Crypto Venture Capital Firms under SEC scrutiny

SEC Targets Crypto Venture Capital Firms

The US Securities and Exchange Commission (SEC) has subpoenaed at least three crypto venture capital firms this year, signaling an expanded investigation into the cryptocurrency sector. The SEC is focusing on early-stage crypto funding, targeting investors who provide initial capital to startups.

One subpoena, titled “In the Matter of Certain Crypto Asset Offering Intermediaries,” suggests the SEC is probing potential violations of federal securities laws. The subpoenas request documents related to all token deals these firms have conducted.

A lawyer from an unaffected crypto VC described the investigation as an "overreaching fishing expedition," citing the high cost of compliance. Elisha Kobre, a securities fraud attorney, noted that this increased scrutiny is a "natural" step for the SEC.

This investigation could significantly impact how early-stage crypto investments are managed.

Montenegro's Political Struggle Over Do Kwon Extradition

Montenegro is facing political turmoil over the extradition of crypto scammer Do Kwon. Former Justice Minister Andrej Milovic has accused Prime Minister Milojko Spajić of attempting to extradite Do Kwon to South Korea instead of the U.S. to protect his own interests. Milovic claims his dismissal was due to his efforts to prevent a "rigged" extradition process.

Spajić has admitted to prior dealings with Do Kwon, including the purchase of 750,000 LUNA tokens in 2018, initially claiming it was for his employer, a statement later proven false. Meanwhile, Do Kwon's lawyer, Goran Rodić, is seeking over $500,000 from Terraform Labs for unpaid legal fees, further complicating the case.

This controversy is exposing deep political and legal tensions in Montenegro, with the Do Kwon case at the center.

Trump Meme Coin Crashes After Controversy

The Donald J. Trump token, a meme coin launched by Martin Shkreli, has seen its value plummet after its liquidity was pulled. The token, which allegedly involved Barron Trump and another underage individual, quickly crashed following denials of involvement from the Trump family.

Despite Shkreli’s efforts to link Barron to the project on social media, no proof has surfaced. The token initially gained attention after a false report claimed it was an "official Trump token," but it soon tanked once Shkreli’s involvement was revealed.

Amid accusations of exploiting Barron and his friend, Shkreli denied any wrongdoing, stating he only helped set up the token and didn’t receive any significant token allocation.

MEME OF THE DAY