US Authorities Are Going After These Crypto Entities

Over time, the US government, through its regulatory agencies, has filed cases against several cryptocurrency companies, demanding compliance for their products and services.

Although the list is extensive, some cases have stood out, such as lawsuits against decentralized protocols like Uniswap, cryptocurrency mixing platforms like Tornado Cash, and major corporations like Binance and Coinbase.

The United States is fighting cryptocurrencies

The US government's fight against cryptocurrency entities has become more intense in the past year. Within 48 hours in early June, the Securities and Exchange Commission (SEC) filed a lawsuit against Binance and Coinbase, the largest cryptocurrency exchanges globally and in the country. The allegations against the entities were similar: failure to register as broker-dealers, national securities exchanges, clearing agencies, and violations of U.S. securities laws.

Two months after lawsuits were filed against Binance and Coinbase, the Department of Justice (DOJ) indicted the founders of Tornado Cash, accusing them of laundering more than $1 billion in criminal proceeds. This was a year after OFAC sanctioned a cryptocurrency mixer over its ties to cybercrime groups.

At the end of last year, the SEC filed a lawsuit against cryptocurrency exchange Kraken on the same charges it brought against Binance and Coinbase. Around the same time, the Department of Justice accused Binance and its founder, Changpeng Zhao (CZ), of willfully violating the Bank Secrecy Act. The case saw the cryptocurrency exchange pay a $4.3 billion fine, while CZ resigned as CEO with a $50 million fine.

The war against decentralized finance

In March 2024, the Department of Justice charged cryptocurrency exchange KuCoin and its founders with violating the Bank Secrecy Act and running an unlicensed money transfer business.

Last month, the SEC filed a notice of intent to sue Uniswap Labs, the company behind the largest decentralized cryptocurrency exchange Uniswap, for reasons that have not yet been disclosed. Around the same period, blockchain software technology company ConsenSys received a Wells Notice from the agency indicating intent to take enforcement action against the company for violations of securities laws through its MetaMask wallet.

Also, the Department of Justice arrested and charged the founders of the privacy-focused bitcoin wallet Samourai that same month, accusing them of enabling more than $100 million in laundered funds. At the time of writing, the wallet's services have been shut down, and its websites have been seized. Additionally, the Department of Justice recently arrested early Bitcoin investor Roger Ver, known as Bitcoin Jesus, on charges of evading taxes amounting to $50 million.

Meanwhile, one of the notable cases in the industry is the SEC's lawsuit against Ripple, which helped the cryptocurrency community clarify the securities of crypto assets.