According to CryptoPotato, two individuals have been sentenced for their roles in a scheme to manipulate the price of Hydrogen Technology's cryptocurrency, HYDRO, and defraud investors. This case is significant as it is the first time a federal criminal trial jury has classified a cryptocurrency as a security and determined that price manipulation of cryptocurrency constitutes securities fraud. The court documents and trial evidence showed that Michael Kane, co-founder and CEO of Hydrogen Technology, and Shane Hampton, the company's Head of Financial Engineering, collaborated with South African firm Moonwalkers Trading Limited to manipulate the price of HYDRO. From October 2018 to April 2019, the firm used an automated trading bot to create fraudulent orders on a U.S.-based cryptocurrency exchange. The group conducted approximately $7 million in 'wash trades' and placed over $300 million in 'spoof trades' for HYDRO. These actions misled retail investors into buying HYDRO at artificially inflated prices, resulting in the group profiting around $2 million over ten months. Nicole M. Argentieri, Principal Deputy Assistant Attorney General and head of the Justice Department’s Criminal Division, stated that Kane, Hampton, and their co-conspirators used a trading bot to manipulate the price of their company's cryptocurrency, thereby defrauding investors. Kane pleaded guilty in November 2023 to one count of conspiracy to commit securities price manipulation, one count of conspiracy to commit wire fraud, and two counts of wire fraud. Hampton was convicted by a federal jury on February 7 of one count of conspiracy to commit securities price manipulation and one count of conspiracy to commit wire fraud. The jury unanimously agreed that the defendants' sales of HYDRO were investment contracts, thus classifying the token as a security under federal securities law. This trial was the first criminal jury trial in which a cryptocurrency was deemed a security. Two additional co-conspirators, Andrew Chorlian and Tyler Ostern, pleaded guilty in May 2023 to one count of conspiracy to commit securities price manipulation and wire fraud. Both have been previously sentenced. Shane Hampton, 32, of Philadelphia, received a sentence of two years and 11 months in prison. His co-conspirator, Michael Kane, 39, of Miami Beach, Florida, was sentenced to three years and nine months in prison.

According to U.Today, Ripple recently achieved a significant legal victory as most claims in a class action lawsuit concerning XRP were dismissed. The ruling by the Court for the Northern District of California has reduced the case to a minor state law claim related to allegedly misleading statements. The ongoing debate's central issue is whether XRP should be classified as a security. Although the Californian ruling is a victory for Ripple, it is suggested that under certain circumstances, XRP could potentially be considered a security. This view contrasts with Judge Torres' previous ruling in New York that XRP does not qualify as a security when sold to institutional investors. Legal experts Fred Rispoli and Marc Fagel have shared their thoughts on the implications of these developments. Rispoli, a strong supporter of XRP, underscored the potential impact of California law on the definition of securities in light of the court's interpretation. On the other hand, Fagel, drawing from his SEC experience, pointed out the nuanced federal and state considerations in determining whether XRP transactions fall under securities regulation. Rispoli noted in response to the ruling, 'The court's decision leaves open the possibility that XRP could be classified as a security under California law, if not federal law.' Fagel disagreed, emphasizing that while California's adoption of federal standards such as the Howey test influences local interpretations, the broader implications for federal courts seeking guidance remain limited.

According to BlockBeats, Ripple's Chief Technology Officer, David Schwartz, recently expressed support for cryptocurrency company Consensys in a lawsuit filed by the U.S. Securities and Exchange Commission (SEC). Schwartz drew parallels with the luxury diamond company DeBeer, suggesting that the services of MetaMask, a product of Consensys, are not intended for profit. Schwartz further elaborated on the investment concepts related to MetaMask, adding that the profits of MetaMask are a result of external market conditions and user activity, not the efforts of Consensys. In addition, when comparing tokens and securities, he proposed that 'tokens managed by smart contracts cannot make all token holders a joint enterprise.'

According to Odaily, on the morning of June 25, the Audit Office, commissioned by the State Council, reported the execution of the central budget and other fiscal revenues and expenditures for the year 2023 to the Standing Committee of the National People's Congress. The report indicates that corruption methods are becoming increasingly covert and sophisticated. As anti-corruption efforts intensify, corrupt practices are becoming more concealed, leveraging information technology and regulatory loopholes. New forms of corruption and latent corruption are beginning to emerge. The report cites an example of a department-level official in the financial regulatory department who used his position to support specific private enterprises to enhance their industry competitiveness. This official received large amounts of money and equity, and concealed the source of the funds transferred by the private enterprises through 'technical processing'. This included withdrawing and depositing at the same outlet, using relatives' bank accounts, and conducting virtual currency transactions. This case presents typical technical characteristics.

