US Authorities Are Going After These Crypto Entities

As a seasoned crypto investor with a decade of experience under my belt, I’ve witnessed firsthand the escalating tensions between the U.S. regulatory agencies and the crypto industry. The government’s recent crackdown on various entities has left many in our community feeling uneasy and uncertain about the future.

Through the years, various crypto companies have faced regulatory actions from U.S. authorities, requiring them to adhere to specific regulations regarding their offerings.

Although the number of notable instances is substantial, certain cases have garnered particular attention. For instance, there have been legal disputes involving decentralized exchanges such as Uniswap, cryptocurrency tumblers including Tornado Cash, and larger entities like Binance and Coinbase.

The U.S. Fights Crypto

Last year saw a heightened effort from the US government in its crackdown on crypto entities. Within just two days in early June, the Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, the two largest cryptocurrency exchanges globally and domestically. The charges levied against these entities were consistent: failure to register as brokers, securities exchanges, clearing agencies, and violation of US securities legislation.

Approximately two months following the lawsuits against Binance and Coinbase, the Department of Justice (DOJ) brought charges against the co-founders of Tornado Cash. The DOJ alleged that they had facilitated the laundering of over $1 billion in ill-gotten gains. This action came a year after the Office of Foreign Assets Control had imposed sanctions on Tornado Cash due to its connections with criminal cybergroups.

At the close of last year, the SEC filed lawsuits against Kraken for similar allegations it levied against Binance and Coinbase. Simultaneously, the DOJ indicted Binance and its head, Changpeng Zhao (CZ), for knowingly flouting the Bank Secrecy Act. The ensuing case resulted in a $4.3 billion penalty for Binance, and CZ stepped down as CEO with a personal penalty of $50 million.

The War Against DeFi

In March 2024, I discovered that the Department of Justice (DOJ) accused crypto exchange KuCoin and its founders of breaching the Bank Secrecy Act and running an unlicensed money-transmitting business.

Last month, the Securities and Exchange Commission (SEC) announced its intention to sue Uniswap Labs, the entity managing the largest decentralized cryptocurrency exchange, Uniswap. The reasons behind this legal action have not been made public yet. Simultaneously, Consensys, a blockchain technology firm, was issued a Wells Notice by the SEC. This notice indicates that the agency is considering taking enforcement action against Consensys for alleged securities law violations related to its MetaMask wallet.

In the same month, the Department of Justice (DOJ) took into custody and charged the creators of privacy-conscious bitcoin wallet Samourai for facilitating over $100 million worth of laundered funds. As a result, the company’s services were suspended, and their websites were seized. Moreover, the DOJ apprehended early Bitcoin investor Roger Ver, also known as Bitcoin Jesus, on tax evasion charges amounting to approximately $50 million.

As a researcher studying the cryptocurrency industry, I’ve come across an intriguing development: the Securities and Exchange Commission (SEC)’s legal action against Ripple. This landmark case is shedding much-needed light on the classification of crypto assets as securities.

2024-05-05 12:16

US Authorities Are Going After These Crypto Entities

The U.S. Fights Crypto

The War Against DeFi

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