The U.S. Supreme Court has agreed to hear Nvidia’s appeal to dismiss a securities fraud lawsuit accusing the company of misleading investors about its sales to the cryptocurrency industry. Nvidia’s appeal follows a lower court’s decision to revive a class-action lawsuit. The suit alleges that Nvidia and its CEO, Jensen Huang, downplayed the impact of […]
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DOJ Counters Motion to Dismiss Charges Against Tornado Cash Developer
In a notable development, the U.S. Department of Justice (DOJ) has countered a motion to dismiss the criminal charges against Roman Semenov, a developer of the cryptocurrency mixing service Tornado Cash, highlighting the alleged strength of its case in a recent court submission. Prosecutors Assert Strong Evidence Is Coming in Tornado Cash Laundering Case The […]
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Singapore High Court Denies 3AC’s Bid to Dismiss Suit by Defiance Capital Founder
The High Court of Singapore has denied Three Arrows Capital’s (3AC) attempt to dismiss a lawsuit by Defiance Capital founder Cheong Jun Yoong, affirming the legal standing of digital assets in trust disputes.
Singapore Court Upholds Defiance Capital’s Suit Against 3AC in Crypto Case
The High Court of Singapore has rejected a motion by the beleaguered crypto hedge fund Three Arrows Capital (3AC) to dismiss a lawsuit filed by Cheong Jun Yoong, founder of Web3 investment firm Defiance Capital.
Cheong, also known as Arthur Cheong, filed the suit in April 2023, asserting that Defiance Capital investors were the rightful beneficial owners of assets held in trust by 3AC. He argued that these funds should not be used to satisfy creditor claims against 3AC.
The genesis of the dispute traces back to the establishment of Defiance Capital as an “independent and standalone fund” on the 3AC platform. Under the arrangement, Cheong had access to 3AC’s resources, including its middle and back office infrastructure, fund administrators, and auditors. Despite its close operational ties with 3AC, Defiance maintained separate accounts and wallets under Cheong’s control, contributing 25% of its fees to 3AC founders Su Zhu and Kyle Davies.
By May 2022, Defiance Capital’s holdings included 22.3 million USDT and .8 million in various cryptocurrencies and fiat. Although Defiance Capital was later transferred out of 3AC and restructured as two separate entities in Singapore following 3AC’s move to Dubai, certain assets were not transferred as per a prior agreement.
The High Court’s decision, made public recently, delves into the nuanced legal arguments presented by both parties. Notably, the judgment acknowledged the potential for a trust relationship to exist, despite the wording of legal documents to the contrary. This point is critical, as it suggests that the assets under Defiance’s control might be exempt from being used to settle 3AC’s debts.
The court further established that the crypto assets in question, particularly those in Fireblocks wallets under 3AC control, were in trust. This finding challenges 3AC’s stance that such claims were without merit. Additionally, the court determined Singapore as the appropriate forum for the lawsuit, given the location of the individual controlling the wallet keys and the country’s legal nexus to the case.
This ruling marks a crucial milestone in the case and offers a glimmer of hope to Defiance Capital and its investors. It also sets a precedent in the crypto legal landscape, particularly concerning the treatment of digital assets and the application of trust law.
With the lawsuit against 3AC cleared to move forward, do you think Defiance Capital will be successful? Share your thoughts and opinions about this subject in the comments section below.
SEC Moves to Dismiss Lawsuit Against Crypto Company Debt Box, Citing Inaccuracies in Court
The SEC has decided to abandon its lawsuit against Debt Box, a crypto company previously accused of defrauding investors of millions. This decision follows the SEC’s acknowledgment of presenting misleading information in court, a revelation that undermines the agency’s case and credibility.
Inaccuracies in Court Lead SEC to Drop Fraud Case Against Crypto Firm Debt Box
The U.S. Securities and Exchange Commission (SEC) has requested to dismiss its lawsuit against crypto startup Debt Box. The decision comes after the SEC admitted to making inaccurate statements in court.
The lawsuit, initially filed against Digital Licensing Inc., which does business as Debt Box, accused the company of defrauding investors of at least million. The SEC claimed that Debt Box offered “node licenses” for mining cryptocurrencies that were never actually mined. This action was part of a broader crackdown by the SEC on cryptocurrency firms, under the leadership of Chair Gary Gensler who has repeatedly stated that most cryptocurrencies are securities.
