The US Securities and Exchange Commission (SEC) has been working hard to stifle crypto startups in 2022. 30 cases were filed against crypto companies in a year (this is a record), in just 2022, the regulator used its power 127 times. This is evidenced by the report of the consulting firm Cornerstone Research.
The document says that the SEC filed a total of 24 lawsuits in US federal courts and six administrative proceedings. The number of litigations has doubled compared to the previous year.
Most often, representatives of the cryptocurrency industry were accused of fraud (70% of cases) and an unregistered offer of securities (73%). In half of the cases, the regulator blamed crypto companies on both counts.
The regulator has filed the first-ever case of alleged insider trading and market manipulation involving the buying and selling of cryptocurrencies against Nikhil Wahi, brother of former product manager of popular crypto exchange Coinbase Ishan Wahi.
As a result of this trial, Nikhil Wahi was sentenced to 10 months in prison.
The SEC has not bypassed its attention and BlockFi (for an unregistered offer of a crypto-lending product in February 2022). And, of course, she participated in the sinking of a large ship – the bankrupt crypto exchange FTX and its former head Sam Bankman-Freed.
“Under the leadership of Chairman Gary Gensler, the SEC has focused on crypto lending and trading platforms and decentralized finance (DeFi) platforms,” Simone Mola, head of Cornerstone Research, summed up the report.
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