Federal regulators in the U.S. have announced various charges or sentences against crypto parties.

State of Crypto is a CoinDesk Newsletter that examines the intersection of crypto and government. To sign up for future issues, click here

The Narrative

Remember when you felt that an initial coin offer was being sued every week? In comparison, January has been utterly quiet.

Why it matters

It’s always worth keeping an eye on what regulators are doing.

Breaking it Down

  • The U.S. Securities and Exchange Commission has charged Shanchun Huang with “manipulative trading” and for “failing” to disclose his beneficial ownership in Future FinTech before becoming CEO in 2020. The SEC did not include this acquisition in its complaint. Future FinTech purchased a Chinese bitcoin-mining firm in 2021. In a press release from that year, Future FinTech called itself “a blockchain-based ecommerce business”. The website refers to it as “a comprehensive digital technology and financial service provider,” which does include various cryptocurrency bits on its ” About us ” page.
  • The Commodity Futures Trading Commission has charged a company named Debiex, and an individual by the name of Zhang Cheng Yang, with misappropriating funds from customers.
  • Marco Ruiz Ochoa was sentenced by a federal judge to five years in jail and two years of supervised released, as well as nearly $1 million forfeiture. The Department of Justice claimed that IcomTech was a cryptocurrency ponzi scheme. Ochoa admitted to a conspiracy to commit wire theft in September.
  • Mark Scott, a former lawyer at Locke Lord LLP , was sentenced to ten years of prison after he was convicted four years ago for laundering $400 million in OneCoin. This is a multilevel-marketing scam that you have probably heard about.
  • The DOJ has published an notice about Sam Bankman Fried’s sentencing. It is currently scheduled for March 28 at 9:30 am before Judge Lewis Kaplan. Anyone who feels they have been a victim of Bankman Fried is invited to submit a victim impact statements.

  • Financial Conduct Authority in the U.K. faces a deadline to complete its consultation on stablecoins.

  • 14:00 UTC (9:30 a.m.) Treasury Secretary Janet Yellen is scheduled to present the Financial Stability Oversight Council annual report before the Senate Banking Committee.

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Stephen Alpher edited the book.