On July 22, 2023, members of the U.S. House of Representatives voted in favor of legislation aimed at addressing the unlawful use of cryptocurrencies. The bill, known as the Financial Technology Protection Act, was introduced in April 2023 and passed by a voice vote.

According to Representative Zach Nunn, the primary objective of the bill is to “ensure the United States is prepared to address security risks and prevent illicit money laundering while also protecting consumer choice.” The legislation comes in response to concerns about how “rogue and foreign nations” might evade sanctions.

Andrew Left, Crypto Skeptic, Faces Fraud Charges

On July 26, Andrew Left, the founder of Citron Research, was charged with securities fraud for allegedly making $16 million through a deceptive practice known as “bait and switch.” This tactic is employed to attract victims with enticing offers but ultimately forces them into deals they would not have initially accepted.

The accusations assert that Left, known for his skepticism towards cryptocurrency, provided misleading investment recommendations on various media platforms, profiting by taking contrarian positions. According to a statement from the U.S. Securities and Exchange Commission (SEC), Left reportedly boasted to colleagues that misleading investors was akin to “taking candy from a baby.” The SEC claims his fraudulent practices enabled him to generate short-term gains at the expense of retail investors.

Marathon Digital Penalized $138 Million for Contract Violation

On July 23, Marathon Digital, a leading Bitcoin mining company, was fined $138 million for breaching a non-circumvention agreement. Michael Ho, co-founder of the U.S. Bitcoin Corp, successfully sued Marathon for this breach.

According to the law firm representing Ho, he had devised a growth strategy for Marathon in 2020 but was not compensated for sharing this proprietary information, which directly led to the contract violation.

Coinbase Expands Board with New Appointments

Cryptocurrency exchange Coinbase has announced the addition of three new directors to its board, including Chris Lehane, a former aide to President Bill Clinton. Lehane previously held the role of a Democratic strategist during Clinton’s first presidential campaign in 1992 and was most recently a senior executive at OpenAI.

Expressing enthusiasm for his new role, Lehane stated his commitment to supporting Coinbase in advocating for the 52 million Americans who currently own cryptocurrency.