SEC and Gensler Viewed Ether as Security for Over a Year

The lawsuit initiated by Consensys against the U.S. SEC has unveiled that the SEC, under Chair Gary Gensler, may have regarded Ether as a security for over a year. This insight became public through court documents associated with Consensys’ response to an SEC Wells notice, indicating impending legal action for non-compliance with federal securities laws. 

In March 2023, the SEC’s Division of Enforcement initiated the “Ethereum 2.0” investigation to scrutinize Ether’s classification as a security. This investigation contradicts earlier SEC indications that Ether was not a security, complicating the regulatory environment and potentially impacting the approval of Ether-based financial products.

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DOJ Rejects Motion to Drop Charges Against Tornado Cash Dev

The U.S. Department of Justice has contested a motion to dismiss charges against Roman Storm, developer of the sanctioned crypto mixing service Tornado Cash. The Justice Department alleges that from September 2020 to August 2022, Tornado Cash facilitated the laundering of over $1 billion, including funds linked to North Korea’s Lazarus Group. 

They argue that Tornado Cash, more than just a protocol, included components like a website and user interface which contributed to illegal activities. Storm, who pleaded not guilty and was released on a $2 million bond, is accused of operating an unlicensed money transmission service and conspiring in money laundering.

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Ethereum Fees Hit 6-Month Low, Hinting at Incoming Altseason

According to Santiment, Ethereum network gas fees have reached a six-month low, with an average transaction fee of $1.12 on April 27. This decrease in fees, paired with a slight increase in Ether’s price, might indicate a forthcoming rally in altcoins. Santiment suggests that lower transaction fees often precede increased network activity and market recoveries, hinting that Ethereum and related altcoins might see a turnaround sooner than anticipated. 

This trend coincides with significant performance gains among Ethereum layer-2 network tokens like Optimism, Arbitrum, and Polygon, suggesting a broader altcoin season could be on the horizon.

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Lazarus Group Laundered $200M+ in Hacked Crypto Since 2020

The North Korean Lazarus Group has laundered over $200 million in stolen cryptocurrency since 2020, utilizing crypto mixers and peer-to-peer marketplaces. Funds were primarily converted into USDT stablecoin before being cashed out, often with the help of China-based over-the-counter traders. Tether blacklisted over $374,000 of these funds in November 2023, while other stablecoin issuers have blacklisted an additional $3.4 million. 

In 2023 alone, Lazarus was responsible for stealing 17% of the total $1.8 billion in crypto hacked globally. Their activities included major heists like the 2022 Ronin Bridge hack, which netted $625 million in cryptocurrency.

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Other breaking news

• Australia’s Leading Exchange May Greenlight Bitcoin ETFs This Year
• Lido Finance Surpasses 1M Validators
• Tether Invests $200M in Neurotech Company
• Terra Classic Community Accuses Karak of Appropriating $7 Million
• Over $3 Billion in Tokens Unlocked in May—Here’s What to Watch

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