SBF misses the Senate hearing but promises to testify to the House: Law Decoded

Welcome to Law Decoded, your play digest of each the large developments successful the tract of regulation.

So, Sam Bankman-Fried, nationalist force fig one, won’t look successful beforehand of Senators connected Dec. 14, arsenic helium missed the deadline for responding to a Senate Banking Committee request. However, we could witnesser the entrepreneur look earlier Congress adjacent a time earlier, connected Dec. 13.

Replying to a thread of tweets from Representative Maxine Waters, Chairwoman of the Financial Services Committee, the erstwhile CEO of FTX expressed his willingness to testify astatine a committee proceeding successful the U.S. House of Representatives. John Ray, who took implicit arsenic FTX CEO connected Nov. 11 pursuing Bankman-Fried’s resignation, volition besides beryllium contiguous arsenic a witness.

The House Hearing surely won’t beryllium the past clip Bankman-Fried encounters pugnacious questions from the state. The United States Department of Justice (DOJ) is reportedly investigating a imaginable fraud that involves him siphoning funds offshore conscionable days earlier FTX filed for bankruptcy. According to an anonymous informant, DOJ officials met with FTX’s court-appointed overseers to sermon the scope of the accusation they needed for further investigation. The DOJ besides plans to analyse whether Bankman-Fried unlawfully transferred FTX funds to Alameda Research.

And that’s not the final database of imaginable allegations. A watchdog group, the Citizens for Responsibility and Ethics successful Washington, believes the businessmen made “dark wealth donations.” It has filed the ailment with the Federal Election Commission, accusing Bankman-Fried of “direct and superior violations of the Federal Election Campaign Act” for donating anonymously to the Republican enactment during the past electoral campaign. As it happened, Bankman-Fried himself publically admitted it successful 1 of his caller interviews.

Crypto user protection, proof-of-reserves bills introduced to U.S. Congress

United States Representative Ritchie Torres has introduced bills successful the House of Representatives to prohibit the misuse of lawsuit funds by cryptocurrency exchanges and to necessitate they disclose impervious of reserves to the Securities and Exchange Commission (SEC). The bills transportation the titles of “Crypto Consumer Investor Protection Act’’ and “Crypto Exchange Disclosure Act,’’ and person been referred to the House Financial Services Committee. 

Torres besides wrote a missive requesting a Government Accountability Office reappraisal of “the SEC’s nonaccomplishment to support the investing nationalist from the egregious mismanagement and malfeasance of FTX.”

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Court sets caller deadline for Celsius restructuring plan

Bankrupt crypto lender Celsius was granted an hold connected its exclusivity play until Feb. 15, 2023. The tribunal support gives the troubled crypto lender different mates of months to record for a Chapter 11 restructuring plan. The support to widen the exclusivity play came aft 2 tribunal hearings connected Dec. 6. In a tweet, Celsius said it requested support to licence the merchantability of stablecoins aimed astatine providing liquidity for continued operations. The institution hopes to usage the hold play to make a program for a stand-alone business. 

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Ripple files last submission against SEC

The two-year-long conflict betwixt SEC and Ripple is approaching an end, with Ripple having filed its last submission successful its lawsuit against the U.S. regulator. In its motion, Ripple argued that the SEC has failed to beryllium that its offering of XRP (XRP) betwixt 2013 and 2020 was an connection oregon merchantability of an “investment contract” and, therefore, a information nether national law. Ripple concluded the papers by stating that “the tribunal should assistance Defendant’s Motion and should contradict the SEC’s Motion.” 

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