According to Odaily, Vitalik Buterin, in a response to a user on the Warpcast platform, expressed his concerns about the current regulatory environment for cryptocurrency developers. He stated that the existing regulations, particularly in the United States, have pushed honest cryptocurrency developers into a corner. Buterin explained that if one engages in unproductive activities or solicits money from people in exchange for vague promises of potential returns, they are considered free and innocent. However, if one attempts to clearly explain to their clients where the returns are coming from and what rights they are entitled to, they are doomed because they are considered 'securities'. He further criticized this 'anarchic tyranny' for creating an incentive gradient that is worse than pure anarchy or pure tyranny. From an anarchic perspective, there seems to be an endless stream of bad actors, scammers, and baseless speculators on social media and sharing platforms. Previously, Buterin had proposed three solutions to address the issue of 'useless' cryptocurrency products and services. These included limiting leverage, requiring audits and transparency, and controlling usage through knowledge tests.

According to Odaily, Bill Hughes, a lawyer for Consensys, has announced on platform X that the US tax authority has revoked a final broker reporting rule for Consensys. However, the rules regarding non-custodial wallets and related non-custodial software products have not been finalized. These products are still under review and may be classified as brokers, with their status to be determined later. Hughes also pointed out that the scope of 'digital assets' under this final rule is too broad. Every disposal of NFTs and stablecoins is a reportable event. If a form is not submitted to the US tax authority detailing the gains or losses in fractions of a cent, it would be impossible to exchange USDC for dollars on the exchange.

According to U.Today, Ripple, the San Francisco-based enterprise crypto company, is facing significant challenges in the U.S., according to Cassie Craddock, the firm's managing director for the U.K. and Europe. The company is currently embroiled in a protracted legal dispute with the U.S. Securities and Exchange Commission. Ripple's CEO, Brad Garlinghouse, has frequently expressed frustration over the regulatory uncertainty in the U.S. and the SEC's antagonism towards the industry. Despite the difficulties in the U.S., Craddock revealed that Ripple is enthusiastic about the implementation of the Markets in Crypto-Asset Regulation (MiCA) framework in the EU. This pioneering cryptocurrency law, which aims to provide much-needed regulatory clarity to industry players, has put Brussels ahead of Washington and other jurisdictions in terms of clear crypto regulations. The MiCA framework initially came into effect on June 30, 2023, following approval by the European Parliament two months prior. It will be fully implemented from Dec. 30, with some provisions taking effect from this Sunday. However, not everyone in the industry shares Craddock's optimism about the new crypto regulations in Europe. Some industry executives are still puzzled by certain ambiguities in the MiCA provisions. Marina Markezic, founder of the Brussels-based European Crypto Initiative, recently expressed that many crypto companies are still uncertain about how the law will operate.

According to Foresight News, the stablecoin rules in the European Union's crypto asset market legislation (MiCA regulations) are set to take effect on June 30. As per Article 23 of the law, companies are required to cease the issuance of asset-referenced stablecoins. This applies to stablecoins used as a means of exchange, with daily transactions exceeding one million or a value surpassing 200 million euros (approximately 215 million dollars). The stablecoin rules will be implemented by the end of this month, while other provisions are expected to come into effect in December. A spokesperson for the European Banking Authority (EBA) stated that the establishment of a cap is intended to 'protect the monetary system'. The regulations do not prevent companies from issuing stablecoins priced in assets other than the euro. The key factor is whether they are used as a means of payment for goods or services. If so, a specific cap applies.

According to PANews, the U.S. Securities and Exchange Commission (SEC) has reportedly returned the S-1 form to a potential issuer of an Ethereum Exchange-Traded Fund (ETF). An insider revealed that the SEC has also provided a few comments, which the issuer is required to address and resubmit by July 8. The source further noted that this return of the form does not signify the final declaration. This implies that at least one more round of declaration will be necessary before the ETF can commence trading. The SEC's move is part of its regulatory oversight to ensure compliance with its rules and regulations. The potential issuer of the Ethereum ETF, whose identity has not been disclosed, is expected to address the SEC's comments and resubmit the form within the stipulated deadline. The SEC's decision to return the form with comments is seen as a step towards ensuring that all necessary requirements are met before the ETF is allowed to trade. The Ethereum ETF, once approved, will provide investors with exposure to the price movements of Ethereum without the need to own the underlying asset. This development is seen as a significant step towards the mainstream adoption of Ethereum and other cryptocurrencies.

