The SEC is launching an investigation into whether Coinbase has allowed U.S. customers to trade digital assets that should have been registered as securities. Last week, it alleged that at least nine altcoins on the exchange fall under this category — claims linked to the news that a former Coinbase employee has been charged with the insider trading of cryptocurrencies.
In response to Bloomberg’s latest report, Coinbase’s chief legal officer said it doesn’t list securities… end of story. Paul Grewal added: “I’m happy to say it again and again: we are confident that our rigorous diligence process — a process the SEC has already reviewed — keeps securities off our platform, and we look forward to engaging with the SEC on the matter.”
Ripple’s CEO threatens to leave the US if it loses SEC case
Ripple CEO Brad Garlinghouse said the crypto company will move to another country if it loses in its legal battle with the SEC.
Garlinghouse said he’s confident that Ripple will prevail against the federal regulator, which accused the company of failing to register roughly $1.4 billion in XRP tokens as securities.
“We think the law is on our side and the facts are on our side,” he told Protocol. But “we will move to another jurisdiction if we lose the case in the United States. We still have an immense business to build. Why do it in a regulatory jurisdiction that’s not going to be friendly towards us?”
The SEC declined to comment.
Vuuzle Media Corp, a no longer operating entity points finger at S.E.C and United States government for blocking S.W.I.F.T and preventing financial institutions from opening Bank Accounts
John Lamb spoke with the judge (Hon. Cathy L. Waldor) and in his declaration, he stated for the record, “Vuuzle-US became unable to open, operate or transact in United States Dollar accounts, and I and other persons previously associated with Vuuzle-US are also now unable to open, operate or transact in United States Dollar accounts.”
In order to defend this litigation and be represented by a United States law firm, we need to be able to make payment in United States dollars, which is now an impossibility. Nevertheless, we are currently searching actively for a law firm that will accept payment in an accepted cryptocurrency.
Vuuzle-US, while it was an operating company and generated revenue, promptly paid all of our attorneys. That includes paying fees to Gilbert Bradshaw, Esq., Securities Legal, in California, who was counsel to and advised Vuuzle-US in connection with all securities offerings conducted by Vuuzle-US (and whose advice Vuuzle-US followed in conducting its securities offerings), and to Dickinson Wright, which has been counsel in defense of this litigation.
Vuco Gold, with which I am affiliated, is in the business of selling Non-Fungible Tokens (“NFTs”), which are unique cryptographic tokens that exist on a blockchain and cannot be replicated. NFTs, as created and sold by Vuco Gold, do not constitute securities, and Vuco Gold, in selling NFTs, is not engaged in the offer and sale of securities.
Vuco Gold is represented and advised by counsel outside of the United States in connection with its manufacture and sale of NFTs. Notwithstanding that Vuco Gold transacts lawfully in NFTs, Vuco Gold is not able to open a United States Dollar account.
The executive team upon notice of withdrawal and understanding that Vuuzle-US had been given 45 days to seek council who would accept Crypto. The formal Vuuzle US team may decide to take a much different action against the S.E.C and how it moves forward.
John Lamb said, “The United States of America is not easy to do business with when it comes to crypto.” Currently, the S.E.C is investigating Coinbase for non-registration, while Ripple CEO Brad Garlinghouse has threatened to move his crypto company to another country if it loses in its legal battle with the SEC. Vuuzle-TV had already closed 2 years ago. So, what are we to do with it? ” another country if it loses in its legal battle with the SEC. Vuuzle-TV already closed 2 years ago. So, what are we to do with it?”
Essentially, from what insiders are saying, Vuuzle-US will never open again in the USA. The founder of Vuuzle-US opened several new corporations, all in other countries. Today, the governments in those countries have given licenses to new companies and the freedom to grow their businesses. From all accounts, re-opening Vuuzle-TV would be an effort in futility.
On August 2nd, 2022, Richard Marchitto is set to meet with the Hon. Cathy L. Waldor, the United States Magistrate Judge. Richard Marchitto, a retired dentist, had his life savings taken away by the DOJ in this case, with more than $200,000 USD seized from his bank account.
He has had all his business accounts closed and his money blocked. His only source of income has been hindered as he can’t open any bank account and can’t do any business as the money will be seized. Dr. Marchitto has been told by his lawyers that the DOJ will make a deal with him. Their deal is, “Richard take $10,000 and the DOJ will keep $190,000” and only if Richard will stop the case against them. He is also told that if he does not stop the case against them, he will be indicted and imprisoned.
Dr. Marchitto has stated that he will not tell any lies, fabricate any stories, or sign a phony plea agreement. the DOJ sent a plea agreement to Marchitto’s attorney and said, “Have him sign it and give it back”. Then AUSA Weir said, “If he won’t sign it, then don’t let him see it.” Marchitto, now 73 years old, said that without reading anything, he would never agree to sign any document.
The facts are that, after 2 years, this matter has become nothing more than a coordinated effort to shut down a flourishing company and use the dentist to hurt the founder. The officers and directors of the now closed company will win nothing, even if they win the case.
The fact is the case is now supported with facts proving corruption and with non-USD payment to the attorneys that created irreconcilable differences, compelling the prominent law firm, Dickenson, to withdraw. Vuuzle-US actively continues to pursue securing replacement counsel who might take crypto, not withstanding that Vuuzle-TV is a dead-end never to be opened or used again. Furthermore, Vuuzle-US has no assets or money in any bank account.
BlockFi Agrees to Pay $100 Million in Penalties and Pursue Registration of its Crypto Lending Product
The Securities and Exchange Commission today charged BlockFi Lending LLC (BlockFi) with failing to register the offers and sales of its retail crypto lending product. In this first-of-its-kind action, the SEC also charged BlockFi with violating the registration provisions of the Investment Company Act of 1940. To settle the SEC’s charges, BlockFi agreed to pay a $50 million penalty, cease its unregistered offers and sales of the lending product, BlockFi Interest Accounts (BIAs), and attempt to bring its business within the provisions of the Investment Company Act within 60 days.
BlockFi’s parent company also announced that it intends to register under the Securities Act of 1933, the offer and sale of a new lending product. In parallel actions announced today, BlockFi agreed to pay an additional $50 million in fines to 32 states to settle similar charges.
Without admitting or denying the SEC’s findings, BlockFi agreed to a cease-and-desist order prohibiting it from violating the registration and anti-fraud provisions of the Securities Act and the registration provisions of the Investment Company Act. BlockFi also agreed to cease offering or selling BIAs in the United States.
Crypto exchange Binance blocks Russian users targeted by sanctions
Crypto exchange Binance is blocking the accounts of any Russian clients targeted by sanctions, it told Reuters on Monday, but will not freeze the accounts of others after Ukraine called for a block on Russian users at major digital currency platforms. We’re blocking accounts of those on the sanctions list (if they have Binance accounts) and ensuring that all sanctions are met in full,” a spokesperson for the company said on Monday, declining to give further details. The United States, Britain, Europe and Canada announced new sanctions on Russia on Saturday, including blocking certain lenders’ access to the SWIFT international payment system, following Russia’s invasion of Ukraine. Ukraine Vice Prime Minister Mykhailo Fedorov said on Sunday he had requested major crypto exchanges to block the digital wallet addresses of Russian users, which allow transactions in crypto coins.