Regulation
Ethereum Developer Prison Term Cut Down by 7 Months
The Ethereum developer Virgil Griffith has been given a seven-month reduction in his prison sentence this week. Griffith was found guilty of breaching the sanctions law where he visited North Korea in 2019 to give a speech on how to use cryptocurrency and blockchain to dodge sanctions.
Ethereum Developer Prison Term Cut Down
According to a July 17 filing, District Judge Kevin Castel has ordered the term reduced to 56 months of Virgil Griffith, an Ethereum developer who was initially sentenced to 63 months in April 2022, U.S.
The factors that led to the decision to reduce Griffith’s sentence included misconduct and difficulties he faced during his incarceration. Castel also agreed that the danger to the public from Griffith in terms of future crimes had also reduced.
Nonetheless, the judge pointed out that Griffith continued to defy the rules in prison, although he was not an easy man to be behind bars with. However, Judge Castel noted that since the offense of the appellant is extremely grave, it is necessary to leave a long-time prison term.
MASSIVE news, frens — Virgil Griffith is coming home! Moments ago, the Court granted our motion to reduce Virgil’s sentence and Judge Castel shaved seven months off the sentence. pic.twitter.com/568nPKtOsC
— Alexander Urbelis (@aurbelis) July 17, 2024
Griffith had entered into a guilty plea on sanctions violations in 2021 just before his trial in New York was to begin. The US attorneys said that Griffith knew that the money might be used by North Korea to avoid sanctions imposed on it by the international community. However, Griffith’s defense counsel argued for a lighter punishment, arguing that Griffith had no criminal history and that no one was financially affected by his actions.
Government Opposition
Griffith’s lawyers hoped for a reduced sentence, and a sign of him being a reformed man as he expressed remorse and took time to reflect on his actions when in custody. They described an instance where Griffith, in a bid to escape a fight, reported to the unit officer, and this led to him being moved and later charged with the offence of not being in his cell during the facility count.
Subsequently, in April, Griffiths’ legal representatives applied for a reduction of the given punishment considering the changes in the U.S. sentencing guidelines. According to the new guidelines, Griffith’s recommended sentence range could be lowered, therefore he could be released in January 2025.
However, in June, U.S. Attorney Damian Williams objected to the reduction citing Griffith’s purposeful actions to assist North Korea knowing the country is hostile to the U.S. and has a record of human rights abuses. Williams stated that the original sentence should be upheld due to Griffith’s actions to ensure that other similar cases do not occur.
Prison Conduct and Sentencing Adjustments
Griffith was subjected to numerous infractions while being held at the Federal Correctional Institution in Milan, Michigan; these included charges of an attempt to steal soap and tea. The prosecutors had stated that his actions indicated that he had no regard for the prison rules and thus should not be given any more leniency.
Apart from the criminal case, the U.S. Dept. of Commerce had given a 10-year export privilege denial order to Griffith which does not allow him to engage in any activities concerning US export-controlled commodities, software or technology until the year 2032.
Read Also: Vitalik Buterin Warns Against ‘Crypto’ Supremacy In Politics
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Ex-SEC Lawyer Says XRP Lawsuit Settlement Weeks Away
The crypto community is rife with speculation about an imminent Ripple SEC case settlement as the US Securities and Exchange Commission (SEC) prepares for its first meeting under acting chair Mark Uyeda. However, ex-Securities lawyer Marc Fagel debunked rumors of the settlement. He suggested that those holding out for a resolution will likely be disappointed.
According to the former SEC attorney, the Ripple SEC case settlement is likely to happen after Paul Atkin’s appointment as the SEC Chair. While all eyes are on Thursday’s closed meeting, it remains uncertain whether the XRP lawsuit will reach a conclusion shortly.
Is Ripple SEC Case Settlement Imminent?
In his recent X post, Securities lawyer Marc Fagel dismissed rumors of the Ripple SEC case settlement, which the community expects to follow Thursday’s closed meeting. Asserting that the meeting has nothing to do with the XRP lawsuit, Fagel stated,
This is the same meeting they hold nearly every week. They will vote on recommendations calendared weeks ago. Those expecting something monumental to happen are about to be disappointed.
Further, Fagel clarified the buzz surrounding the Ripple SEC case, positing that a settlement this week is impossible. Instead, he believes the Trump administration might facilitate a resolution, but only after Paul Atkins takes charge.
SEC’s First Closed Meeting with Acting Chair Mark Uyeda
Fagel’s post came in response to Fox Business journalist Eleanor Terrett’s thread, which revealed, “The SEC will hold its first closed meeting since Mark Uyeda took over as acting chair on Thursday.” This follows Mark Uyeda’s launch of a dedicated Crypto Task Force with Commissioner Hester Peirce as the lead. According to the agenda, Uyeda’s meeting would include the institution and settlement of injunctive actions and administrative proceedings, resolution of litigation claims etc.
🚨NEW: The @SECGov will hold its first closed meeting since @MarkUyedaUS took over as acting chair on Thursday.
On the agenda: pic.twitter.com/WMDHzWQIeY
— Eleanor Terrett (@EleanorTerrett) January 21, 2025
Significantly, the potential closed meeting has sparked anticipations of a near-term settlement in the XRP lawsuit. Experts like MetaLawMan expect the SEC’s release of the Inspector General’s report on Bill Hinman’s conflicts of interest shortly. “I can’t think of any reason that simple act of transparency would need to wait for Paul Atkins’ arrival,” added MetaLawMan.
