A court in China has ruled in favor of Justin Sun in his defamation lawsuit against the Chongqing Business Media Group. In its verdict, the court stated that claims of Sun’s involvement in insider trading, fraud, and money laundering were “entirely unsubstantiated.” The Chongqing Business Media Group subsequently removed all of its false content and […]
Bitcoin News
Landmark Federal Case: Jury Declares Crypto Price Manipulation as Securities Fraud
In a landmark federal case, two men were sentenced for manipulating the price of a cryptocurrency and defrauding investors, marking the first instance where “a jury in a federal criminal trial found that a cryptocurrency was a security and that manipulating cryptocurrency prices was securities fraud,” said the head of the Justice Department’s Criminal Division. […]
Bitcoin News
Binance CEO Sees 2024 as a ‘Landmark Year’ for Crypto
Binance CEO Richard Teng described 2024 as a “landmark year” for the cryptocurrency industry in an interview with Bloomberg on Thursday. He cited enhanced regulatory clarity, broader mainstream acceptance, and the introduction of bitcoin spot exchange-traded funds (ETFs). “The momentum continues to be very strong, which is a very encouraging sign for us … Other […]
Bitcoin News
Landmark Ruling: Crypto Dealings Not Illegal in India, Says High Court
The Orissa High Court in India ruled that cryptocurrency dealings are not illegal under Indian law. This decision arose from a case involving individuals accused of fraud through a Ponzi scheme. Justice Sasikanta Mishra clarified that cryptocurrency is not considered money under the Prize Chits and Money Circulation Schemes (Banning) Act or a deposit under […]
Bitcoin News
Senate Urged to Pass Landmark Crypto Bill After Biden Vetoes Resolution to Overturn SEC Rules
Following President Joe Biden’s veto of the resolution to overturn the U.S. Securities and Exchange Commission (SEC)’s controversial crypto rules in SAB 121, U.S. lawmakers in both the Senate and House of Representatives have intensified their efforts to pass the landmark crypto bill, the Financial Innovation and Technology for the 21st Century (FIT21) Act. ‘Senate […]
Bitcoin News
House Passes Landmark Crypto Bill Marking ‘Historic Day’ for Americans
The U.S. House of Representatives has approved the Financial Innovation and Technology for the 21st Century (FIT21) Act for the regulation of crypto assets despite opposition from President Joe Biden and SEC Chair Gary Gensler. This landmark legislation secured a bipartisan approval with a vote of 279 to 136. “FIT21 is the first legislation of […]
Bitcoin News
Oklahoma Enacts Landmark Bill to Regulate Digital Assets, Protect Bitcoin Rights, Foster Crypto Innovation
The governor of the U.S. state of Oklahoma has approved House Bill 3594, a landmark bill that protects bitcoin rights and fosters cryptocurrency innovation. The legislation addresses the regulation and promotion of blockchain technology and cryptocurrency in the state. The bill defines key terms such as blockchain, blockchain protocol, and digital assets, which include virtual […]
Bitcoin News
US Regulatory Clarity for Crypto: Landmark Legislation FIT21 Act Heads to House Vote
The House Committee on Rules has decided to review the Financial Innovation and Technology for the 21st Century (FIT21) Act, paving the way for a floor vote later this month. The legislation sets a path for enhanced regulatory clarity in the U.S. crypto ecosystem, balancing robust consumer protections with the needs of a burgeoning digital […]
Bitcoin News
Revolutionizing Data Ownership: DOP Secures $162 Million in Landmark Token Sale Ahead of Mainnet Launch
PRESS RELEASE. In an unprecedented demonstration of community support and market confidence, DOP (Data Ownership Protocol) has successfully raised 2 million through its recent token sale. This remarkable achievement not only underscores DOP’s innovative approach to data ownership but also positions it among the top 10 token sales in the history of cryptocurrency. DOP’s journey […]
Bitcoin News
Judge Grants Summary Judgment for SEC in Landmark Crypto Case Against Terraform Labs
In a definitive ruling, U.S. District Judge Jed Rakoff favored the Securities and Exchange Commission (SEC) in the multi-billion-dollar fraud case involving Terraform Labs and its founder, Do Kwon. Rakoff noted that the Howey test criteria were satisfied for a range of Terra-related assets and additionally stated that there is “no genuine dispute that UST, LUNA, WLUNA, and MIR are securities because they are investment contracts.”
Judge Determines Terra-Related Crypto Assets Are Securities, Satisfying Howey Test
Nine months after the Terra blockchain’s implosion, the U.S. securities regulator charged Terraform Labs and its CEO, Do Hyeong Kwon, with fraud. The SEC accused Terraform Labs and Kwon of orchestrating a vast fraud involving the sale of various crypto assets, including unregistered securities and deceptive security-based swaps.
Central to the controversy was the SEC’s claim that Terraform’s UST crypto asset was falsely marketed as being pegged to through a self-stabilizing algorithm, hiding the reality of third-party intervention. Additionally, Terraform was accused of falsely claiming a Korean mobile payment application, Chai, processed transactions using its blockchain, a claim later reportedly found to be replicated and not genuine.
Both parties presented expert witnesses to bolster their cases. The SEC’s experts, Dr. Bruce Mizrach and Dr. Matthew Edman, faced the defendants’ experts including Dr. Terrence Hendershott, Mr. Raj Unny, and Dr. Christine Parlour. After a comprehensive Daubert hearing, the court rejected the defendants’ experts, Mr. Unny and Dr. Parlour, but allowed Dr. Mizrach and Dr. Edman to testify. Judge Rakoff provided a clear verdict, granting summary judgment in favor of the SEC on the critical issue of unregistered securities offered and sold by the defendants.
Rakoff, however, granted judgment for the defendants on transactions involving unregistered security-based swaps, leaving a nuanced perspective of the situation. To some, Rakoff’s decision signifies a pivotal juncture at the crossroads of legal frameworks and cryptocurrency. The announcement comes after the SEC and the involved parties settled on confidential submissions. Rakoff sanctioned the protective order, thereby classifying certain documents in the legal action as confidential.
What do you think Rakoff’s decision in the SEC case against Terraform Labs and Do Kwon? Share your thoughts and opinions about this subject in the comments section below.