Tag: Court

Lawyers for SBF time to discuss additional bail conditions

by Blockchain News

In the federal court, the attorneys who are defending former FTX CEO Sam Bankman-Fried have asked for additional time to prepare and present a proposal concerning the conditions of their client’s release on bond. This request was made in response to the fact that the attorneys need additional time to prepare the proposal. A request similar to this one was submitted in response to a request that was made by the court.

Mark Cohen of Cohen & Gressler stated on February 24 in a document that was presented to the United States District Court for the Southern District of New York that the legal team wanted until March 3 to present a proposal for additional bail conditions for Bankman-Fried and find a suitable candidate to act as a technical expert in the case. This document was submitted to the court by Cohen & Gressler. In addition, Mark Cohen indicated that the legal team desired to locate a good candidate to testify in the case by March 3; they stated that they wanted to give themselves this much time. During the course of the hearings for the case, the judge was shown the document that was being submitted. Following the hearing that took place on February 16 concerning the usage of a virtual private network, also known as a VPN, by the former CEO of FTX, the attorneys reached a consensus to retain the services of an expert witness.

It is said in the brief that “the parties have been painstakingly assessing individuals to serve as the Court’s technical consultant; but, they have not yet discovered a qualified candidate.” ” In a way that is analogous to this, the parties have been having fruitful conversations over additional bail terms for Mr. Bankman-Fried; despite this, they would want more time to finish those talks.

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A Colombian court recently hosted its first legal trial in the metaverse

by Blockchain News

An article that was published not too long ago states that a judge working in a court in Colombia recently presided over the first legal hearing that was conducted in the metaverse. According to the court, the proceedings seemed “more authentic than a video conversation.”

According to a report that was made public by Reuters on the 24th of February, on the 15th of February, the Magdalena Administrative Court of Colombia held a court case in the metaverse, which comprised participants involved in a traffic dispute.

The complaint that was launched against the police lasted for two hours, was brought forward by a regional transport union, and will “partially” continue in the metaverse. It is not out of the question that the verdict will also be arrived at in the metaverse.

A virtual courtroom was occupied by the avatars of the participants, and the magistrate, Maria Quinones Triana, wore black robes that were suitable for the proceedings.

It has been said that Columbia is one of the first countries in the world to experiment with having judicial proceedings take place in the metaverse. According to a remark that Reuters obtained from Quinones, he described the encounter as feeling “more authentic than a video conversation.”

This comes as a result of a recent study that was carried out and published by CoinWire on January 16th, which indicated that 69% of respondents think that the metaverse will ultimately affect social behaviors as a result of new ways used for leisure and activities. This comes as a result of the fact that 69% of respondents think that the metaverse will ultimately affect social behaviors as a result of new ways used for leisure and activities.

If this is taken into account, then, in Hackl’s opinion, “how we socialize will be deeply impacted by the metaverse.”

Experiences in the metaverse were available for guests to partake in at the World Economic Forum that took place in January of this year. Participants at the conference were offered the chance to take part in the “Global Collaboration Village,” which was the name given to the forum’s very own 3D immersive digital sessions. These sessions were available to them throughout the conference.

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Former facilities worker who allegedly set up a secret cryptocurrency mining operation

by Blockchain News

After skipping a planned court appearance to respond to accusations, a former facilities worker who is accused of setting up a covert bitcoin mining operation inside a Massachusetts school’s crawl space is slated to be arrested. The hearing was to answer to the allegations.

According to several sources in the media, Nadeam Nahas’ arraignment on the allegations of vandalizing a school and making fraudulent use of power was due to take place on February 23.

A form of warrant known as a default warrant is the kind of warrant that courts issue when a person fails to appear in court or comply with an order. This type of warrant gives law enforcement officials the authority to arrest the individual in question.

It is alleged that Nahas, who is said to have previously worked in the facilities department for the town of Cohasset, Massachusetts, United States, stole electricity worth almost $18,000 in order to power his cryptocurrency mining operation in 2021, between April 28 and December 14, specifically between the dates of April 28 and December 14.

