Crypto Court Case Dates to Look Forward to in Q1 2024
With 2023 officially in the rearview mirror, all eyes are looking ahead to what 2024 has in store for us. Crypto investors, TradFi fund managers, and degens alike are clocking in their Bitcoin price projections; some more ludicrous than others.
However, as such price targets are highly volatile and as uncertain as, well, crypto, Blockhead has put together a series of dates for you to mark in your crypto calendar.
Coinbase Hits Back - 17 January 2024
Coinbase has long found itself in the crosshairs of the SEC, facing a?lawsuit?from the regulator for operating as an "unregistered securities exchange, broker, and clearing agency."
But the crypto exchange has not taken the allegations lying down. CEO?Brian Armstrong?hit back at the lawsuit, stating it was a?reflection?of the SEC's "misguided and conscious refusal" to offer clarity to the crypto industry.
Armstrong also called out the SEC for its "really sketchy behaviour" and suggested it?"would certainly help"?if Gary Gensler stepped down as SEC chair.
Attorney John Deaton, known for representing XRP holders, will present oral arguments for Coinbase customers on 17 January 2024 before the court. Coinbase has moved to dismiss the SEC's claims, arguing that the regulator overstepped its jurisdiction.
5,000 customers have lent their support by registering as amicus curiae in Deaton's representation. A win for Coinbase could admonish the SEC’s approach to crypto regulation.
James A. Murphy, lawyer and founder of Metalawman, said a victory for Coinbase could signal a?significant setback for the SEC’s current regulatory approach.
Ripple?Remedies - 12 February 2024
Dating back to a 2020 lawsuit, the SEC and Ripple have had a rocky relationship. The regulator outright accused Ripple?of conducting an unregistered securities offering worth $1.3 billion by selling XRP.?
Over time, the SEC has lifted its foot from Ripple's neck. In July, US District Judge Analisa Torres ruled that Ripple Labs Inc did not violate federal securities law by selling its XRP token on public exchanges. Three months later, Judge Torres?further denied?the SEC permission to appeal her ruling.
Come 12 February 2024, the Ripple-SEC battle will reach a pivotal “remedies phase.” On that date, a comprehensive examination of Ripple's alleged offences will commence. The SEC will present its brief on potential remedies for Section 5 violations by 13 March 2024. Ripple will then submit its opposition by 12 April 2024 with the SEC's final response due by 29 April 2024.
It's a crucial timeline as Ripple could face a fine of up to $770 million. Whilst the fate of XRP is yet to be determined, the SEC's decision could establish a standard for the regulation of digital assets in the United States. The SEC dismissing allegations against Ripple signals a change in the wind, suggesting the regulator could be becoming more accommodating to the sector.
Do Kwon's Detention Ends - 15 February 2024
Like a child of divorce, Do Kwon has found himself amid a custody battle. Sitting in a Montenegro jail cell since March, Do Kwon's fate has been fought over by both the US and South Korea who demand his extradition.
Last month, Montenegro Justice Minister Andrej Milovi??reportedly?said in private that he plans to extradite Do Kwon to the US to face fraud and securities-law charges related to the collapse of LUNA.
In November, the Podgorica High Court ruled that the legal conditions for Kwon's extradition had been met. The Appeals Court has instructed the case to be sent back to the Podgorica Basic Court for a retrial, rejecting the extradition decision because the judge failed to hear out Kwon.
Montenegro's Minister for Justice will have the final decision if the courts approve his extradition.
The High Court in Montenegro has extended Do Kwon's detention by two months, following extradition requests forwarded by the US and South Korea. Marija Rakovic, the Podgorica High Court’s has since said Do Kwon’s custody term is now set to end on 15 February 2024.
CZ's Sentencing - 23 February 2024
CZ really took one for Team Binance. In November, Binance was lumbered with a $4.3 billion fine whilst?Changpeng Zhao?himself agreed to pay a $50 million penalty.
CZ consequently stepped down from his CEO position, making way for ex-MAS director Richard Teng to take the helm.
Pleading guilty to violating the Bank Secrecy Act, CZ has now been prohibited from returning from the US to the United Arab Emirates as he awaits his sentencing, which is scheduled for 23 February 2024.
CZ's self-sacrifice comes as the crypto industry forcibly cleans up its act ahead of potential approvals of Bitcoin ETFs. Bloomberg predicts a 90% chance of?approval?by 10 January
Back in June, Ikigai Asset Management founder Travis Kling highlighted how there is "no chance" of Bitcoin ETFs being approved with Binance in its current position of market dominance.
"If this ETF is approved, Binance is either gone entirely or their role in price discovery is massively diminished. If Binance holds on to its current level of influence, no chance this ETF is approved," Kling stated.
Less than half a year later, and just a few months ahead of potential Bitcoin ETF approvals, CZ self-abdicated amid both his and Binance's fines.
SBF's Sentencing - 28 March 2024
Sam Bankman-Fried and his phoney empire brought misery to the crypto industry in 2022. The industry was served a quiver of redemption in 2023 through his brutal court case in which the crypto villain's closest allies turned against him.
Convicted on 2 November 2023 of all counts related to fraud and other cries involving FTX and Alameda Research, SBF faces a maximum sentence of 110 years.
Although some legal experts believe SBF will likely serve less than 25 years in prison, more hopeful, sinister and vengeful crypto enthusiasts are betting on the whole nine yards.
Either way, all will be revealed on 28 March 2024. SBF recently had a motion to delay his March sentencing to May 2024 denied by a US Judge, so his Q1 sentencing should be firmly in place.
Get your popcorn ready.