The United States Securities and Exchange Commission (SEC) has requested to seal the infamous Hinman Speech documents, claiming that they are not relevant to the court’s summary judgment decision. The Motion to Seal Summary Judgment Document was filed by the SEC on Dec. 22, requesting the sealing of various information and documents, most notably the Hinman Speech documents. The Hinman Speech documents refer to the speech given by former SEC Corporation Finance Division Director William Hinman at the Yahoo Finance All Markets Summit in June 2018, where he reportedly stated that Ether (ETH), the native token of the Ethereum blockchain, …

London-based Faes & Company filed a complaint against crypto mining firm Blockware Solutions LLC on Dec. 17, claiming it misrepresented the performance capability of its miners and lacked adequate power access to keep the machines running. Plaintiffs allege losses of $250,000 and are seeking compensatory and punitive damages. According to the complaint, the parties entered into contracts in October 2021 for Faes to buy $525,000 worth of Bitcoin miners and related hosting services. As part of the agreement, Blockware would host Faes' miners at one of its server facilities, which it allegedly owns and operates for a monthly hosting fee …

Defunct crypto exchange FTX paid a retainer of $12 million to bankruptcy lawyers as security for payment of its fees and expenses amid Chapter 11 bankruptcy proceedings, shows a court filing dated Dec. 21. Sullivan & Cromwell LLP (S&C), a law firm headquartered in New York City, received $12 million from West Realm Shires Services Inc. on behalf of FTX for legal services. In addition, the filing confirmed that over the past 90 days, i.e., since Aug. 26, 2022, FTX paid nearly $3.5 million to S&C. Based on the information provided, FTX paid at least $15.5 million to avail and …

Caroline Ellison, the former chief executive officer of Alameda Research, said as part of her plea deal that she was aware FTX funds had been made available for the venture capital firm’s investments. In a transcript of proceedings for her plea deal in the Southern District of New York released on Dec. 23, Ellison acknowledged the financial ties between FTX and Alameda at the center of prosecutors’ case against former FTX CEO Sam Bankman-Fried. According to the former Alameda CEO, Alameda had access to a “borrowing facility" through FTX from 2019 to 2022. “I understood that FTX executives had implemented …

Dan Berkovitz, general counsel for the United States Securities and Exchange Commission, said he will be leaving the agency after more than a year. In a Dec. 22 announcement, the SEC said Berkovitz will depart on Jan. 31. A former commissioner with the Commodity Futures Trading Commission, Berkovitz joined the agency in November 2021. At the time, he said he planned to work with SEC chair Gary Gensler on a “regulatory agenda that will enhance investor protection.” "After thirty-four years of public service, it is time for me to pursue new and different challenges and opportunities," said Berkovitz. It's unclear …

Embattled crypto exchange FTX asked for the assistance of a United States bankruptcy judge to prevent crypto lending firm BlockFi from claiming around $450 million worth of Robinhood shares purchased by its former CEO Sam Bankman-Fried. On Nov. 28, BlockFi filed a lawsuit demanding Emergent Fidelity Technologies, Bankman-Fried's holding company, to turn over 56 million Robinhood Markets shares. The stocks were allegedly put up as collateral for BlockFi's loans to crypto trading firm Alameda Research. Both FTX and Alameda filed for bankruptcy before settling the BlockFi loans. However, FTX argued through a filing in a US bankruptcy court that the …

Crypto Twitter has seemingly taken issue with Sam Bankman-Fried’s $250 million bail bond, allowing him to spend Christmas in his parent’s Palo Alto home without paying a single dime upfront. The former FTX CEO arrived in New York from the Bahamas on Dec. 21 and appeared in court on Dec. 22 where he was released on bail via a “personal recognizance bond” — essentially a written promise from the defendant that they will show up for future court appearances and not engage in any illegal activity while out on bail. According to the release agreement filed on Dec. 22, no …

Jair Bolsonaro, the President of Brazil set to leave office on Dec. 31, has signed off on a bill aimed at legalizing the use of crypto as a payment method within the country. In a Dec. 22 publication of the official journal of the federal government of Brazil, Bolsonaro’s office said the president had signed bill 14.478 into law following approval from the country’s Chamber of Deputies. The legislative body sent the bill to the president’s desk on Nov. 29 as the final step in recognizing crypto payments. According to the text of the bill, Brazil’s residents will not be …

More than one million creditors of failed crypto exchange FTX have been waiting to be made whole since before the firm’s bankruptcy filing on Nov. 11, but according to one expert, recipients of donations and contributions may have a legal means of returning the funds directly to investors and customers. Louise Abbott, a partner at United Kingdom-based firm Keystone Law, told Cointelegraph it was “extremely unlikely” FTX would have a legal leg to stand on in its demands for the voluntary return of political campaign donations, grants, and other contributions the firm made prior to its bankruptcy. However, many individuals …

Former FTX CEO Sam Bankman-Fried, who has been in the custody of Bahamian authorities, faces extradition to the United States following a hearing. According to reports, Bankman-Fried appeared in a hearing of The Bahamas Magistrate Court on Dec. 21 — the third since his arrest — where he waived his right to a formal extradition process that could have taken weeks. Officials from the U.S. Embassy, Federal Bureau of Investigation, and U.S. Marshals Service were reportedly in attendance to facilitate Bankman-Fried’s handover, to which he had first signed papers on Dec. 20. Reuters reported that SBF's legal team said the …

From Jan. 1, 2023, the term “virtual currency” will take its place in the money transmission regulations of Alaska. It will oblige the companies dealing with digital currencies to obtain a money transmission license in the state. As reported by the law firm Cooley on Dec. 19, the state of Alaska amended its money transmission regulations to include the definition of “virtual currency.” According to the amendment to the local Administrative Code, adopted by the Division of Banking and Securities (DBS), the virtual currency is: “[A] digital representation of value that is used as a medium of exchange, unit of …

Sam Bankman-Fried, the jailed founder of the FTX cryptocurrency exchange has reportedly signed papers on Dec. 20 waiving his extradition hearing in the Bahamasand see him flown to the United States to face multiple criminal charges. A hearing in the Bahamas Supreme Court was set for Dec. 21 regarding the matter. Bankman-Fried reportedly wanted to see the indictment against him before he agreed to extradition to the U.S. and was expected to drop his extradition fight according to reports on Dec. 19. ABC News first reported the development on Dec. 20 citing the Bahamas acting commissioner of corrections Doan Cleare. …