StealthEX & CryptoDaily Crypto News: US BTC Transfer, Tether Audit, Tron vs SEC

April 4, 2024

Crypto World

Maciej Zerelik

Welcome to our weekly crypto news roundup, brought to you by StealthEX and CryptoDaily! We’re here to offer you a straightforward and brief overview of what’s happening in the world of cryptocurrencies. Ready to explore the biggest news and trends in the digital currency space this week? Let’s get started!

US Government Transfers $2.1 Billion in Seized Bitcoin to Coinbase

The United States government transferred $2.1 billion in Bitcoin, previously confiscated from the notorious Silk Road, to Coinbase, one of the leading cryptocurrency exchanges. This action marks a significant moment in the handling of digital assets by federal authorities, drawing attention across the crypto world. 

Detected by the eagle-eyed on-chain detective ZachXBT, this transfer not only underscores the government’s active role in the crypto space but also ignites speculation on future actions with seized digital assets. As Bitcoin’s price dances around the $66,300 mark, the crypto community buzzes with discussions on potential market impacts. 

Tether Enhances Security with Successful Audit

Tether has achieved a significant milestone by completing a System and Organization Controls 2 (SOC) Type 1 audit. This audit is a gold standard for security compliance, showcasing Tether’s dedication to secure operations. 

The American Institute of Certified Public Accountants (AICPA) has developed this stringent audit to assess an organization’s security, availability, processing integrity, confidentiality, and privacy controls. 

Tether’s completion of this audit reaffirms its position as a leading and trustworthy stablecoin provider in the cryptocurrency industry. The audit examined Tether’s IT controls, ensuring robust security measures are in place for the protection of customer assets and data. 

Tether plans to maintain high-security standards by undergoing SOC 2 examinations annually and aims to obtain the SOC Type 2 Certificate by 2025. This effort underlines company commitment to transparency, innovative technology, and accountability, further building trust within the crypto community.

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Tron Challenges SEC Over Lawsuit, Advocates for Dismissal

Tron has petitioned a federal court in New York to dismiss a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). Tron’s defense highlights that the SEC’s allegations predominantly target actions outside the U.S., asserting that the SEC oversteps its bounds as it is not a global regulatory authority. 

The lawsuit’s focus is on digital asset transactions intended for foreign investors on international platforms, which Tron argues falls outside the SEC’s jurisdiction. Tron further contends that the involved tokens do not meet the criteria for investment contracts under the U.S. Howey Test. Additionally, accusations against Tron’s founder, Justin Sun, including alleged market manipulation and undisclosed celebrity endorsements, were met with skepticism by Tron, emphasizing a lack of concrete evidence. 

The crypto firm’s legal argument also invokes the major questions doctrine, suggesting that regulatory powers should stem directly from Congressional legislation, not agency overreach. This legal battle follows the SEC’s March 2023 lawsuit against Tron and affiliated entities, marking a critical moment for crypto regulation and industry autonomy.

ConsenSys Pushes for SEC’s Nod on Ethereum ETF

ConsenSys, known for the MetaMask wallet, is pressing the SEC for the green light on a spot Ethereum ETF. The firm’s recent submission underscores Ethereum’s top-notch security features. Amid SEC’s review of Ethereum’s security status, ConsenSys’s argument shines a light on Ethereum’s robust anti-fraud mechanisms, especially under its Proof-of-Stake (PoS) consensus. 

This model, they argue, not only matches but possibly surpasses Bitcoin’s security, already recognized by the SEC in approved exchange-traded products (ETPs). By fostering discussions with regulators, ConsenSys aims to broaden access to decentralized finance and Web3, awaiting the SEC’s decision with the crypto community watching closely.

British Columbia Takes Action Against Quadriga CX Co-founder’s Wealth

British Columbia’s authorities have issued an Unexplained Wealth Order against Michael Patryn, co-founder of the now-defunct Quadriga CX exchange. This action, which targets assets suspected of being tied to crime, marks the third of its kind in the province. 

Authorities seized significant assets from Patryn, including cash, gold bars, luxury items, and more, during a June 2021 raid. This move is part of a broader effort to combat financial crime by redirecting illicit gains towards victim support and crime prevention initiatives.

Crypto Pioneer Faces Justice: 25 Years in Prison For SBF

The digital currency realm has witnessed a monumental moment. Sam Bankman-Fried, once a titan in the cryptocurrency industry, has been sentenced to 25 years in prison. This ruling marks a significant pivot in how legal systems approach financial discrepancies in the crypto space.

Bankman-Fried, the mind behind the once-celebrated FTX exchange, faced accusations of fraud and conspiracy, leading to immense financial losses for users. His trial unfolded amidst a backdrop of lost savings and a tarnished reputation, both for him and the broader crypto market.

The court’s decision didn’t come lightly. It considered the profound impact of Bankman-Fried’s actions on individuals and the industry at large. Despite attempts to appeal the conviction, the message from the judiciary is clear: accountability and justice will take precedence in safeguarding financial integrity within the evolving digital world.

This article is not supposed to provide financial advice. Digital assets are risky. Be sure to do your own research and consult your financial advisor before investing.