SEC's Conduct Questioned, Crypto Hackers Acquitted & Other Key Crypto Developments
Summary:
A federal judge in Utah threatens to sanction the SEC for allegedly lying about a crypto firm's business practices. Meanwhile, in France, two brothers have been acquitted of hacking charges linked to the decentralized finance protocol, Platypus Finance. Ethereum layer-2 network Blast is hiring two engineers despite criticism from investors. In Spain, a man suspected of assisting North Korea in evading sanctions via crypto was apprehended. Binance's new CEO states the crypto exchange no longer has compliance issues.
A Utah federal judge threatens to penalize the U.S. Securities and Exchange Commission (SEC) for allegedly misleading the court regarding a cryptocurrency corporation. District Judge Robert Shelby has accused the SEC of making false claims about Debt Box transferring funds out of the U.S. to obtain a court-ordered freeze on its assets. The company, which was sued by the SEC in August for allegedly operating a $50 million fraudulent business, has according to Austin Campbell, founder of the crypto consulting firm Zero Knowledge, demonstrated conduct deemed "especially egregious." Following their behaviors, Campbell is reconsidering his endorsement for their continuance.
John Deaton, a crypto-specialist attorney, mentions that the SEC's lawyers, Jorge Tenreiro and SEC Division of Enforcement director Gurbir Grewal, are proof of the SEC taking a personal approach on crypto-related cases. Deaton argues that this situation should be no surprise, considering the past three years of crypto-related legal issues. Campbell adds that the SEC would now truly face tough inquiries to justify why they should not be punished for their behavior.
Meanwhile, in a different development, a French court has dismissed the criminal charges against two brothers who were charged with hacking the decentralized finance protocol, Platypus Finance. The brothers, known as "Mohammed M" and "Benamar M," claimed that they were ethical hackers and were subsequently acquitted. They had exploited Avalanche-based automated market maker (AMM) protocol and were arrested eight days later.
In other news, Blast, a forthcoming Ethereum layer-2 network, is broadening its team, announcing it's looking to hire two engineers. The project, which was reprimanded by Paradigm, its investor, for activating deposits prior to its mainnet launch, has over $700 million frozen in its protocol even though the mainnet launch is scheduled for February.
In Spain, Alejandro Cao de Benos, suspected of assisting North Korea to avoid sanctions using cryptocurrency, has been apprehended by the local law enforcement. On November 30th, he was arrested in Madrid for using phony ID documentation to travel from Barcelona.
Lastly, Binance's new CEO Richard Teng claims that the crypto exchange has undergone a transformation and no longer has compliance issues. This follows a settlement of over $4 billion of criminal charges by the U.S. and an 18-month prison sentence for the former CEO Changpang "CZ" Zhao.
Published At
12/4/2023 5:50:28 AM
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