SEC vs Kraken,Coinbase and Justin Sun

[zasad@]

Kraken
https://techcrunch.com/2023/02/09/kraken-ends-its-crypto-staking-services-for-us-clients-following-30m-sec-charge/
"The exchange, which was charged under its subsidiaries of Payward Ventures and Payward Trading, will pay $30 million in charges for “disgorgement, prejudgment interest and civil penalties.” In response to the settlement, Kraken has agreed to end its on-chain staking services for U.S. clients, a spokesperson for the exchange told TechCrunch."

Coinbase
https://www.coinbase.com/blog/we-asked-the-sec-for-reasonable-crypto-rules-for-americans-we-got-legal?
"Today, we are disappointed to share that the SEC gave us a “Wells notice” regarding an unspecified portion of our listed digital assets, our staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet after a cursory investigation. A Wells notice is the way that SEC staff tells a company that they are recommending that the SEC take enforcement action for possible violations of securities laws. It is not a formal charge or lawsuit, but it can lead to one. Rest assured, Coinbase products and services continue to operate as usual - today’s news does not require any changes to our current products or services. "

Justin Sun
https://www.reuters.com/legal/sec-sues-justin-sun-others-over-illegal-crypto-sales-2023-03-22/
https://techcrunch.com/2023/03/22/sec-sues-tron-founder-and-celebrities-including-lindsay-lohan-jake-paul-and-soulja-boy-for-crypto-securities-violations/
"The U.S. Securities and Exchange Commission sued Justin Sun, the founder of Tron, on allegations of orchestrating “unregistered offer and sale, manipulative trading and unlawful touting of crypto asset securities,” the agency stated Wednesday.

The SEC said it was suing Sun, his Tron foundation, the BitTorrent Foundation and BitTorrent (now referred to as Rainberry) over the sale of two tokens: TRON, or TRX, and bitTorrent, or BTT. Both TRX and BTT were referred to as unregistered crypto asset securities by the SEC, stoking the debate on whether cryptocurrencies are in fact securities.

Both tokens’ prices fell following the SEC charge."
____
How many fines will Coinbase and Justin Sun pay?


Reply from Justin Sun
https://twitter.com/justinsuntron/status/1638742625003130881


https://twitter.com/gurgavin/status/1638656154250412033
"JUST YESTERDAY COINBASE CEO REPORTED SELLING MILLIONS IN COINBASE $COIN SHARES ( PART OF HIS 10B5-1)"

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[Nwada001]

According to Justin Sun's tweets, he is ready to collaborate with the US government, which means he will accept every charge and pay the fine if necessary.
But why do the U.S so much hate and go after staking tokens and those who promote and support it, which they regard as security.

How many fines will Coinbase and Justin Sun pay?

Maybe they will be charged according to what they think the bodies are worth or base on what they think they might have realize from the said staking tokens.

[dansus021]

Oh I will add more

SEC’s action against BUSD more about Binance than stablecoins? - https://cointelegraph.com/news/is-the-sec-s-action-against-busd-more-about-binance-than-stablecoins

SEC charges Tron founder Justin Sun, celebrities Lindsay Lohan, Jake Paul with crypto violations - https://www.cnbc.com/2023/03/22/sec-hits-jake-paul-lindsey-lohan-justin-sun-with-crypto-violations.html

Somehow SEC is against all crypto related I know the purpose is to protect the customer against fraud and scams But When they says something it make crypto looks bad and the price is slightly affected

[zasad@]

According to Justin Sun's tweets, he is ready to collaborate with the US government, which means he will accept every charge and pay the fine if necessary.

This amuses me a lot. As soon as the SEC sends a Wells notice to a company or an influential businessman, the company says: blah blah blah.. we are so happy to cooperate````how much to pay?
This is a very good and fast way to get a lot of money in the form of fines. Vitulik Buterin has not yet received a Wells notice.
Any project is at risk. If the SEC directs its sanctions against him, then the project will have problems. Large projects will survive, small and medium ones may be closed.

