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Will Nigerian Court Grant Bail To Detained Binance Executive?

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2 weeks ago

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Nigerian Court in Abuja is currently in the spotlight as it reviews the bail application of Tigran Gambaryan, a Binance Holdings Ltd. executive. Gambaryan, the head of financial crime compliance at Binance, has been detained in Nigeria for over six months.

The court proceedings on Wednesday extended for several hours, after which the judge announced that a decision on the bail would be made later next month.

Nigerian Court Delays Bail For Binance Executive To October 9

The Nigerian Court heard extensive arguments concerning the bail request of Tigran Gambaryan. During the session, the crypto exchange executive’s legal representation emphasized his deteriorating health condition, underscoring the urgent need for surgical intervention. 

The legal team claimed his health could not be adequately addressed within the medical facilities available to him in detention. The defense further argued that these circumstances justify the granting of bail on medical grounds.

In contrast, the state prosecutor countered these claims by insisting that Gambaryan has received appropriate medical care, including services at a well-equipped hospital in Abuja.

Further, the prosecutor’s stance highlights the government’s position that Gambaryan’s health needs are being met. This challenges the necessity of bail on the grounds presented by the defense. The judge finally stated that a decision on the bail would be made on October 9.

Binance Legal Battle and International Concerns

The case has attracted significant international attention due to the circumstances surrounding the Binance executive arrest and detention. In February, the executive was detained along with a colleague during a visit to discuss compliance issues. 

More so, the situation escalated following the colleague’s escape and subsequent charges against Gambaryan. Nigeria Economic and Financial Crimes Commission brought the charges, which include currency manipulation and money laundering.

This incident has strained relations and led to accusations from Binance. The exchange claims that Nigerian authorities demanded a clandestine payment to resolve the company’s legal troubles, a claim Nigeria denies. 

In addition, just last week, Binance CEO Richard Teng denied Nigeria’s claim of $26 billion made in revenue in 2023 as reported by the courts. He also called for the humanitarian release of the detained executive.

Moreover, this dispute has drawn scrutiny from international observers and prompted intervention from US lawmakers, who have urged the US government to assist in resolving his detainment. The outcome remains uncertain as the Nigerian Court deliberates on the bail application.

Binance continues to face legal challenges even as its co-founder, Changpeng Zhao, expects release on September 29. The court sentenced him to four months for violations of anti-money laundering laws. Recently, a judge issued a minor order as ten attorneys representing Changpeng withdrew from the lawsuit.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience. He has worked extensively with various media outlets on cryptocurrency trends and technologies. When he’s not analyzing the latest crypto developments, 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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Regulation

Pro-XRP Lawyer Deems SEC’s ‘Crypto Asset Securities’ Warning A Scam

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2 days ago

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September 13, 2024

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Pro-XRP lawyer Fred Rispoli has publicly criticized the U.S. Securities and Exchange Commission’s (SEC) latest investor alert, calling it misleading and suggesting it’s part of a larger scam. This comes amid backlash after the recent switch on the “crypto assets securities” stance.

SEC Attracts Backlash On ‘Crypto Asset Securities’ Saga

In a post on X, Rispoli deemed the investor alert to be a “scam” as the agency used the term “crypto assets securities.” He stated, “This post in and of itself is a scam as the SEC the same day swore to a federal judge that there is no such thing as ‘crypto asset securities.’” He also also mentioned that he had requested X Community Notes to be added to the SEC’s post.

The criticism comes as the SEC faces backlash over its sudden shift in stance on the classification of crypto assets. In a surprising move, the SEC recently filed a motion to amend its original complaint against Binance, Binance.US, and Changpeng Zhao.

In the amendment, the SEC now acknowledges that several major crypto tokens are not considered securities under its revised framework. These include Solana (SOL), Cardano (ADA), Polygon (MATIC), and other seven tokens.

