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FatManTerra announces class action lawsuit against Terraform Labs, Do Kwon, Jump Capital

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FatManTerra announces class action lawsuit against Terraform Labs, Do Kwon, Jump Capital

FatManTerra announces class action lawsuit against Terraform Labs, Do Kwon, Jump Capital Liam ‘Akiba’ Wright · 7 hours ago · 2 min read

A class action lawsuit naming Do Kwon personally as a defendant has been announced by FatMan Terra as he retells his story and why he created the FatManTerra account.

2 min read

Updated: July 26, 2022 at 10:02 pm

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Cover art/illustration via CryptoSlate

The now renowned Dark Knight of Terra, FatManTerra, has announced a class action lawsuit through US solicitors, Scott+Scott in an attempt to recoup UST investments following the collapse of the Terra ecosystem.

Lawsuit Sign-Up Link Announcement for UST Victims

On May 11, as UST depegged, I created an account named FatMan and posted a proposal outlining how the LFG could use UST peg reserves to refund small holders in order to mitigate the most severe impacts of the crisis… (1/15)

— FatMan (@FatManTerra) July 26, 2022

In a Twitter thread released Tuesday, FatManTerra revealed he is collaborating with the US legal firm Scott+Scott to establish a class action lawsuit for the victims of the UST collapse. He has also revealed that cases in jurisdictions outside the US are likewise in the works.

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On May 11, 2022, a new Twitter account was created to promote a Terra governance proposal to “use UST peg reserves to refund smallholders in order to mitigate the most severe impacts of the crisis.” This account was to become the home of the pseudonymous FatManTerra.

FatManTerra’s proposal was supported by” Vitalik, Binance, and Justin Sun” according to FatMan’s thread and “involved a direct conversion to USDC and refund to UST holders using an FDIC-style cap.”

Before an official proposal could be filed within the official governance protocol for Terra on Terra Station, the Luna Foundation Guard announced that the Bitcoin reserves had been used to buy back Terra assets via OTC trades. FatMan recounted that he was “heartbroken” to see a system he “truly believed in” collapse in this manner with the UST peg lost and the reserves fully depleted.

In the thread, FatMan recalled many parts of the Terra story he unveiled over the past few months. He recounted the fake Chai volume to inflate demand artificially, Jump capital bailing out UST in 2021, Do Kwon siphoning funds to offshore accounts, and spoofed Anchor volume to create “a facade of stability.”

FatManTerra finished the thread by empathizing with other investors stating, “I can’t convey their heartbreak in a tweet.” He continued to say that he is “sick” of the scammers in the crypto industry and that people like Do Kwon are making it “rotten.” He ended the thread with a call to action;

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“We demand a fair trial to uncover all of TFL & Do Kwon’s wrongdoings and so that justice can take its course… One way or another, Do Kwon will either atone for his sins or face retribution”

Information on the class action lawsuit can be found below.

It’s hard to put into words how deeply this has affected victims. Thousands of people have lost years of their savings – I can’t convey their heartbreak in a tweet. It takes a true sociopath to see all of this and laugh without an aota of remorse or regret. (13/15)

— FatMan (@FatManTerra) July 26, 2022

Cyberspace Administration of China

China’s Cyberspace Administration issues warning on promotional cryptocurrency material

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China’s Cyberspace Administration issues warning on promotional cryptocurrency material

China’s Cyberspace Administration issues warning on promotional cryptocurrency material Samuel Wan · 3 hours ago · 2 min read

The internet regulator vowed to crack down on online promotion of cryptocurrency to protect the financial interests of the people.

2 min read

Updated: August 9, 2022 at 5:56 pm

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Cover art/illustration via CryptoSlate

The Cyberspace Administration of China (CAC) issued a new warning about “illegal information, accounts and websites” promoting cryptocurrency on August 9.

CAC on a mission to clean up cryptocurrency propaganda

In May 2021, authorities clamped down on Proof-of-Work mining. This was soon followed by the People’s Bank of China enacting a complete ban on cryptocurrency transactions in September 2021. The central bank said virtual currencies facilitate financial crime and pose risks to the financial system.

However, approaching a year since the transaction ban, China’s internet regulator said online “related activities” continue to proliferate. While pledging to “clean up and deal with” internet content that promotes and hypes digital currencies

“With the rise of virtual currency, related activities such as speculation, hype, and fraud have become more and more intense.

The agency maintained that such material is false propaganda, such as the promise of high returns, and that participation will lead to financial loss.

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Some netizens are confused by false propaganda such as high returns on investment in virtual currency, and blindly participate in related trading activities, which brings more damage to their own property.”

The notice reminded websites of their responsibilities to follow previously issued guidelines on the matter. It added that, under the rules, Weibo and Baido had de-platformed 12,000 users who violated the guidelines, removed 51,000 posts on cryptocurrency promotional material, and closed 105 websites.