However, the case took a turn when the SEC’s attorneys acknowledged that they had fallen short of the court’s expectations for accuracy and candor. This admission came after U.S. District Court Judge Robert Shelby in Utah criticized the SEC lawyers and demanded explanations for what he termed “false or misleading” statements.
The SEC had previously asserted that Debt Box was attempting to transfer assets overseas to evade U.S. jurisdiction, a claim that Judge Shelby found to be misrepresented. Judge Shelby gave the SEC a “show cause order,” which basically meant the SEC had to give a good reason or explanation for its actions.
In response to the court’s order to show cause, the SEC filed a statement on Jan. 30, stating,
While the Commission recognizes that its attorneys should have been more forthcoming with the Court, sanctions are not appropriate or necessary to address those issues.
The agency expressed its intent to dismiss the lawsuit without prejudice, leaving room for the possibility of refiling the case in the future.
The SEC’s decision to seek dismissal without prejudice has raised questions in the legal and financial sectors, particularly given the agency’s aggressive stance on cryptocurrency regulation. The Debt Box legal team responded sharply to the SEC’s actions, stating, “The SEC got this case wrong. Badly wrong,” and argued that the agency should not be allowed to continue promoting a false narrative to avoid dismissal.
Despite the SEC’s admission of inaccuracies and the subsequent move to dismiss the case, the agency has declined to comment beyond its public filings.
What do you think explains the SEC’s inability to pursue this lawsuit? Share your thoughts and opinions about this subject in the comments section below.
Monero Tracing: Privacy Coin Proponents Dismiss Finnish Law Enforcement Agency’s Tracing Breakthrough Claims
A Finnish law enforcement agency, the National Bureau of Investigation (NBI), recently claimed that it may have found a way to trace the privacy coin Monero. However, proponents of the privacy coin have dismissed the agency’s claims and insisted that the cryptocurrency is still untraceable.
Identification of Hacker Behind Vastaamo Data Breach Revealed
The Finnish law enforcement agency, the National Bureau of Investigation (NBI), recently claimed that it has found a way of identifying individuals who use the privacy coin Monero (XMR) to launder money. To back this claim, the agency produced a report explaining why it concluded that Julius Aleksanteri Kivimäki was the criminal behind the Vastaamo breach.
Finnish authorities have long believed Kivimäki to be the cybercriminal behind the hacking of the private psychotherapy service provider Vastaamo’s patient database in October 2020. After gaining access to patients’ records, Kivimäki demanded 40 bitcoins (BTC) in exchange for not publishing these records. He similarly threatened Vastaamo’s 30,000 patients.
However, almost two years later, Kivimäki was identified as a hacker by the NBI and was charged in absentia for crimes ranging from aggravated data breach and attempted extortion to breach of confidentiality and falsification of evidence. An Interpol arrest warrant was subsequently issued, and this ultimately led to Kivimäki’s arrest in early February 2023. He was later extradited to Finland.
As noted in a local report, the NBI has not produced verifiable proof to support Monero tracing breakthrough claims. The investigative report, which reveals how this feat was achieved, is heavily redacted. The head of the investigation, Marko Leposen, defended NBI’s decision not to divulge details of how it traced XMR transactions.
Despite providing scant details on how the NBI managed to identify Kivimäki, the agency’s document reportedly showed how the hacker attempted to obscure the movement of the funds by switching from BTC to XMR and hopping between crypto exchanges. It also revealed how Kivimäki used mules to move the funds.
NBI’s Monero Tracing Claims Dismissed
Meanwhile, some proponents of the privacy coin have dismissed the Finnish law enforcement agency’s assertions. According to them, no tracing of Monero transactions happened in this case.
For instance, on Reddit, one user suggested that the NBI’s only success was tracking “a certain person who used centralized exchanges and swapped monero for traceable cryptos. They noticed that the amounts were similar and deduced that it was the same monero.” As far as tracking XMR is concerned, the user insisted that this is still not possible.
Another user similarly suggested that the agency’s only breakthrough, in this case, was realizing that a “similar quantity was exchanged from bitcoin to monero, then was deposited into Binance.
Do you believe the Finnish law enforcement agency Monero tracing claims? Let us know what you think in the comments section below.
