USDCrypto Lawsuits Shift as Ripple, Galaxy, SBF Make Moves
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Ripple Settles SEC Lawsuit for $50M, Boosting Prospects for XRP ETF Approval
Ripple reached a $50 million settlement with the SEC on March 25, 2025, ending a protracted legal battle and shifting the landscape for XRP. Although the settlement awaits final approval, Ripple maintains its legal stance and business operations. The resolution has heightened hopes for a spot XRP exchange-traded fund (ETF), with an 86% market probability of approval by year-end and a 41% chance before July 31, according to Polymarket data. XRP is currently the third-largest non-stablecoin cryptocurrency, trading at $2.135. JPMorgan forecasts an XRP ETF could draw $6–$8 billion in capital within six to twelve months post-approval. However, skepticism remains regarding the sustainability of altcoin ETFs. With Ripple's CEO Brad Garlinghouse asserting that an XRP ETF is inevitable, the market eagerly anticipates SEC's decision amid a backdrop of increasing institutional interest and regulatory clarity surrounding crypto.
SEC Drops Probes Into Crypto.com, Immutable, Kraken, Consensys & Hawk Tuah Girl Amid Regulatory Shift
On March 27, 2025, Crypto.com CEO Kris Marszalek announced the SEC had closed its seven-month investigation into the exchange with no enforcement action, marking a regulatory win after a Well notice in October 2024. Marszalek emphasized resilience despite attempts to restrict the company’s access to auditors, banking, and investors. Similarly, Immutable’s probe by the SEC, focused on 2021 private IMX token sales, ended with no action. Co-founder Robbie Ferguson framed it as a win for Web3 gaming and digital ownership. During the investigation, Immutable launched zkEVM, partnered with billion-dollar firms, and achieved nearly 5 million Passport sign-ups. Meanwhile, media outlets confirmed the SEC also dropped cases against Kraken, Consensys, and Cumberland on March 28, 2025, reinforcing a broader policy shift under Acting Chair Mark Uyeda. Haliey Welch, the "Hawk Tuah" girl, was also cleared by the SEC after her HAWK meme coin crashed 95%, with regulators finding no wrongdoing and stating meme coins are not securities.
Galaxy Digital Settles for $200M Over LUNA; Terraform to Open Creditor Claims Portal March 31
Galaxy Digital agreed to a $200 million settlement with the New York Attorney General over its role in promoting LUNA prior to its collapse in May 2022, which erased over $40 billion in market value. Galaxy had acquired 18.5 million LUNA tokens at a discounted price and promoted the asset heavily, including false claims about Terra's usage in Korea. CEO Mike Novogratz even publicly celebrated LUNA’s rise with a tattoo. Despite promoting it, Galaxy sold large portions of its holdings before the crash without disclosure. The settlement includes a $40 million upfront payment and compliance commitments. Meanwhile, Terraform Labs, the entity behind LUNA and TerraUSD, will open a crypto creditor claims portal on March 31, 2025, as part of its bankruptcy proceedings. The portal allows impacted users to submit claims amid Terraform’s ongoing legal issues and financial unraveling following its ecosystem collapse.
SBF Transferred to Oklahoma Prison After Secret Tucker Carlson Interview
Sam Bankman-Fried (SBF), the former FTX CEO convicted of fraud, has been transferred from a Brooklyn federal jail to a facility in Oklahoma to begin serving a 25-year sentence. Prior to his move, SBF secretly recorded a video interview with Tucker Carlson, disguising it as a legal call, which violated prison policies requiring pre-approval for media interactions. This stunt resulted in a day in solitary confinement, with potential for further sanctions. SBF's activities, including a prior interview and regular posts on X (formerly Twitter), are viewed as efforts to gain a presidential pardon from Donald Trump, now in office again. The Bureau of Prisons may impose penalties ranging from lost privileges to additional prison time for unauthorized public contact. With around 2,700 federal inmates in solitary confinement units, SBF's situation highlights the strict regulations governing inmate communications and the serious repercussions for violations within the prison system.
Coinbase CLO Criticizes Treasury After Tornado Cash Sanctions Lifted Following Court Ruling
On March 21, 2025, the U.S. Treasury lifted sanctions on Tornado Cash following a ruling by the U.S. Court of Appeals for the Fifth Circuit, which declared that the Treasury lacked the authority to sanction the decentralized protocol. Coinbase Chief Legal Officer Paul Grewal criticized the Treasury's actions, suggesting the inclusion of an illegal moot clause in their announcement could allow for future sanctions. He emphasized the need for compliance with the court's order, arguing for legal clarity surrounding Tornado Cash. The origins of the legal battle date back to August 2022, when the Treasury sanctioned Tornado Cash over alleged money laundering involving over $7 billion, sparking pushback from the crypto community. The case has become pivotal in delineating government regulatory authority over decentralized technologies, highlighting ongoing tensions between innovation and regulation in the evolving digital asset landscape.
Crypto Influencer BitBoy Arrested in Florida Over Legal Dispute
Crypto influencer Ben Armstrong, known as BitBoy, was arrested in Florida on March 25, 2025, following the revelation of a pending warrant linked to emails he sent to a Georgia court judge. Armstrong claimed that the judge's deletion of her social media profiles was influenced by these communications. His arrest occurred at 7:18 p.m. local time, yet authorities have not disclosed specific charges or court dates. This incident follows his September 2023 arrest during a live stream over a Lamborghini dispute with a former business partner. Armstrong has faced various legal issues, including a CFTC subpoena regarding his former media company, Hit Network, and involvement in class-action and defamation lawsuits. Despite these controversies, he remains a prominent figure in the cryptocurrency community, leveraging his legal struggles to attract public attention. Armstrong has not made any statements regarding his latest arrest at this time.
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