The cryptocurrency world was abuzz this week as several major events unfolded. The US Securities and Exchange Commission (SEC) set its sights on Coinbase, while Terraform Labs CEO Do Kwon was arrested in Montenegro. Meanwhile, FTX sought to sell $95 million worth of Mysten Labs stocks.
Coinbase received a Wells notice from the SEC this week, indicating that enforcement action may be imminent. The notice relates to the company's planned launch of a lending product known as Coinbase Lend. According to Coinbase CEO Brian Armstrong, the company has been engaged in "proactive conversations" with the SEC for months regarding this product.
Armstrong expressed his frustration with what he sees as regulatory overreach by the SEC in a series of tweets earlier this week. He argued that other companies offering similar products have not faced enforcement action from the agency.
In an unrelated event, Terraform Labs CEO Do Kwon was arrested in Montenegro on charges related to illegal gambling activities. Terraform Labs is best known for its stablecoin project called UST.
Kwon's arrest has raised questions about his involvement with UST and whether it will be impacted by his legal troubles. However, a spokesperson for Terraform Labs stated that Kwon's arrest is "not related" to his work at the company.
In other news, FTX announced plans to sell $95 million worth of Mysten Labs stocks through private placements. Mysten Labs is currently developing technology related to decentralized finance (DeFi).
FTX CEO Sam Bankman-Fried explained that the sale will allow investors who want exposure to DeFi technology but are unable or unwilling to invest directly in cryptocurrencies like Bitcoin or Ethereum an opportunity for investment.
Overall, it has been an eventful week for crypto enthusiasts around the world, as major players in the industry faced legal troubles and made significant moves to expand their presence.