Bill targeting illicit use of crypto passes US House: Law Decoded

Legislation focuses on preventing illicit cryptocurrency activities while safeguarding consumer choice.

United States lawmakers in the House of Representatives have voted in favor of legislation targeting the illicit use of cryptocurrencies.

House members passed the Financial Technology Protection Act on July 22 by voice vote after the bill was introduced in April 2023.

According to Representative Zach Nunn, the bill aims to “ensure the United States is prepared to address security risks and prevent illicit money laundering while also protecting consumer choice.”

Nunn and fellow Representative Jim Himes introduced the bill to address how “rogue and foreign nations” could bypass sanctions.

Citron crypto-skeptic Andrew Left to face fraud charges

On July 26, Andrew Left, founder of short-selling financial research firm Citron Research, was accused of securities fraud for allegedly profiting $16 million through stock “bait and switch.”

Bait and switch refers to a deceptive tactic used to lure unsuspecting victims with an attractive offer, only to be forced to accept a deal they would not have initially agreed upon.

The accusation stated that Left, a known crypto-skeptic, made misleading recommendations to retail investors on social media and TV appearances in which he had taken long or short positions.

The US Securities and Exchange Commission statement dated July 26 alleged that Left had bragged to colleagues that it was like taking “candy from a baby” when misleading investors with his recommendations.

The SEC further alleged that the “fraudulent practice” enabled Left to use Citron Research reports to derive “short-term profits” from retail investors.

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Marathon Digital fined $138 million for non-circumvention agreement breach

On July 23, Marathon Digital, the largest Bitcoin (BTC) mining company by market capitalization, was fined $138 million for breaching a non-disclosure or non-circumvention agreement.

Michael Ho, co-founder of the US Bitcoin Corp and the chief strategy officer of mining company Hut 8, won the lawsuit against Marathon Digital Holdings for the breach.

In a press release shared with Cointelegraph, Affeld England & Johnson, representatives of Ho, stated that the executive developed a growth strategy for Marathon in 2020.

According to the law firm, Ho was not compensated for the proprietary information he provided, leading to Marathon breaking their non-circumvention agreement.

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Coinbase adds former Bill Clinton aide, Supreme Court lawyer to board

Cryptocurrency exchange Coinbase has added three new members to its board of directors, including former Bill Clinton aide Chris Lehane.

Lehane served as Clinton’s Democrat strategist in 1992, shortly before the former US president began his two-term tenure between 1993 and 2001.

The former political strategist was most recently a senior OpenAI executive and expressed his excitement “to support Coinbase as they continue to advocate for the 52 million Americans who own crypto.”

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