SEC demands $2 billion from Ripple as Bitcoin surges above $70,000 | Weekly Summary
Last week, the cryptocurrency industry experienced significant legal developments, including the sentencing of FTX founder Sam Bankman-Fried, the U.S. SEC’s demand for $2 billion from Ripple, and an indictment against KuCoin. Meanwhile, Bitcoin (BTC) surged past $70,000, with spot BTC ETFs attracting inflows.
Sam Bankman-Fried, the founder of FTX, has been sentenced to 25 years in prison. Prior to the sentencing, the U.S. Department of Justice (DoJ) presented a document containing 52 statements from victims of the FTX collapse, highlighting the harm caused by the company’s former CEO.
The U.S. SEC has filed its opening brief for the remedies discovery phase of the SEC vs. Ripple lawsuit. The court previously ruled that Ripple did not violate securities laws in its SEC sales, except for past sales to institutions. In the remedies phase, the SEC has requested a $2 billion fine against Ripple for sales totaling nearly $800 million to institutions. Ripple is expected to respond to the SEC’s demand next month. The company’s executives, including CLO Stuart Alderoty and CEO Brad Garlinghouse, have criticized the SEC’s demands.
KuCoin has come under scrutiny as the U.S. Justice Department, in collaboration with the CFTC, has filed charges against the exchange for facilitating money laundering transactions. The charges also extend to KuCoin’s co-founders, accusing the exchange of allowing U.S. citizens to use its platform for transactions without sufficient AML and KYC requirements. Following the charges, customers withdrew $350 million worth of Ethereum (ETH) and stablecoins within 24 hours. KuCoin has assured its customers of the safety of their assets and has made organizational changes to prioritize its U.S. compliance team.
CFTC commissioner Caroline Pharm has publicly criticized her agency for the charges against KuCoin, suggesting a possible overreach by the commodities and futures regulatory agency. In another regulatory issue, the SEC’s lawsuit against Coinbase has made headlines. The court has granted Coinbase’s motion to dismiss the charges related to its Wallet and Staking projects but denied the motion regarding its crypto exchange offerings. Both parties will present their arguments in the legal case.
The conflict between Binance executives Nadeem Anjarwalla and Tigran Gambaryan and Nigeria continues. Anjarwalla, Binance’s regional officer for Africa, reportedly escaped from Nigeria on March 22. In a surprising turn of events, the two detained Binance executives have sued the Nigerian authorities in a local court, claiming violations of their rights and demanding their release, the return of their passports, and a public apology. Binance is also facing regulatory issues in Southeast Asia, as the Filipino SEC has obtained approval to block local access to Binance’s websites from the National Telecommunications Commission of the Philippines.
The crypto market experienced a resurgence of bullish sentiment after a period of bearishness. The inflows into spot Bitcoin ETFs contributed to this positive sentiment. On March 25, these investment products recorded $15 million in net inflows, ending a 5-day losing streak. The trend continued on March 26, with inflows of $418 million. On March 27, spot BTC ETFs saw a third consecutive day of inflows for the week, totaling $214.5 million. The ARK 21Shares Bitcoin ETF had the highest inflows, reaching a record high of $200 million. As a result, Bitcoin broke above $70,000, rallying 5.4% to reach $70,500 on March 26.
In conclusion, last week marked significant legal developments in the cryptocurrency sector, with FTX founder Sam Bankman-Fried receiving a 25-year sentence, the U.S. SEC demanding $2 billion from Ripple, and charges being filed against KuCoin. Additionally, Bitcoin reclaimed $70,000 as spot BTC ETFs saw inflows, sparking a resurgence of bullish sentiment.