The shift in stance follows a U.S. district court ruling in a related case against the crypto exchange Kraken, where the SEC’s previous broad definitions of crypto assets as securities were challenged. Hence, in its amended complaint, the SEC clarified that it uses the term “crypto asset securities” not to refer to the tokens themselves, but to the investment contracts and agreements tied to their sales.

The SEC stated in its filing: “As the SEC has consistently maintained since the very first crypto asset Howey case, the term is a shorthand reference… the security is not simply the [crypto asset], which is little more than an alphanumeric cryptographic sequence.”

eToro Settlement In Spotlight

Moreover, this change in stance has been met with strong reactions from the crypto community. Jake Chervinsky, Chief Legal Officer of Variant, expressed his frustration on X, saying:

“I genuinely can’t get over how insane this is. The SEC used the term ‘crypto asset securities’ eight times in the eToro settlement order they issued on THE SAME DAY they told a federal eToro settlement order that they wouldn’t use it to avoid confusion.”

Chervinsky’s comment reflects the growing confusion surrounding the SEC’s inconsistent language and its shifting position on crypto enforcement. Despite the SEC’s apparent shift in its legal stance, the regulatory body continues to warn investors about potential scams involving crypto assets.

In a recent investor alert, the SEC’s Office of Investor Education and Advocacy issued a warning about fraudsters exploiting the popularity of cryptocurrencies, coins, and tokens. The alert emphasizes that fraudsters often use new technologies to perpetrate investment scams and exploit the complexity of crypto assets to lure retail investors.

This alert also attracted criticism from FOX Business journalist Eleanor Terrett. She weighed in on the issue, noting, “Is now a good time to point out that the SEC is still using the term ‘crypto asset securities’ in its investor alert blasts?” Her comment underscores the ongoing use of the term despite the SEC’s legal assertion that it no longer applies to certain tokens.

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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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John Deaton Promises XRP Investors To Hold SEC Accountable

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2 days ago

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September 13, 2024

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Pro-XRP lawyer John Deaton has promised to hold the US Securities and Exchange Commission (SEC) accountable for the $15 billion loss that XRP investors suffered due to the SEC’s Ripple lawsuit. The legal expert, who is contesting against Senator Elizabeth Warren, famous for her anti-crypto stance, intends to fulfill this promise when he gets elected to the Senate. The lawyer has already outlined some of the ways which he intends to hold the Commission accountable.

John Deaton Promises To Hold The SEC Accountable

In an X post, The pro-XRP lawyer promised to hold the SEC accountable for the 75,000 small XRP investors he represented in the SEC’s case against Ripple. The legal expert added that he isn’t willing to accept an apology from the Commission. Instead, he plans to hold people at the SEC accountable when he gets to the Senate since Senator Warren won’t do it. Specifically, the lawyer claimed these small investors lost over $15 billion thanks to the “SEC’s misconduct and gross overreach.”

The Senatorial candidate highlighted how the federal court declared that the Commission’s lawyers lacked “faithful allegiance to the law” and were only concerned about winning the suit against Ripple rather than protecting investors, which they are mandated to do. The lawyer also noted how he fought to protect these investors and did it for free.

John Deaton acted as amicus counsel for these investors, considering their interest in the Ripple lawsuit. The lawsuit is believed to have stifled XRP’s price, especially when it was instituted in 2020, just around the time of the 2021 bull market, preventing these investors from enjoying their desired profits from the crypto.

In trying to protect these investors in the early stages of the Ripple lawsuit, John Deaton revealed that he had filed a Writ of Mandamus against the SEC, stating that the Commission had violated 75 years of legal precedent by claiming that XRP was a security. He argued that the underlying asset could not have been a security even if it was sold as an investment contract.

The court eventually adopted Deaton’s reasoning as Judge Analisa Torres gave a landmark ruling in the case in 2023 that XRP wasn’t a security in itself, even if Ripple’s XRP sales were investment contracts.