According to Odaily, the Supreme People's Court and the State Administration for Market Regulation in China have jointly released five typical cases of legally punishing online pyramid schemes. One of these cases involves a fraudulent investment promising high returns through 'virtual currency'. In early 2018, the defendant, identified as Chen, and others used blockchain as a gimmick to set up a 'Token' online platform to carry out pyramid selling activities. Participants were required to obtain the platform's membership account through online referrals and pay a virtual currency worth more than $500 as a threshold fee to receive value-added services. They could use the platform's 'smart dog brick-moving' technology to carry out arbitrage trading in different trading venues and obtain platform income. To evade crackdown, Chen and others moved the platform's customer service group and coin-dialing group abroad in January 2019 and continued to carry out pyramid selling activities with the 'Token' online platform. According to statistics, the 'Token' online platform registered more than 2.6 million member accounts, reaching 3293 levels, and collected more than 9 million various virtual currencies paid by members, including Bitcoin, Tether, and EOS. The People's Court of Yancheng Economic and Technological Development Zone in Jiangsu Province sentenced Chen to eleven years in prison and a fine of six million yuan for organizing and leading pyramid selling activities. The remaining defendants were sentenced to imprisonment ranging from eight years and eight months to two years, and fines were imposed. The illegal gains were recovered and confiscated, and turned over to the state treasury. After the first-instance judgment, Chen and others appealed. The Intermediate People's Court of Yancheng City in Jiangsu Province ruled to reject the appeal and uphold the original judgment. The People's Court, based on the position and role of the organizers and leaders of cross-border online pyramid selling activities in the entire crime chain, imposed corresponding penalties and legally confiscated the involved Bitcoin and other virtual currencies. This cut off the defendant's economic ability to commit cross-border crimes again, demonstrating the judicial authorities' determination to defend internet financial security and maintain the stable and healthy development of the financial market.

According to Odaily, Nikita Andreevich Sklyuev, also known as Valeriy Dorojkin, has been extradited from Ukraine and is facing trial in Buffalo, New York. He is charged with telecommunications fraud and fraudulent use of unauthorized access devices. Sklyuev is accused of submitting a malicious cryptocurrency wallet application, 'EOSIO Wallet Explorer', to the Apple App Store in June 2018. The application claimed to be a legitimate cryptocurrency wallet, but its purpose was to steal users' private keys, enabling Sklyuev to access their funds. In September 2018, a victim in western New York installed the application and lost approximately $11.8 million in cryptocurrency. Sklyuev later transferred these funds to multiple online wallets under his control. The charges against Sklyuev carry a maximum sentence of 20 years in prison and a fine of $250,000. Sklyuev is set to attend a detention hearing on July 3, 2024.

According to Odaily, Consensys has released an official statement in response to enforcement actions by the Securities and Exchange Commission (SEC). The blockchain software technology company anticipates that the SEC will continue its threats against them, insisting that their MetaMask software interface must be registered as a securities broker. The SEC has been pursuing an anti-cryptocurrency agenda through temporary enforcement actions. This is the latest example of its over-regulation behavior, a transparent attempt to redefine established legal standards through litigation and expand the SEC's jurisdiction. Consensys firmly believes that the SEC has not been granted the power to regulate software like MetaMask. The company will continue to actively advance their case in Texas, as it not only concerns their company but also the future of Web3. This statement comes amid increasing scrutiny of cryptocurrency and blockchain technology by regulatory bodies.

According to Odaily, the United States Securities and Exchange Commission (SEC) has classified the staking projects of Lido and Rocket Pool as securities. This decision by the SEC is based on market information and is significant for the future operations of these projects. Lido and Rocket Pool are both prominent projects in the cryptocurrency industry, offering staking services to their users. The classification of these projects as securities by the SEC implies that they will now be subject to the regulations and requirements that govern securities in the United States. This development could potentially impact the way these projects operate, as they will now have to comply with the stringent rules and regulations set by the SEC for securities. This could also influence the decisions of potential investors, as the classification as securities might change the risk profile of these projects. The SEC's decision is a clear indication of the increasing scrutiny of the cryptocurrency industry by regulatory bodies. It highlights the need for crypto projects to ensure compliance with existing regulations to avoid potential legal issues. The impact of this decision on Lido and Rocket Pool, as well as the broader crypto industry, will be closely watched in the coming months.

