Terraform Labs Utilizes Bankruptcy Strategy to Challenge SEC Lawsuit; Coinbase Introduces Conversion Fees for Monthly Volumes Exceeding $75 Million; German Authorities Seize 50,000 BTC in Copyright Violation Probe
Terraform Labs, the entity behind the now-defunct stablecoin TerraClassicUSD (USTC), believes that its recent Chapter 11 bankruptcy filing could serve as a strategic move to contest a lawsuit filed by the Securities and Exchange Commission (SEC). In a Jan. 30 filing, Terraform Labs CEO Chris Amani outlined that the bankruptcy protection might enable the company to appeal without the obligation of posting a “supersedeas bond” equivalent to 110% of the total judgment, a typical requirement for SEC appeals.
The essence of Terraform’s appeal revolves around the argument that its crypto assets do not qualify as securities, thus positioning the SEC’s enforcement action outside its jurisdiction. A successful appeal, according to Amani, could significantly reduce the claims against Terraform Labs, marking a crucial step toward satisfying its creditors. The bankruptcy filing occurred on Jan. 21 in a Delaware Bankruptcy Court.
In a parallel development, the SEC is seeking the dismissal of a case it initiated against a crypto firm named Debt Box. The regulatory body faces potential sanctions for alleged discrepancies in the case details.
German Authorities Seize 50,000 BTC in Copyright Violation Probe
German state authorities have confiscated approximately 50,000 BTC as part of a comprehensive investigation into alleged copyright violations. The Saxony police, in a Jan. 30 announcement, revealed that the seizure was linked to two German and Polish nationals who had acquired the Bitcoin through proceeds from pirated material. At current prices, the seized funds amount to more than $2.1 billion.
The authorities clarified that the Bitcoin were seized after the accused voluntarily transferred them to official wallets provided by the police. The final decision regarding the utilization of the confiscated Bitcoin is pending.
Germany’s action is not an isolated incident, as per Glassnode data, indicating that the United States has seized a total of 210,429 BTC in connection to various crimes.
Coinbase Introduces Conversion Fees for Monthly Volumes Exceeding $75 Million
Coinbase, the largest United States-based cryptocurrency exchange, has announced the implementation of commission fees for conversions from USD Coin to U.S. dollars surpassing $75 million in monthly volume. However, Tier 1 and Tier 2 Coinbase Exchange Liquidity Program members will be exempt from these fees.
The disclosure of conversion fees was made on the Coinbase help page on Jan. 30, with the assessment set to begin on a rolling 30-day period starting Feb. 5. The calculation of net conversion involves subtracting the total dollars-to-USDC conversion volume from the equivalent total over the past 30 days.