Bitzlato and its Founder Charged With Laundering $700M
- The U.S. Department of Justice worked together with the Federal Bureau of Investigations, Treasury Department, and French authorities to take down the laundering operation.
- Crypto Twitter, however, was not impressed with the “major international cryptocurrency enforcement action” against the little known platform.
January 19, 2023, 1:48 PM
U.S. Department of Justice building in Washington, D.C, 10 January, 2012. Diego M. Radzinschi/The National Law Journal
CFTC Files Market Manipulation Lawsuit Against Mango Markets Exploiter
- The CFTC has filed a lawsuit against Avraham Eisenberg, and charged him with two counts of market manipulation for his involvement in the Mango Market exploit.
- The individual had revealed himself as the exploiter on 15 October, claiming his actions were legal, and was later arrested by the DoJ on similar charges.
January 10, 2023, 11:11 AM
Shutterstock
New York Attorney General Sues Alex Mashinsky for Fraud
- The former CEO of Celsius, Alex Mashinsky, is being sued in New York for defrauding investors by making false and misleading statements about the condition of his company.
- The lawsuit aims to ban Mashinsky from doing business in New York in the future, as well as have him pay damages, restitution, and disgorgement for affected Celsius investors.
January 5, 2023, 7:44 PM
Alex Mashinsky, founder and CEO of Celsius, speaking at CoinDesk’s Consensus conference, September, 2019. CoinDesk
Sam Bankman-Fried Pleads Not Guilty to All Charges
- Sam Bankman Fried pleaded not guilty to all eight charges against him during his first appearance in court this year, and his tril is now set to begin in early October.
- The presiding judge has modified SBF’s bail conditions to include a prohibition from accessing or transferring assets of connected to FTX and its affiliates.
January 4, 2023, 9:42 AM
Former CEO of FTX Sam Bankman-Fried leaves the Federal Court in New York after pleading not guilty, 3 January, 2022.
lev radin/Shutterstock
Dec 13, 2022
CFTC Accuses SBF, FTX, and Alameda of Fraud, Files Lawsuit
- The regulator claimed that at the direction of SBF, FTX executives added features to FTX’s underlying code that allowed Alameda to maintain an unlimited line of credit on FTX.
- The CFTC also alleged that Alameda had access to customer funds on FTX ever since the exchange was established in 2019.
Nov 1, 2022
Coinbase Files for Amicus Brief in Support of Ripple
- The exchange argues that the SEC failed to provide a “fair notice” that selling XRP was illegal, and that it previously made public statements that those transactions were lawful.
- Coinbase also pointed out that the SEC is yet to provide clear guidance to crypto businesses, and that it keeps being inconsistent about its enforcement approach.
Sep 21, 2022
Tether Ordered to Provide Documents Connected to USDT Backing
- The stablecoin issuer was order to produce a number of financial documents, as well as records of crypto trades, transfers, and its accounts with crypto exchanges.
- The order was made as part of a case that was started in 2019 by a group of investors, who alleged the company had manipulated the crypto market in 2017.
Sep 13, 2022
BitGo Files $100M Lawsuit Against Galaxy Digital
- The crypto custodian is seeking more than $100 million in damages from Galaxy Digital for the “intentional breach” of its $1.2 billion acquisition deal.
- BitGo noted the complaint was filed under seal as to give Galaxy Digital the opportunity to redact “some of the allegations before the complaint becomes public”.
Aug 24, 2022
Celsius Sues Prime Trust Over $17M in Crypto
- The crypto lender claimed Prime Trust returned $119 million in crypto when the two broke their relationship in 2021, but still held over $17 million in tokens.
- Celsius’ legal team noted that the 398 BTC, 3,740 ETH, 2,261,448 USDC, and 186,268 CEL should have been returned immediately after Celsius filed for bankruptcy.
Jun 8, 2022
Crypto Bank Sues Federal Reserve Over Application Delay
- Custodia had already received confirmation from the Kansas Fed that its application was complete and had “no showstoppers”, but is yet to receive approval even after 19 months.
- Custodia’s complaint notes that a master account, which provides institutions with direct access to the Fed’s payment system, is “vital” for its business.