The cryptocurrency industry is grappling with increasing regulatory scrutiny and legal challenges.
The Blockchain Association (BA) has highlighted the significant financial burden imposed on crypto firms by the US Securities and Exchange Commission (SEC). Between 2021 and 2023, the SEC filed over 100 cases against the industry, resulting in over $425 million in legal expenses for member companies alone.
The BA advocates for a change in leadership at the SEC to alleviate this “lawfare.”
Coinbase, a major cryptocurrency exchange, has also faced regulatory hurdles.
It uncovered instances where the Federal Deposit Insurance Corporation (FDIC) instructed banks to avoid providing crypto banking services.
This discovery, following FOIA requests, underscores the challenges faced by crypto firms in accessing traditional financial systems.
The crypto industry’s legal woes extend beyond regulatory actions. Alameda Research, a subsidiary of the bankrupt FTX exchange, has filed a lawsuit against Kucoin to recover frozen assets worth over $50 million.
Kucoin’s refusal to release these funds has led to legal action, highlighting the complexities of asset recovery in the crypto space.
In a positive development, the Victoria Police in Australia has successfully seized $142,679 in crypto assets using newly granted powers under the Confiscation Act 1997.
This marks a significant step in law enforcement’s ability to combat cryptocurrency-related crime.
