ChainCatcher news, FTX's bankruptcy administrator is being sued by creditor Lidia Favario for extravagant spending. Favario pointed out that the bankruptcy administrator's expenses during the handling of the FTX bankruptcy proceedings were excessively luxurious, including high-end hotel accommodations and exorbitant transportation costs. She mentioned that A&M professionals spent $971.74 for one night at a luxury hotel in New York, and one professional spent $1,733 on a taxi.Additionally, FTX paid $2,683 to have three taxis wait for CEO John Ray's testimony. Favario is urging the court to expand the review of expenses to ensure compliance with the Department of Justice's reasonable spending standards.

ChainCatcher news, according to The Block, former litigation advisor to the U.S. Securities and Exchange Commission and partner at BakerHostetler law firm, Teresa Goody Guillén, stated that the number of cases brought by the U.S. Securities and Exchange Commission against cryptocurrency companies is expected to decrease in the new year. In the future, the U.S. Securities and Exchange Commission will only be able to file lawsuits in cases involving securities.Therefore, if the lawsuits do not involve securities, the agency will refer these wrongdoers to the Department of Justice and other regulatory bodies, such as the U.S. Commodity Futures Trading Commission.

ChainCatcher news, Jorge Tenreiro, who previously served as the acting head of the cryptocurrency and cybersecurity oversight division of the U.S. Securities and Exchange Commission (SEC), has been appointed as the chief litigation counsel, expanding his responsibilities. Tenreiro played a significant role in several landmark cases, including the lawsuit against Ripple Labs.This promotion comes as the Trump administration is about to take office, indicating that the SEC will continue to enforce strict cryptocurrency regulations. The establishment of Tenreiro's new position is expected to drive crypto innovation while continuing to focus on areas such as ICOs, token sales, and market manipulation, further influencing the legal standards for cryptocurrencies.

ChainCatcher news, the on-chain trading terminal DEXX has released an update regarding the recent security incident: "DEXX has officially filed a lawsuit, and the SlowMist team is actively assisting law enforcement with the follow-up investigation. At the same time, DEXX is actively discussing a compensation plan. Regarding compensation, the platform makes the following solemn statement:If all assets can be recovered, DEXX will immediately provide full compensation to ensure that users' interests are not affected.If only part of the assets can be recovered, the platform will still fulfill its compensation responsibilities; the specific compensation plan will be determined based on the amount recovered. DEXX is currently mobilizing all resources and efforts to recover the stolen assets and resolve the issue as soon as possible."Previous news, according to SlowMist statistics, the DEXX incident has confirmed over 900 victims, with total losses estimated at 21 million USD.

ChainCatcher news, according to Cointelegraph, two OpenSea users have accused the NFT trading platform OpenSea of selling unregistered securities, but they abandoned the proposed class action after a judge allowed the company to seek arbitration.On November 7, Anthony Shnayderman and Itai Bronshtein filed a voluntary motion to withdraw their securities lawsuit against Ozone Networks (operating under the name OpenSea) in federal court in Florida. Previously, Judge Cecilia Altonaga had permitted OpenSea to file a motion to compel the two to arbitrate in an order last month.OpenSea insists on compelling the two users to arbitrate and claimed in an October filing that they agreed to its terms of use, which state that all claims will be resolved by an arbitrator— including whether the claims should be arbitrated in the first place. In the October filing, the NFT marketplace added that it "intends to take swift action to compel the plaintiffs to arbitrate their claims in the agreed forum" and will appeal any dismissal by the court, thereby staying the case.

ChainCatcher News, American citizen Josh Jarrett, with the support of Coin Center, has filed a lawsuit against the IRS regarding the tax policy on cryptocurrency staking rewards.Block rewards are new cryptocurrency tokens earned by validators for adding blocks to the blockchain. The IRS currently treats these rewards as taxable income upon receipt, which Jarrett and Coin Center argue is unfair. The lawsuit states that block rewards should be considered new property and not taxed as income, with taxation only occurring when sold or exchanged for cash.According to Jarrett, this principle applies equally to other forms of new property, such as crops or minerals, which are only taxed upon sale. The lawsuit claims that taxing staking rewards before they are sold leads to over-taxation and imposes additional and unnecessary regulatory burdens on crypto node operators.This lawsuit marks Jarrett's second attempt to sue the IRS on this issue, aiming to push for a revision of the current policy. The lawsuit also points out that the IRS's stance on taxing staking rewards may hinder innovation and development in the cryptocurrency industry.

