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New Prosecutions: Binance and FTX Between a Rock and a Hard Place

The courtrooms of the United States of America have become the arena where the drama of cryptocurrency companies is played out and realized. In recent prosecutions against major exchanges, prosecutors have demanded that Binance not show leniency and enforce the sanctions imposed on it. Following the conviction of Sam Bankman-Fried, the founder of the failed exchange FTX, victims are trying to hold accountable the law firm that provided legal advice to the exchange before and after the bankruptcy. Here are the details...

Prosecutors ask the judge not to treat Binance leniently and to enforce the fines

While I confessed Exchange Binance The company pleaded guilty to money laundering late last year and its former CEO Changpeng Zhao (Czech Republic) is awaiting a decision, the case is still pending. Prosecutors are now asking the judge overseeing the case to accept the agreement. As a result, he received a proposed large fine ($4.3 billion) and placed the company under surveillance for five years.

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Prosecutors in the United States urged the judge to implement the agreed sanctions and not show leniency towards the Binance exchange. Prosecutors said the exchange knowingly violated economic sanctions laws, thereby aiding "those who seek to exploit the system of the United States of America for their own personal gain." According to the statement, the Binance case should serve as an example for the rest of the sector.

As for Changping Zhao (Czech Republic), his sentencing date has been postponed to the end of April. He faces a prison sentence of 18 months to 10 years. He also had to pay a $175 million fine to remain relatively free while in US custody.

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Class action against lawyers for bankrupt exchange FTX

Sam Bankman Freed (SBF) was found guilty of seven charges last November. Although a final decision is expected by the end of March, there have been new developments in the FTX case. Many previous clients of the FTX platform have provided... Class actionnot against SBF, but against his lawyer.

Former clients of the failed exchange believe that the relationship between the law firm tasked with defending SBF and SBF itself is rather shady. Overall, the class action raises the theory that the defendant's attorneys were ultimately involved in the FTX case.

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To give some context to this story, FTX clients lost everything because they were defrauded by a platform they trusted and its management team. But on the other hand, the law firm Sullivan and Cromwell (S&C) was able to earn $180 million from the FTX crisis!

For 16 months prior to FTX's collapse, S&C served as the company's lead legal counsel. The company also charged $8.5 million in consulting fees during this period. Not to mention the exorbitant defense fees of about $1.5 million a day. SBF During the trial.

In fact, the company's objectivity and impartiality seem to be in doubt, since it directly benefited from the bankruptcy of the FTX exchange, but above all from the fraud orchestrated by Sam Bankman-Fried. And clients are still waiting for their money to be returned, including money paid to the law firm.

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