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Lawyer Predicts Two Paths To Settlement After Donald Trump Win

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2 weeks ago

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SEC v Ripple: The recent win of Donald Trump in the 2024 US presidential election has brought back hope to the cryptocurrency enthusiasts especially on the matter of the ongoing SEC v Ripple lawsuit.

Legal experts and Ripple supporters are speculating that the Donald Trump administration could bring positive changes to the crypto space which could help the company to reach a settlement faster in the ongoing Ripple case.

Potential Settlement Scenarios for SEC v Ripple Case

Fred Rispoli, a lawyer who has been monitoring the SEC v Ripple case has suggested that there are two likely outcomes for the case. According to Rispoli, shifts at the Securities and Exchange Commission that could occur as soon as March 2025 may influence the outcome of the Ripple trial. The first scenario will be the current US SEC leadership, under the chairmanship of Gary Gensler, deciding to act before a new leadership takes over. 

According to Rispoli, Gensler’s team may wish to settle the case but keep penalties such as the $125 million fine in place as a means of exercising control over the market.

The second scenario that Rispoli sees is more beneficial for Ripple. The new leadership at the Securities and Exchange Commission may cause the agency to reconsider the case and less the penalties on Ripple or even dismiss some of the charges. According to Rispoli, the current administration of Trump may view the lawsuit as an adverse event for the US crypto industry and may want to settle the case in a way that would be beneficial to Ripple, such as excluding the current sales of XRP from being deemed securities.

Ripple CEO Garlinghouse Responds to Trump Win

Ripple CEO Brad Garlinghouse has spoken about the influence that Trump’s victory may have on the regulation of the cryptocurrency industry after “a frustrating journey”. In a statement, Garlinghouse remained hopeful, suggesting that the years of what he has called the SEC’s “interference” in the digital currency sector, could be giving way to a change in regulatory policy that is potentially more favorable. 

Brad Garlinghouse, though not directly speaking about the possibility of the lawsuit being settled, pointed out the endurance of the XRP community and noted that “the tide is turning” in their favor.

Garlinghouse’s comments come in the wake of recent court rulings ordering the SEC to file its opening brief for its appeal in the Ripple case on or before January 15, 2025. If the SEC does not meet this deadline, the appeals could be thrown out, which might limit the Securities and Exchange Commission’s actions as new management comes in.

Donald Trump Administration’s Approach to the SEC

The Trump transition team is reportedly considering candidates for the Securities and Exchange Commission chair role, with names such as Dan Gallagher and Paul Atkins, both former SEC commissioners, being mentioned. 

Gallagher, currently Robinhood’s Chief Legal Officer, is viewed favorably by many in the crypto community. 

According to Reuters, Trump’s team has also indicated intentions to reverse what they see as regulatory overreach by Gary Gensler’s Securities and Exchange Commission, which has aggressively pursued enforcement actions against crypto companies.

XRP Price To $1 After SEC v Ripple End?

The market has responded positively to Trump’s election and the prospect of a resolution in the Ripple case. XRP, Ripple’s digital asset, recently saw a price surge, reaching its highest level since October. With XRP price currently trading above $0.55, some analysts believe the asset could continue its upward trend, potentially nearing the $1 mark if a settlement appears imminent.

Concurrently, Donald Trump’s administration has already sparked discussion about potential crypto-friendly policies, including the approval of an XRP ETF. 

Although the US SEC has previously resisted crypto ETFs, a Republican-led Securities and Exchange Commission could be more open to approving new financial products tied to digital assets, especially those like XRP and Solana following Bitcoin and Ethereum ETF’s earlier approval.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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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Regulation

BitClave Investors Get $4.6M Back In US SEC Settlement Distribution

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12 hours ago

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November 21, 2024

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BitClave investors have started receiving $4.6 million in repayments from the U.S. Securities and Exchange Commission (SEC), following a settlement reached in 2020. The SEC announced on Nov. 20 that payments from the BitClave Fair Fund had been disbursed to eligible investors harmed during the company’s 2017 initial coin offering (ICO).

