Uncle Gary and the SEC will never stop? Cease and desist against Shapeshift

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Quote from: Darker45 on March 06, 2024, 09:54:05 PM

This is nothing but pure harassment already. SEC is digging into the past just to harass and make money from companies. It's good, however, that ShapeShift will settle this with a relatively small fine.

But I can't see the logic in issuing a cease-and-desist order against a company that has already left and ceased operating years ago. It seems moot to me. Why should you order a company to stop offering its services when it has already done it years prior? It seems pointless.

I very much agree on your pure harassment argument. Also, why is uncle Gary doing this? Does he not know that he will not be the SEC chairman on 2026? Does he also not know that these companies, exchanges and these other financial services in the cryptospace are what hires people that have retires from government service? This is very headshaking behavior from him unless he invested much of his money in Algorand which dumped and he sold in panic with -80% loss henehehee.

This is uncle Gary in class and promoting Algorand hehehehehehee.

https://m.youtube.com/watch?v=X_aNxBLFWTc

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Quote from: Helena Yu on March 05, 2024, 11:46:14 PM

So they keep hunting for unregistered exchanges to enforce regulations, literally any instant swap platforms that didn't have mandatory KYC rule will be on his radar. Probably the next is Uniswap, dydx, etc since they're more popular than Bitcoin swaps e.g. exch, agoradesk, peach bitcoin etc.

The filing by the SEC only accuses Shapeshift of selling unregistered securities while it was still centralized. Shapeshift is now decentralized and non-custodial, which has been enough to prevent further enforcement action.

Agoradesk and Peach Bitcoin are peer-to-peer and don’t sell securities. Some regulation agency could always trump up some money laundering charges if they get too big but their current volume is probably too low for them to really care.

Darker45

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This is nothing but pure harassment already. SEC is digging into the past just to harass and make money from companies. It's good, however, that ShapeShift will settle this with a relatively small fine.

But I can't see the logic in issuing a cease-and-desist order against a company that has already left and ceased operating years ago. It seems moot to me. Why should you order a company to stop offering its services when it has already done it years prior? It seems pointless.

Quote from: Z-tight on March 06, 2024, 08:14:50 AM

The article does not state if ShapeShift exchange is going to appeal the decision of the sec or if they are going to pay the civil fine of $275,000, i believe they will pay the fine if they are convinced they are guilty, because that would be a fair settlement for them.

It was ShapeShift itself that offered the settlement and SEC accepted it. It wasn't the other way around. And I guess it was a wise decision. For peace of mind and to do away with costly and lengthy trials, $275,000 is already a bargain. It's not about guilt.

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The article does not state if ShapeShift exchange is going to appeal the decision of the sec or if they are going to pay the civil fine of $275,000, i believe they will pay the fine if they are convinced they are guilty, because that would be a fair settlement for them.

Binance settled with the DOJ and CFTC last year, paying a fine of $4.3 billion, but the sec was not part of the settlement and their lawsuit with the sec is still in court. These exchanges engage in illicit dealings and they are guilty of breaking certain laws and regulatory demands, so settlement is usually a fair bargain for them and they would only challenge the decision if they know they are not guilty.

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It has become an excellent way to raise money quickly, as most services will accept an offer to settle the charges by paying a civil fine, which is usually more than $100,000, with a promise to provide all necessary data and comply with any future information, which means that all transfers through these services will be processed and sent it to the IRS.

If you review all the charges over the past year, you will find that settling the charges by paying a fine was the common denominator. Perhaps the time has come for these services to appeal the decision in court, at least it will be a precedent for future trials.

Helena Yu

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So they keep hunting for unregistered exchanges to enforce regulations, literally any instant swap platforms that didn't have mandatory KYC rule will be on his radar. Probably the next is Uniswap, dydx, etc since they're more popular than Bitcoin swaps e.g. exch, agoradesk, peach bitcoin etc.

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It appears that after Ripple's victory against the SEC, uncle Gary has not stopped his policy of regulation through enforcement. However, it also appears that he is charging small settlement amounts only hehe. Uncle Gary might only presently want to win and collect his prize money because he has been on losing streak hehehehehee.

The U.S. Securities and Exchange Commission announced Tuesday that it filed a cease-and-desist against cryptocurrency firm ShapeShift, alleging that it operated as an unregistered securities dealer.

“The crypto assets offered by ShapeShift included those that were offered and sold as investment contracts and, therefore, securities,” the SEC wrote in the Tuesday filing, citing a 1946 court case that brought forth the Howey test.

The agency said it has determined to accept an offer from ShapeShift to settle the charges by paying a civil penalty of $275,000, on top of the agreement to keep away from any future violations of the securities regulation, according to the filing.

Read in full https://www.theblock.co/post/280725/shapeshift-settle-sec-unregistered-securities-charges

Topic: Uncle Gary and the SEC will never stop? Cease and desist against Shapeshift (Read 110 times)