USDThis Week’s Legal Shockwaves Feature $200M Seizure, CEO Conviction, Lawsuits
American Tourist Claims $123K in Crypto Stolen by Fake Uber Driver in London
Jacob Irwin-Cline, an American tourist, claims he was drugged by a fake Uber driver in London, leading to the theft of $123,000 in cryptocurrency, including bitcoin and XRP. After a night out, he was lured into a fraudulent ride, allegedly spiked with the sedative scopolamine, causing memory lapses. Upon returning to his hostel, he discovered his crypto wallets were emptied, traced to exchanges MEXC and BTSE. Local police are investigating, but Irwin-Cline reports a “less than 1% chance” of recovery, noting the organized nature of the attack and lack of follow-up from authorities.
Binance Seeks Dismissal of FTX's $1.76 Billion Clawback Lawsuit
Binance has requested a Delaware court to dismiss FTX’s $1.76 billion clawback lawsuit, claiming the case is "legally deficient" and lacks jurisdiction. FTX's estate, which sued Binance in November 2024, alleges that misappropriated customer funds financed a 2021 equity deal and accuses Binance and its co-founder Changpeng Zhao of orchestrating a scheme to undermine FTX. Binance argues that FTX operated for over 16 months post-deal and that Zhao’s public statements were not false. The dispute is part of FTX's broader efforts to recover over $11 billion owed to creditors, with major bankruptcy disbursements set to begin on May 30.
Semler Scientific Holds $466M in Bitcoin Amid Investigation by Law Firm
Semler Scientific, a Nasdaq-listed healthcare technology firm, currently holds $466 million worth of Bitcoin after acquiring an additional $50 million this week. Despite facing an investigation from law firm Bragar Eagel & Squire regarding potential violations of federal securities laws and business practices, Semler continues its Bitcoin investment strategy. The law firm has urged shareholders who have incurred losses to reach out. Semler's shares were trading at $44.20, down 1.6% in the last 24 hours, following a turbulent period tied to an ongoing inquiry by the U.S. Department of Justice into its reimbursement claims.
UK Appeals Court Rejects $13.3B Class Action from BSV Investors Against Binance
The UK Appeals Court dismissed the majority of a $13.3 billion class action against Binance from Bitcoin SV (BSV) investors, ruling that claims of BSV reaching Bitcoin-level value post-delisting were speculative. The court rejected the “loss of chance” claims, asserting investors had a duty to mitigate losses. While the lawsuit against Binance was narrowed, some smaller claims regarding investor losses due to access issues or selling at a loss may proceed. The ruling upheld a prior decision emphasizing the need for reasonable steps to reduce losses in a functioning market. BSV's value has fallen significantly since related court rulings.
Uniswap Dismisses Bancor's "Meritless" Patent Infringement Lawsuit as a Distraction
Uniswap Labs has dismissed Bancor's patent infringement lawsuit, claiming it is “meritless” and a distraction amid the evolving crypto regulatory landscape. Bancor alleges Uniswap has misappropriated its constant product automated market maker (CPAMM) technology for over eight years. The public response has been largely negative towards Bancor, with accusations of being anti-DeFi and criticism of its deviation from open-source principles. In contrast, some have scrutinized Uniswap for its use of intellectual property laws to restrict forks of its code. Uniswap CEO Hayden Adams described the lawsuit as possibly the “dumbest thing” he's encountered, dismissing its significance.
Global Operation RapTor Seizes $200M in Cash and Crypto; 270 Arrested in Narcotics Bust
Operation RapTor has led to the arrest of 270 suspects across 10 countries and the seizure of $200 million in cash and digital assets, marking the largest enforcement action under the DOJ's JCODE initiative. Authorities confiscated over two metric tons of drugs, including 144 kilograms of fentanyl-laced substances, primarily trafficked through darknet markets. Major traffickers behind Nemesis and Incognito Markets were charged for using crypto to sell opioids. The operation underscores the growing trend of crypto in the drug trade, with Chainalysis linking Mexican cartels to Chinese fentanyl suppliers, further indicating crypto's role in laundering trafficked proceeds.
Iowa Supreme Court Rules Bitcoin Depot Must Keep $28K Seized from Scam Victims
The Iowa Supreme Court has ruled in favor of Bitcoin ATM operator Bitcoin Depot, reversing a lower court's decision to return $28,000 in seized cash to scam victims. The court determined the victims, coerced into making Bitcoin transactions, entered a valid contract with Bitcoin Depot, which warned users of potential scams. One victim's claim of duress was rejected due to the absence of evidence of prior knowledge by the company. The ruling emphasizes legal clarity for crypto transactions, even as Iowa's Attorney General alleges significant losses linked to scams involving Bitcoin Depot, which retains a transaction fee of 23%.
Hawk Tuah Girl Haliey Welch Claims FBI, SEC Clearance Amid HAWK Memecoin Collapse
Haliey Welch, known as "Hawk Tuah Girl," claims she was cleared by the FBI and SEC regarding the failed HAWK memecoin. Despite previously promoting the token as compliant and fan-focused, she now states she didn’t understand cryptocurrency. The HAWK token's market cap plummeted from $491 million to under $100 million, with losses initially estimated at $1.2 million, later revised to $180,000. Welch's comments have drawn skepticism, as many commentators criticize her lack of knowledge before endorsing the project. Currently, HAWK's market cap stands at just $104,000, down 99% since its peak in December 2024.
SEC Charges Unicoin for Misleading Investors with Inflated Fundraising Claims and False Asset Backing
The U.S. Securities and Exchange Commission (SEC) has charged Unicoin, Inc. and its executives for misleading investors through inflated fundraising claims and false asset backing. The SEC alleges that Unicoin claimed to have raised $3 billion, while only about $110 million was actually secured, deceiving over 5,000 investors. The company also falsely asserted that its crypto token was secured by billions in real estate and misrepresented its SEC registration status. The SEC seeks legal remedies, including restrictions on future activities and civil penalties, while Unicoin’s CEO, Alex Konanykhin, denies the allegations, calling them “crudely fabricated.”
SafeMoon CEO Braden Karony Convicted of Fraud, Faces 45 Years in Prison
Braden Karony, CEO of SafeMoon, was convicted of defrauding investors in a cryptocurrency scheme, facing up to 45 years in prison. A federal jury found him guilty on three counts, including securities fraud, after he and co-conspirators misappropriated the liquidity pool, assuring investors it was locked. SafeMoon, launched in 2021, peaked at an $8 billion market cap. Prosecutors allege Karony diverted millions for personal gains, amassing over $9 million in crypto assets, which funded luxury purchases. Co-conspirator Thomas Smith has pleaded guilty, while Kyle Nagy remains at large. Karony maintains his innocence, asserting he did not commit fraud.
This article has been refined and enhanced by ChatGPT.
![Robot plays glowing GENIUS Act in pastel chess hall [GENIUS]](/_next/image?url=https%3A%2F%2Fprod-coin360-cms.s3.eu-central-1.amazonaws.com%2FRobot_plays_glowing_GENIUS_Act_in_pastel_chess_hall_GENIUS_d38c2f4f36.webp&w=256&q=75)