ChainCatcher message, former NBA Dallas Mavericks owner, billionaire Mark Cuban stated on social media, "I spoke with the Harris team today, and they made it clear to me that they oppose regulation through litigation. Take care of yourself, Gary Gensler. Your departure has contributed one percentage point to the growth of the U.S. GDP."

ChainCatcher news, eight doctors focused on the field of neurodiversity recently informed the Second Circuit Court of Appeals in a friend-of-the-court brief supporting SBF that SBF has been diagnosed with Autism Spectrum Disorder (ASD) and Attention Deficit/Hyperactivity Disorder (ADHD), which "constitutes a significant challenge in the litigation process of this case," and that the court and jury may have misunderstood SBF's behavior during the criminal trial.They stated that several rulings were unfavorable to SBF "because of his neurodiversity," particularly the ruling from the Manhattan District Court, which allowed government prosecutors to question him without a jury present before he sat in front of the jurors.The judge repeatedly criticized SBF for his lengthy responses and for attempting to clarify or rephrase questions. The doctors noted that this is characteristic of individuals with Autism Spectrum Disorder, as they interpret language in a literal manner. They also mentioned that the judge's criticisms later led SBF to change his answers in front of the jury, "possibly as an overcorrection."

ChainCatcher news, Coinbase Chief Legal Officer Paul Grewal posted on LinkedIn that Coinbase has hired Ryan VanGrack to join its legal team as Vice President of Legal Litigation.According to reports, Ryan previously served as General Counsel at the globally renowned market maker Citadel Securities. Ryan has extensive experience in legal and regulatory affairs, including work at the U.S. Securities and Exchange Commission and the White House.

ChainCatcher news, Gemini has reached a settlement with the retirement and pension platform IRA Financial Trust regarding a $36 million vulnerability-related lawsuit.In a document submitted to the U.S. District Court for the Southern District of New York on July 18, Judge Analisa Torres dismissed the lawsuit brought by IRA Financial Trust with prejudice, after the company and Gemini Trust stated that they had reached a settlement, which did not include details about the settlement.The lawsuit was originally filed by IRA in June 2022, accusing Gemini of making false statements about security measures. IRA claimed that Gemini's security protocols lacked transparency, thus holding them responsible for an attack in February 2022, during which a malicious actor stole approximately $36 million in cryptocurrency. According to the platform, the hacker gained control of IRA's master key, allowing them to transfer tens of millions of dollars worth of Bitcoin and Ethereum into a customer retirement account, and then withdraw all those assets.

ChainCatcher news, according to Cointelegraph, the U.S. Securities and Exchange Commission (SEC) has requested a judge to dismiss a lawsuit from a U.S. clothing company that attempted to avoid potential regulatory action due to a past airdrop event. On July 3, the SEC filed documents requesting the dismissal of the lawsuit filed by Beba and the DeFi Education Fund (DEF) on March 25. The lawsuit asks a judge in the Waco district court to rule that the tokens issued by Beba are not securities. However, the SEC believes the lawsuit is "premature and based on an illusory" policy.Beba's lawsuit claims that the SEC would classify the BEBA token as a security and sue the company because it "adopted a de facto rule that 'the vast majority' of digital assets are 'securities'"—quoting Chairman Gary Gensler's remarks in 2022. In its motion to dismiss, the SEC stated that the lawsuit is "premature and based on a false policy—one that the Commission has never adopted and does not actually exist." The SEC noted that Beba and DEF did not point to "rules, orders, or other Commission actions reflecting the alleged policy issuance." It also added that the complaint did not mention any impending or threatened regulatory action against Beba, nor did it state that the SEC had previously investigated the company.

ChainCatcher news, according to News.bitcoin, based on the FTX bankruptcy report, FTX had provided a loan of over $13 million to Australian influencer Alex Saunders in July 2021, aimed at helping him repay debts to investors to prevent potential damage to his reputation and avoid lawsuits.'This report contradicts Alex Saunders' previous claims, as he had stated that he raised a large sum of money (approximately $11 million) from retail investors, friends, and family. This money was transferred to a cryptocurrency wallet under his control. At the time, Alex Saunders informed his supporters that the funds would be used to develop a cryptocurrency protocol. However, he breached that promise after transferring a large amount of money to FTX. According to investigator Robert J. Cleary's report, Saunders squandered creditor funds while trading on FTX.com, leading some investors to file lawsuits. To avoid reputational damage and litigation, FTX was willing to offer Saunders millions of dollars in loans.

