spokesperson said the SEC’s latest action is yet another instance of regulatory overreach and an effort to redefine established legal protocols.
Published At
7/1/2024 4:00:15 PM
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