Customers are suing Compass Mining for over $2 million, alleging fraud, after the company cut ties with Russian hosting company Bit River and failed to return customers’ Bitcoin machines, citing a non-applicable United States sanction as the reason. According to a court document filed on Jan. 17, Compass Mining issued a notice in April 2022 that it has terminated its “relationships and dealings with Bit River” due to the sanctions imposed by Executive Order 14024. It is alleged that Compass “did not offer” to return or even retrieve the assets that its customers entrusted the company with to host at …

The United States Financial Crimes Enforcement Network (FinCEN), a bureau of the Treasury Department, has argued that Binance is linked to the illegal cryptocurrency platform Bitzlato. In an order published on Jan. 18, FinCEN stated that Binance cryptocurrency exchange was among the “top three receiving counterparties” of Bitzlato in terms of Bitcoin (BTC) transactions. According to the authority, Binance was among the biggest counterparties that received Bitcoin from Bitzlato between May 2018 and September 2022. Other such counterparties included Russia-connected darknet market Hydra and the alleged Russia-based Ponzi scheme known as “TheFiniko,” FinCEN noted. On the other hand, FinCEN did …

A commissioner from the Commodity Futures Trading Commission (CFTC) has called on Congress to stop allowing cryptocurrency exchanges to “self-certify” and list tokens without oversight. CFTC commissioner Christy Goldsmith Romero told an audience at a Jan. 18 University of Pennsylvania event focused on FTX that the current process wasn't adequate to ensure proper oversight, saying: “I urge Congress to avoid permitting newly-regulated crypto exchanges to self-certify products for listing, under the current process that limits CFTC oversight." "It is critical to institute guardrails against regulatory arbitrage, and that includes prohibiting the use of the self-certification process," she added. Currently, crypto …

Ripple CEO Brad Garlinghouse expects the firm’s long-running dispute with the Securities Exchange Commission (SEC) will be finalized within “single-digit months” and remains confident in securing a favorable outcome. Speaking to CNBC on Jan. 18 at the World Economic Forum in Davos, Switzerland, Garlinghouse said the verdict could come as soon as June this year now that both parties have “fully filled and fully briefed” their arguments before the U.S. District Court: “We expect a decision from a judge certainly in 2023. You don’t really have control over when a judge makes their decisions. But I’m optimistic that sometime in …

The CEO of crypto exchange FTX has rejected calls for its law firm Sullivan & Cromwell to be replaced as lead counsel in its bankruptcy case. John J. Ray III, who was appointed as the new FTX CEO on Nov. 11, filed a court motion on Jan. 17, arguing that Sullivan & Cromwell has been integral in taking control over the “dumpster fire” that was handed to him. Ray suggested that retaining their services is in the best interest of FTX creditors, arguing: “The advisors are not the villains in these cases. The villains are being pursued by the appropriate …

Noncustodial peer-to-peer crypto exchange Bitzlato was little known to some before the United States Department of Justice (DOJ) enforcement action against it on Jan. 18. It was cofounded in 2016 by recently arrested Russian national, Anatoly Legkodymov. According to a Russian source, Anatoly Legkodymov is the owner of 73.4% of Bitzlato, which has an office on a high floor in the Federation Tower skyscraper in Moscow, where it accepted trades of $100,000 or more. Legkodymov and his main partner in Bitzlato are also reportedly involved in Russian crypto mining equipment distribution company A-HVT. Legkodymov had a long and checkered history …

After the collapse of major cryptocurrency exchange FTX in November 2022, former CEO Sam “SBF” Bankman-Fried was arrested by Bahaman authorities on Dec. 12. Just a day later, the United States Securities and Exchange Commission and Commodity Futures Trading Commission filed charges against him for allegedly defrauding investors and violating securities laws. On Dec. 22, Bankman-Fried was granted bail on a $250 million bond paid by his parents against the equity in their house. The bail order added that he would require “strict pretrial supervision,” including mental health treatment and evaluation. The former CEO faces eight criminal counts in the …

The United States Department of Justice is expected to announce a “major international cryptocurrency enforcement action.” According to a Jan. 18 announcement, U.S. Deputy Attorney General Lisa Monaco will lead a press conference in which the Justice Department will announce a major enforcement action — now believed to be against the crypto firm Bitzlato. The U.S. Treasury Department is also expected to announce a similar enforcement action. Other speakers at the event will include Assistant Attorney General Kenneth Polite of the Department of Justice's criminal division, U.S. Attorney Breon Peace of the Eastern District of New York, FBI Associate Deputy …

South African Reserve Bank (SARB) governor Lesetja Kganyago highlighted issues surrounding the introduction of central bank digital currencies (CBDCs) at the World Economic Forum (WEF) 2023, held in Davos, Switzerland. In a WEF 2023 panel discussion dubbed “In the Face of Fragility: Central Bank Digital Currencies” Kganyago voiced his opinions on CBDCs and questioned if there’s a real problem solved by this new technology. Kganyago said: "Is this a solution looking for a problem or do we have some real problem that we are trying to solve?" The central bank governor also highlighted that the countries which are researching and …

The final vote on European Union’s much-awaited crypto regulations called Markets in Crypto Assets regulation (MiCA) was deferred to April 2023. This marks the second delay in the final vote, earlier deferred from November 2022 to February. The latest delay is attributed to a technical issue where the official 400-page document couldn’t be translated into the 24 official languages of the EU, reported The Block. Legal documents like the MiCA, which were drafted in English, must comply with EU regulations and be published in all 24 official languages of the union. The first delay in November that deferred the final …

Caroline Pham, the commissioner of the Commodity Futures Trading Commission (CFTC), has recently called on regulators to provide clearer guidance on crypto assets in 2023. In an interview with Bloomberg, Pham mentioned that discussions with global players over crypto regulations are currently ongoing. The government official said that there are many foreign discussions currently happening about global industry standards for crypto regulation. According to Pham, she has gone through more than 75 meetings with various parties to discuss various topics concerning crypto regulation. The CFTC commissioner highlighted that there are “very advanced discussions” happening outside of the United States about …

In a wide-ranging discussion, a panel of blockchain industry personalities at the World Economic Forum (WEF) concluded that the economy will become increasingly tokenized in the future. Carbon credits, housing, electricity, government bonds, forex, and other real-world assets will be traded on the blockchain, according to the panel. The event, titled Tokenized Economies, Coming Alive, featured Circle CEO Jeremy Allaire, Bitkub Capital CEO Jirayut Srupsrisopa (also known as “Topp”), Finland Minister of Transport and Communications Timo Harraka, and Yield Guild Games Co-Founder Beryl Li. According to Topp, the Thai central bank will be implementing a central bank digital currency (CBDC) …