According to the reports, the local authorities were notified about the operation for the first time in December 2021. This occurred after the director of facilities at Cohasset noticed computers, wiring, and ductwork that appeared to be out of place given that they were located in a crawl space close to the school’s boiler room.

There were a total of 11 computers discovered at the location, and after a three-month investigation, Nahas was determined to be a suspect in the case.

In March, Nahas handed in his resignation from his job with the municipality of Cohasset.

It is very unlikely that this is the first time someone has been accused of stealing energy for the purpose of mining cryptocurrencies.

Officials in Malaysia destroyed Bitcoin (BTC) mining rigs worth $1.2 million in July 2021 after seizing them from citizens who were stealing energy to mine Bitcoin. The rigs had been taken from citizens who were mining Bitcoin illegally.

A year earlier, in August of 2019, Bulgarian police made the arrest of two individuals for unlawfully siphoning off more than $1.5 million in energy to run two cryptocurrency mining farms.

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New York Attorney General Letitia James Sues CoinEx

by Blockchain News

CoinEx, a cryptocurrency exchange, has been served with a lawsuit by New York’s Attorney General Letitia James, who contends that the company falsely represented itself as an exchange by failing to register as a securities and commodities broker-dealer in the state. James’s allegations can be found in the lawsuit.

James submitted a petition to the New York Supreme Court on February 22 that consisted of 38 pages, alleging that CoinEx “engaged in repeated and persistent fraudulent practices” and violated the state’s Martin Act, which is widely regarded as one of the strictest anti-fraud and securities regulation laws in the United States. The petition was filed in response to a previous complaint that CoinEx had violated the Martin Act.

In addition to this, she said that CoinEx was a marketplace that offered a variety of tokens, including Amp (AMP), LBRY Credits (LBC), Rally (RLY), and Terra, that qualified as “both commodities and security” (LUNA).

James noted in a statement that CoinEx is not registered with the Securities and Exchange Commission or the Commodity Futures Trading Commission, “as is necessary under New York law,” in order to sell the tokens. James made this statement on February 22.

The Attorney General’s Office is said to have opened a CoinEx account using a computer and internet address situated in the state of New York and to have been able to engage in trading on the platform.

She went on to say that the days of cryptocurrency firms such as CoinEx behaving as if the regulations did not apply to them are gone.

In addition, the petition alleges that CoinEx did not comply with a subpoena that was sent by the Attorney General’s Office on December 22. The subpoena required CoinEx to “give testimony about the virtual asset trading operations of its platform.”

“CoinEx was compelled by subpoena to appear for an examination under oath on January 9, 2023, and failed to appear. CoinEx’s non-appearance is prima facie proof that CoinEx has engaged in the [mentioned] fraudulent practices.” [Citation needed] “CoinEx was compelled by subpoena to appear for an examination under oath on January 9, 2023, and failed to appear.”

James is seeking a court order to stop CoinEx from marketing itself as an exchange and preventing it from operating in the state by ordering it to geoblock internet addresses and GPS location data originating from New York. The petition can be found here. James is also seeking a court order to prevent CoinEx from operating in the state.

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Chamber of Digital Commerce argues the SEC is overstepping its authority

by Blockchain News

In the insider trading prosecution that the United States Securities and Exchange Commission is now conducting against former Coinbase workers, the SEC has once again been accused of going beyond the scope of its power and incorrectly classifying cryptocurrencies as securities.

The U.S.-based Chamber of Digital Commerce argued in an amicus brief that was filed on February 22 that the case should be dismissed because it represented an expansion of the SEC’s “regulation by enforcement” campaign and seeks to characterize secondary market transactions as securities transactions. The Chamber of Digital Commerce argued that the case should be dismissed because it represented an expansion of the SEC’s “regulation by enforcement” campaign.

“This case represents a stealthy, yet dramatic and unprecedented effort to expand the SEC’s jurisdictional reach and threatens the health of the U.S. marketplace for digital assets,” wrote Perianne Boring, founder and CEO of the Chamber of Digital Commerce. “This case represents a stealthy, yet dramatic and unprecedented effort to expand the SEC’s jurisdictional reach.”