[Nwada001]

Any project is at risk. If the SEC directs its sanctions against him, then the project will have problems. Large projects will survive, small and medium ones may be closed.

That's why it's just better to be anonymous with a completely decentralized system. No one lives from any government; there is no identity of the real project owner. That way, even when they want to target any project, they won't know to whom to direct their sanction and how. 

[NotATether]

https://twitter.com/gurgavin/status/1638656154250412033
"JUST YESTERDAY COINBASE CEO REPORTED SELLING MILLIONS IN COINBASE $COIN SHARES ( PART OF HIS 10B5-1)"

So much for their "dream team" legal defense.

Normally, people would be surprised and disgusted by such pig-selling occurring, but in this case, this action of his is quite stupefying because it means that they think that they don't have a fighting chance to win this lawsuit. Otherwise, he wouldn't have sold his shares, now would he?

They were making a big splash about their attorneys taking on the SEC, and now this.

[DaveF]

https://twitter.com/gurgavin/status/1638656154250412033
"JUST YESTERDAY COINBASE CEO REPORTED SELLING MILLIONS IN COINBASE $COIN SHARES ( PART OF HIS 10B5-1)"

So much for their "dream team" legal defense.

Normally, people would be surprised and disgusted by such pig-selling occurring, but in this case, this action of his is quite stupefying because it means that they think that they don't have a fighting chance to win this lawsuit. Otherwise, he wouldn't have sold his shares, now would he?

They were making a big splash about their attorneys taking on the SEC, and now this.

Did you read the filing?
https://investor.coinbase.com/financials/sec-filings/default.aspx
https://d3ka4b6b7wffw2.cloudfront.net/0001679788/100117351171/7bcbdfd3-493d-4bc6-8b71-da2868ae6820.pdf

Was more of a shifting around of stock then out and out sale of stock.
Look at the ones labeled (A) for acquired vs (D) for disposed of.

Sadly there is a lot of things that things that are somewhat not that bad in the corporate world that still have to be reported since it is a public company.
It's the nature of what it is.

As for the lawsuits. I see Coinbase coming out *relatively* unhurt and Kraken and Justin getting heavy fines and such. If not outright bans.
Just my opinion, no legal or financial basis to back that up. I have no real funds in any of them.

-Dave

[zasad@]

Any project is at risk. If the SEC directs its sanctions against him, then the project will have problems. Large projects will survive, small and medium ones may be closed.

That's why it's just better to be anonymous with a completely decentralized system. No one lives from any government; there is no identity of the real project owner. That way, even when they want to target any project, they won't know to whom to direct their sanction and how.

This is not possible in today's world. You can create a project for crypto-enthusiasts and exchange your candy wrappers with each other using anonymity, but the capitalization of such a project will be minimal and the SEC will not be interested in it.

____
If we talk about the lawsuits of the SEC, then their policy is very selective. All large companies will pay fines because they either sold tokens or there was staking or other violations. Now SEC can influence the price of any major cryptocurrency and create many problems for the project.

[Nwada001]

This is not possible in today's world. You can create a project for crypto-enthusiasts and exchange your candy wrappers with each other using anonymity, but the capitalization of such a project will be minimal and the SEC will not be interested in it.

Does not revealing your identity as a project owner make the project less attractive to investment, which might in turn lead to low market capitalization?
Ryoshi is the only name I know about the Shit coin token Shiba Inu but the coin token have a huge number of in trading volume about $200M+ daily trading volume.

I know it's hard to trust a project whose team members are anonymous, but at the same time, to be on the safe side from the attack of the Sec, privacy is the key.

[zasad@]

This is not possible in today's world. You can create a project for crypto-enthusiasts and exchange your candy wrappers with each other using anonymity, but the capitalization of such a project will be minimal and the SEC will not be interested in it.

