Crypto and SEC: Here’s How the SEC Brought its Crackdown Game in February 2023

Vignesh Karunanidhi
Crypto and SEC: Here’s How the SEC Brought its Crackdown Game in February 2023

The SEC has been long eyeing the cryptocurrency realm. It has also tried to establish control over the emerging industry. This sentiment is very evident from the prolonged Ripple vs. SEC case that emerged in 2020.

However, the scrutiny seems to have doubled ever since the fall of FTX, especially in February 2023. The commission hasn’t spared exchanges or celebrities for their actions. Let us look at them one by one.

Also read: BNB Price Prediction for March 2023

Source: Outlook India

Kraken vs. SEC

After allegations from the Securities and Exchange Commission (SEC) about the sale of unregistered securities, well-known cryptocurrency exchange Kraken decided to end its staking operations with retail investors. Moreover, a $30 million fine was paid to the SEC as a settlement.

Not only has the SEC’s decision enraged the cryptocurrency community, but also investors and politicians. The majority of the pressure was also placed on SEC Chair Gary Gensler.

Also read: Coinbase to Suspend Binance USD (BUSD) Trading

Source: BBC

Terraform Labs

Do Kwon, the CEO and founder of Terrra, has been charged with fraud by the US Securities and Exchange Commission. According to its statement, the regulator claimed Terraform created a multi-billion dollar “crypto asset securities fraud.” The declaration further claims that Kwon and Terraform Labs misled investors when advertising the LUNA coin.

Also read: SEC vs. Ripple – Deaton Slams BTC Maxis Following Gensler’s Comment

Source: Hindustan Times

Paul Pierce

The commission had announced charges against Paul Pierce, a former NBA player, for EthereumMAX promotion. The charges were also based on failing to disclose the fact that it was a promotion or sponsored.

Pierce was also charged with making false and misleading statements about EMAX tokens.

Also read: Shiba Inu Burn Rate Spikes by 2300%, 82 Million SHIB Burned

These are just a few of the notable scrutinies by the commission, aimed at protecting investors against scams and frauds. However, all the actions of the commission were not welcomed by the cryptocurrency community.