Mark Fagel Predicts a Possible 10-Month Delay in Ripple Case
Recently, Marc Fagel shed light on a possible delay in the Ripple SEC case settlement despite the XRPArmy’s growing optimism. Fagel’s statement that the lawsuit may conclude quickly or drag on for an extended period underscored the case’s uncertain outcome.
Despite the ongoing debate, the community remains optimistic about the lawsuit’s settlement. However, it needs to be seen how the closed meeting will impact Ripple vs SEC.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Thailand Boosts Crypto Ambitions, Welcomes Bitcoin ETFs on Local Exchanges
Thailand is witnessing a significant breakthrough in its ambitious vision to establish a digital asset hub. A recent report on Wednesday revealed Thailand’s plans to adopt Bitcoin ETFs, permitting local exchanges to list the exchange-traded funds.
Thailand Prepares for Bitcoin ETF Debut
The Thai Securities and Exchange Commission (SEC) plans to approve its first Bitcoin ETF, aligning with the country’s crypto hub vision, Bloomberg reported on January 15.
SEC Secretary-General Pornanong Budsaratragoon posited that the move would allow individual and institutional investors to invest in the Bitcoin vehicles directly.
Promoting the use of cryptocurrencies, Thailand is paving the way for the worldwide adoption of digital assets. During an interview on Tuesday, Pornanong stated,
Like it or not, we have to move along with more adoption of cryptocurrencies worldwide. We have to adapt and ensure that our investors have more options in crypto assets with proper protection.
Although, One Asset Management in Thailand has introduced a fund-of-fund tracking international Bitcoin ETFs, a direct investment tool remains pending approval. The ONE Bitcoin ETF Fund of Funds Unhedged and not for Retail Investors (ONE-BTCETFOF-UI) and was approved by the Thai SEC last year.
Thailand’s Thaksin To Legalize Crypto
The latest development came on the heels of Pheu Thai Party leader Thaksin Shinawatra’s efforts to legalize crypto. Citing the incoming US President Donald Trump’s crypto-friendly approach, Thaksin suggested Thailand embrace a more progressive stance on virtual assets. He also proposed the increased issuance and use of stablecoins.
Digital-asset trading activity in Thailand is picking up amid a wider rally that pushed Bitcoin to a record high of $108,315. Crypto hedge funds had a great last year but failed to give more returns than Bitcoin (BTC), as per Bloomberg
Thailand’s Broader Crypto Vision and Regulations
Thailand has long been striving to solidify its position at the forefront of the global crypto market. In a recent development, the country announced its crypto payment pilot project, with the trial set in Phuket.
While the initiative is expected to be executed within Thailand’s existing legal framework, it bolsters the nation’s crypto vision. The country is broadly looking to boost crypto adoption and Bitcoin ETFs will be welcome move for the local crypto industry.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
South Korea’s Largest Exchange Upbit Under Sanctions Review by Watchdog
Upbit, South Korea’s largest crypto exchange, is facing increased scrutiny over alleged Know-Your-Customer (KYC) violations. The Financial Intelligence Unit (FIU) of South Korea has scheduled a disciplinary hearing on January 21 to evaluate the exchange’s regulatory compliance. As as result, the crypto market could see significant low activity amid the review
FIU Meeting To Assess Upbit’s KYC Violations
Notably, the FIU revealed that the sanctions review meeting would assess the 500k+ suspected KYC breaches discovered during an on-site inspection for the renewal of the virtual asset service provider (VASP).
Reportedly, this sanctions-level meeting for Upbit marks the first hearing of its kind, addressing issues identified during a VASP renewal inspection. This meeting will determine the extent of sanctions Upbit could face, considering factors like lapses in KYC compliance. Analyzing the crypro exchange’s explanation for its alleged violations, the regulator would determine the severity of fines and disciplinary actions against the platform.
Upbit Faces Scrutiny Under South Korea’s FIU
Since August last year, Upbit facing investigations led by the financial watchdog. During the license renewal process, the FIU uncovered 500,000-600,000 cases of unauthorized customer verification procedures. This includes instances of accounts being approved despite the blurred customer name or registration number, making identification impossible.
Though these cases highlight the exchange’s reluctance to follow regulatory standards, it is still uncertain whether they actually mark KYC breaches. However, following the disciplinary meeting, FIU is likely to draw conclusions, particularly based on Upbit’s explanations.
South Korea’s Crypto Regulatory Norms
South Korea has embarked on its journey to establish a crypto-focused regulatory framework. In a recent development, the Financial Services Commission has kicked off discussions on the second phase of crypto regulations, especially targeting stablecoins and customer protection.
South Korea’s recent collaboration with the US and Japan to tackle the growing crypto threats also underscores the nation’s commitment to user security. Last day, the three countries jointly released a paper, warning against the North Korean hackers’ eye on crypto.
The FIU’s meeting on Upbit’s KYC violation marks a significant turning point in South Korea’s regulatory landscape. While the meeting decides its fate in South Korea, it could have a broader impact on global crypto regulations and laws.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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