The week started with the news that Coinbase Global is facing a $350m lawsuit from Veritaseum Capital LLC which alleges that Coinbase had infringed on its patent.
The lawsuit is yet to take shape in a court of law, and it’s possible for the two parties to reach an understanding. Coinbase, however, has denied wrongdoing.
Another cryptocurrency company, Compute North, has filed for bankruptcy in the US Bankruptcy Court for the Southern District of Texas. The Minnesota-based crypto firm is said to owe $500m to around 200 creditors and is unable to repay the dues.
The feeling of doom and gloom was reinforced once again in the industry with the Bank of America Corporation warning that cryptocurrencies remain a high-risk asset.
The bank told consumers to be aware of investing in such assets and stick to proven investment mechanisms instead.
Brazil continued to intensify its efforts to bring illegal gambling operations to justice with the country issuing an arrest and search warrants targeting six companies. The exchanges are said to have remitted money abroad and to possibly be linked to tax evasion.
Despite regulators issuing stern warnings, one company in Australia, crypto exchange Swyftx, believes that the number of crypto owners in Australia will increase to a million in 2023. This means that Australians are some of the most prone-to-risk consumers when it comes to dabbling in the cryptocurrency sector which is not without its challenges.
Do Kwon, the unfortunate Terraform Labs co-founder, is now officially on Interpol’s Red Notice list. While this is not the same as an arrest warrant, Kwon will find it harder to travel as he runs a risk to be arrested by local governments. He is wanted in South Korea, which has issued an arrest warrant as well. Kwon has denied that he is in hiding.
Chinese authorities busted a cryptocurrency ring that is tied to $5.6bn worth of crypto assets. The assets were laundered and converted into US dollar and the operations were running up since 2018.
Thailand has acted against multiple parties related to increasing the value of cryptocurrencies through illegitimate means.
The lawsuit targeted Bitkub and Satang Corporation, two popular exchanges, along with other parties who participated in the artificial increase of the cryptocurrencies’ value.
Nexo, a popular cryptocurrency company, has been targeted by regulators in eight states in the US. According to the lawsuit against the company, Nexo has been offering unregistered securities and not disclosing the information fully to investors. Nexo has denied wrongdoing in the case.