Does not revealing your identity as a project owner make the project less attractive to investment, which might in turn lead to low market capitalization? 
Ryoshi is the only name I know about the Shit coin Shiba Inu but the coin have a huge number of in trading volume about $200M+ daily trading volume. 

I know it's hard to trust a project whose team members are anonymous, but at the same time, to be on the safe side from the attack of the Sec, privacy is the key. 

Chipmixer was recently closed, and these people probably understood what security and privacy are.
Do you really think this shitcoin will be the solution to the problem?
https://www.coingecko.com/en/coins/ryoshi-token#markets
Such coins will not interest the SEC, because it will close much earlier Did you know that this is a token on the centralized binance blockchain?

[Nwada001]

Chipmixer was recently closed, and these people probably understood what security and privacy are.
Do you really think this shitcoin will be the solution to the problem?
https://www.coingecko.com/en/coins/ryoshi-token#markets
Such coins will not interest the SEC, because it will close much earlier Did you know that this is a token on the centralized binance blockchain?

Lol 😂
I know it's a token not a coin my mistake.
I really don't think it will be the solution to the problem but i was just given an instance over the privacy protection of project owners and the huge volume over their token.

The Sec are highly after those whose existence is a trait to their fiat. I assume that's why they are going after the big names. Which it's just a matter of time before they will eventually believe that their is really nothing more for them to do unless to cause fuds

[zasad@]

Chipmixer was recently closed, and these people probably understood what security and privacy are.
Do you really think this shitcoin will be the solution to the problem?
https://www.coingecko.com/en/coins/ryoshi-token#markets
Such coins will not interest the SEC, because it will close much earlier Did you know that this is a token on the centralized binance blockchain?

Lol 😂
I know it's a token not a coin my mistake.
I really don't think it will be the solution to the problem but i was just given an instance over the privacy protection of project owners and the huge volume over their token.

The Sec are highly after those whose existence is a trait to their fiat. I assume that's why they are going after the big names. Which it's just a matter of time before they will eventually believe that their is really nothing more for them to do unless to cause fuds

https://tether.to/ru/transparency/
$44 billion has been printed in the Tron ecosystem, and the SEC is after Justin Sun. Most of these coins are circulating on the Kraken and Binance exchanges. Binance was banned from buying Voyager assets. This is only 1 billion, but there is a very serious game going on, which can turn into sad consequences for the crypto market.

[joniboini]

Does not revealing your identity as a project owner make the project less attractive to investment, which might in turn lead to low market capitalization?
Ryoshi is the only name I know about the Shit coin token Shiba Inu but the coin token have a huge number of in trading volume about $200M+ daily trading volume.

I think Shiba Inu is an outlier, to be honest. They have the hype around them when they release it, around when Doge is pumping if I'm not wrong, and people are more than happy to spend their cash to pump low market cap animal tokens. The rest of the anonymous projects that I know of do have low market cap. However, I do believe the key reason is that the things that they build are not really interesting for the masses.

As far as I can tell, SEC is going around with any project who do an ICO or similar thing in the past, especially those that don't limit US participants. They also go for staking services and their derivatives. If there is a new anonymous project that doesn't center around them and is interesting for customers, I believe they might be successful. Whether there will be such projects is another question though, considering how the demand for ICOs is low at the moment.

[zasad@]

SEC is going around with any project who do an ICO or similar thing in the past, especially those that don't limit US participants.

SEC works only where they are allowed to.
Ethereum had an ICO, Ethereum has staking. This is project number 2, which can become number 1, but no one notices it, because it cannot be noticed.

CFTC Chief Behnam Again Calls ETH a Commodity

____
This is a summary of what I think about SEC.

ICO is not viable now, because of the high risks, no one will invest

[Nwada001]

SEC works only where they are allowed to.
Ethereum had an ICO, Ethereum has staking. This is project number 2, which can become number 1, but no one notices it, because it cannot be noticed

No one noticed it.
It can't be noticed how?
Does ETH have some kind of immunity?
Just asking out of curiosity because of the truth that with all that is happening around them, there has not been a single piece of news regarding an attempt to invite or sue the Eth CEO, just as the others are facing the SEC in different ways. 

