Topic: SEC subpoenas three crypto VCs in sign crackdown is gaining pace - page 2. (Read 533 times)
August 13, 2024, 01:34:54 AM
The SEC’s latest actions show it’s serious about enforcing compliance in crypto. By targeting these VCs, it's clear the agency is tightening its oversight. This could signal more stringent rules and a tougher environment for crypto projects ahead.
August 12, 2024, 11:14:09 PM
I have read some articles on this an they always mention that the source is from dlnews.com. However, they never mentioned which of these VC firms are receiving the subpoenas which is very headshaking. My speculation on one of these VC firms might be Jump Crypto. They have been mentioned to be dumping Ethereum and other tokens quickly and this appears to be because it might be an emergency for them. On what this emergency might be, we cannot be certain.
Jump Crypto, the cryptocurrency arm of the Chicago-based proprietary trading firm Jump Trading, is transferring millions worth of digital assets to exchanges, which could be exacerbating selling pressure across crypto markets.
Data from blockchain analytics platform SpotOnChain indicates that in the past 24 hours alone, Jump Crypto has moved 17,576 ETH, or over $46.78 million, to exchanges like Binance, OKX, Coinbase, Bybit and Gate.io.
The latest transfers bring Jump Crypto’s total exchange deposits to $277 million worth of Ether over the past 10 days.
Source https://thedefiant.io/news/markets/jump-crypto-appears-to-be-liquidating-millions-in-crypto
Jump Crypto, the cryptocurrency arm of the Chicago-based proprietary trading firm Jump Trading, is transferring millions worth of digital assets to exchanges, which could be exacerbating selling pressure across crypto markets.
Data from blockchain analytics platform SpotOnChain indicates that in the past 24 hours alone, Jump Crypto has moved 17,576 ETH, or over $46.78 million, to exchanges like Binance, OKX, Coinbase, Bybit and Gate.io.
The latest transfers bring Jump Crypto’s total exchange deposits to $277 million worth of Ether over the past 10 days.
Source https://thedefiant.io/news/markets/jump-crypto-appears-to-be-liquidating-millions-in-crypto
August 12, 2024, 09:08:45 PM
The SEC has not come up with any real charges against large or small companies and most cases end in compensation payments so they focus on large companies because they have a larger user base and greater access to profits while small companies will not be able to pay anything and the cases will drag on in court for years.
It is sad to see crypto businesses suffer due to strict regulations in the US. Looking at it from the customer protection point of view, one might see the need for such regulations. Some of these exchanges engage in a high rate of criminal activities just to ensure that they keep the business afloat. I am not against regulation of these exchanges but it becomes a problem when it is a conscious act by the SEC TO attack these companies. If the SEC's purpose for scrutinising these organisations is to raise funds from the government through fines, they might end up losing some viable business in the country. Many crypto firms will leave the US if this is a deliberate attack to exploit. Are you sure the court cases will last for years?
Look at how much Ripple has spent in several years of litigation with the SEC and you will realize that litigation in the US is very expensive.
Any SEC interest in a small company will cause it to go bankrupt, because it will immediately lose all sources of funding, given the prospect of expensive litigation.
Litigation is not just expensive, it also affects the reputation and investor's (customers) confidence in the organisation. Investors will be sceptical about putting money in a setup which is having a legal battle with a regulator. An unfavourable court judgment can make them lose money. Look at how much Ripple has spent in several years of litigation with the SEC and you will realize that litigation in the US is very expensive.
Any SEC interest in a small company will cause it to go bankrupt, because it will immediately lose all sources of funding, given the prospect of expensive litigation.
August 12, 2024, 03:09:57 PM
SEC won't stop. Anything sold to non-accredited investors through the right to hold tokens in the future is considered a security by the SEC. But the SEC won't mess around with small projects while there are big ones.
The SEC has not come up with any real charges against large or small companies and most cases end in compensation payments so they focus on large companies because they have a larger user base and greater access to profits while small companies will not be able to pay anything and the cases will drag on in court for years.Look at how much Ripple has spent in several years of litigation with the SEC and you will realize that litigation in the US is very expensive.
Any SEC interest in a small company will cause it to go bankrupt, because it will immediately lose all sources of funding, given the prospect of expensive litigation.
August 12, 2024, 11:53:18 AM
___
SEC won't stop. Anything sold to non-accredited investors through the right to hold tokens in the future is considered a security by the SEC. But the SEC won't mess around with small projects while there are big ones.
SEC won't stop. Anything sold to non-accredited investors through the right to hold tokens in the future is considered a security by the SEC. But the SEC won't mess around with small projects while there are big ones.
Eventually they will start messing up with small projects or they will bring in some regulation which will dismiss those small projects from being initiated. I can sense it for sure! What we are seeing is just at a very nascent stage right now. The scope and coverage, both will eventually increase if the current democrat government continues to rule after the election.
This might end if Trump wins the election and takes actions on his promises. Right now, US is the worst place to start a crypto business. Crypto VCs should look for better alternatives like Singapore or Dubai.
August 11, 2024, 06:32:07 AM
SEC won't stop. Anything sold to non-accredited investors through the right to hold tokens in the future is considered a security by the SEC. But the SEC won't mess around with small projects while there are big ones.
The SEC has not come up with any real charges against large or small companies and most cases end in compensation payments so they focus on large companies because they have a larger user base and greater access to profits while small companies will not be able to pay anything and the cases will drag on in court for years. August 11, 2024, 05:06:39 AM
https://www.dlnews.com/articles/regulation/sec-subpoenas-three-crypto-vcs-as-crypto-crackdown-grows/
The SEC issued similar subpoenas to at least two other crypto VCs.
"“It's a natural additional enforcement area,” said a securities attorney.
The US Securities and Exchange Commission has subpoenaed at least three crypto venture capital firms this year, according to a source familiar with the SEC’s investigation.
One subpoena was titled “in the matter of certain crypto asset offering intermediaries,” per the first page viewed by DL News.
“The staff of the United States Securities and Exchange Commission is conducting an investigation relating to the above-referenced matter to determine if violations of the federal securities laws may have occurred,” the page read."
___
SEC won't stop. Anything sold to non-accredited investors through the right to hold tokens in the future is considered a security by the SEC. But the SEC won't mess around with small projects while there are big ones.
The SEC issued similar subpoenas to at least two other crypto VCs.
"“It's a natural additional enforcement area,” said a securities attorney.
The US Securities and Exchange Commission has subpoenaed at least three crypto venture capital firms this year, according to a source familiar with the SEC’s investigation.
One subpoena was titled “in the matter of certain crypto asset offering intermediaries,” per the first page viewed by DL News.
“The staff of the United States Securities and Exchange Commission is conducting an investigation relating to the above-referenced matter to determine if violations of the federal securities laws may have occurred,” the page read."
___
SEC won't stop. Anything sold to non-accredited investors through the right to hold tokens in the future is considered a security by the SEC. But the SEC won't mess around with small projects while there are big ones.
Jump to: