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    Blockchain industry grapples with hefty legal fees and regulatory challenges as legal battles and asset seizures escalate

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    The Blockchain Association has reported that companies faced over $425 million in legal dues amid battles with the US Securities and Exchange Commission (SEC) regarding digital assets from 2021 to 2023. Meanwhile, Coinbase discovered over 20 instances of the FDIC advising banks against crypto. Alameda Research is pursuing a legal case against KuCoin, with over $50 million of assets frozen on the platform. Also, Police in Victoria, Australia have made their first seizure of crypto assets, valued at $142,679, using their newly granted authorities.

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    The Blockchain Association (BA), a group that supports cryptocurrency and blockchain, pointed out that companies had to shell out over $425 million because of legal battles around digital assets with the United States Securities and Exchange Commission (SEC). They reported this keeping an eye on cases the SEC had against the crypto industry between 2021 and 2023.

    Based on the info provided by BA member companies, about $426 million was used to defend themselves in lawsuits against the SEC. The BA stated that crypto folks and ordinary Americans are ready for a change, so it’s about time for new leadership at the SEC to stop what they see as too much legal action against the industry.

    Meanwhile, Coinbase, one of the big dogs in the crypto world, found over 20 instances of the Federal Deposit Insurance Corporation (FDIC) advising banks to steer clear of crypto. Paul Grewal, the chief legal dude at Coinbase, said they discovered the FDIC told banks to hold up on getting involved with crypto-banking services. The surprising find came after Coinbase sent two requests to the FDIC to spill the beans on why US banks avoid getting involved with crypto. Grewal was pretty fired up about the government trying to block companies from tapping into financial services.

    In other news, Alameda Research, the offshoot of the now-defunct crypto exchange FTX, is taking on KuCoin, another crypto exchange. They’re looking to get back over $50 million worth of assets stuck on the platform. Back in October, some legal documents revealed that KuCoin had the assets on ice since FTX fell apart in November 2022. FTX claimed that KuCoin wouldn’t release the assets, despite a lot of attempts to get the frozen funds back.

    Lastly, police in Victoria, Australia, used their new authorities to make their first successful seizure of crypto worth $142,679. Victoria police can now take criminals’ crypto assets away using a search warrant.

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