In a significant turn of events, the crypto world is buzzing with breaking news at the end of this weekend. The arrest of Alex Mashinsky, a prominent figure in the industry, makes a vital step toward justice. Concurrently, Ripple, the blockchain payment protocol, has achieved a substantial legal victory. These developments have propelled the crypto world into the spotlight, generating anticipation and excitement among enthusiasts and investors alike. Stay tuned as we delve into the details of this momentous weekend in the Crypto News Buzz.
The Curious Case of Alex Mashinsky’s Arrest:
Why was Mashinsky Arrested?
On Thursday, the first bit of good news started coming through Alex Mashinsky, the founder and Ex-CEO of Celsius, who was finally arrested. Celsius is the leading crypto lending and borrowing platform that went down last year, leaving thousands of customers facing financial ruin. Last year, Celsius filed for bankruptcy as the platform crashed abruptly. Some of the renowned US institutions (SEC, CFTC, Justice Department, and Federal Trade Commission) accused Mashinsky of manipulating the value of the cell token and wire fraud.
Mashinsky Got Bail Approval:
After a series of court trials, Mashinsky was officially convicted of the crime on a sunny day on Thursday. However, it took little time for Mashinsky to file for bail on a massive 40-million-dollar bond. Ona Wang, the US Magistrate Judge, approved his bail.
Impact of Mashinsky’s Arrest:
Nevertheless, his arrest represents a vital step toward Justice. At least, this news will offer some comfort to the many people whose lives have been ruined by him and Celsius. But the question arises when those people will get their money back. Let’s wait and watch what steps the US court will take.
Ripple’s Two-Year Legal Battle Came to an End:
A Milestone Victory of Ripple and the Crypto World:
Let’s proceed to the following breaking news that resulted in the crypto world blooming.
On July 13th, Judge Analisa Torres officially passed a decision in favor of Ripple by stating, ‘XRP token is not a security.’ The court states, ‘XRP, as a digital token, is not in and of itself “a contract, transaction or scheme.” As soon as the news broke out, the crypt world celebrated loudly.
This two- and half-year battle of Ripple vs. SEC came to an end. Back in 2020, SEC filed a lawsuit against Ripple, accusing their XRP tokens of being a security. However, on the morning of July 13th, it becomes clear Ripple is here to stay and slay.
Expert Views on Ripple’s Legal Triumph:
Here’s what some of the users on Twitter have to say.
Max Hudson, a twitter user tweets,
“What a historic win for Ripple,” A big day for the crypto world. This also makes clear that SEC will also lose in the Coinbase lawsuit. Well! Wait and watch.
Stuart Alderoty, Ripple’s Chief Legal Officer, took to Twitter to state,
A massive win today- as a matter of law-XRP is not a security. Also, a matter of law-
Sales on the exchange are not securities. Sales by executives are not securities; other XRP distributions- to developers, charities, and employees- are not securities.
Adam Cochran put it in a Twitter quote,
4/5
Overall, a huge win. XRP is one of the more centralized foundations with a key figurehead with standard sales via exchanges and formal distribution programs.
If those aren’t Securities, nearly nothing sold via exchanges is.
The statement which garnered a tremendous amount of attention on Twitter was by Scott Schneider, the official spokesman of SEC. He states,
“We are pleased that that court found that XRP tokens were offered and sold by Ripple as investment contracts in violation of the securities laws in certain circumstances.”
How is it a Partial Win for SEC?
So, by reviewing SEC statements, the court found that Ripple and its executives are accountable for Whopping $728.9 million in XRP sales to so-called sophisticated investors like Hedge Funds and others. Regarding this matter, Judge told Jury to make a decision soon.
Therefore, it’s a partial victory for both Ripple and SEC.
Impact of Ripple’s Landmark Success:
As soon as the news of Ripple’s legal victory spread worldwide, the prices of XRP and other altcoins saw a massive hike. XRP coins made the high jump with over 90% of the hike. Other altcoins also saw double-digit numbers. Bitcoin reached a new height in months, while Ethereum also significantly jumped. Overall, the crypto market was in party mode these past two days. Moreover, Coinbase also congratulates Ripple on Twitter, simultaneously mocking SEC in their tweet.
Future of Ripple and XRP Tokens:
With the most significant relief for Ripple, the platform’s founders are working on new upgrades, including decentralized escrow. Moreover, they are expanding its partnerships with some of the leading financial institutions, such as Santander and MoneyGram. On the night of decision got public, XRP saw a massive hike, but let’s see how it will sustain the numbers.
Wrapping Up:
The recent events in the crypto world have caused a stir, with the arrest of Alex Mashinsky and Ripple’s significant legal win dominating the headlines. Mashinsky’s arrest represents a crucial step towards justice for those affected by the collapse of Celsius. At the same time, Ripple’s victory against the SEC provides a significant boost to the cryptocurrency and its community. The repercussions of these developments have been felt across the industry as prices soared and optimism filled the air. However, with this, a series of questions can be made:
What impact will Alex Mashinsky’s arrest have on the affected customers of Celsius, and when can they expect restitution?
Or
With the surge in prices and market optimism, what could be the potential long-term implications for the crypto market?
Or
Will Ripple’s success against the SEC influence other pending legal battles in the crypto industry?
These questions invite further exploration and analysis of the current landscape as the crypto world continues to evolve and capture global attention. Let’s wait and watch; what’s going to happen soon?