The Chamber emphasized that “the SEC’s encroachment into the digital assets market” was never authorized by Congress, and it noted that in other Supreme Court cases, it has been ruled that regulators must first be granted authority by Congress. The Chamber also highlighted the fact that the Supreme Court has ruled that regulators must first be granted authority by Congress.

On Twitter, the Securities and Exchange Commission (SEC) stated: “By operating without authority from Congress, [the SEC] continues to contribute to a chaotic regulatory environment, therefore endangering the same investors it is tasked to defend.”

The Chamber also argued that the SEC was essentially asking the court to uphold that secondary market trades in the nine digital assets mentioned in an insider trading case against a former Coinbase employee constitute securities transactions, which the Chamber suggested was “problematic.” The Chamber also argued that the SEC was essentially asking the court to uphold that secondary market trades in the nine digital assets mentioned in an insider trading case against a former Coinbase employee constitute securities transactions.

Perianne added, “We have serious concerns about the attempt by [the SEC] to label these tokens as securities in the context of an enforcement action against third parties who had nothing to do with creating, distributing, or marketing those assets.” “We have serious concerns about the attempt by [the SEC] to label these tokens as securities.”

In its brief, the Chamber made reference to the case LBRY v. SEC, in which the court decided that transactions using secondary markets would not be considered to be transactions involving securities.

The judge had been persuaded by a paper written by commercial contract attorney Lewis Cohen, which pointed out that no court had ever acknowledged the underlying asset was a security at any point since the landmark ruling in SEC v. W. J. Howey Co. — a case which set the precedent for determining whether or not a security transaction exists. The judge had been persuaded by the paper because it pointed out that no court had ever acknowledged the underlying asset was a security at any point since

The most recent amicus brief comes on the heels of a similar filing that was made on February 13 by an advocacy group called the Blockchain Association. That filing argued similarly that the SEC had exceeded its authority in the case and claimed that it was “the latest salvo in the SEC’s apparent ongoing strategy of regulation by enforcement in the digital assets space.”

An amicus curiae, sometimes known as a “friend of the court,” is a person or organization that is not directly engaged in a lawsuit but that may be able to help the court by providing pertinent information or insights. This person or organization may submit an amicus brief.

The Securities and Exchange Commission (SEC) filed a lawsuit in July against Ishan Wahi, a former Coinbase Global product manager; his brother, Nikhil Wahi; and an associate, Sameer Ramani, alleging that the three had used confidential information obtained by Ishan to make gains totaling $1.5 million from trading 25 different cryptocurrencies. The lawsuit also names Sameer Ramani as a defendant.

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Celebrities asked to dismiss second amended complaint in class-action lawsuit

by Blockchain News

Kim Kardashian, Floyd Mayweather, and a number of other celebrities are attempting to persuade a court to reject an additional effort to hold them accountable for allegedly promoting EthereumMax (EMAX) without providing the appropriate information.

A second amended case from EthereumMax investors was filed in December 2022, and the celebrities urged a federal court in California to dismiss the complaint as frivolous. The defendants claim that the newly raised claims are an advancement of the “same fundamental notion” that the court had previously rejected.

The investors’ class-action complaint is based on the idea that the EthereumMax team collaborated with celebrities in order to engage in a scam that they refer to as a “pump-and-dump” scheme when it came to the sale of EMAX tokens to investors.

However, the defendant’s motion to dismiss the renewed complaint argues that the theory revolving around celebrities advertising the EMAX tokens to pump its price artificially was already rejected by the court due to the fact that the tokens do not have any value other than what the market is willing to pay for. The court stated that the theory was rejected because the tokens do not have any value other than what the market is willing to pay for. They penned the following in their paper: “The Court otherwise rejected the preceding complaint in its entirety due to basic deficiencies.” The remedy cannot be found in the inclusion of additional claims, defendants, or more than a hundred pages of accusations that are mostly unrelated to the situation.

