Bitfarms Ltd., a global bitcoin mining company, has announced the immediate termination of Geoffrey Morphy as president and CEO, along with his removal as a director. Following his dismissal, Morphy filed a lawsuit against the company, seeking million in damages for alleged breach of contract and wrongful dismissal. Bitfarms is set to defend against […]
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Ripple Seeks Court Approval to Seal Sensitive Documents in SEC Lawsuit
Ripple Labs has filed a motion to seal remedy documents in its ongoing litigation with the U.S. Securities and Exchange Commission (SEC). Ripple argues that these documents contain sensitive information, including proprietary business strategies, financial data, and internal communications. Public access to this information could give competitors an unfair advantage and damage Ripple’s market position. […]
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Class Action Lawsuit Claims Coinbase Operates as Unregistered Broker
A new class action lawsuit was initiated against the San Francisco-based cryptocurrency exchange Coinbase on May 3. The legal action claims that Coinbase deliberately sold securities that are unregistered with regulatory authorities. Additionally, the lawsuit charges Coinbase with operating as an unregistered securities broker. Lawsuit Alleges Coinbase Illegally Sold Securities Without Registration According to legal […]
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Ripple Vs. SEC Update: Is The Lawsuit Finally Coming To An End With A Settlement?
The legal battle between Ripple and the Securities and Exchange Commission (SEC) is getting heated and, following recent developments, looks far from over. This is due to the disagreement between both parties on the appropriate remedy for Ripple’s violation of securities laws.
Ripple Proposes Million Fine Instead
In opposition to the SEC’s motion for remedies and entry of final judgment, Ripple has proposed that the court should not impose a civil penalty of not more than million. This figure represents a far cry from the SEC’s proposed judgment. The Commission had earlier asked the court to order Ripple to pay the sum of ,950,768,364 as a pecuniary fine for violations relating to its institutional XRP sales.
Specifically, the SEC proposed that Ripple pay a civil penalty of 6,308,712 alongside a prejudgment interest of 8,150,940 and disgorgement of 6,308,712, which represents the profits from its violation of the Securities Act. However, Ripple asked the court to deny the requests for disgorgement and pre-judgment interest and only focus on the civil penalty, which shouldn’t be more than million.
Ripple’s lawyers also laid out arguments as to why the civil penalty should not exceed million. Firstly, they stated that the first tier of the statutory maximum penalties is what applies to this case “because the SEC has never alleged fraud, deceit, or manipulation and has failed in its belated attempt to show that Ripple recklessly disregarded the law.”
Therefore, Ripple argued that the Commission’s request for a civil penalty of over 6 million isn’t the appropriate remedy for the first-tier structure. They added that the company’s revenue from pre-complaint institutional sales should be the only earnings considered when deciding on a remedy, which makes a civil penalty of not more than million more appropriate.
Accounting Error From The SEC
Ripple suggested that the SEC made an error in calculating the company’s earnings while deciding on the right amount for which the crypto firm should be fined. According to the company’s lawyers, the Commission failed to “analyze or even consider any other categories of Ripple’s expenses.”
Meanwhile, they allege that the SEC didn’t offer any evidence or explanation “for why cost if revenue is the only category of Ripple’s deductible expenses.” Simply put, Ripple argues that the regulator, while calculating Ripple’s earnings, didn’t consider how much the company expended before deciding that almost billion was an appropriate fine.
Ripple’s lawyers made this argument while stating that the SEC also erred in relying on the declaration of Andrea Fox, an accountant at the agency. They claim that the SEC never disclosed Fox as a fact or expert witness and that she wasn’t deposed during the initial discovery or supplemental remedies discovery. Therefore, they moved to strike her declaration as an “untimely disclosed expert report.”
Ripple Also Opposes SEC’s Proposed Injunction
As part of its entry for final judgment, the SEC had asked the court to “permanently” restrain and enjoin Ripple from “directly or indirectly conducting an unregistered offering of Institutional Sales.” Understanding how this could affect their ODL transactions, Ripple has asked the court to deny the request for an injunction.
The crypto firm argues that the Commission has failed to show why an injunction is warranted. Injunctions are usually granted when there is a fear of future violations. Ripple claims that the SEC has failed to show a “reasonable likelihood of future violations.”
The crypto firm’s lawyers further revealed that Ripple has “changed the way it sells XRP and changed its contracts to avoid any future violations.” To show good faith, they submitted a declaration by Ripple’s President, Monica Long, which describes the steps the company has taken to avoid future violations.
SEC Amends Lawsuit Against Tron Founder, Asserting US Jurisdiction
The United States Securities and Exchange Commission (SEC) has filed an amended lawsuit against Tron founder Justin Sun, claiming he spent a significant amount of time in the U.S., thus granting the SEC jurisdiction over him and his businesses. The SEC alleges that Sun’s extensive travel within the U.S., totaling at least 380 days between […]
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Uniswap Bloodbath: UNI Price Crashes 16% On SEC Lawsuit Fears
The US Securities and Exchange Commission (SEC) has served a Wells Notice to Uniswap, a leading decentralized exchange (DEX). This pre-enforcement notice, a precursor to potential legal action, triggered a plunge in Uniswap’s native token, UNI.
