The coming year promises to be busy for the cryptocurrency industry on the legal front, with six court rulings expected.
As the curtain draws to a close on an eventful year for the cryptocurrency industry, 2024 already promises to be mouthwatering. This article examines some of the major decisions expected in the coming year.
While many centers on key offenders convicted by governmental authorities, others, such as rulings involving Coinbase and Ripple, could have far-reaching implications for the future of the cryptocurrency industry.
Decision on Coinbase Motion for Judgment on the pleadings
After the United States Securities and Exchange Commission (SEC) sued Coinbase for alleged securities violations in June 2023, the exchange signaled its intent to push back on the move and potentially compel regulators to make new laws for the cryptocurrency industry.
However, that move has admittedly met with little success, with the SEC also fighting back and recently denying Coinbase’s petition for rulemaking. Hence, the battle will now go down to the wire, with the SEC and Coinbase slated to appear before the court to make oral arguments for their case.
The showdown is slated for January 17, with the parties set to argue on their respective reasonings. Meanwhile, a final decision could take way longer to reach but could arrive at some point in 2024.
Decision on Binance Motion to Dismiss
After its multi-billion settlement with U.S. authorities, leading crypto company Binance has one blockbuster legal case on its table. The company was also sued by the SEC in June 2023 and has since vehemently denied the securities law violation argument brought against it by the regulatory body.
Binance’s settlement with other U.S. agencies may have hinted that the company could reach a similar agreement with the SEC. Yet, the exchange argued in its latest motion to dismiss that the settlement should not be included as an argument in the case against the SEC.
The lawsuit still remains hotly contested, with a ruling on the motion to dismiss and the arguments of both parties expected within the first quarter of 2024.
CZ’s sentencing hearing
In November 2023, Binance founder Changpeng Zhao pleaded guilty to various allegations of facilitating money laundering and terrorism financing through his exchange by implementing loose KYC rules. Following his guilty plea, the Binance founder was compelled to remain in the United States until his sentencing hearing.
The key decision is set to be announced on February 23, 2024, with many favoring no jail time, of prison time between 12-18 months for the Binance founder. However, the prison time may extend as much as ten years, even though such an outcome seems less likely give the huge settlement package of $4.3 billion.
SBF sentencing hearing
Another crypto founder who looks almost certain to spend time behind bars is former FTX CEO Sam Bankman Fried (SBF). In November, a U.S. federal court convicted the FTX founder for his involvement in a multi-billion dollar fraud that led to severe losses for customers.
Following the conviction, SBF appears set to land a long-term prison sentence that could be as long as 115 years. The SBF sentencing hearing is scheduled for March 28, 2024.
Do Kwon extradition from Montenegro to the US or South Korea
In a remarkable turn of events, the Montenegro Appellate Court on December 16 ruled against the extradition of Terra founder Do Kwon to the United States or South Korea. Do Kwon is alleged to have masterminded the downfall of the $40 billion Terra ecosystem, a collapse that had a reverberating effect on the cryptocurrency industry.
An extradition of the Terra founder to any of these destinations would have paved the way for lawsuits seeking his conviction for the alleged crimes. In the meantime, though, Do Kwon will remain in Europe until Montenegro’s Ministry of Justice makes a ruling on the case in the coming year.
Decision on Ripple Remedies phase
Perhaps one of the longest-standing legal lawsuits involving a crypto company, the Ripple vs. SEC lawsuit, is expected to meet its climax in 2024. A court ruling in July 2023 affirmed that secondary sales of XRP did not constitute securities sales as the SEC had claimed.
However, primary sales of the crypto asset from Ripple (the company) to institutional players may have constituted securities transactions as per the landmark ruling. A final ruling on the matter is expected in 2024, with Ripple and the SEC looking to begin a remedies phase on a lawsuit that has arguably taken its toll on both parties.
As previously reported by The Crypto Basic, the remedies briefing will officially commence on February 12, 2024.
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