In addition, the motion makes the suggestion that the investors’ current belief is that they maintained ownership of EMAX owing to the misrepresentations made by the celebrities. On the other hand, the investors “suffered no damage by just holding onto the tokens,” according to the argument that supports the move to dismiss the case.

While this is going on, Kardashian has already been penalized once for promoting EthereumMax on her various social media platforms. After failing to disclose that she received a payment of $250,000 to promote the cryptocurrency project, the United States Securities and Exchange Commission (SEC) and the American socialite reached a settlement agreement on October 3, 2022 that was worth $1.26 million. The agreement was reached on October 3.

The Securities and Exchange Commission (SEC) has just just issued a warning to celebrities who advocate cryptocurrency. When encouraging investment in stocks, celebrities are required by law to reveal how much money they are being paid and from whom it is coming, as was pointed out by the Securities and Exchange Commission on February 17th.

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Former FTX CEO faces 12 criminal charges

by Blockchain News

The federal court who is presiding over the prosecution of the former chief executive officer of FTX, Sam Bankman-Fried, has given the order for a superseding indictment to be disclosed. This indictment contains 12 separate criminal offenses.

In a superseding indictment that was submitted to the United States District Court for the Southern District of New York on February 22, United States Attorney Damian Williams alleged that the actions of Bankman-Fried in the case involving FTX and Alameda warranted the filing of 12 charges against him. According to the indictment, they included eight accusations connected to conspiring to commit fraud, as well as four charges each for wire fraud and securities fraud.

The superseding indictment against Bankman-Fried mentioned an additional charge for conspiracy to commit bank fraud and broke down individual wire fraud charges related to his alleged actions at FTX and Alameda. The initial indictment against Bankman-Fried, which was announced on December 13, included eight similar charges. However, the superseding indictment included nine charges. At the time, prosecutors also listed conspiracy to commit commodities fraud in its charges, which appeared to be included in the superseding indictment related to the “purchase and sales of derivatives” at FTX. This charge was seemingly included in the indictment related to the “purchase and sales of derivatives.”

The indictment states that Bankman-Fried engaged in fraudulent activity when he opened a bank account and tried to obtain user deposits: “[Bankman-Fried and others] falsely represented to a financial institution that the account would be used for trading and market making, even though he knew that the account would be used to receive and transmit customer funds in the operation of a cryptocurrency exchange, and thereafter, in connection with using the account for the receipt and transmission of customer funds in connection with the operation of a cryptocurrency

In connection to the claims of illegal political donations, the filing said that SBF and others made more than 300 contributions worth “tens of millions of dollars” by using “straw donors” or corporate funding. According to the allegations made by the United States Attorney, Bankman-Fried was able to “evade contribution restrictions on individual contributions” that were imposed by the Federal Election Commission. These limits are typically set at $100.

According to the document, “While personnel at Alameda usually monitored loans to executives, the transfers to Bankman-Fried in the months before the 2022 midterm elections were not documented on internal Alameda monitoring spreadsheets.” “Instead, an internal Alameda spreadsheet indicated almost $100 million in political donations,” despite the fact that FEC records show that Alameda did not make any political contributions for the 2022 midterm elections to candidates or political action committees (PACs).

Since a bail hearing in December, during which his mother and father agreed to put up the equity from their property as part of Bankman-$250-million Fried’s bond, the former CEO of FTX has been primarily restricted to his parents’ home in California. The hearing took place in California. Andreas Paepcke, a research scientist, and Larry Kramer, a former dean of Stanford University’s law school, both signed on as sureties for Bankman-bail, Fried’s which was set at $200,000 and $500,000, respectively.

While the criminal trial against Bankman-Fried is set to begin in October in federal court, the matter regarding FTX’s bankruptcy is now being heard in the United States Bankruptcy Court for the District of Delaware. Caroline Ellison, the former CEO of Alameda Research, and Gary Wang, the co-founder of FTX, pleaded guilty as part of a plea agreement to allegations that were identical to those brought against SBF. Many industry analysts believe that they may provide evidence about SBF’s case.

