Originally published on: November 25, 2024
The United States Securities and Exchange Commission (SEC) made headlines by raking in a record $8.2 billion in fines during the fiscal year 2024, largely due to a landmark settlement with Terraform Labs. The agency’s annual report unveiled this impressive financial milestone, marking it as the highest amount ever collected by the regulator. Notably, over half of this sum resulted from a successful court case against Terraform and its former CEO, Do Kwon, who agreed to a hefty $4.47 billion settlement.
While this achievement set a new benchmark for the SEC, it’s worth noting that excluding the Terraform settlement, the regulator’s total fines would have amounted to $3.72 billion – the lowest figure since 2013.
In a separate development, the Australian Treasury Department introduced a consultation paper outlining the potential adoption of the Organisation for Economic Co-operation and Development’s (OECD) Crypto-Asset Reporting Framework (CARF). This initiative aims to streamline tax data collection on crypto asset transactions and facilitate information sharing between tax authorities. The implementation of CARF in Australia presents two options: a tailored approach aligned with the Australian Taxation Office’s requirements or integrating the framework into the national tax legislation.
Elsewhere, the People’s Court of Songjiang District in Shanghai addressed the legality of digital currency issuance, asserting that while digital currency lacks the status of legal tender, it is recognized as a virtual commodity with property attributes. Judge Sun Jie clarified that while individuals can hold virtual currencies, commercial entities are restricted from engaging in virtual currency investment activities or token issuance independently.
Meanwhile, Alexey Pertsev, the developer of the crypto mixing protocol Tornado Cash, faces continued pre-trial detention following a court ruling to extend his custody period. Expressing determination to pursue justice despite the setback, Pertsev remains resolute in his legal battle.
In the political arena, several US House of Representatives members from the Democratic Party demanded explanations from Treasury officials regarding the operations of Tornado Cash services post-sanctions in 2022.
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