Pro-XRP lawyer and online commentator “MetaLawMan” criticized the SEC’s stance on digital assets, stating on social media, “Here we go again with ‘digital asset securities.’ Unbelievable.” The lawyer’s statement reflects ongoing industry frustrations over the SEC’s regulatory approach to cryptocurrencies.

BitClave Investors Get $4.6M Back in US SEC Settlement

The US SEC assured the public that $4.6 million was returned to investors who filed the claims and were eligible for the refunds. These funds were agreed upon in 2020 after the SEC accused BitClave of conducting an unregistered ICO.

The company’s initial coin offering (ICO) in 2017 brought in $25.5 million in only 32 seconds and distributed its Consumer Activity Token (CAT) to thousands of buyers. The SEC therefore claimed that the ICO was an unregistered securities transaction because potential investors were induced to invest in the CAT token with an expectation of appreciation of its value. 

Under the settlement, BitClave will have to refund the money it raised and also pay $4 million in fines and interest. In between these settlements, John Deaton has accused the regulator of using laws that were set in 1933.

The Fair Fund was therefore created to ensure that the funds are returned to the affected investors. The claims submission period closed in August 2023, and the eligible investors received the information on the claims in March 2024. The Securities and Exchange Commission posted on its social media accounts that the payment has been made, and “the checks are in the mail.”

BitClave Settlement Included Penalties and Token Destruction

In the settlement, BitClave did not accept or reject the accusations made by the SEC but agreed to cough up $29 million. This total consisted of the $25.5 million that was generated in the ICO and the additional $4 million in fines.

Concurrently, the company also committed to burning 1 billion of the catalyst tokens that have not been distributed and to ask exchanges to delist the token.

The Securities and Exchange Commission therefore pointed out that by February 2023, BitClave had only remitted $12m to the Fair Fund, thus leaving questions on the balance of $7.4m. Neither the SEC nor the fund administrator gave further details on the matter, and it is still uncertain as to how the outstanding payment will be collected.

US SEC Maintains Strict Regulatory Stance on Crypto

The US SEC has continued to enforce regulations on crypto companies under the Biden administration, with over 100 enforcement actions taken against the industry. BitClave’s settlement, subsequently, is one of many cases where the regulator has targeted unregistered ICOs and other alleged securities violations.

BitClave’s case, handled under former SEC Chairman Jay Clayton, emphasized the agency’s view that many digital assets fall under securities laws. The CAT white paper described potential value increases, which the regulator argued encouraged speculative investment in an unregistered security.

As the US SEC faces criticism, President-elect Donald Trump has expressed plans to reshape crypto oversight. Trump has promised to remove current SEC Chair Gary Gensler and is reportedly considering creating a new White House position dedicated to cryptocurrency policy. 

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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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US SEC Pushes Timeline For Franklin Templeton Crypto Index ETF

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13 hours ago

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November 21, 2024

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US SEC Extends Review Period for Franklin Templeton Crypto Index ETF

Therefore, the

The proposal was first published in the Federal Register on October 8, to kick start a thirty-five (35) days review period. As a result, the review was to end on November 22, 2024. Consequently, the review was to expire on November 22, 2024. However, the SEC’s decision to delay indicates a thorough approach to reviewing the fund’s compliance with crypto regulations.

Meanwhile, no public comments on the proposed rule change have been submitted, leaving the US SEC to focus on internal assessments. This delay concurs with the commission’s conservative approach to the products that are connected with cryptocurrencies. The extra time will allow more detailed research of fund’s organization and market risks.

Franklin Templeton Expands Push Into Cryptocurrency ETFs

Franklin Templeton is broadening its efforts in the cryptocurrency space with its proposed Bitcoin and Ethereum index ETF. The asset manager, which oversees $1.5 trillion in assets, has previously launched a spot Bitcoin ETF and a spot Ethereum ETF. 

If approved, the latest ETF would add to Franklin Templeton’s portfolio of crypto-focused investment products, further diversifying options for institutional.

In addition, Franklin Templeton has taken a major step in its tokenization efforts, announcing the expansion of its Benji tokenization platform to the Ethereum network. This marks the fifth blockchain integration for the platform this year, following launches on Aptos, Avalanche, Arbitrum, and Coinbase’s Base.

