Legal Challenges Mount for Key Figures in Crypto World: from Court Sentences to Potential Trials
Summary:
Several high-profile individuals in the crypto world, including FTX and Binance co-founders Sam Bankman-Fried and Changpeng “CZ” Zhao respectively, are facing trials and potential prison sentences in the US on various charges, which include money laundering, operating unauthorized exchanges, and securities fraud. Further, the U.S. Securities and Exchange Commission is pressing charges against numerous crypto firms, including Coinbase, Kraken, Tron, and Gemini, emphasizing the ongoing stringent regulatory scrutiny faced by the crypto industry.
The high-profile legal case involving FTX's co-founder Sam Bankman-Fried came to a conclusion last week, culminating in a 25-year prison sentence. However, the crypto world still has several impending legal proceedings in US courts. In the coming weeks, Binance co-founder, Changpeng “CZ” Zhao, will discover the potential prison time he faces. Bankman-Fried might also contest his sentencing via an appeal, a route his legal counsel has hinted at since his guilty verdict was pronounced last November. Here's the rundown of other prominent legal cases where major crypto figures are slated to face US courts:
Former Binance CEO, Changpeng Zhao, who confessed to money laundering last year alongside Binance.US and Binance's $4.3 billion resolution with the US on charges including operating an unauthorized exchange and maintaining an ineffective Anti-Money Laundering program. His sentencing is scheduled for April 30 in a Seattle federal court. Faced with a potential 10-year imprisonment, Zhao has been confined in the U.S. due to concerns about him skipping his trial and returning to his home in the United Arab Emirates. Moreover, the Securities and Exchange Commission continues to press charges against Binance, its U.S. subsidiary, and Zhao, alleging they proffered unregistered securities and mismanaged customer assets.
FTX executives and other parties involved in Sam Bankman-Fried's case are also slated to appear in court. Co-founder of FTX, Zixiao “Gary” Wang, lead engineer Nishad Singh and former Alameda Research CEO Caroline Ellison are looking at possible prison sentences due to their engagement in the massive fraud committed at the exchange.
Former CEO of FTX Digital Markets, Ryan Salame, who accepted a plea deal – but refrained from testifying against Bankman-Fried – will be sentenced on May 1, having confessed to illegal contributions to political campaigns and a plot to run an unauthorized money-transmitting business.
Terraform Labs' co-founder Do Kwon faces fraud and market manipulation charges leveled by the U.S. last March, tied to his cryptocurrency ecosystem supported by an algorithm-pegged stablecoin.
So-called "highly profitable trading strategy" mastermind Avraham “Avi” Eisenberg is up for trial on April 8 for commodity fraud, manipulation and wire fraud charges.
Cryptocurrency mixer Tornado Cash developer Roman Storm's trial is set for September on charges of conspiracy to money laundering, operating an unauthorized money-transmitting business, and violating the International Economic Emergency Powers Act.
Founder and former CEO of the bankrupt crypto lending platform Celsius, Alex Mashinsky, has his criminal trial scheduled for Sept. 17 on seven charges involving various types of fraud and market manipulation.
CEO of SafeMoon, Braden John Karony, faces trial for securities, wire fraud and money laundering conspiracy charges brought against him last November.
Crypto exchange KuCoin and its founders Chun “Michael” Gan and Ke “Eric” Tang were charged by the U.S. last month for failing to maintain an anti-money laundering program and conspiring to operate an unauthorized money-transmitting business.
In addition to the above-mentioned legal proceedings, the SEC is suing eight additional cryptocurrency companies, primarily on the grounds of promoting unregistered security sales and running unlicensed operations. These include Coinbase, Kraken, Tron, and Gemini, among others.
Published At
4/5/2024 1:57:00 AM
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