At the time of writing, UNI was trading at .37, down 16.2% in the last 24 hours, data from Coingecko shows. The crypto has also sustained a 15% loss in the last seven days.
Uniswap Whales Seek Safer Shores
The news of the SEC’s looming action acted as a fire alarm for Uniswap’s biggest investors. On-chain data analysts at Lookonchain reported significant market movements, with three large whales shedding a staggering 2.03 million UNI tokens – a cool million vanishing from the Uniswap ecosystem within hours.
The wallets offloaded a combined 1.25 million UNI, potentially profiting by .5 million if they sold at current market prices. These tokens, interestingly, originated from a Binance transfer in March 2023, hinting at a potential strategy of holding on the exchange until the regulatory clouds cleared.
Another whale liquidated over 472,000 UNI for a quick .6 million USDC payout, netting a cool .67 million in profit. The fire sale wasn’t limited to these three giants – six other whale-sized wallets collectively moved 316,400 UNI tokens to Binance, valued at roughly .15 million. This mass exodus of heavyweight investors exacerbated the downward spiral of UNI’s price, leaving retail investors scrambling to assess the situation.
whitzardflow.eth was liquidated 107,010 $UNI(M) 1 hour ago.
He bought 262,045 $UNI(M) from Mar 1 to Mar 13 at .42 and deposited it into #Aave, then borrowed .8M of stablecoins.
Due to the decrease in $UNI price, he was liquidated 107,010 $UNI(M) to repay the debt and… pic.twitter.com/6mRg8sL3YE
— Lookonchain (@lookonchain) April 11, 2024
Uniswap Founder Vows To Fight, DeFi Future Uncertain
Uniswap founder Hayden Adams reacted swiftly and fiercely to the SEC’s move. In a fiery statement posted on the X platform, Adams condemned the SEC’s approach, accusing them of prioritizing opaque, legacy financial systems over the interests of consumers.
Today @Uniswap Labs received a Wells notice from the SEC.
I’m not surprised. Just annoyed, disappointed, and ready to fight.
I am confident that the products we offer are legal and that our work is on the right side of history. But it’s been clear for a while that rather than…
— hayden.eth
(@haydenzadams) April 10, 2024
He emphasized the need to defend Uniswap and the broader DeFi industry, underscoring the potential of decentralized finance to revolutionize financial inclusion.
The Wells Notice marks the beginning of what could be a long and arduous legal battle. Adams acknowledged the possibility of a years-long fight, highlighting the immense stakes involved.
The outcome of this clash, he argued, could significantly impact the future trajectory of DeFi and the entire cryptocurrency landscape.
Related Reading: From Hat To Heights: Dogwifhat’s Crypto Leap Electrifies Investors
Crypto Market Braces For Regulatory Storm
Investors are now grappling with the specter of increased regulatory scrutiny for DEXs, a sector that has thrived on its permissionless nature. The uncertainty surrounding Uniswap’s legal status has cast a shadow over investor confidence, raising concerns about the potential devaluation of their holdings.
Ripple CEO Expects SEC to Lose Against Ethereum, Mirroring XRP Lawsuit Outcome
Ripple’s chief executive believes the U.S. Securities and Exchange Commission (SEC) will be unsuccessful in classifying ether as a security, similar to how the agency lost its legal battle, for the most part, against XRP. Noting that the SEC has been “losing badly in courts” against crypto firms, the Ripple CEO stated: “At what point […]
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Report: DCG, Barry Silbert Seek Dismissal of NYAG Lawsuit, Citing ‘Baseless Innuendo’ and Integrity in Operations
Digital Currency Group (DCG) has submitted a request to the court to drop the legal action taken against it by New York Attorney General Letitia James. DCG argues that it’s “wrongfully” depicted and maintains that the lawsuit is nothing but a “thin web of baseless innuendo.” DCG Challenges NYAG’s Legal Action Last year, the New […]
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Texas Blockchain Council and Riot Secure Legal Victory in Bitcoin Mining Data Collection Lawsuit
In a landmark ruling, the Texas Blockchain Council (TBC) and Riot Platforms Inc. have triumphed in their lawsuit against the Biden administration, successfully halting the data collection efforts on bitcoin mining operations. TBC and Riot Platforms Win Case Against Bitcoin Mining Data Survey The United States District Court for the Western District of Texas has […]
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Crypto Exchange Kraken Shares ‘Real Story’ of SEC Lawsuit — Claims SEC Seeks ‘Boundless Authority’ Over Commerce
Cryptocurrency exchange Kraken has shared what it called “the real story” of the lawsuit against it by the U.S. Securities and Exchange Commission (SEC). Kraken also explained why it is moving to dismiss the case. “Crypto innovators in the United States should not have to fear retaliation for their political speech. They should be free […]
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