Gensler's Demand for a Quick Resolution
SEC Chairman Gary Gensler has issued a warning to Elon Musk, urging him to settle within 48 hours or face unspecified charges. The SEC is reportedly preparing multiple accusations, but the exact details, such as the nature of the charges or the number of Musk’s companies involved, remain unclear.

Investigation into Twitter Stake Disclosure
The SEC's investigation revolves around Musk’s delayed disclosure of his 9.2% stake in Twitter. Musk revealed this stake on April 4, 2022, approximately ten days after surpassing the legal 5% disclosure threshold. According to the Hart-Scott-Rodino Act, anyone acquiring at least a 5% stake in a publicly traded company must disclose it within ten days.
In May 2024, Musk agreed to testify in the SEC's investigation but refused to comply with their subpoena to provide testimony. This refusal led the SEC to file for sanctions in a San Francisco court.
Experts Criticize SEC’s Actions
Pro-XRP lawyer John Deaton criticized the SEC's handling of the Musk case, highlighting the agency's aggressive approach. He argued that if the SEC treats the world’s richest man this way, companies with fewer resources are likely subjected to even harsher treatment.
Deaton referenced the case of LBRY, where the SEC used aggressive tactics, including threatening founder Jeremy Kauffman with bankruptcy even before filing a lawsuit.
High Costs of Defending Against the SEC
Deaton also pointed out that Ripple and its CEO Brad Garlinghouse spent over $150 million defending against a case that didn’t involve fraud but rather a failure to register securities. He emphasized that most companies lack the resources to mount such a defense, highlighting the disparity in how the SEC enforces its regulations.

#cryptoregulation , #ElonMusk. , #GaryGensler , #CryptoNewss , #CryptoLaw

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The Australian subsidiary of cryptocurrency exchange Kraken, Bit Trade, faces a hefty fine for breaching regulatory rules requiring financial products to have a clearly defined target market.
Bit Trade Fined AUD 8 Million
The Federal Court has fined Bit Trade AUD 8 million (approximately USD 5.2 million) for illegally providing credit facilities to more than 1,100 customers. According to the Australian Securities and Investments Commission (ASIC), Bit Trade failed to meet the obligation of defining a target market determination (TMD) for its margin extension product.
Regulatory Breach and Its Impact
Since October 2021, the company had been offering a margin extension product that allowed financing through digital assets, such as Bitcoin, or fiat currencies like US dollars. However, the product was launched without a target market determination, a critical regulatory document designed to ensure that the product is marketed only to suitable customers.
The court found that Bit Trade violated design and distribution requirements every time the product was issued without a TMD. ASIC reported that customers were charged over USD 7 million in fees and interest, while trading losses exceeded USD 5 million.
Significant Customer Loss
One investor reportedly lost nearly USD 4 million using the margin extension product. Judge Nicholas criticized Bit Trade’s actions, describing them as “serious and motivated by a desire to maximize revenue” while failing to comply with regulatory requirements until flagged by ASIC.
ASIC Chairman’s Statement
ASIC Chairman Joe Longo described the court’s decision as a “significant outcome” and emphasized that this is the first penalty imposed by ASIC for failing to have a TMD. Longo also highlighted that the ruling serves as a warning to digital asset firms to consider their regulatory obligations carefully.
In addition to the fine, Bit Trade has been ordered to pay ASIC’s legal costs.
Conclusion
The Bit Trade case serves as a crucial reminder for digital asset firms that failing to comply with regulatory requirements can result in severe financial penalties and loss of market trust.

#Kraken , #CryptoNewss , #Regulation , #CryptoLaw , #digitalassets

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,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“