ChainCatcher news, the SEC wins the lawsuit against crypto KOL Ian Balina for participating in the promotion of an unregistered cryptocurrency ICO. The judge ruled that Ian Balina's involvement in the 2018 cryptocurrency token ICO violated securities laws, as crypto KOL Ian Balina sold unregistered securities when purchasing Sparkster (SPRK) tokens and offering them to U.S. investors in an investment pool.

ChainCatcher news, according to DL News, FTX founder SBF has agreed to settle with investors, who will drop their civil liability claims against him in exchange for his cooperation in a class action lawsuit involving celebrities promoting the cryptocurrency trading platform. This agreement is subject to court approval.It is reported that these celebrities include sports stars such as American football player Tom Brady, former NBA star Shaquille O'Neal, Stephen Curry, and others, who are accused of promoting unregistered securities for FTX.

ChainCatcher news, FOX Business reporter Eleanor Terrett posted on X that the U.S. SEC has submitted a defense in court for the Debt Box case, indicating its intention to dismiss the lawsuit against the company. Previously, the SEC misled the court in order to obtain a restraining order and asset freeze against Debt Box.

ChainCatcher news, according to CoinDesk, a U.S. judge has ordered the termination of the litigation proceedings between FTX and BlockFi, allowing both companies to begin negotiating a settlement for claims. It is estimated that BlockFi has $355 million frozen on FTX and owes Alameda Research $671 million.

ChainCatcher news, according to the Nanchang High-tech Industrial Development Zone People's Court, the Nanchang High Court announced a case in which the plaintiff, Xiao Ming (pseudonym), claimed that in April 2021, the defendant, Xiao Gang (pseudonym), borrowed money from him under the pretext of trading USDT and promised to repay the plaintiff's loan within six months. Subsequently, Xiao Ming exchanged over 550,000 yuan for more than 80,000 USDT to provide a loan to Xiao Gang. However, after the agreed time, Xiao Gang failed to repay the loan as promised, leading Xiao Ming to file a lawsuit in court.The Nanchang High Court, upon hearing the case, believed that the People's Court's acceptance of civil cases should fall within the scope of civil litigation. In this case, the plaintiff, Xiao Ming, failed to prove that the USDT Tether involved in the case was a legally issued currency at the time of filing the lawsuit, and thus it does not have legal tender status. Therefore, the resulting lawsuit does not fall within the scope of civil litigation accepted by the People's Court. The first-instance ruling dismissed the plaintiff Xiao Ming's lawsuit. Xiao Ming was dissatisfied and appealed to the second-instance court. Ultimately, the second-instance ruling dismissed the appeal and upheld the original ruling.

ChainCatcher news, FTX has filed a lawsuit against Daniel Friedberg, who held multiple positions including Chief Regulatory Officer of FTX, Chief Compliance Officer of FTX.US, and General Counsel of Alameda Research. In the filing, FTX made 11 civil allegations, including accusations that Daniel Friedberg violated his legal duties and approved a series of fraudulent transfers and "loans" to other former FTX executives. The document claims he paid hush money to two potential whistleblowers to prevent them from leaking information regarding regulatory issues.Additionally, the document states that Friedberg received a salary of $300,000, a signing bonus of $1.4 million, and 8% equity in FTX.US during his 22 months of employment at FTX. According to the complaint, FTX is seeking to recover all of this equity. (Source link)

ChainCatcher news, "MachiBigBrother" Huang Licheng tweeted that he previously only hoped for an apology from (ZachXBT). Any monetary compensation I receive will be donated to charity.ChainCatcher previous news, MachiBigBrother is suing on-chain detective ZachXBT because the detective published a report last year accusing Huang Licheng of embezzling tens of millions of dollars in cryptocurrency. (source link)

ChainCatcher news, Three Arrows Capital co-founder Kyle Davies stated in an interview at his office in Dubai that there are currently no pending lawsuits or regulatory actions against him.Since the collapse of Three Arrows Capital, Kyle Davies' whereabouts have been a key issue. In a CNBC interview last November, Davies mentioned that he is currently living in Bali, Indonesia. Indonesia and the United Arab Emirates do not have an extradition treaty with the United States.Davies recently launched a cryptocurrency derivatives platform called Open Exchange (OPNX), which allows users to trade bankruptcy claims and use those claims as collateral for trading. (CoinDesk)