Regulation
US authorities cracked down on 7 crypto entities in the span of two years
The United States government, through its regulatory agencies, has cracked down on major cryptocurrency projects in the span of two years as it struggles to understand the complex world of decentralized finance and to protect its citizens from its volatile nature.
According to CryptoPotato, These crackdowns are often driven by efforts by U.S. regulatory agencies to require compliance from crypto companies for their products and services.
The list of crypto entities that have been cracked down by US regulatory agencies remains long, but some cases have stood out from the rest, such as lawsuits against decentralized protocols like Uniswap, crypto mixing platforms like Tornado Cash, and large companies like Binance and Coinbase.
American authorities against crypto
The fight between the United States Securities and Exchange Commission (SEC) and crypto entities has intensified over the past year.
Binance and Coinbase
In early June, the US SEC sued Binance and Coinbase, the largest crypto exchanges in the world and the country. The allegations against the entities were similar: failure to register as broker-dealers, national securities exchanges, clearing agencies and violations of U.S. securities laws.
News continues after this announcement
News continues after this announcement
Tornado Cash
Two months after the Binance and Coinbase crackdown, the Department of Justice (DOJ) indicted the founders of a crypto mixing company, Tornado Cash, accusing them of laundering more than $1 billion in criminal proceeds .
Kraken
Towards the end of last year, the US SEC charged another cryptocurrency exchange Kraken with similar fees that Binance and Coinbase faced earlier in the year.
Kucoin
In March 2024, the DOJ charged cryptocurrency exchange KuCoin and its founders with violating the Bank Secrecy Act and operating an unlicensed money transfer business.
Uniswap
Uniswap Labs, the company behind the largest decentralized crypto exchange Uniswap, has been indicted by the SEC for reasons that have not yet been disclosed.
Samurai Wallet
The DOJ arrested and indicted the founders of the privacy-focused Bitcoin wallet Samourai, accusing them of enabling the laundering of more than $100 million. Wallet services were shut down and their websites seized.
These are numerous cases where US authorities have cracked down on crypto entities over compliance issues or links to money laundering.
The United States SEC, led by Gary Gensler, has been very active in ensuring compliance of crypto companies and protecting the American public from the negative aspects of cryptocurrency trading.
What there is to know
- The DOJ has accused Binance and its founder, Changpeng Zhao (CZ), of willfully violating the Bank Secrecy Act. The case saw the crypto exchange pay a $4.3 billion fine, while CZ resigned as CEO with a $50 million penalty.
- Despite various crackdowns by US regulatory agencies, the SEC also approved the launch of Spot Bitcoin Exchange traded funds in the country, leading to a bull run and increasing investor confidence in the future of crypto -currency in the country.