Despite the US SEC overall crypto ETF delays, other market players are moving further with their strategies . Last week, Bitwise submitted a registration statement to transform the Bitwise 10 Crypto Index Fund which now manages $1.3 billion into an ETP. It investments in Bitcoin represent 75% of the fund and Ethereum is 16% of the fund; these two assets sum up to 91%.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

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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US DOJ Charges Five Hackers In $6.3M Crypto Hack & Corporate Data Breaches

Published

15 hours ago

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November 20, 2024

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The United States Department of Justice (DOJ) has charged five individuals in connection with a crypto hacking scheme that allegedly stole $6.3 million in cryptocurrency and breached sensitive corporate data.

The charges, announced on Wednesday, stem from a multi-year phishing and hacking operation that targeted employees of major tech firms, telecommunication companies, and cryptocurrency platforms.

US DOJ Charges Five Hackers In $6.3M Crypto Hack

The US DOJ identified the defendants as Ahmed Hossam Eldin Elbadawy, 23, of Texas; Noah Michael Urban, 20, of Florida; Evans Onyeaka Osiebo, 20, of Texas; Joel Martin Evans, 25, of North Carolina; and Tyler Robert Buchanan, 22, a UK citizen arrested in Spain earlier this year. All five have been charged with conspiracy to commit wire fraud, aggravated identity theft, and related offenses.

According to prosecutors, the group used phishing text messages to steal employees’ credentials, enabling unauthorized access to corporate systems and cryptocurrency accounts. Buchanan faces additional charges of wire fraud, which carries a potential 20-year prison sentence.

The defendants are accused of targeting at least 45 companies in the U.S., Canada, the UK, and other nations between September 2021 and April 2023. The alleged crypto hack scheme involved spoofing legitimate portals of companies such as Okta and compromising two-factor authentication to obtain sensitive information.

Phishing Attacks and Cryptocurrency Thefts

The hacking operation reportedly involved sending fraudulent SMS messages to employees of victim companies, warning them that their accounts were at risk of deactivation. These messages contained links to phishing websites designed to mimic the companies’ legitimate login portals. Employees who entered their credentials unwittingly gave the hackers access to their accounts and corporate systems.

Once inside the systems, the hackers stole intellectual property, proprietary data, and sensitive personal information. They also used SIM-swapping techniques to bypass additional account protections and reset passwords. The US DOJ stated that one victim alone lost $6.3 million in cryptocurrency due to these attacks.

Akil Davis, Assistant Director of the FBI’s Los Angeles Field Office, emphasized the dangers of phishing scams, saying, “These types of fraudulent solicitations are ubiquitous and rob American victims of their hard-earned money with the click of a mouse.”

US DOJ Links to Notorious Hacking Groups

Security researchers have linked the accused individuals to cybercrime groups known as “0ktapus” and “Scattered Spider,” which are believed to be responsible for previous high-profile attacks. 

These groups reportedly breached hundreds of companies, including Twilio, Coinbase, and Doordash, during a hacking campaign in 2022. They later expanded their operations to target gaming companies such as Riot Games in 2023.

The court documents describe the group as a loosely organized, financially motivated cybercriminal network. Law enforcement officials believe other individuals involved in the operation remain unidentified, with the indictment mentioning unnamed co-conspirators.

Potential Sentences and Ongoing Investigations

If convicted, the defendants face severe penalties. Each could receive a maximum of 20 years in prison for conspiracy to commit wire fraud, up to five years for conspiracy, and an additional mandatory two-year sentence for aggravated identity theft. Prosecutors also revealed that Urban faces fraud charges in a separate federal case in Florida.

Concurrently, former FTX executive Gary Wang recently avoided prison time despite his role in the collapse of the cryptocurrency exchange. Wang admitted to helping write the code that enabled FTX founder Sam Bankman-Fried to misappropriate $8 billion in customer funds. Judge Lewis Kaplan ruled that Wang’s cooperation with authorities and lack of personal financial gain justified leniency.

The US DOJ continues to investigate the matter, warning companies to remain vigilant against phishing attempts. U.S. Attorney Martin Estrada stated, “If something about the text or email you receive or the website you’re viewing seems off, it probably is.”

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

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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