SEC Charges Quantstamp $3.4M 💸

GM. This is Degen Scoop. It’s Thursday, here’s the scoop:

• SEC Charges Quantstamp $3.4M 💸

• Binance Exits More European Countries 🏃

• SBF’s Bail Conditions Tighten 🪢

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

Quantstamp Receives $3.4M Charge by SEC For $28M ICO

Quanstamp is a blockchain security company who is also considered a notable smart contract auditor in the industry. Instead of fighting this in court, Quantstamp agreed to settle with the SEC without admitting or denying the charges. Back in 2019, Quanstamp raised ~$28M in the sale of its $QSP token. According to the Howey test, the SEC felt like this was sufficient grounds to sue.

The Howey test is effectively the test which is used to define what is a security. Put simply, it’s a way in which to define what investors place money into in the hopes of gaining a profit. Alongside the fine, the SEC established a fair fund from the settlement to repay ICO investors.

Binance Continues to Exit From European Countries Due To Regulations

Binance has had a tough year with pressure from the SEC and various countries in the EU. The registration difficulties have simply compounded as the year trudges on. The most recent casualty is Germany, far from a small loss as it boasts the 4th largest GDP in the world. The stringent regulation requirements prevented Binance from continuing their operations.

On top of Germany, Binance sent in an application to be delisted as a crypto provider in Cyprus. A reason was not provided, but it was presumably due to regulations. While Binance’s presence in Europe remains present with an HQ in Paris, its influence is certainly receding. If Binance can weather this storm, it’ll be a battle to regain market share with more players joining the game.

SBF Experiences A Tightening of Bail Conditions

On Wednesday, a judge further tightened the grip on SBF by restricting his ability to speak publicly with a threat of jail. By sharing Caroline’s personal writings, it was considered to be a second example of witness tampering by SBF in regard to his ongoing trial. Not smart.

In the meantime, SBF will be held under a gag order. Since an extradition from the Bahamas, SBF has been confined to his parents’ home in Palo Alto, CA as he prepares for his trial. It’s expected that he will be made an example of after his participation in the collapse of FTX. The trial will begin in early October which we will certainly cover.

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.