KuCoin Charged Over License Breach, Major Bitcoin Move Witnessed, Grayscale Optimistic on ETF Approval
Summary:
The US Justice Department has charged crypto exchange KuCoin and its founders with operating an unlicensed money transmitting business. In other news, a Bitcoin whale moved over $6 billion worth of the cryptocurrency, marking a significant event since 2019. Meanwhile, asset manager Grayscale remains hopeful for the approval of spot Ether exchange-traded funds in May, dismissing concerns of regulatory indifference.
KuCoin, a prominent cryptocurrency exchange, along with its founders, finds itself in the crosshairs of the US Justice Department, which has accused them of running an unauthorized monetary transaction business. In parallel news, an unidentified Bitcoin magnate has transferred over $6 billion in assets, marking the most significant movement of the cryptocurrency since 2019. Meanwhile, Grayscale, the financial asset management company, remains optimistic that Ether spot exchange-traded funds (ETFs) will receive regulatory approval in May, even amid standoffishness from the supervisory body.
KuCoin, along with its founders Chun Gan and Ke Tang, has been implicated for operating without a legitimate money-transmitting license and violating the Bank Secrecy Act, as per an indictment opened by the Justice Department. The contention lies in KuCoin and its founders' alleged engagement in Anti-Money Laundering (AML) requirements neglect, with the exchange reportedly doubling as a vehicle for pilfering and financing of illicit activities.
"Instead of disclosing considerable U.S. involvement in KuCoin's trading activities, it is suspected that the founders intentionally concealed this information," stated U.S. Attorney Damian Williams." KuCoin used its sizable American customer presence to bolster its position among the world's leading cryptocurrency derivatives and spot exchanges, handling billions of dollars in daily and trillions in annual trades,"
Despite the unfolding legal drama, KuCoin reassures its customers that their assets remain unaffected by the investigation and are secure.
The address recognized as the fifth-largest Bitcoin depository, known famously as "37X," has moved a colossal $6 billion in Bitcoin assets to three different addresses, a move unseen since 2019. The transfer involved a massive 94,500 Bitcoin, leaving the initial "37X" address with a scant 1.4 Bitcoin, as stated in a report from Arkham Intelligence.
Grayscale is steadfast in its belief that Ether spot ETFs will be given the regulatory nod in May. This conviction stands despite recent murmurings of a conspicuous lack of engagement from the U.S. securities regulator.
Grayscale's chief legal officer, Craig Salm, expressed on social media that the seemingly indifferent stance of the regulators should not be seen as a foreboding sign. Drawing parallels to the period leading up to when Bitcoin ETFs received approval, Salm pointed out that many of the issues faced then - like creating and redeeming procedures, safeguarding assets, mitigating loss and custody - have been addressed.
"We simply have less to discuss this time round as the SEC has already been engaged to a large extent," said Salm. "As such, I believe the case for spot Ether ETFs is just as compelling as it was for spot Bitcoin ETFs".
Additional contributions to this story were made by Geraint Price, Sam Bourgi, and Felix Ng.
Published At
3/26/2024 9:48:24 PM
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