Senator Warren Failed To Act In The Ripple Case

John Deaton also revealed that Senator Warren failed to act in the XRP lawsuit despite 627 token holders he represented living in Massachusetts, the area she represents in the Senate. The lawyer added that he specifically reached out to Warren back then because she was also a member of the banking committee overseeing the SEC. However, she did nothing despite his calls for her to act. Warren and SEC chair Gary Gensler have earned a reputation for their public anti-crypto stance. As such, her failure to defend these token holders might not surprise many.

As part of his efforts to hold the Commission accountable, Deaton unveiled two bills he intends to push when he gets to the Senate. The first would focus on exposing regulatory capture within the SEC. Meanwhile, the second bill will propose that a 3-5 year statutory bar should be placed on preventing regulators from working in an industry that was under their purview in their regulatory capacity.

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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, Boluwatife 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.





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Will Kraken’s Jury Trial Request Tilt SEC Crypto Crackdown?

Published

3 days ago

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September 13, 2024

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Kraken has officially requested a jury trial in its ongoing legal battle against the U.S. Securities and Exchange Commission (SEC). The request was made after a U.S. district court in California ruled that the lawsuit, which alleges the exchange operated as an unregistered securities exchange, broker, and clearing agent, would proceed to trial. This decision mirrors outcomes in similar cases against other major crypto exchanges such as Binance and Coinbase.

Kraken Requests Jury Trial in SEC Litigation

In a recent court filing, Kraken formally demanded a jury trial to contest the allegations brought forward by the US SEC. The exchange has denied all claims of illegal conduct, asserting that it has not engaged in activities that would classify it as a securities exchange, broker, or clearing agent under existing federal laws. 

This request for a jury trial comes after the court denied Kraken’s motion to dismiss the lawsuit in August. The firm aims to present its case before a panel of peers, seeking a fair evaluation of its defenses.

More so, this decision highlights the broader tension between cryptocurrency platforms and regulatory bodies.

Kraken’s Defense Arguments Against SEC

Kraken has presented several defenses in response to the U.S. Securities and Exchange Commission lawsuit. The company emphasizes that the digital assets listed on its platform do not qualify as securities.

Furthermore, the exchange maintains that it was not required to register with the US SEC. It argues that it does not meet the definitions of a broker or clearinghouse as outlined in the Securities Act and the Exchange Act.

The crypto platform also contends that the U.S. Securities and Exchange Commission lacks the authority to regulate its operations. It asserts that the digital assets themselves do not carry the obligations typical to traditional financial securities.

Additionally, the firm has accused the SEC of acting without due process and fair notice, suggesting that the regulatory actions were taken in violation of the First Amendment. The exchange maintains that the terms used by the SEC, such as “crypto asset securities” are ambiguous and lack clear definitions, making it difficult to comply with crypto regulations effectively.

Industry Reactions and Regulatory Clarifications

The SEC has faced criticism from various crypto firms for using vague terminology to justify its securities violation charges. Though not a direct response to Kraken’s filing, the regulatory body clarified its stance in its amended complaint against Binance, stating that “crypto asset securities” do not refer to the crypto assets themselves. 

This clarification was met with skepticism by industry leaders, including Ripple’s chief legal officer Stuart Alderoty. Stuart criticized the U.S. Securities and Exchange Commission for creating confusion with inconsistent terminology.

However, the SEC continues to pursue its enforcement strategy, asserting that these tokens are sold as investment contracts in secondary markets. Coinbase’s chief legal officer, Paul Grewal, highlighted the SEC’s ongoing challenges in defining and regulating digital assets. He indicated that the crackdown on major exchanges is likely to persist.

Kraken continues to face legal hurdles beyond the United States. Recently, Australia’s Federal Court ruled that the firm’s fiat margin extensions are regulated, but its crypto margin extensions are not.

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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. His work includes notable contributions to Cryptopolitan and Coingape News Media, where he shares his insights on the latest developments in the cryptocurrency market. 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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