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Former FTX CEO’s attorneys agree to pay for security expert to assist

by Blockchain News

The attorneys who are defending former FTX CEO Sam Bankman-Fried have come to an agreement to foot the bill for a security expert who will assist the federal judge who is presiding over his fraud case in navigating modern encryption technology. This will help the judge decide whether or not to modify Bankman-bail Fried’s conditions.

On February 21, attorneys Christian Everdell and Mark Cohen of Bankman-Fried issued a letter to Judge Lewis Kaplan in which they expressed their agreement with his suggestion that he get assistance from a technical specialist.

The letter states that “the defense has already begun researching and contacting possible experts and anticipates being able to propose one or more potential candidates to the court by the end of this week.” The letter also states that “the defense has already begun researching and contacting possible experts.”

At a bail hearing that took place a week ago, Judge Kaplan indicated that bail conditions should be increased when it was determined that Bankman-Fried had been accessing the internet using a virtual private network (VPN) (virtual private network).

It is common practice to use a virtual private network, often known as a VPN, in order to alter one’s internet protocol (IP) address, to provide an extra layer of protection to one’s communications, or to access information that is prohibited under authoritarian regimes.

The court has been attempting to find a middle ground between granting Bankman-Fried access to communication channels so that he may prepare his case and preventing the abuse of messaging applications and privacy software.

Judge Kaplan has placed a temporary prohibition on Bankman-Fried using any virtual private network (VPN) or encrypted chat applications until his bail conditions have been resolved.

The technical expert will assist the court in navigating challenges relating to encrypted communications, messaging programs that prioritize privacy, and virtual private networks (VPNs).

Bankman-Fried and his counsel claim that he utilized the virtual private network (VPN) on two separate occasions: first to watch the NFL playoffs on January 29 and another time to watch the Super Bowl on February 12.

The prosecution has requested that Bankman-access Fried’s to the internet and other chat platforms be severely restricted as a condition of his release on bail. They also said that the usage of a virtual private network (VPN) “created various possible issues” about the potential access to cryptocurrency sites that had prohibited users from the United States.

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Bankrupt crypto lender Celsius Network has chosen NovaWulf Digital Management as sponsor

by Blockchain News

The insolvent cryptocurrency lender Celsius Network has selected NovaWulf Digital Management as the sponsor for its proposed Chapter 11 restructuring plan. If the plan is successful, the investment advisory firm will assume operations of a new company, and the majority of customers are expected to recover up to 70 percent of their funds.

Celsius presented the proposal to the United States Bankruptcy Court for the Southern District of New York on February 15 as part of a filing. The Celsius Official Committee of Unsecured Creditors (UCC), which is an organization that represents the interests of Celsius account holders, has given its approval to the proposal that has been submitted.

The proposal calls for the establishment of a new public platform known as NewCo, which would be held in its entirety by Earn’s creditors. The UCC will be responsible for the appointment of the majority of NewCo’s board members. According to the idea, the reconstituted board will not have any “Celsius founding engagement or affiliation.”

In addition, NovaWulf will provide a direct financial contribution to the newly formed company in the range of $45 million to $55 million.

Celsius stated in the document that “the NovaWulf plan provides the best method to distribute the Debtors’ liquid crypto assets and maximize the value of the Debtors’ illiquid assets through a new company run by experienced asset managers.” This was in reference to the NovaWulf plan’s ability to distribute liquid assets and maximize the value of illiquid assets.

The illiquid assets, mining activity, and current loan portfolio of Celsius will all be moved into the new firm, which also has intentions to offer crypto-oriented services in the near future.

According to the proposal, creditors whose claims had a value of $5,000 or less as of the date of the petition will be placed in a “Convenience Class” and will be eligible to receive “a one-time distribution of liquid crypto.” This distribution will be paid in the form of Bitcoin (BTC), Ether (ETH), and USD Coin (USDC).

It is anticipated that the option will allow over 85% of Celsius’s clients to reclaim over 70% of the cryptocurrency that they have invested. It is possible for any Earn creditor with a debt more than $5,000 to choose to lower a claim to $5,000 in order to take part in the class.