Novogratz: JPMorgan CEO Jamie Dimon Is Wrong About Bitcoin, ‘Supreme Arrogance’ to Dismiss Value
Galaxy Digital CEO Mike Novogratz says JPMorgan CEO Jamie Dimon has been proven wrong about bitcoin. “I think it’s supreme arrogance to think he knows what has value but all the rest of the people don’t,” said Novogratz after the JPMorgan executive slammed bitcoin as being used by criminals, emphasizing that he would shut it down if he were the government.
Jamie Dimon ‘Keeps Being Wrong’ About Bitcoin, Says Novogratz
Galaxy Digital CEO Mike Novogratz fiercely criticized JPMorgan CEO Jamie Dimon’s recent remarks about bitcoin and cryptocurrency. The JPMorgan boss said during a congressional hearing earlier this week that he would close down crypto and bitcoin if he were the government, claiming that they are primarily used by criminals, drug traffickers, money launderers, and tax evaders.
Expressing his opinion that Dimon is wrong about bitcoin, Novogratz stated:
He keeps doubling down and he keeps being wrong.
The Galaxy Digital chief proceeded to point out that many of Dimon’s own clients and some of the wealthiest people in the U.S. believe in bitcoin, including Fidelity Investments CEO Abigail Johnson, famed investor Stanley Druckenmiller, and Bridgewater Associates founder Ray Dalio. Novogratz said they are “big, big investors” who “believe that bitcoin is a store of value.”
Novogratz further shared that his firm’s clients believe in bitcoin, stating: “We see it in our client base. Our trading desk has been busy with hedge funds buying. We see it in institutions buying. So, I don’t know where Jamie gets off thinking he’s smarter than all those guys.” He stressed:
I think it’s supreme arrogance to think he knows what has value but all the rest of the people don’t.
“And quite frankly he’s just been proven wrong. Bitcoin has way outperformed JPMorgan’s stock over one year, five years, 10 years — you name the period. People around the world believe in this, and they believe in the community’s ecosystem. They see governments spending too much money, not just here in the U.S. but everywhere, and think you are going to debase fiat currency,” Novogratz described. He also cited Blackrock CEO Larry Fink stating that he expects to see bitcoin in all portfolios.
Do you agree with Mike Novogratz that it’s supreme arrogance for JPMorgan CEO Jamie Dimon to think he knows what has value but all the rest of the people don’t? Let us know in the comments section below.
Former Binance CEO CZ Seeks to Dismiss Government’s Motion Blocking His Return to UAE Before Sentencing
Former Binance CEO Changpeng Zhao (CZ) is seeking to dismiss the U.S. government’s motion to prevent him from going home to the United Arab Emirates (UAE) before sentencing. Despite the judge determining that the ex-Binance boss poses no flight risk after he voluntarily appeared in court to plead guilty, the government is pushing for a restriction on his return home before sentencing.
CZ Wants Judge to Dismiss Government’s Motion
Former Binance CEO Changpeng Zhao (CZ) filed an opposition to the U.S. government’s “motion for review” of the judge’s ruling on his “presentencing travel restrictions.”
The U.S. government filed a single count of information on Nov. 14, charging Zhao with “failing to maintain an effective anti-money laundering program,” the document details. “The government also filed a parallel Information against Binance for failing to comply with provisions of the Bank Secrecy Act and U.S. sanctions law.”
After hearing from both the government and Zhao, Judge Brian Tsuchida issued a “release order” with a bail package that permits the former Binance chief to return home to the United Arab Emirates (UAE) pending sentencing. While agreeing that CZ is not a danger to the community and bail is appropriate, the government filed a motion seeking to prevent Zhao from being able to return home to the UAE before sentencing.
The legal team for CZ argued:
Judge Tsuchida concluded based on a complete record, Mr. Zhao presents no risk of flight, having voluntarily come before the court to accept responsibility and plead guilty, and the government’s motion should be denied.
The lawyers for CZ detailed that the ex-Binance boss “voluntarily flew” to the U.S. to appear before the court on Nov. 21 where he pleaded guilty. Zhao also stepped down as the CEO of Binance. “As part of this multi-agency resolution with the Department of Justice and the civil agencies, the company and Mr. Zhao will pay a historic sum of more than .3 billion, with Mr. Zhao paying a personal penalty of 0 million to the CFTC,” the legal team added. The government states in its motion that Mr. Zhao may “face up to 18 months in prison.”