[zasad@]

SEC works only where they are allowed to.
Ethereum had an ICO, Ethereum has staking. This is project number 2, which can become number 1, but no one notices it, because it cannot be noticed

No one noticed it.
It can't be noticed how?
Does ETH have some kind of immunity?
Just asking out of curiosity because of the truth that with all that is happening around them, there has not been a single piece of news regarding an attempt to invite or sue the Eth CEO, just as the others are facing the SEC in different ways.

I don't have a true answer to your question.
I only have a theory. After Vitalik's project was supported by very powerful financial banking structures, the project and the team will have no problems. It is impossible to rise to such heights without patrons.
This year we will see a lot of regulation and litigation against crypto projects. If ethereum has serious problems, then my theory is wrong.

[Nwada001]

~snip~

~snip~

I don't have a true answer to your question.
I only have a theory. After Vitalik's project was supported by very powerful financial banking structures, the project and the team will have no problems. It is impossible to rise to such heights without patrons.
This year we will see a lot of regulation and litigation against crypto projects. If ethereum has serious problems, then my theory is wrong.

This is the major secret behind most successful businesses and powerful men... 
There is no connection that will let them experience any form of attack from any external body. 
 
It's good to know.. I must say this thread have updated me either few things which I have few understanding on. 

[zasad@]

~snip~

~snip~

I don't have a true answer to your question.
I only have a theory. After Vitalik's project was supported by very powerful financial banking structures, the project and the team will have no problems. It is impossible to rise to such heights without patrons.
This year we will see a lot of regulation and litigation against crypto projects. If ethereum has serious problems, then my theory is wrong.

This is the major secret behind most successful businesses and powerful men... 
There is no connection that will let them experience any form of attack from any external body. 
 
It's good to know.. I must say this thread have updated me either few things which I have few understanding on. 

Bankers ruled the world for many years. They used loans to earn money, but this system has a downside. The hegemony of the dollar is tired of many countries, so now the old order is collapsing. This is the true cause of many conflicts and wars in different countries. There are no guarantees that Vitalik's patrons can protect him for life.

[FP91G]

The United States securities regulator is holding off from ratifying the definition of the term “digital assets” in rules that govern reporting disclosures for hedge and private equity funds, despite proposing to do so some nine months ago.

On May 3 the Securities and Exchange Commission published amendments to Form PF — a form that SEC-registered funds complete to disclose basic information about their fund so the regulator can assess potential “systemic risks.”

The SEC originally included a digital assets definition in an August 2022 proposal for the changes. If it went into effect, it would have been the first time the SEC defined “digital assets.”

https://cointelegraph.com/news/sec-steps-back-from-defining-digital-assets-in-new-hedge-fund-rules

[Majestic-milf]

The United States securities regulator is holding off from ratifying the definition of the term “digital assets” in rules that govern reporting disclosures for hedge and private equity funds, despite proposing to do so some nine months ago.

On May 3 the Securities and Exchange Commission published amendments to Form PF — a form that SEC-registered funds complete to disclose basic information about their fund so the regulator can assess potential “systemic risks.”

The SEC originally included a digital assets definition in an August 2022 proposal for the changes. If it went into effect, it would have been the first time the SEC defined “digital assets.”

https://cointelegraph.com/news/sec-steps-back-from-defining-digital-assets-in-new-hedge-fund-rules

It doesn't surprise me tho that the SEC would go any length to snuff crypto activities. Since January, it has been jumping from  one legal action against crypto exchanges to another and has now served Coinbase a Wells notice.
 So far, they seem to be mute as regards the proper definition of regulatory clarity and at present, even the Chamber of Commerce supports the lawsuit filed by Coinbase demanding an answer from the SEC on their take on crypto regulation since most of their members are companies subject to US securities law.