Pantera Capital founder Dan Morehead is under investigation by the US Senate Finance Committee for potentially exempting over $850 million in profits from US taxes after relocating to Puerto Rico. Morehead maintains he acted appropriately regarding his tax obligations.In Argentina, President Javier Milei faces fraud charges for promoting the crypto asset Libra, which saw a brief surge in value before plummeting over 94%, leading to accusations of a pump-and-dump scheme. Meanwhile, the SEC has requested an additional 28 days to respond to Coinbase’s appeal in an ongoing lawsuit, while its new crypto task force is engaging with industry representatives to discuss regulatory issues. SEC Commissioner Hester Peirce stated that memecoins like Official Trump fall outside the agency’s jurisdiction, as significant losses were reported by investors.
about Tax Probes and Fraud Charges Impacting Crypto and Financial MarketsSullivan & Cromwell
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FTX Bankruptcy Managers Face Scrutiny Over Excessive Spending and Scams
FTX creditor Lidia Favario has raised alarms over the extravagant spending by bankruptcy managers, citing excessive expenses on luxury accommodations and transportation that contradict DOJ guidelines. She urged the court to enhance expense reviews to ensure accountability, as many creditors have suffered significant losses. Additionally, creditor Sunil Kavuri warned of scam emails targeting FTX creditors, advising them to rely solely on the official claims portal for updates, as repayments are not expected before March 2025.
about FTX Bankruptcy Managers Face Scrutiny Over Excessive Spending and ScamsFTX Investors Dismiss Lawsuit Against Law Firm Sullivan and Cromwell
FTX investors have voluntarily dismissed their class-action lawsuit against law firm Sullivan & Cromwell, citing insufficient evidence to support claims of civil conspiracy and fraud. Lead counsel Adam Moskowitz expressed optimism that this decision will facilitate recovery efforts for victims from other responsible parties. The dismissal follows the approval of FTX’s reorganization plan, which aims to repay creditors approximately 119% of their claimed account value.
about FTX Investors Dismiss Lawsuit Against Law Firm Sullivan and CromwellCrypto Bankruptcies Generate 751 Million Dollars in Legal Fees for Law Firms
Crypto bankruptcies have generated $751 million in legal fees for law firms, with Sullivan & Cromwell leading at $215 million. Kirkland & Ellis, White & Case, and Cleary Gottlieb also earned significant amounts, collectively accounting for 64% of the total fees. Ongoing cases include FTX and Terraform Labs, with FTX’s confirmation hearing set for October.
about Crypto Bankruptcies Generate 751 Million Dollars in Legal Fees for Law FirmsBinance Plans Major Hiring Push to Strengthen Compliance Team by 2024
Binance plans to hire 1,000 new employees this year, focusing heavily on compliance roles, aiming to expand its compliance team from 500 to 700 by the end of 2024. CEO Richard Teng revealed that the company will allocate over $200 million for regulatory compliance, responding to a surge in law enforcement inquiries.The exchange recently faced significant regulatory challenges, including a $4.3 billion fine approved by a US judge as part of a plea agreement with the DOJ for compliance failures. Binance is also under ongoing compliance monitoring by US authorities while resuming operations in India and settling with Brazil’s SEC.
about Binance Plans Major Hiring Push to Strengthen Compliance Team by 2024Binance Increases Compliance Spending and Workforce Amid Regulatory Challenges
Binance plans to significantly increase its compliance spending, surpassing Ripple’s costs in its SEC lawsuit, as it hires 1,000 new employees this year, with 700 focused on compliance roles by 2024. CEO Richard Teng emphasized the importance of regulatory adherence amid rising costs from U.S. agencies, following a $4.3 billion penalty for money laundering violations. The crypto industry faces substantial compliance expenses, reflecting ongoing regulatory challenges and a push for clearer guidelines.
about Binance Increases Compliance Spending and Workforce Amid Regulatory ChallengesBinance Settles with U.S. Authorities, Microsoft’s Game Pass Expansion, and More
Binance settles with U.S. authorities for $4.3 billion, appoints compliance monitors. Microsoft to include ‘Call of Duty’ in Game Pass. GameStop plans stock sale amid declining revenue. Elon Musk’s X.com rebrands away from Twitter. UAW awaits results of Mercedes vote in Alabama. Microsoft’s partnership with Mistral AI cleared by U.K. regulator. Skechers sees boost in retail partner sales. Tencent’s top shareholder appoints new AI-focused CEO. Alibaba shares rise on positive investor outlook. CoreWeave secures $7.5 billion in debt for AI computing push.
about Binance Settles with U.S. Authorities, Microsoft's Game Pass Expansion, and MoreUS Justice Department Appoints Forensic Risk Alliance to Monitor Binance
The U.S. Department of Justice has appointed Forensic Risk Alliance to monitor Binance Holdings’ compliance with a plea agreement, following investigations into money-laundering violations and trade sanctions. Binance will be under surveillance for three years, with FRA gaining access to internal records and facilities. Meanwhile, Sullivan & Cromwell is expected to be appointed by the Treasury Department’s Financial Crimes Enforcement Network for a separate monitorship on Binance.
about US Justice Department Appoints Forensic Risk Alliance to Monitor BinanceFTX to Auction Off Remaining Solana Tokens Amid Bankruptcy Proceedings
Bankrupt FTX plans to auction off its remaining Solana tokens, SOL, after facing dissatisfaction from creditors over direct sales. The auction, set for Wednesday, aims to attract interest from firms like Figure Markets, offering a chance for retail investors and creditors to participate with a minimum investment of $5,000. This move comes after the bankruptcy estate’s previous direct sales resulted in a 67% discount from the token’s value, sparking concerns about undervaluing FTX’s assets.
about FTX to Auction Off Remaining Solana Tokens Amid Bankruptcy ProceedingsFTX Estate Auctions Solana Tokens Using Blind Auction Method
FTX estate is auctioning off Solana (SOL) tokens through a blind auction method to maximize returns and promote fairness. The move has faced legal challenges and criticisms, with creditors alleging undervaluation of assets and blaming discounted token sales for decreasing market value. The auction aims to involve small investors and ensure democratic participation.
about FTX Estate Auctions Solana Tokens Using Blind Auction Method