The US CFTC has filed a lawsuit against cryptocurrency pool operator Trevor Vernon, alleging a $14.8 million investment fraud.
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The CFTC has charged a North Carolina man with a $14 million cryptocurrency and futures fraud.
According to Odaily Odaily, the U.S. CFTC has filed a lawsuit against Trevor Vernon, a North Carolina man, and his company, Argent Capital Management LLC, accusing them of defrauding approximately 60 investors of $14 million through a fake commodity Ponzi scheme. According to a complaint filed Tuesday in the U.S. District Court for the Western District of North Carolina, Vernon and his company operated commodity pools involved in trading across multiple asset classes, including stock index futures options, stock index futures contracts, and crypto assets. The CFTC stated that Vernon misled investors by claiming to be a "successful trader" through quarterly financial updates and monthly performance review emails, but in reality, he consistently incurred significant losses when using investor funds for trading. Regulators said Vernon had lost at least $8.6 million in futures, options, and crypto trading. The CFTC stated that its actual trading results were "consistent and catastrophic losses," significantly inconsistent with the profitability it presented to investors.
Reuters: Nearly 1,700 British investors have filed a lawsuit in London against Binance and CZ, seeking £150 million in damages.
According to Reuters, nearly 1,700 British investors are suing cryptocurrency exchange Binance and its founder CZ(CZ) in the London High Court, seeking at least £150 million (approximately $200 million) in damages. The plaintiffs allege that Binance entities, since the end of 2019, have been selling high-risk and complex cryptocurrency derivatives, including leveraged products, to UK retail investors without regulatory authorization, and have violated the UK's Financial Services and Markets Act by promoting such products. Some plaintiffs claim they have suffered losses of tens of thousands of pounds as a result. The defendants in the lawsuit reportedly include Binance Holdings, registered in the Cayman Islands; Nest Exchange, registered in the UAE; CZ; and other unnamed operators of the Binance trading platform. A Binance spokesperson declined to comment specifically on the ongoing litigation, but stated that the company will actively defend itself and emphasized Binance's commitment to fulfilling its obligations to users and operating within the framework of applicable law. Background information shows that the UK Financial Conduct Authority (FCA) explicitly prohibited cryptocurrency companies from offering derivatives services to retail clients in 2021.
CFTC files to dismiss CME lawsuit over crypto perpetual futures
The CFTC’s lawyers called the lawsuit “much ado about nothing,“ claiming that the CME Group lacked standing to file and argued against its claims over crypto perpetual futures.
An anonymous Bitcoin holder has filed a lawsuit in a New York court seeking to dismiss a claim against the ownership of a "dormant Bitcoin wallet."
According to Odaily, the New York State Supreme Court has seen a key defense in a lawsuit concerning ownership of 39,069 long-dormant Bitcoin addresses. An anonymous defendant who controls the dormant wallets in question has formally filed an application with the court requesting that the lawsuit be dismissed outright. The anonymous holder argued that a Bitcoin address is merely a string of data characters on the blockchain, not a legally recognized entity, and therefore not qualified to be sued. Furthermore, industry experts pointed out a critical technical shortcoming: even if the court ultimately rules in favor of the plaintiff, without the corresponding private key, the plaintiff cannot transfer or control these Bitcoin assets on the blockchain, rendering the judgment unenforceable. The plaintiff in this lawsuit is attempting to apply New York lost and found regulations, claiming that tens of thousands of long-dormant BTC are abandoned assets, intending to acquire full ownership through legal means. (Cointelegrap)
Dutch prosecutors have filed for bankruptcy against cryptocurrency platform Knaken and seized its assets in a criminal investigation.
According to official reports, the Dutch Public Prosecutor's Office (OM) has filed for bankruptcy proceedings against the cryptocurrency exchange Knaken Cryptohandel B.V. and its subsidiary Stichting Knaken Payments with the Rotterdam court. OM stated that the Dutch Financial Markets Authority (AFM) had previously warned that the platform was illegally providing cryptocurrency exchange and custody services without the necessary licenses. Although the platform claims to have ceased operations and is undergoing liquidation, it has currently stopped making payments to customers. OM is concerned that the liquidation process lacks order and may harm investors' interests, hence the bankruptcy filing, aiming to appoint a liquidator to take over and protect creditors' funds. Furthermore, based on the AFM's report, the Dutch Fiscal Intelligence and Investigation Service (FIOD) has launched a parallel investigation into the platform's alleged criminal activities. Law enforcement conducted multiple searches on June 29, seizing relevant digital storage devices and freezing some of the company's assets; no arrests have been made so far.
SBI's crypto subsidiary will shut down its Bitcoin mining pool service.
According to Mars Finance, Decrypt reports that SBI Crypto, a wholly-owned subsidiary of Japanese financial giant SBI Holdings, announced it will officially shut down its Bitcoin mining pool service on July 31. Prior to this, the pool will continue normal operations, and customers can continue mining and earning rewards. SBI Crypto's cryptocurrency mining service has been operating since 2017 and currently ranks 11th globally in hashrate rankings on the Hashrate Index. To assist customers with a smooth transition, the platform is in negotiations with other mining pool operators such as Braiins and Luxor. Analysts point out that this move reflects the trend of large mining companies gradually adjusting their business focus in the face of Bitcoin price volatility and changes in the industry environment. Despite divesting its mining pool business, its parent company, SBI, is still increasing its investment in the cryptocurrency market, having just announced the acquisition of Japanese cryptocurrency exchange Bitbank for $289 million earlier this week.