• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Court Recognition of Two Cryptocurrencies as Commodities

user avatar

by Giorgi Kostiuk

a year ago


Cryptocurrency Victory in Court

The debate surrounding the classification of altcoins as either commodities or securities persists within US institutions, despite some concessions by the SEC. A recent landmark decision emerged, shifting the discourse on the status of altcoins.

An Illinois court sided with the CFTC's position on the categorization of two cryptocurrencies, Olympus (OHM) and KlimaDAO (KLIMA). In a ruling by the Northern District of Illinois Judge, these altcoins were officially acknowledged as commodities.

Olympus (OHM) and KlimaDAO (KLIMA)

A case involving Sam Ikurti and Jafia, his company, unfolded with the CFTC labeling the setup as a Ponzi scheme. In the 2022 lawsuit, Ikurti and his associate Ravishankar Avadanam faced allegations of fraudulent activities. Avadanam settled with the institution, leading to the case proceeding solely against Ikurti.

Under the guise of promising returns of up to 15%, the company amassed $44 million from investors via YouTube, directing all funds towards the acquisition of OHM and KLIMA Tokens. Judge Mary Rowland supported the CFTC's stance that Jafia and its entity engaged in fraudulence, solidifying the commodities status of the two cryptocurrencies.

The offenders are now mandated to reimburse $120 million. The significance lies in the formal recognition of OHM and Klima as commodities. The CFTC emphasized:

"The ruling extends beyond the acknowledgment of Bitcoin and Ethereum as commodities within the CFTC's purview to encompass OHM and Klima as additional virtual currencies classified as commodities."

Despite significant market activity, the value of the two altcoins remained stable. While the SEC predominantly categorizes altcoins as securities, the CFTC views cryptocurrencies as commodities. The implementation of the FIT21 legislation will enhance the CFTC's oversight in this domain.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Ruvi AI (RUVI): A New Cryptocurrency That Could Outperform Solana

chest

The development of the new cryptocurrency Ruvi AI (RUVI) attracts investors' attention due to its unique offerings and growth opportunities.

user avatarGiorgi Kostiuk

Bitcoin Sets New All-Time High, Sparkling Optimism in the Crypto Market

chest

Bitcoin has reached a record of $116,868, prompting active movement in the cryptocurrency market.

user avatarGiorgi Kostiuk

Trump Strikes Again at Powell: Fed's Budget and Economic Predictions in Focus

chest

Donald Trump criticized Jerome Powell for Fed management and high costs associated with the central bank's renovation.

user avatarGiorgi Kostiuk

Bitcoin Hits Record: Price Climbs to $73,000 Amid Optimism

chest

Bitcoin has reached a new record above $73,000, drawing attention from the investment market.

user avatarGiorgi Kostiuk

Cryptocurrencies: Bitcoin and Altcoins Hit Historical Records

chest

Bitcoin reached a record high of $116,868, while altcoins like Ethereum show significant growth.

user avatarGiorgi Kostiuk

Suspicious Movements of ETH on Arthapala Wallet: What Does It Mean for Ethereum?

chest

Analyzing significant ETH transactions from the Arthapala wallet and their potential impact on Ethereum and the market as a whole.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.