With Renewed Lawsuits And New Chaos, Cryptocurrency Is Ringing In The New Year

January

7

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Alex Mashinsky, the co-founder and former CEO of the cryptocurrency loan platform Celsius, filed for Chapter 11 bankruptcy in July 2022. The case that it filed was the target of a lawsuit brought by the New York Attorney General on Thursday.

According to the attorney general, Mashinsky scammed investors out of billions of dollars worth of cryptocurrencies. This statement followed a bankruptcy judge’s decision on Wednesday that, due to its small print, Celsius owns its customers’ interest-bearing cryptocurrency accounts.

Sam Bankman-Fried, the former CEO and creator of FTX, entered a not-guilty plea to each of the eight allegations against him on Tuesday.

Most people weren’t overly surprised by the statement because they knew he would enter a not-guilty plea; nonetheless, this action may result in a protracted legal dispute. 

In the event of a conviction on all counts, Bankman-Fried may spend up to 115 years behind bars. His trial date has been scheduled for October 2, 2023, so stay alert.

Another significant development was the $100 million settlement struck by Coinbase after New York financial regulators discovered that the cryptocurrency exchange had broken anti-money laundering regulations by failing to do sufficient background checks.

As previously noted, New York banking officials determined that the well-known bitcoin exchange Coinbase broke anti-money-laundering regulations by failing to carry out sufficient background checks. 

In addition to paying the New York State Department of Financial Services a $50 million fine, Coinbase must also invest $50 million in enhancing its compliance procedures.

According to a 45-page petition from the U.S. Bankruptcy Court Southern District of New York on Wednesday, the judgment grants Celsius possession of the $4.2 billion in cryptocurrencies invested into its high-interest Earn program. 

As of July 10, 2022, Celsius has around 600,000 accounts enrolled in its Earn program, with a total account value of about $4.2 billion, according to the filing. The stablecoin portion of that worth was about $23 million. But the judge decided that everything was now the property of the estate or Celsius.

Sam Bankman-Fried, the former CEO of FTX, pleaded not guilty to several federal fraud charges, which some legal experts said was a tactical move. 

According to Anthony Sabino, a legal professor at The Peter J. Tobin College of Business at St. John’s University, Bankman-Fried entered a not-guilty plea because he had every right to do so. And that was a wise move.

Some people believe that 2023 will mark the beginning of an economic winter and venture winter, while others believe that by the middle of the year, everything will have stabilised and will be returning to normal. Who is to say, though? 

We solicited the opinions of more than 35 investors to see how they viewed the upcoming year and what plans they had.

The price of Solana (SOL) dropped last week to its lowest level since February 2021. However, some attribute its tiny price increase this week to the Solana community’s interest in Bonk. 

According to data from CoinGecko, the Shiba Inu-themed coin has increased by roughly 43.7% during the last day.

About the author, Awais Rasheed

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