✔️ Information reviewed and updated in September 2024 by Eduardo López
Legal Perspectives for Big Crypto Names: Binance, Coinbase, FTX and Kraken under Judicial Magnifying Glass
The year 2024 is shaping up to be a crucial period for the cryptocurrency universe, marked not only by the expected Bitcoin halving in April, but also by a series of pending lawsuits that will impact prominent companies in the crypto ecosystem, both in the United States and in other jurisdictions.
In the previous year, the sector witnessed the largest cryptocurrency court case to date and a multi-million dollar settlement between the market's main exchange and US regulators. However, 2024 promises new legal battles that could redefine regulation and the future of the ecosystem.
1. Binance: A Historic Agreement with the CFTC, but the SEC Remains in the Fight
Binance, the giant among exchanges, reached an unprecedented $4.300 billion settlement with the CFTC, the Department of Justice and the Department of the Treasury. Despite the ruling, the SEC maintains an active lawsuit, alleging that Binance violated securities laws by operating as an unregistered exchange and offering illegal securities, such as the BUSD stablecoin. Richard Teng, the new CEO, will lead the company through this legal battle.
2. Coinbase: Faced with the SEC for Alleged Regulatory Violations
Coinbase, another pillar of the ecosystem, has faced a lawsuit from the SEC since June. The exchange is alleged to have failed to register properly and illegally provided betting services to US investors. Coinbase will defend itself in a court in the Southern District of New York. Although the rulemaking request was denied, CEO Brian Armstrong has stated his determination to face the charges.
3. FTX: Bankman-Fried Pleads Guilty and Faces Possible New Allegations
FTX founder Sam Bankman-Fried was found guilty on seven counts, including fraud at his company and Alameda Research. However, a second trial is looming on additional charges, including illegal political donations and bribery of foreign government officials. Sentencing and a possible second trial are scheduled for March in New York.
4. Kraken: Withdrawal from New York, but the SEC Remains Firm
Although Kraken has withdrawn from New York, the SEC still maintains a case against Jesse Powell's exchange. The allegation includes commingling client funds and operating an unregistered stock exchange. Kraken vows to defend itself, arguing that it does not trade securities and that the SEC lacks an adequate regulatory structure for compliant crypto companies.
These lawsuits will define the legal landscape for many crypto companies in 2024.
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