Those who have claims worth more than $5,000, or those who have claims worth over $1,000 but choose not to participate in the Convenience Class shares, will be eligible to receive a payout of the cryptocurrency that is left over after smaller accounts have been compensated.

In addition to this, they will get ownership in NewCo in the form of equity and management share tokens, which will entitle its holders to collect dividends.

Earn users who hold Celsius (CEL) tokens, a native token used for user rewards that currently trades around $0.50, will have their tokens valued and purchased at the initial coin offering (ICO) price of $0.20. Earn users who do not hold Celsius (CEL) tokens will not have their tokens valued or purchased.

According to the proposal, “insider CEL token claims,” also known as the customers who were provided early access to the ICO, “would get no reimbursement.”

In addition, the proposal calls for the establishment of a “well-funded litigation trust” in order to take legal action against officials at Celsius, including the company’s previous CEO Alex Mashinsky.

Before the proposed strategy can be put into action, it must first have the blessing of the United States Bankruptcy Judge Martin Glenn.

Following a process in which Celsius contacted “over 130 parties,” a total of six companies, including Binance, Bank To The Future, Cumberland DRW, and Galaxy Digital, submitted offers for the company’s crypto assets.

After ceasing withdrawals in July 2022 and claiming “severe market circumstances” as the reason, the business ultimately decided to file for Chapter 11 bankruptcy protection the same month.

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The identities of the guarantors who signed on as sureties

by Blockchain News

Following a request made by multiple news outlets, a federal judge agreed to allow the identities of the guarantors who signed on as sureties for former FTX CEO Sam Bankman-$250 Fried’s million bond to be made public. This decision was made in response to the judge’s ruling that the identities of the guarantors could be made public.

Andreas Paepcke, a senior research scientist at Stanford University, and Larry Kramer, a former dean of Stanford Law School, have been revealed to be the two persons who had not been previously named, according to court records that were made public on February 15th. On January 25, each of these individuals put up $200,000 and $500,000, respectively, as sureties in order to secure Bankman-release Fried’s on bail.

SBF’s parents, Joseph Bankman and Barbara Fried, were the other two people that signed off on their son’s bail in December 2022, after his arraignment. This occurred after SBF had been charged with a crime. Prior to the arrest of their son, the two were law professors at Stanford. Bankman seems to be becoming more of a target in FTX’s bankruptcy case, as corporate creditors sent subpoenas to him, his son, and other “insiders” on February 14.

According to a story published by Business Insider on February 15, Kramer said that he had known Bankman and Fried since the 1990s, and that the reason for his gift of half a million dollars was because of their friendship. At the time of publishing, it is unknown what kind of relationship, if any, Paepcke may have had with Bankman-Fried or his parents.

The terms of Bankman-bail Fried’s required that he be placed under house arrest at his parents’ home in California; however, he is free to leave the residence for court appearances and other authorized activities. The terms of SBF’s release on bail have been modified by Judge Lewis Kaplan to include prohibitions on accessing specific messaging applications, utilizing virtual private networks, and communicating with current and former employees of FTX and Alameda Research.

In a letter dated January 12, eight major news sites petitioned Judge Kaplan, asking the court to divulge the identities of the two persons “who supplied financial support to Mr. Bankman-Fried.” Initially, the petition was granted, but the court halted the revealing of the guarantors’ names until February 7 so that SBF’s legal team might have time to appeal the decision.

In a letter dated January 3, attorneys for Bankman-Fried argued against the publishing of Paepcke’s and Kramer’s names, noting that their clients had been the subject of “extreme media attention, harassment, and threats.” Paepcke and Kramer had not been identified at the time the letter was sent. As a result of the legal team’s announcement that they want to appeal Kaplan’s judgment, the distribution of the material has been postponed until February 14th.

The criminal prosecution against SBF is expected to commence in October, while the lawsuit against FTX’s bankruptcy is still active. Gary Wang, who was a co-founder of FTX, and Caroline Ellison, who was a former CEO of Alameda Research, have both pled guilty to specific offenses and are apparently collaborating with the police.

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