- SEC claims Binance funnelled $12bn in customer funds through affiliates.
- Coinbase CEO Brian Armstrong won’t delist tokens targeted by SEC.
- This, and a lot more in today’s Snapshot.
SEC claims Binance funnelled $12bn in customer funds through affiliates
In a Tuesday filing geared to freeze customer funds, the SEC claimed that Binance moved the billions through Binance CEO Changpeng Zhao’s Merit Peak trading firm.
The SEC leaned on documents from various entities including recently collapsed Silvergate and Signature Banks as evidence, with alleged links to the stablecoin issuer that issued Binance’s proprietary stablecoin, BUSD.
Coinbase CEO Brian Armstrong won’t delist tokens targeted by SEC
In an emerging battle with the US Securities Exchange Commission, Coimbase CEO Brian Armstrong told outlet Axios that he will not delist tokens named as securities as part of the US agency’s lawsuit against his firm.
The SEC named Solana, Cardano, Polygon, and a host of other crypto tokens in its latest lawsuit. Armstrong said Coinbase would continue to offer and transact the tokens on a “business as usual” basis.
US judge throws out PoolTogether lawsuit, sets DeFi regulation precedent
A US district court judge shot down a lawsuit against Ethereum protocol PoolTogether on Tuesday, citing a lack of evidence by the plaintiff who alleged the protocol operated as an illegal lottery.
While the district court acknowledged plaintiff Joseph Kent’s concerns, it deemed the lawsuit inappropriate for a federal resolution. PoolTogether uses liquidity pools to combine customer funds, and allocate the funds to a randomly chosen recipient.
The lawsuit’s outcome sets precedent for cases of litigation against decentralised finance, with the judge highlighting the onus of the plaintiff for participating in the protocol “of his own accord.”
UK regulator clamps down on crypto marketing tactics with new rules
The UK’s Financial Conduct Authority will restrict “refer a friend” bonuses among other promotional tactics by crypto firms, as part of a push to reign in crypto marketing practices it deems reckless.
The FCA’s rules include a 24-hour “cooling off” period which seeks to ensure crypto firms fully disclose risks to investors upon request.
The cooling-off period is already in effect for other assets under the FCA’s purview.
More web3 news from around the web…