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The Blockchain Association and Coinbase spotlight SEC and FDIC actions, revealing significant financial burdens on crypto firms.
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The Blockchain Association (BA), a cryptocurrency and blockchain advocacy group, said that the United States Securities and Exchange Commission (SEC) has cost companies more than $425 million in digital asset litigation.
In an Oct. 31 update to the BA “regulation by enforcement” page, the group reported that the SEC had filed 104 cases against the crypto industry between 2021 and 2023.
According to the association, self-reported by BA member companies — a “small slice of the industry” — about $426 million had been spent in “defensive litigation” against the SEC.
The BA said that the crypto industry and “the American voter” are ready for change and advocated for “a change of leadership at the SEC” to end the “law-fare” against the industry.
Coinbase finds over “20 examples” of FDIC telling banks to avoid crypto
On Nov. 1, Paul Grewal, chief legal officer at Coinbase, said the firm had “uncovered” over 20 examples of the Federal Deposit Insurance Corporation (FDIC) telling banks to avoid crypto.
Grewal said the FDIC told banks to “pause” or “refrain from providing” or not to proceed with providing crypto-banking services.
The discovery came after Coinbase filed two Freedom of Information Act (FOIA) requests against the FDIC, demanding that it disclose information about the ongoing crypto exclusion among US banks.
Coinbase’s Grewal said the responses to the FOIA requests were “a shameful example of a government agency trying to cut off financial access to law-abiding American companies.”
FTX estate sues KuCoin to recover over $50 million in assets
Alameda Research, defunct crypto exchange FTX’s subsidiary, has sued KuCoin, a cryptocurrency exchange, to recover more than $50 million in assets locked on the platform.
An Oct. 28 filing in the US Bankruptcy Court for the District of Delaware — the court handling FTX’s Chapter 11 case — revealed that KuCoin had frozen the funds since FTX’s collapse in November 2022.
The filing claimed that KuCoin had refused to release the assets, originally worth $28 million, despite multiple attempts to obtain the frozen funds.
Alameda’s filing argues that the crypto exchange’s failure to release the assets violates the Bankruptcy Code and seeks the funds return and potential damages for delays incurred.
Australian police’s “new powers” lead to $142,679 crypto seizure
An Oct. 31 report released by the police department of Victoria, Australia, revealed that recent authorization of “new powers” had allowed it to make its first successful crypto seizure.
The Victoria Police seized $142,679 in crypto assets after officers were allowed to gain control of digital assets following an addition to the Confiscation Act 1997.
Officers in Victoria can now confiscate crypto assets in the possession of criminals through a search warrant.
This article first appeared at Cointelegraph.com News