After hearing from both sides, Judge Tsuchida ordered Zhao released and permitted to return home to the UAE based on bail conditions. The document describes:
Under the order, the bail conditions require that Mr. Zhao post a 5 million personal recognizance bond, secured by two guarantors with cash pledges of 0,000 and 0,000, respectively, and a third guarantor with real property located in Los Angeles, California, valued at more than million.
Do you think CZ should be able to return home to the UAE pending sentencing? Let us know in the comments section below.
Binance Blasts CFTC for Trying to Be World’s Derivatives Police, Seeks to Dismiss Lawsuit
Binance has submitted a new motion to dismiss the lawsuit filed by the U.S. Commodity Futures Trading Commission (CFTC) against it. The leading cryptocurrency exchange urges the court to reject the agency’s attempt to expand its territorial reach beyond the United States.
Binance Accuses CFTC of Using U.S. Lawsuit as a ‘Trojan Horse’ to Gain Global Regulatory Reach
The world’s largest digital assets exchange, Binance, has again tried to convince a U.S. court to dismiss the lawsuit in which America’s derivatives markets regulator alleged earlier this year that the crypto company had violated U.S. trading and derivatives rules.
The CFTC sued Binance and its CEO Changpeng Zhao (CZ) in March, claiming that at least since July 2019, the exchange had offered and executed commodity derivatives transactions on behalf of U.S. persons. Binance sought to dismiss the complaint in July which the Commission disputed in September.
In its latest filing, the crypto giant argues that the regulator’s response brief “confirms that the agency’s overreaching theories of its jurisdiction are unfounded,” accusing the CTFC of seeking to regulate foreign individuals and corporations that reside and operate outside the United States and ignoring the limits of the U.S. Commodity Exchange Act. Binance’s lawyers insisted:
Congress did not make the CFTC the world’s derivatives police, and the Court should reject the agency’s effort to expand its territorial reach beyond what is permitted by the law.
The crypto company pointed out that the CFTC has added new and broad arguments that would allow it to regulate any activity in cryptocurrency or other assets related to a derivatives product anywhere on the planet and that it has invented a new definition of a “U.S. person.”
“The Court should reject the CFTC’s effort to use its attack on the non-U.S. Defendants in this case as a Trojan horse in order to achieve worldwide regulatory reach—which would have consequences far beyond this case and not intended by Congress,” Binance warned. The exchange called for the lawsuit’s dismissal citing multiple reasons, including “impermissibly extraterritorial” claims.
has been under heightened regulatory pressure this year. In early June, entities operating the crypto trading platform and CZ were also sued by the Securities and Exchange Commission (SEC) for allegedly breaking U.S. securities laws. Binance is also reportedly being investigated by the U.S. Justice Department for suspected sanctions violations.
Do you think the U.S. court will accept Binance’s arguments to dismiss the CFTC’s lawsuit? Share your expectations in the comments section below.
Digital Currency Group Strikes Back: Motion to Dismiss Gemini’s Lawsuit Filed
Digital Currency Group (DCG) has filed a motion to dismiss the lawsuit brought against them by Gemini Trust Company, LLC. The motion, filed in the Southern District of New York, argues that Gemini’s allegations of fraudulent misrepresentations related to the Gemini Earn program are without merit and inadequately substantiated. DCG’s legal team asserts that the lawsuit lacks actionable evidence and calls for the court to dismiss the complaint.
Digital Currency Group Seeks Dismissal of Gemini Lawsuit, Citing Lack of Evidence and Inadequate Allegations
In the preliminary statement of the motion, DCG outlines Gemini’s claims related to the Gemini Earn program, formerly operated by Gemini in coordination with Genesis Global Capital, LLC (Genesis). DCG argues that Gemini’s allegations, aimed at holding DCG and Barry Silbert responsible for Genesis’s actions, are unfounded.
DCG’s motion further points out that Gemini’s allegations fail to adequately allege fraud by the defendants. The argument section of the motion elaborates that none of the statements made by the defendants are actionable and that the defendants are not liable for alleged misrepresentations by Genesis.
“Gemini argues that defendants aided and abetted Genesis’s alleged fraud through various corporate transactions and paperwork. This effort fares no better,” the letter supporting the motion to dismiss filing published on August 10, 2023, explains. “There are no well-pled allegations that Defendants had actual knowledge of any alleged fraud, and Gemini does no more than rely on Defendants’ corporate relationship with Genesis to argue otherwise.”
