7 Crypto Court Cases Coming in 2024

As the cryptocurrency landscape evolves, the legal battles shaping the regulatory framework are becoming increasingly complex. The United States witnessed a flurry of lawsuits and enforcement actions in the crypto industry throughout the past year. Despite numerous challenges, 2024 will be another year of intense crypto court cases. The U.S. Securities and Exchange Commission (SEC) will lead the charge in what some proponents characterise as a “Regulation by enforcement” campaign against blockchain assets.

Also Read: 5 Takeaways From America’s Crypto Industry Biggest Crackdown in History

7 Crypto Court Cases Unfolding in 2024

The cryptocurrency industry closely watched Ripple’s lawsuit as a test to see if SEC Chair Gary Gensler’s idea that most crypto assets are like securities holds up. This influenced how the SEC dealt with big players like Binance and Coinbase in 2023. The Commodity Future Trading Commission (CFTC) and the U.S. Treasury played a big role in a $4.3 billion deal with Binance. They went after 134 cases against digital money businesses, mostly for defrauding people. 

While some crypto court cases are expected to end soon, some will take longer, and we might see new ones. Here are seven important crypto court cases to keep an eye on.

1. Binance: Navigating Troubled Waters

Binance, the world’s largest cryptocurrency exchange, entered into a record-breaking $4.3 billion settlement with the CFTC, the U.S. Department of Justice (DOJ), and the Treasury Department. This landmark settlement was a focal point of ongoing crypto court cases. It involved the stepping down of former CEO Changpeng Zhao, who pleaded guilty to at least one felony charge. 

However, the SEC continues to pursue Binance, charging the exchange with securities law violations, including the operation of an unregistered business and the unregistered offer and sale of its BUSD stablecoin. 

Binance’s new CEO, Richard Teng, faces the challenge of guiding the company through the SEC lawsuit, as the regulator decided against settling its case concurrently with other agencies. Meanwhile, Changpeng Zhao’s sentencing looms for February 23, with a potential 18-month prison term hanging in the balance.

Read Next: Binance Fights Back: Plans to Dismiss CFTC Complain

2. FTX: A Legal Battle on Two Fronts

FTX founder Sam Bankman-Fried was convicted on all seven charges, including fraud at his exchange and crypto trading firm Alameda Research. A second trial may be on the horizon to address severed counts, with federal prosecutors potentially pursuing Bankman-Fried for unlawful political donations and bribing foreign government officials related to the ongoing crypto court cases. 

The fallen crypto mogul’s sentencing is scheduled for March, coinciding with the possibility of a second FTX trial. Bankman-Fried’s request for a delayed sentencing has already been refused, adding to the legal complexities.

3. Celsius Faces Legal Turmoil

Alex Mashinsky, co-founder and former CEO, is set to confront legal scrutiny in September. The upcoming crypto court cases involving Mashinsky are anticipated to carry significant implications for the regulatory trajectory of the embattled lender. 

Today the SEC denied Coinbase’s petition for rules for crypto. After 18 months of silence, we went to court to get the response the law requires. With appreciation for the Third Circuit, later today we'll again seek its help by challenging the SEC’s abdication of its duty. 🧵⬇️ pic.twitter.com/tFjiW53eF7

— paulgrewal.eth (@iampaulgrewal) December 15, 2023

Mashinsky is at the centre of a storm of civil lawsuits from the SEC, CFTC, and Federal Trade Commission (FTC). He was arrested in July on seven criminal charges, including defrauding and lying to customers. While the FTC has settled its lawsuit with Celsius, the other two civil suits are temporarily paused, awaiting the outcome of the criminal trial.

Related: Bankruptcy Case Concludes for Celsius Network, One of Crypto’s Major Failures 

4. Coinbase Challenging the SEC

Coinbase is another major player in the crypto exchange arena gearing up for a legal battle against the SEC in the Southern District Court of New York. The SEC sued Coinbase in June, alleging failure to register as an exchange and overlooking the registration of its staking-as-a-service program. 

Coinbase’s strategic move involves seeking a court order to compel the SEC to formulate crypto-specific rules. Some perceive This manoeuvre as part of an ongoing public relations campaign against the regulator, setting the stage for a contentious courtroom showdown. 

5. Ripple: The SEC’s Multi-Year Legal Saga

@cameronfous_1

What’s next for XRP! #ripple #xrp #sec #bitcoin #cryptotok #fypp

♬ original sound – Cameron Fous

The year 2024 could witness the conclusion of the SEC’s protracted legal battle with Ripple. Originating from the agency’s allegation that the sales of XRP tokens constituted an unregistered security, the case has seen significant developments. 

In July, Judge Analisa Torres ruled that XRP’s deal on the exchange did not constitute an unregistered security, though sales to sophisticated investors did. The remaining task is for the two sides to negotiate the penalties Ripple may owe for the sale of XRP to institutional investors, with the spectre of potential appeals looming large.

Also Read: XRP Ripple Whale Dumps 23 Million as Price Slips Below $0.63, What’s Next?

6. Tornado Cash: Weathering Legal Storms

The legal battles and upcoming crypto court cases surrounding crypto mixer Tornado Cash will persist into 2024. Developer Alexey Pertsev’s trial in the Netherlands is scheduled for March 26 and 27. Meanwhile, Tornado Cash co-founders Roman Storm and Roman Semenov continue their fight against accusations of facilitating money laundering and sanctions evasion in the U.S. 

Despite Treasury sanctions in August 2022, lawsuits against Tornado Cash challenge the notion of financial freedom and free speech, with both plaintiffs pursuing appeals.

7. Kraken: Regulatory Challenges During Relocation

We strongly disagree with the SEC claims, stand firm in our view that we do not list securities, and plan to vigorously defend our position.

As we have seen before, the SEC argues that @krakenfx should “come in and register” with the agency, when there is no clear path to…

— Dave Ripley (@DavidLRipley) November 21, 2023

Kraken is also entangled in a crypto court case with the SEC despite pulling out of New York. Kraken was accused of commingling customer funds and operating an unregistered securities exchange and now faces a regulatory crossroads. 

CEO David Ripley contends that Kraken does not list securities and questions the SEC’s regulatory structure for registering compliant crypto firms. Everyone awaits Kraken’s response as the legal saga unfolds against a shifting regulatory landscape.

Also Read: Kraken Sued by SEC in Latest Clampdown on Crypto Exchanges

Closing Remarks

Each of these seven crypto court cases represents a pivotal moment in the ever-evolving regulatory landscape of the cryptocurrency industry. The outcomes of these legal battles will undoubtedly shape the industry’s future and influence the broader regulatory environment. Stay tuned for in-depth updates on these crypto courtroom dramas throughout the year.