Do Kwon, Terraform Labs violated US law, judge says in siding with SEC

Happy Saturday!

Do Kwon and Terraform Labs violated US law, a federal judge said in siding with the Securities and Exchange Commission. Jane Street is emerging as the broker of choice for firms seeking approval to issue spot Bitcoin ETFs, and India will block Binance, Kraken websites. Read on!

Judge backs SEC in Do Kwon case

Crypto entrepreneur Do Kwon and his company Terraform Labs violated US law by not registering as securities two digital currencies that collapsed in 2022, according to a judge’s ruling that allows the case to proceed towards a January 29 trial, Reuters reported.

US District Judge Jed Rakoff sided with the Securities and Exchange Commission in its case arising from the crash of TerraUSD and Luna. A Terraform spokesman said the company strongly disagrees with the decision, while the SEC had no immediate comment, the report said. Kwon has also been charged with fraud by the US Department of Justice.

Kwon, a native of South Korea, is currently involved in extradition proceedings while imprisoned in Montenegro after being arrested while attempting to fly to Dubai with a false Costa Rican passport, DL News has reported.

Coinbase Global replaces custody chief

Coinbase Global’s head of custody has been replaced as the firm prepares to provide services for spot Bitcoin ETF issuers, should their applications be approved, Bloomberg reported.

Aaron Schnarch was replaced by Rick Schonberg, a spokesperson told Bloomberg. Schonberg has been with Coinbase since 2021 and previously worked at Goldman Sachs.

Jane Street becoming Bitcoin ETF broker of choice

Jane Street appears to be the broker-dealer of choice for aspiring issuers of spot Bitcoin ETFs, Bloomberg reported.

Fidelity and WisdomTree appointed Jane Street Capital to be their “authorised participant,” a company responsible for steering cash into and out of ETFs. BlackRock and JPMorgan Securities also selected Jane Street. Valkyrie said in its filing that it has engaged Jane Street and Cantor Fitzgerald, the report said.

Celsius switch to Bitcoin mining approved

A US bankruptcy judge approved crypto lender Celsius Network’s proposal to deviate from a previously approved bankruptcy plan and switch to bitcoin mining, Reuters reported.

Judge Martin Glenn said the earlier plan was flexible enough to allow Celsius to shift to a backup after it hit a road block with the SEC.

India to block Binance, Kraken websites

India said nine global crypto exchanges — including Binance, Kraken, and Kucoin  — are operating illegally in the country by failing to register and comply with the country’s anti-money laundering rules, TechCrunch reported.

Global crypto exchanges must comply with India’s AML rules, India’s Financial Intelligence Unit said, and asked the country’s IT Ministry to block their websites, according to the report.

What we’re reading around the web

Charles Hoskinson’s ‘mucho aliens!’ tops the five weirdest crypto stories we covered this year — DL News

Bitcoin ETFs, regulators, and DeFi heists ruled crypto in 2023: Check out our  top stories of the year — DL News

Not just SBF: seven other crypto icons who fell in 2023 — DL News