SEC targets Coinbase, Do Kwon arrested and FTX sells $95M in Mysten Labs: Hodler’s Digest, March 19-25
SEC Targets Coinbase, Do Kwon Arrested and FTX Sells $95M in Mysten Labs: Hodler’s Digest, March 19-25
Description
The blockchain and cryptocurrency world has been abuzz recently with news of Coinbase receiving a Wells notice from the SEC, the arrest of Terraform Labs CEO Do Kwon in Montenegro, and FTX’s announcement to sell over $95 million worth of Mysten Labs stocks. Read on for a full breakdown of the week’s events.
Contents
SEC Targets Coinbase
On March 19, Coinbase announced that it had received a Wells notice from the Securities and Exchange Commission (SEC). The SEC had received a tip that Coinbase, America’s second largest cryptocurrency exchange, had allegedly shared non-public information in the past. Specifically, the notice focused on four of Coinbase's senior executives from July 2016 to January 2018.
Coinbase denies all allegations levied against it and is fully cooperating with the SEC’s investigations. As of now, the exchange has yet to announce what, if any, further action will be taken.
Do Kwon Arrested
Do Kwon, the CEO of blockchain-based gaming start-up Terraform Labs, was arrested in Montenegro last week over objections raised by the Federal Trade Commission. Kwon has been accused of exploiting student information and running fraudulent cryptocurrency giveaway schemes.
The FTC said that Kwon and his co-conspirator, Eric Gansz, had misled customers by, among other things, using their student data to create fake social media accounts and promoting cryptocurrency platforms that never existed. Kwon has denied all the allegations, claiming that the FTC has no jurisdiction over him. The Montenegrin government is yet to announce any further action.
FTX Sells Mysten Labs
On March 24, FTX announced that it had launched an initial public offering (IPO) for a new stablecoin, Mysten Labs. According to the FTX website, the sale is for up to $95 million worth of Mysten Labs stock.
The Mysten Labs sale is only available to accredited investors and is expected to close on April 8. The company behind the coin, Mysten Group, will use the proceeds from the FTX sale to provide liquidity to the Mysten Network and fund other projects in the Mysten ecosystem.
Summary
All in all, this week was full of action. Coinbase received a Wells notice from the SEC, with some hinting that enforcement action may be on the horizon. Do Kwon was arrested in Montenegro over alleged fraudulent cryptocurrency giveaways run by his start-up, Terraform Labs. Finally, FTX sold $95 million worth of Mysten Labs stocks in a sale limited to accredited investors.
Stay tuned next week for even more from the world of Hodlers!