In addition to the lack of evidence for fraudulent actions, DCG’s motion accuses Gemini of failing to plead knowledge of the alleged fraud. They further dismiss Gemini’s accusations as baseless, criticizing the lack of substantial support for the claims. “The rest of the complaint is a hodgepodge of conclusory allegations against non-defendant Genesis,” DCG’s attorneys insist. The motion continues:
Gemini tries in various ways to hold defendants responsible for alleged misrepresentations by Genesis, but Gemini’s efforts to impute them to defendants fail as a matter of law. It is a settled principle of law that parents are not liable for the conduct of their subsidiaries, and Gemini does not even try to allege any theory of alter ego. Instead, it asserts that defendants are liable for not affirmatively correcting the alleged misstatements of Genesis.
Digital Currency Group’s response to the lawsuit comes after Gemini co-founder Cameron Winklevoss publicly announced legal action against DCG and CEO Barry Silbert. Gemini’s lawsuit seeks to recover damages and losses incurred as a result of alleged false and misleading representations by DCG and Silbert. At the time, DCG stressed that the lawsuit was simply “another publicity stunt from Cameron Winklevoss to deflect blame.”
What do you think about DCG’s motion to dismiss? Share your thoughts and opinions about this subject in the comments section below.
Elon Musk’s Lawyer Files Second Motion To Dismiss Dogecoin Class Action Lawsuit
In a continued legal battle over a class action lawsuit alleging Dogecoin insider trading, attorney Alex Shapiro, representing Tesla CEO Elon Musk, has once again requested the dismissal of the case.
This motion marks the second attempt by Musk’s legal team to put an end to the ongoing litigation, and as the legal battle escalates, drawing attention to the intricate interplay between cryptocurrency, high-profile figures, and legal accountability.
Strategic Move Amid Escalating Battle
The decision to file a second motion for dismissal underscores the determination of Elon Musk’s legal team to swiftly put an end to the protracted litigation. The lawsuit was initiated by a group of Dogecoin investors who claim Musk orchestrated market manipulation and insider trading to inflate the value of the popular meme cryptocurrency.
Attorney Alex Shapiro’s response to the investors’ complaint was sharp and pointed. He framed the latest filing as an example of lawyers overstepping their boundaries and utilizing aggressive litigation tactics. So in the filing, he moved a motion to disqualify sanctions.
In one of his statements, Shapiro stated ” Enough is enough” as the case has been a long-standing one. Musk’s legal team also emphasized the legality of his crypto-related statements, while the case has delved into the nebulous realm of social media influence in financial markets.
Evan Spencer, the lead attorney for the class action lawsuit, has relentlessly pursued Musk and the allegations against him. Spencer has now made a total of three amendments to the lawsuit since its initial filing in June of the previous year, seeking a staggering 8 billion in damages for investors claiming to have been defrauded by the Tesla CEO with his Dogecoin Pyramid Schemes.
Musk’s Relationship With Dogecoin
Dogecoin was designed originally in 2013 as a joke to tease Bitcoin but went from a “meme” to a substantial valuable asset in the cryptocurrency space during 2020 and 2021 especially.
Most of the meme coin’s growth was driven by billionaire Elon Musk, who actively promoted the altcoin to his over 100 million Twitter (Now X) followers at the time.
His initial tweet in April 2019, playfully endorsing Dogecoin as a potential favorite cryptocurrency, ignited a chain reaction that saw subsequent tweets by Musk triggering substantial price fluctuations.
“Dogecoin might be my fav cryptocurrency. It’s pretty cool” Musk tweeted at the time. Musk’s many tweets following this would continuously push DOGE’s price high, reaching as high as .7 before the bear market hit.
Since then, DOGE’s price has fallen over 90%, and the class action lawsuit emerged as a result of investors who believed they had fallen victim to a pyramid scheme after buying for high prices.
The elongated legal struggle holds significant implications for the cryptocurrency community and the broader financial world. With Musk’s legal team emphasizing the dismissal of the lawsuit, the outcome could set a precedent for legal battles involving influential figures in the cryptocurrency domain.
Musk appears to be unmoved as he promotes his newly acquired innovation, Twitter, now rebranded as X.