Regulation
US Lawmakers Pressure Biden To Secure Binance Exec’s Return From Nigeria
U.S. lawmakers are urging President Joe Biden and top officials to take immediate action to secure the release of Tigran Gambaryan, a Binance executive and former federal agent. Furthermore, they believe that Gambaryan has been unlawfully detained in Nigeria for over three months.
Policymakers Pen Letter Urging Binance Executive’s Return
In a letter dated June 4, 2024, these policymakers addressed President Biden, Secretary of State Antony Blinken, and Special Presidential Envoy for Hostage Affairs Roger D. Carstens. Several House members, including Chairman Rep. Michael McCaul of the House Foreign GOP, expressed grave concerns about the Binance executive’s health and treatment in Nigerian custody.
Gambaryan, a U.S. citizen and distinguished former IRS agent, has been detained since February 26. At the time, he traveled to Nigeria for high-level meetings on Binance’s compliance issues.
Initially professional, the meetings turned hostile, leading to Gambaryan’s detention by Nigerian authorities. “The Government of Nigeria took Mr. Gambaryan hostage,” the lawmakers wrote. Moreover, they detailed how Binance’s Gambaryan was forcibly taken to a government-owned house and held without communication for five days.
In addition, despite a court order on March 12 stating that the remand order had not been extended, Gambaryan’s detention continued unlawfully until new charges were filed. The action was taken allegedly in lieu of pursuing legal action against Binance. Hence, the letter emphasizes that Gambaryan “is being tried in lieu of pursuing legal action against his employer.”
Additionally, the conditions of Gambaryan’s detention have been severe. He is held in Kuje Prison, notorious for its harsh conditions, and has faced obstacles in meeting with his legal team without government supervision. More alarmingly, his health has deteriorated significantly.
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Gambaryan’s Health Deteriorates
“He tested positive for malaria, and when he requested hospital treatment, the prison officials declined his request,” the letter states. Earlier, Binance’s Gambaryan collapsed in court on May 23, prompting a judge to order his transfer to a private hospital. However, adequate healthcare has not been provided as of June 4.
The lawmakers assert that Gambaryan’s detention meets the criteria for being “wrongfully detained by a foreign government,” as defined in the Robert Levinson Hostage Recovery and Hostage-Taking Accountability Act. They urgently request that his case be transferred to the Office of the Special Presidential Envoy for Hostage Affairs. In addition, they emphasized the need for swift action to ensure the Binance exec’s safety.
“Mr. Gambaryan’s health and well-being are in danger, and we fear for his life. Immediate action is essential to ensure his safety and preserve his life,” the letter urges. However, despite the efforts by the US, Nigeria has refused to comply, which could worsen the situation.
Also Read: Binance Not Liable for User’s $1M Loss, Co-Founder Claims
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.
In a recent development, the US Securities and Exchange Commission (SEC) announced that Gary Gensler will step down from his position next year. This follows calls for Gensler to resign since Donald Trump won the US presidential elections.
Gary Gensler To Step Down As US SEC Chair
The US SEC announced in a press release that Gary Gensler will depart the Agency on January 20, 2025. The US SEC Chair also confirmed this development in an X post. Interestingly, this comes on the same day that Donald Trump will be inaugurated as the 47th president of the United States.
Following the announcement, Gensler also used the opportunity to reflect on his time at the Commission. He remarked that it has been an “honor of a lifetime” to serve alongside those at the SEC. He also thanked President Biden for the opportunity to serve in the position. Gensler has been the US SEC Chair since April 2021. During his time, he has spearheaded several litigations against the crypto industry.
This includes the long-running legal battle with Ripple, which Gensler took over from his predecessor Jay Clayton, which bordered on whether XRP was a security. Up till now, the Agency continues to reiterate this ‘digital asset securities’ claim.
Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across DeFi, NFTs, smart contracts, and blockchain interoperability, among others. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover and a part-time degen.
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.
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.
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.
The United States Securities and Exchange Commission (US SEC) has further delayed its decision on Franklin Templeton’s Bitcoin and Ethereum index ETF. From the filing made on November 20, 2024, it has been agreed that the decision on the proposal will be made on January 6, 2025 to afford the regulating authority ample time to consider the proposal.
US SEC Extends Review Period for Franklin Templeton Crypto Index ETF
According to the US SEC filing of November 20, 2024, the commission deferred its decision on the Bitcoin and Ethereum index ETF by Franklin Templeton. Therefore, the regulatory body is seeking to extend the review period to January 6, 2025. The extension will help to have more time to consider the application which was filed on September 19, 2024.
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%.
Moreover, the filing comes when diversified crypto index funds seem to be gaining popularity among investors. Bitwise’s move will make investing in cryptocurrencies more accessible for retail audiences. When approved, this ETP will also set a paradigm for the expansion of multi-asset crypto based product offerings.
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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