The cryptocurrency landscape remains a battleground, with legal battles, bankruptcy settlements and regulatory actions dominating the headlines. Especially FTX, Ripple and Terra; It is important in this sense. Here is the breakdown of three important developments…
Agreement between Voyager Digital and FTX
In a major win for Voyager Digital, a beleaguered crypto broker that filed for bankruptcy in July 2022, a major settlement was reached with FTX and Alameda Research. This agreement relieves Voyager of its $450 million repayment obligation and represents an important step toward rescuing creditors. The deal includes the release of $5 million in escrow and the release of an additional $445 million from the Alameda loan case, bringing Voyager’s total windfall to $484 million.
This includes agreements with Three Arrows Capital and D&O insurance, which provided Voyager with much-needed resources to compensate creditors. The FTX deal marks a turning point in Voyager’s financial rehabilitation as legal challenges continue regarding CFTC and FTC investigations into former CEO Stephen Ehrlich.
New development in the Ripple and SEC case
The ongoing legal battle between Ripple Labs and the SEC continues to escalate with a new dispute over the presentation of evidence. The SEC opposes Ripple’s move to exclude certain material that it claims qualifies as undisclosed expert testimony. At the center of the controversy is the “Fox Declaration,” which includes financial calculations that suggest the SEC’s claims are merely summaries of data and not expert opinions.
However, legal commentators such as Ripple and Bill Morgan see this differently. They argue that the calculations offered by the SEC could influence legal decisions and fall within the realm of expert analysis. This debate highlights the complexity of guiding regulatory action and raises questions about the SEC’s priorities in protecting investors. Morgan highlights the apparent discrepancy between the SEC’s focus on Ripple and the lack of preventive measures against major scandals such as the collapse of FTX.
Hard blow to Terraform Labs
The SEC flexed its muscle by imposing a hefty $5.3 billion penalty on Terraform Labs and its co-founder Do Kwon for alleged securities fraud related to the TerraUSD (UST) stablecoin. But Terraform vehemently disputes the charges, saying the penalty is excessive and arguing that the compensation amount involves funds outside the SEC’s jurisdiction. Do Kwon, who is currently facing extradition challenges and travel restrictions, is not attending the hearings. This case, along with the SEC’s ongoing battle with Ripple, demonstrates the regulator’s increasing focus on policing the crypto space.
These developments paint a picture of a crypto market grappling with legal and financial challenges. While deployments like Voyager’s may provide some relief, the overall landscape remains uncertain. The consequences of these ongoing battles will have significant impacts on the future of cryptocurrency regulation and investor protection.
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