This week marked significant events in DeFi and the crypto industry, including FTX's lawsuit against Binance and new state initiatives in the U.S. regarding cryptocurrency regulation.
FTX Lawsuit Against Binance and Changpeng Zhao
FTX has filed a $1.8 billion lawsuit against Binance and its former CEO, Changpeng Zhao. The lawsuit claims fraudulent transfers in a 2021 share buyout deal, with Binance allegedly receiving significant funds in FTX tokens and Binance coins in exchange for its stakes in FTX entities. FTX alleges that these funds were possibly misappropriated from customers, claiming insolvency at the time of the transaction.
18 U.S. States Sue SEC
A coalition of 18 U.S. states, led by Kentucky, has filed a lawsuit against the SEC, accusing the agency of exceeding its authority in regulating cryptocurrencies. Republican attorneys general from states such as Texas, Florida, and Ohio argue that SEC Chair Gary Gensler's approach undermines state powers and stifles innovation in the digital asset market.
U.S. DOJ Investigation into Polymarket
The U.S. Department of Justice has launched an investigation into Polymarket, a crypto-based prediction platform, for potential regulatory breaches. Despite settling with the CFTC in 2022, new allegations suggest the platform might still be accessible to U.S. citizens.
The past week's events highlighted the rapid development and challenges facing the cryptocurrency industry. From lawsuits and regulatory initiatives to innovative projects and market trends, these news stories have significantly impacted the sector.
