cryptolaw

In a dramatic turn within the crypto world, two former high-ranking executives of Theta Labs have filed lawsuits against the company and its CEO Mitch Liu, alleging years of fraud, market manipulation, and retaliation against whistleblowers.

Two Separate Lawsuits, One Set of Accusations: Fraud and Pump-and-Dump Schemes
The lawsuits, filed in Los Angeles Superior Court by Jerry Kowal and Andrea Berry, claim a systematic pattern of internal abuse and misconduct. According to the complaints, Liu:
🔹 Artificially inflated token prices using false or misleading partnerships

🔹 Concealed insider token sales to enrich himself and close associates

🔹 Punished employees who raised ethical or legal concerns
Attorneys for the plaintiffs argue that Liu essentially ran Theta Labs as a "personal trading vehicle" for manipulating the market and securing personal profits.

Fake Partnerships and NFT Manipulation
Kowal’s filing describes how Liu allegedly created false hype around NFT launches, sometimes linking them to well-known celebrities such as Katy Perry, to mislead investors and boost token prices.
Berry's complaint adds that she personally witnessed numerous instances of fraud and internal harassment, which she reported to company leadership. She claims Liu’s main priority was boosting the value of the THETA token, even if it meant using fabricated or grossly exaggerated business partnerships.

Misleading Claims About Google
Berry further alleges that Theta intentionally misrepresented its relationship with Google. While the company publicly promoted it as a “strategic partnership,” internal documents revealed that it was merely a standard cloud services agreement, with Theta committing to spend $7 million on Google Cloud products. In reality, Theta was a customer, not a partner, but the mischaracterization misled the community and investors.

Shell Companies and Hidden Ownership
Both lawsuits claim that some of Theta’s supposed “partners” were actually shell companies secretly owned by Liu. This allowed him to artificially create the appearance of external validation and business growth, while further misleading the public and regulators.

#Cryptolaw , #CryptoScandal , #blockchain , #CryptoNews , #THETA

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Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

The U.S. Senate is moving closer to passing one of the most important cryptocurrency bills to date. Senate Banking Committee Chairman Tim Scott confirmed that lawmakers have advanced a comprehensive regulatory proposal following a high-level meeting with top U.S. banking executives.

Last Thursday, Scott met separately with Bank of America CEO Brian Moynihan, Citigroup CEO Jane Fraser, and Wells Fargo CEO Charlie Scharf. These discussions focused on shaping a unified framework for digital assets, strengthening market oversight, and improving investor protection.

🔍 Key Points From the Meetings

The upcoming legislation aims to set clear rules for the crypto sector while giving agencies such as the SEC and CFTC more structured authority.

Senators from both political parties held what insiders described as “cordial” and productive sessions with the CEOs.

Topics included yields, DeFi, and anti-money-laundering standards, signaling a strong push toward safer, more transparent markets.

Banking leaders raised concerns about gaps in the GENIUS Act, which became law earlier this year. They argue that current rules do not sufficiently limit stablecoin issuers from offering interest, potentially distorting competition with traditional banks.

They also warned that some restrictions in the law can be easily bypassed through brokers, exchanges, and related platforms.
📌 Why This Matters
If passed, this bill could become a major regulatory milestone for the U.S. crypto industry. Clearer rules may boost institutional confidence, increase adoption, and support long-term market growth
heading into 2026.
#SEC #Cryptolaw #USsenate

Pi Network, the controversial cryptocurrency project, is facing a $10 million lawsuit filed by a U.S. investor over alleged fraud. However, many experts argue that the case is based on incorrect information and is unlikely to succeed.

Investor Seeks Millions Over Price Drop and Token Transfer
Harro Moen, a resident of Arizona, filed a lawsuit on October 24 in the U.S. District Court for the Northern District of California against SocialChain Inc., Pi Community Company, and key figures behind Pi Network. He claims to have lost $2 million due to alleged manipulations by the network.
A key allegation is the supposed drop in the PI token’s value from $307.49 to $1.67. But according to analysts, this claim is deeply flawed. The $307 figure likely refers to IOU contract values, which are not reflective of Pi Network’s real market price. The token never exceeded $3 after being listed on exchanges.

