To be fair, unsure why anyone would use a
CEX after FTX... most of the trading can be on-chain and the only time you need a fully centralised entity is when off-boarding to fiat, otherwise most stuff can be done with custodial control these days (even ETH->BTC etc).
This one is interesting as they appear to have access to heaps of data, but not the owners themselves, so i am surmising they have access through the infrastructure chosen (AWS/Cloudflare?)
Also interesting is you rarely see if ever Non-US Banks being indicted criminally as the US had exposure to either the $ or US Residents to the activities in the bank where some laundering occurred.
Even the big German shell banking game a few years ago didn't involve a US Indictment even though you can be pretty certain they used SWIFT/USD and went through SDNY.
CFTC:
JURISDICTION AND VENUE
11. This Court has jurisdiction over this action under 28 U.S.C. § 1331 (federalquestion jurisdiction) and 28 U.S.C. § 1345 (district courts have original jurisdiction over civilactions commenced by the United States or by any agency expressly authorized to sue by Act ofCongress). Section 6c of the CEA, 7 U.S.C. § 13a-1(a), authorizes the CFTC to seek injunctiverelief against any person whenever it shall appear to the CFTC that such person has engaged, isengaging, or is about to engage in any act or practice constituting a violation of any provision ofthe CEA or any rule, regulation, or order thereunder.
12. Venue properly lies with this Court pursuant to Section 6c(e) of the CEA,
7 U.S.C. § 13a-1(e), because Defendants transacted business in the Southern District of NewYork, and Defendants engaged in acts and practices in violation of the CEA and Regulationswithin this District.
DOJ:
Indictment:
https://www.justice.gov/usao-sdny/media/1345231/dl
- 31 U.S. Code § 5330 - Registration of money transmitting businesses
https://www.law.cornell.edu/uscode/text/31/5330- Violation of the Bank Secrecy Act
- Conspiracies
Not sure on the statute of limitations, CFTC is going back to 2019 (so 4yr-8 month) but DOJ is going back to 2017.... for conspiracy it's the last overt act, which sets the ball rolling again, and then allows the tagging of old activities as a furtherance...
Note:
Unlicensed Money Transmitting Business | 18 U.S.C. § 1960
When discussing
Crypto projects with friends considering moving into the space, always say, steer clear of
- US Infrastructure
_ US Persons
- US Employees
- USD
- SWIFT
- US Language (version of English)
- US Directed Marketing
Applies to hiring dual or having end users being dual or residence in the US.
Build out for Global South.