The CAC said it would continue to crack down on “illegal financial activity” related to cryptocurrency to protect people’s safety.

China’s  anti-crypto stance

A recent article from Bitcoin Magazine speculated that China’s tough stance on Bitcoin and cryptocurrencies boils down to “central planners” trying to cling to power and control, while attempting to keep the fiat system ticking over.

“banning bitcoin — a pure outgrowth of the free internet and rejection of centralized power, an essential tool to combat the coercion of fiat.”

In particular, the author drew attention to China’s attempt to stem capital flight using strict monetary controls. In conjunction with the Bitcoin ban, the play is described as an attempt to “sealing off all possible avenues for escape.”

Worse still, the scope of control increases under a digital yuan, which may explain why China is pushing hard for a nationwide rollout.

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Circle ‘blacklists’ all Tornado Cash ETH addresses effectively freezing USDC

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Circle ‘blacklists’ all Tornado Cash ETH addresses effectively freezing USDC

Circle ‘blacklists’ all Tornado Cash ETH addresses effectively freezing USDC Liam ‘Akiba’ Wright · 2 hours ago · 1 min read

Circle’s USDC has “blacklisted” all Ethereum addresses owned by Tornado Cash listed in the US Treasury Department’s sanction against the protocol.

1 min read

Updated: August 8, 2022 at 10:14 pm

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Cover art/illustration via CryptoSlate

Circle’s USDC has “blacklisted” all Ethereum addresses owned by Tornado Cash listed in the US Treasury Department’s sanction against the protocol.

A Twitter bot named USDC Blacklist, which scrapes the blockchain for USDC blocklists, highlighted the issue as it tweeted multiple times through Monday after the sanction was issued.

The USDC “Blacklist Policy” states that when an address is “blacklisted,” it can “no longer receive USDC and all of the USDC controlled by that address is blocked and cannot be transferred on-chain.” Thus, any USDC currently held in a Tornado Cash address is now frozen indefinitely.

The addresses tweeted out by USDCBlacklist match those on the record released by the US Treasury. Further, Tornado Cash co-founder Roman Semenov has also revealed that his Github account has also been suspended following the sanctions.

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My @GitHub account was just suspended 🤷

Is writing an open source code illegal now?

— Roman Semenov 🌪️ 🇺🇦 (@semenov_roman_) August 8, 2022

In June, Circle’s CEO, Jeremy Allaire, confirmed that a “blacklist” function exists within USDC to block addresses “when we are legally required.”

The impact on Tornado Cash’s ability to operate is as yet unknown. However, upon reviewing the smart contracts there is roughly $81,000 USDC currently held by Tornado Cash that is now potentially frozen.

CryptoSlate has open communication channels with the Tornado Cash team, but they have yet to reply to requests throughout the day. This article will be updated with any further information as it becomes available.

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Coinbase

Coinbase requests US Supreme Court intervention to stop ‘frivolous cases’

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Coinbase requests US Supreme Court intervention to stop ‘frivolous cases’

Coinbase requests US Supreme Court intervention to stop ‘frivolous cases’ Oluwapelumi Adejumo · 4 hours ago · 1 min read

The lawsuits are currently before Federal courts, where the judges have rejected the exchange’s move to send the cases into arbitration.

1 min read

Updated: August 4, 2022 at 11:00 am

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Cover art/illustration via CryptoSlate

Coinbase wants the US Supreme Court to stop two lawsuits against it — which it considers “frivolous” — to allow room for arbitration, Bloomberg News reported on August 3.

The two lawsuits are currently before Federal courts, where the judges have rejected the exchange’s move to send the cases into arbitration.

Coinbase plans to appeal this decision, claiming that its user agreement requires arbitration first. But it wants the Supreme Court to halt the cases while pursuing the appeal.

According to the crypto fir, all court proceedings should automatically stop when one of the parties appeals to refer the case to arbitration.

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The decision of the Supreme Court and the eventual result of the appeal could seriously impact the status of arbitration clauses in the firm’s users’ agreement.

The lawsuits

The two cases are Suski v. Coinbase 22A92 and Bielski v. Coinbase 22A91. Suski is accusing Coinbase of misleading traders during its $1.2 million sweepstakes event for Dogecoin (DOGE), where users had to trade $100 worth of Dogecoin to win cash prices.

According to the complainant, the exchange did not provide enough disclosures that users who did not trade could also participate in the event.

On the other hand, Abraham Bielski is suing the company for not providing enough assistance when he lost $31,000 because a scammer gained access to his Coinbase account.

He accused the company of violating the Electronic Funds Transfer Act and Regulations.

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Both complainants seek to turn the cases into class action suits which the company wants to avoid.

Meanwhile, Coinbase is under investigation by the Securities and Exchange Commission (SEC) over listing unregistered securities. The crypto exchange has vehemently denied this allegation.

Its stock value has risen by over 20.20% in the last 24 hours to $80.81.

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