Legal Grounds Are Weak, Say Analysts
Well-known crypto analyst Dr. Altcoin stated that the lawsuit relies on inaccurate facts. The fraud accusations ignore the possibility that the missing tokens may have been stolen via phishing or leaked credentials. Without direct evidence linking the Pi Core team to the transfers, Moen’s claims are unlikely to stand.
The lawsuit also criticizes Pi Network’s developers for failing to migrate 1,403 tokens to the Open Mainnet in time, allegedly preventing the investor from selling before the price dropped. Furthermore, it accuses Pi Network of maintaining centralized control despite claiming to operate as a decentralized ecosystem. It alleges that with only three validating nodes, the leadership retained excessive influence over token transactions.

Token Price of $307 in Question
One of the most controversial elements is the claim that PI once had a price of $307.49. This figure never matched reality. When Pi launched its Open Mainnet in February, the token was listed on OKX at $2 and later peaked at just $2.99.
Reddit users and community members quickly pointed out that the lawsuit is based on a fictional price with no legal or market foundation.

Renewed Allegations of Fraud Surface
Since its 2019 debut, Pi Network has long struggled to shake off allegations of being a scam. In December 2025, seven major Chinese financial associations issued a joint warning, labeling Pi Coin as a “worthless virtual asset” and urging investors and platforms to avoid dealing with it.
Among the signatories were the China Internet Finance Association, the China Banking Association, and several others. Their statement accused projects like Pi Coin, real-world asset tokens, and stablecoins of being used in illegal fundraising, pyramid schemes, and speculative scams.

#pi , #PiNetwork , #Cryptolaw , #CryptoNews , #blockchain

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!
Notice:
,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“

$LUNA $UST #Terra

In a stunning courtroom development, Terraform Labs founder Do Kwon is now scheduled for sentencing in the U.S.
The collapse of UST wiped out over $40 billion, making it one of the largest disasters in crypto history.
Regulators worldwide are watching closely, as this case may define future stablecoin oversight.

#DoKwon #Stablecoins #CryptoLaw

BREAKING: Do Kwon, the disgraced co-founder of Terraform Labs, is being sentenced today in New York for his role in the $40 billion Terra crash. After a guilty plea to fraud and conspiracy, prosecutors want 12 years behind bars; the defense pushes for far less. A defining moment for crypto accountability.
Context in a Nutshell
Today marks a watershed moment in crypto's legal history as Do Kwon, the co-founder of Terraform Labs, is sentenced in New York for his role in the catastrophic collapse of the Terra ecosystem. After pleading guilty to fraud and conspiracy charges tied to the 2022 implosion of TerraUSD and LUNA, a crash that erased tens of billions of dollars in market value and devastated investors, federal prosecutors are pushing for a significant prison term. Meanwhile, Kwon's defense argues that mitigating factors warrant a more lenient sentence.
What You Should Know
Do Kwon, the embattled co-founder of Terraform Labs, the company behind the explosive collapse of the TerraUSD (UST) and $LUNC ecosystem in 2022, is being sentenced today in Manhattan federal court for fraud and conspiracy tied to that crash.Kwon pleaded guilty in August 2025 to charges including conspiracy to defraud and wire fraud, admitting he misled investors about the stability and mechanisms of Terra's algorithmic stablecoin.Prosecutors have recommended a 12-year sentence, part of a plea agreement that also includes forfeitures and reflects the massive fallout from the crash that wiped out as much as $40 billion in investor value and reverberated across the crypto market.The defense is seeking a much lighter term, reportedly as low as 5 years, citing the years Kwon already spent in detention through his extradition and cooperation.Kwon's journey from crypto wunderkind to convicted fraudster included arrest in Europe while using a forged passport, extradition battles, and a high-profile guilty plea. This saga has become one of the defining criminal cases of the crypto era.
Why Does This Matter?
This sentencing is about one fallen founder. However, it is also a landmark in how regulators and courts hold crypto architects accountable for massive investor harm. The Terra saga helped trigger regulatory scrutiny and investor wariness across the digital asset space, and today's judgment could define the legal boundaries for crypto project leaders worldwide.
Whether Kwon receives a dozen years or a lighter term, the message is clear: the era of crypto impunity may be ending, and executives who oversell, mislead, or defraud investors could face consequences as real as those in traditional finance.
#TerraformLabs #Cryptolaw

