Top 6 Court Rulings That Could Reshape the Crypto Industry in 2024

In 2023, the cryptocurrency world witnessed numerous shifts and controversies. As we enter 2024, several pivotal court decisions await, potentially reshaping the industry. Here’s a look at 6 upcoming legal events and their implications.

Coinbase’s Standoff with the SEC

Coinbase, one of the largest cryptocurrency exchanges, has submitted a motion for judgment on the pleadings in response to charges by the Securities and Exchange Commission (SEC) of violating securities laws. Coinbase contends that it does not offer securities for sale on its platform and provides sufficient disclosure to users about the digital assets listed.

If Coinbase wins, it could establish a precedent for other crypto exchanges facing similar accusations. The trial is scheduled for January 17, 2024, with a decision anticipated by the end of the year.

Binance’s Legal Tug-of-War

As Binance continues to grapple with the fallout of its multibillion-dollar settlement with U.S. authorities, the company now faces a significant legal challenge in the form of a lawsuit brought by the Securities and Exchange Commission (SEC). In June 2023, the SEC accused Binance of violating securities laws, a claim that the exchange vehemently denied.

While Binance’s settlement with other U.S. agencies may have suggested that a similar agreement could be reached with the SEC, the exchange has argued in a recent motion to dismiss that this settlement should not be considered as an argument in its case against the SEC. The lawsuit remains highly controversial, with a ruling on the motion to dismiss and arguments from both parties expected in the first quarter of 2024.

Binance Ex-CEO CZ’s Sentence Hearing

In November 2023, Changpeng Zhao (CZ), the CEO of Binance, pleaded guilty to facilitating money laundering and terrorism financing through weak KYC rules. CZ faces up 18 months in prison, but experts predict a lighter sentence due to his cooperation with authorities and settlement with U.S. regulators.

The sentencing hearing is scheduled for February 2024. The outcome could have a significant impact on the cryptocurrency industry, as it could either deter or encourage other executives facing similar charges. Regardless of the outcome, the hearing will provide insights into how regulators are approaching AML and CTF laws in the cryptocurrency space and how executives can navigate this complex regulatory landscape while promoting growth in their businesses.

Sam Bankman-Fried Awaits Justice

As the sentencing date for Sam Bankman Fried (SBF), the disgraced founder of FTX, draws near, speculation about his potential prison term has reached a fever pitch. Following his conviction in November 2022 for his involvement in a multi-billion dollar fraud, SBF faces a maximum sentence of 115 years in prison. Now the outcome is expected on March 28, 2024.

While SBF’s maximum sentence is staggering, it’s important to remember that judges have wide discretion when it comes to sentencing. SBF’s attorneys have already indicated that they plan to argue for a much shorter sentence. It is expected that Sam Bankman Fried may face 110 years of sentencing. 

Do Kwon’s Extradition: Will It Finally Happen?

As the legal saga surrounding Do Kwon, the founder of Terraform Labs and Terra (LUNA), continues to unfold, many are wondering whether his extradition could set a precedent for other crypto founders facing similar charges. In December 2022, Do Kwon was arrested in Montenegro on charges related to the collapse of Terra’s ecosystem, which resulted in billions of dollars in losses for investors.

If Do Kwon is extradited to either country, it could have significant implications for the crypto industry as a whole. It could signal that regulators are cracking down on crypto fraud and that founders will be held accountable for their actions. This could lead to further regulatory scrutiny of Terraform Labs and its affiliates, as well as other crypto companies operating in similar spaces.

Ripple Enters Remedies Phase

Come February 12, 2024, Ripple’s ongoing legal clash with the SEC reaches a pivotal “remedies phase.” The outcome has the potential to recalibrate the regulatory compass for digital assets, setting new standards for their classification and oversight.

Buckle up, crypto fam. 2024 is going to be a wild ride.