According to Odaily, the value of LDO has fallen below 2.1 USDT, currently standing at 2.099 USDT, marking a 24-hour decrease of 11.07%. This drop comes in the wake of the U.S. Securities and Exchange Commission's (SEC) classification of Lido and Rocket Pool staking projects as securities. The SEC's decision has had a significant impact on the market value of these projects, leading to a decrease in the value of LDO. The market is closely monitoring the situation, as the classification of these projects as securities could have far-reaching implications for the broader cryptocurrency market.

According to BlockBeats, Federal Reserve Board Member Bowman expressed on June 29 that there seems to be a lack of interest from Congress regarding central bank digital currencies. This statement suggests that the development and implementation of such currencies may face challenges due to the apparent disinterest from legislative bodies. Further details on this matter were not provided in the original report.

According to Odaily, the US Supreme Court has overturned the Chevron Deference, a significant administrative law in the country. The Chevron Deference grants federal agencies the power to interpret ambiguous laws. With its overturning, the US Securities and Exchange Commission (SEC) and other federal agencies may no longer possess the ability to formulate rules. The Chevron Deference has been a cornerstone of US administrative law, providing federal agencies with the authority to make decisions when laws are unclear. This decision by the Supreme Court could have far-reaching implications for the functioning of federal agencies, including the SEC. The SEC, among other federal agencies, has relied on the Chevron Deference to interpret and implement laws within its jurisdiction. The overturning of this law could potentially impact the SEC's ability to enforce securities laws and regulations. This development could lead to significant changes in the way federal agencies operate and enforce laws in the United States.

According to Odaily, the Astana Financial Services Authority (AFSA) in Kazakhstan has announced that it has reviewed and approved Toncoin for trading on its licensed platforms. After a comprehensive review, the AFSA has determined that Toncoin meets the regulatory standards set by the AFSA. This approval allows investors to trade Toncoin on AFSA-licensed platforms, providing them with protection. The AFSA's decision comes after a thorough examination of Toncoin's compliance with the regulatory standards. This move is expected to provide a secure trading environment for investors, as they can now trade Toncoin on platforms that are licensed and regulated by the AFSA. This is a significant step forward for Toncoin, as it continues to gain recognition and acceptance in the global cryptocurrency market.

According to PANews, the Hong Kong Securities and Futures Commission (SFC) has issued a public warning against entities operating under the names 'Tokencan', 'Hong Kong Wei Coin Crypto Assets', and 'HKD.com Corporation'. These entities are suspected of engaging in fraudulent activities related to virtual assets and/or claiming to operate virtual asset trading platforms in Hong Kong without a license. The Hong Kong Police Force has taken action to block related websites and social media pages. The SFC has also added Tokencan, Hong Kong Wei Coin Crypto Assets, and HKD.com Corporation, along with their respective websites, to its warning list. The SFC has advised the public not to trade virtual assets on unregulated trading platforms. If a platform ceases operations, goes bankrupt, is hacked, or if any assets are misappropriated, investors may potentially lose all investments held on that platform.

According to BlockBeats, major stablecoin issuers, including Tether and Circle, are facing imminent compliance pressure as the European Union's strict rules for stablecoin issuers are about to take effect. The new regulations, set to be implemented after June 30, require issuers operating in the 27 member states to obtain appropriate authorization and adhere to strict limits on transaction volume and value set in the MiCA legislation. Under the law, companies must cease issuing transaction medium-type assets referring to stablecoins with a daily transaction volume exceeding one million transactions or a daily transaction value exceeding 200 million euros. Although the European Banking Authority (EBA) has not yet clarified how these metrics will be measured, it is expected to release a final report soon. The impending regulations are part of the EU's efforts to regulate the burgeoning cryptocurrency market and ensure the stability of the financial system. The move is expected to have significant implications for the stablecoin market, potentially affecting the operations of major issuers like Tether and Circle. The new rules underscore the increasing scrutiny of cryptocurrencies by regulators worldwide, reflecting concerns about potential risks to financial stability and consumer protection.