🗽 ИГРА ИЗМЕНИЛАСЬ: АМЕРИКА ДАЁТ ЗЕЛЁНЫЙ СВЕТ!🟢
Гиллебранд и Леммис — две ключевые фигуры Сената, которые ломают партийные барьеры ради будущего. Они только что подтвердили:
1. Проект Закона (Draft) – РЕЛИЗ НА ЭТОЙ НЕДЕЛЕ!
2.ГОЛОСОВАНИЕ – ВНОВЬ НА СТОЛЕ УЖЕ НА СЛЕДУЮЩЕЙ НЕДЕЛЕ!
Это не "когда-нибудь потом". Это СЕЙЧАС.
ПОЧЕМУ ЭТО ГИПЕР-БУЛЛИШ? (ЗАЧЕМ ЭТО НУЖНО)🤔
Криптовалюта до сих пор жила в СЕРОЙ ЗОНЕ регуляции США — крупнейшей экономики мира. Это вызывало страх у институциональных инвесторов (банков, фондов, корпораций).❗️
Что дает этот закон?
1.Он окончательно определяет, что является товаром контроль CFTC, вероятно, BTC, ETH и что является ценной бумагой (контроль SEC). Исчезает юридический риск🎯

2.Четкие правила — это зеленый свет для триллионов долларов институционального капитала. Они могут заходить, не опасаясь внезапных исков или запретов.🔥

3.Вместо того, чтобы бежать из страны, крипто-стартапы останутся в США. Регулирование создаёт ЗАЩИТНЫЙ ЩИТ для потребителей и бизнеса.
Отношение к нему:
Данный Законопроект Леммис-Гиллебранд называют одним из "самых важных законодательных актов о цифровых активах в истории США" потому что он легализует и интегрирует крипту в мейнстрим финансовой системы✅️
ВЫВОД: МИРОВАЯ ФИНАНСОВАЯ СИСТЕМА ГОТОВИТСЯ ПРИНЯТЬ КРИПТОВАЛЮТУ КАК ПОЛНОПРАВНОГО УЧАСТНИКА.
ПРИСТЁГНУТЬСЯ. ВОЛАТИЛЬНОСТЬ БУДЕТ ВЫСОКОЙ. МЫ НА ПОРОГЕ ПЕРЕЛОМА.
$BNB
$BTC
$ETH
#MEGABULLISH #CRYPTOLAW #GAMECHANGER #LUMMISGILLIBRAND

📅 December 9 | United States
After months of political tensions, regulatory debates, and a constantly evolving crypto industry, a phrase uttered in the U.S. Senate ignited everything: “There’s nothing holding this bill back.” The statement came from Democratic Senator Kirsten Gillibrand, one of the most influential figures in the discussion on crypto regulation in Washington.

📖According to The Block, Kirsten Gillibrand stated that there is nothing preventing the crypto regulation bill from moving forward in the Senate, despite the polarized climate. The senator has positioned herself as a central voice in the debate, seeking a balance between consumer protection, legal clarity, and economic innovation.
Most significant of her stance is that she doesn't speak conditionally or speculate; she affirms that the bill is ready to proceed, with incremental support and no procedural hurdles.
For months, critics had questioned whether the bill would achieve bipartisan consensus, especially in a politically sensitive year. However, Kirsten Gillibrand's statement demonstrates that the barriers are no longer structural, but merely temporary. In other words, the debate no longer revolves around whether the law should move forward, but when it will.
The bill has been developed in conjunction with Republican Senator Cynthia Lummis, solidifying a collaboration that has been compared to historic initiatives where political rivals aligned themselves to create lasting regulatory precedents. This coordinated effort is part of the reason why Kirsten Gillibrand is so confident.
Kirsten Gillibrand suggested that the next step is to maintain dialogue with regulatory agencies and continue the legislative process, which, according to her, is in a stronger position than any previous initiative. And this prior stability is what is providing reassurance to financial players, both traditional and within the blockchain ecosystem.
From the outside, it may seem like just a phrase. But, in an environment where every word carries weight, “there’s nothing holding this bill back” is the strongest signal the crypto industry has received since discussions on federal regulation began.

Topic Opinion:
This means we are no longer in a theoretical debate; we are facing crypto regulation that could become law. At an institutional level, this unlocks many pieces that were waiting for clarity: banks, custodians, infrastructure providers, funds, and startups. Balanced regulation not only protects, it also provides legitimacy.
💬 Do you think this law will arrive sooner than expected?

Leave your comment...
#Cryptolaw #CryptoRegulationBattle #BTC #Web3 #CryptoNews $BTC