The court case might have a decisive influence on the legal classification of NFTs.
NYDFS adopts regulation to assess supervisory costs for licensed crypto firms
Since 2015, crypto firms operating in the state of New York have largely been required to apply for a BitLicense to offer services.
NY Financial Regulator Adopts Virtual Currency Assessment Rule
The New York Department of Financial Services (NYDFS) has adopted a new regulation for how crypto companies will be assessed for costs associated with their supervision.
U.S. Bitcoin Corp. Expected to Settle With City to Resume Mining in Niagara Falls
The firm is currently trying to complete a merger with Canadian Hut 8 Mining.
NYDFS Chief Dismisses ‘Choke Point 2.0’ Theory of Signature’s Closure as ‘Ludicrous’
Signature Bank’s takeover last month was not a part of any so-called “Operation Choke Point 2.0,” according to Adrienne Harris, superintendent of the New York Department of Financial Services (NYDFS), who called the idea “ludicrous.”
Trump NFT Sales Spike Following Ex-President’s Arraignment in New York
In the hour after the 45th President was arrested Tuesday afternoon, the collection saw 30 sales, a 462% increase after a long period of token-holder dormancy.
Sam Bankman-Fried to propose revised bail package ‘by next week’
The move comes after a judge expressed displeasure about SBF’s use of encrypted-messaging apps and virtual private network services while on bail.
Former NY Regulator: Crypto Isn’t the Reason Why Signature Bank Was Closed
But instead, the firm did not provide reliable and consistent data, creating a significant crisis of confidence in the bank’s leadership, Maria Vullo, previously a superintendent at the government department, told CoinDesk TV’s “First Mover.”
Illinois Officials Pushing State Crypto Licensing to Emulate New York’s BitLicense
Illinois is trying to follow in New York’s crypto footsteps with a new oversight regime, according to David DeCarlo, Illinois’ first regulatory innovation officer, who is among the prominent advocates for the plan now being shepherded through the state legislature.
CoinEx crypto exchange sued by New York for failing to register with state
The NY Attorney General is looking for a court order to remove the exchange from the state and wants it to block all internet addresses originating from New York.
NY Attorney General Sues Crypto Exchange CoinEx, Alleges AMP, LBC, LUNA and RLY Tokens Are Securities
The New York State Attorney General’s office sued crypto exchange CoinEx, arguing it was an unregistered securities broker and commodity broker-dealer under state law.
Paxos ‘categorically disagrees’ with the SEC that BUSD is a security
Paxos said it will engage with the US securities regulator on the matter and is prepared to “vigorously litigate if necessary.”
London emerges as world’s most crypto-ready city for business — Research
An examination of eight key data points determined London to sport the highest crypto readiness to entice businesses and start-ups.
Former FTX Boss Sam Bankman-Fried Using Privacy Messaging App Signal
Federal prosecutors of the Southern District of New York overseeing the current case against Sam Bankman-Fried, the disgraced founder and former CEO of FTX, want the court to impose tighter bail conditions on the defendant.
SBF Using Signal
Based on their investigations, they discovered that Sam Bankman-Fried, also known as SBF, had messaged the general counsel of FTX US via Signal.
Signal is a messaging app similar to WhatsApp. The platform offers instant messaging across platforms, allowing people to communicate privately. Signal creators’ primary focus is on security and privacy. The application is run as a non-profit managed by a foundation. Over 40 million people use it, and per court filings, SBF is one of them.
Investigators said messages sent to the general counsel of FTX US, an individual who can be a potential witness in the ongoing criminal case against SBF, were “suggestive of an effort to influence a witness’ potential testimony.”
On January 15, SBF, prosecutors say, messaged the general counsel asking if they could “reconnect” and “if there’s a way for (for them) to have a constructive relationship, use each other as resources.”
Investigators claim these messages are concerning because, considering the nature of the current investigation, the general counsel might have access to information that might help indict the defendant.
For his action, federal prosecutors are asking the overseeing judge to prevent SBF from communicating with former employees and to stop using Signal. His continued communication would be contrary to the bail terms.
Even in his house arrest, the former CEO continues to receive visitors. For instance, there are reports that author Michael Lewis visited SBF. He is writing a book about the crypto entrepreneur.
The Collapse Of FTX
SBF managed FTX, an exchange that was at one point one of the most liquid in the world, only after Binance and Coinbase, since launch. However, it later emerged that through Alameda Research, SBF was misusing user funds to recklessly trade, invest in crypto projects, and donate to U.S. political parties.
Falling crypto prices also accelerated the collapse.
Following the collapse of FTX and the revelation of the extent of SBF’s misappropriation, U.S. authorities are charging the 30-year-old with, among others, money laundering, fraud, and campaign finance violation.
SBF is out on a $250 million bond and has pleaded not guilty to all the charges against him. Apart from the various interviews he did earlier before his arrest, it has emerged that the former CEO has begun mounting a defense of his own. Recently, it was revealed that he had been laying out his turn of events leading to the collapse of FTX on Substack, a media platform.
NYDFS advises crypto firms not to commingle user and corporate funds in the event of insolvency
“A VCE’s customer agreement should make clear the parties’ intentions to enter into a custodial relationship, rather than a debtor-creditor relationship,” said the NYDFS.
Law Decoded, Jan. 9-16: Gemini, Bithumb, Nexo are fresh targets for regulation and prosecution
While the FTX saga continues to make headlines, last week brought a plethora of new troubles for crypto companies in the United States, Europe and Asia.
NY AG files lawsuit against Alex Mashinsky, alleging he hid Celsius’ ‘dire financial condition’
Alex Mashinsky’s actions leading up to Celsius declaring bankruptcy allegedly contributed to investor losses by misrepresenting the platform’s financial condition to investors.
Coinbase agrees to $100M settlement with NY regulator
Regulators reported that the crypto exchange had a backlog of 100,000 alerts about potentially suspicious customer transactions.
FTX paid $12M retainer to a New York law firm before bankruptcy filing
Sullivan & Cromwell LLP (S&C), a law firm headquartered in New York City, received $12 million from West Realm Shires Services Inc. on behalf of FTX for legal services.
Judge pulls out of SBF-FTX case citing husband’s law firm’s advisory link
Judge Abrams’ withdrawal from the FTX case eradicates any conflict of interest in the FTX case because Andres continues to serve as a partner at Davis Polk & Wardwell, a law firm that advised FTX in 2021.