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Crypto vs. Dollar

📌 This week in cryptocurrency Twitter: legal drama for Coinbase and the release of Sam Bankman.

Legal intrigue was the theme of the week, keeping cryptocurrency tweeters in suspense. Cryptocurrency

– Legal intrigue was the theme of the week, keeping cryptocurrency tweeters in suspense.

On Monday, a federal judge refused to dismiss the Securities and Exchange Commission’s (SEC) case against Coinbase, finding most of the regulator’s key arguments “plausible” and generally agreeing that the SEC has jurisdiction over much of the crypto industry.

Coinbase executives were quick to accept the court’s decision as expected, clarifying that it in no way meant that the cryptocurrency exchange had lost, only that the case would be heard in court.

However, legal experts were clearly surprised that the judge, who at one point seemed convinced by Coinbase’s arguments, found the logic in the SEC’s claims to be sound.

They did not expect the case to be dismissed entirely. However, the SEC’s best legal argument received no support. This is perplexing.

The furor over the decision is so great that even Edward Snowden has spoken out, calling it nonsensical and predicting that other decisions, political events and legal structures in the US will eventually force the SEC to end its enforcement campaign against much of the crypto industry.

Of course, the big legal news of the week occurred on Thursday, when disgraced FTX founder Sam Bankman Fried was sentenced to 25 years in federal prison for fraud on his cryptocurrency exchange.

Details of the sentencing hearing were broadcast around the world from the Manhattan courtroom where it took place via the InnerCityPress Twitter account, which frequently live streams trials in New York City.

The transcript of Bankman and Fried’s sentencing was rife with instantly circulated gems, from the former billionaire’s defense attorney praising him as a “beautiful enigma” to Judge Lewis Kaplan calling the cryptocurrency founder’s testimony the worst he’s seen from the defendants in nearly 30 years of presiding over the court.

Judge Kaplan: when he wasn’t lying, he was dodging, melting down, or trying to get the prosecutor to rephrase the question. I’ve been doing this job for almost 30 years. I’ve never seen a performance like this.

The many cryptocurrency users who avidly consumed live tweets about the sentencing hearing were clearly more accustomed to following the constant fluctuations in cryptocurrency prices than the hours-long trial. During the nearly two-hour hearing, which included defendant Bankman-Fried, his attorney, the FTX victim, and Judge Kaplan, some Twitter users reached their limit and desperately waited for the defendant’s sentencing announcement.

Eventually, the news broke. And at that point, cryptocurrency tweeters were divided between those who wanted a harsher sentence for the Bankman-Fried defendant and those who felt that 25 years in federal prison was an appropriate punishment for a first-time non-violent criminal.

SBF received a very lenient sentence given the severity of the crime and the number of victims.”

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