US Authorities Crack Down on 7 Crypto Entities in Just 2 Years

The United States Government through its regulatory agencies have clamped down on top cryptocurrency projects within the space of two years as it struggles to understand the complex world of decentralized finance and protect its citizens from its volatile nature.

According to CryptoPotato, these clampdowns are often driven by efforts by the US regulatory agencies to demand compliance from crypto firms for their products and services.

The list of crypto entities which were clamped down on by US regulatory agencies remains extensive but some cases stood out from the rest like lawsuits against decentralized protocols like Uniswap, crypto mixing platforms like Tornado Cash, and big firms like Binance and Coinbase.

US Authorities vs Crypto 

The fight between United States Securities and Exchange Commission (SEC) and crypto entities intensified around last year.

Binance and Coinbase

In early June the US SEC sued Binance and Coinbase, the largest crypto exchanges globally and in the country. The allegations against the entities were similar: failure to register as brokers, national securities exchanges, clearing agencies, and violation of U.S. securities laws.

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Tornado Cash

Two months after the clamp down on Binance and Coinbase, The Department of Justice (DOJ) charged the founders of a Crypto mixing firm, Tornado Cash, accusing them on laundering over $1 Billion dollars in criminal proceeds.

Kraken

Towards the end of last year, The US SEC charged Kraken another cryptocurrency exchange with a similar charge faced by Binance and Coinbase earlier in the year.

Kucoin

In March 2024, the DOJ charged crypto exchange KuCoin and its founders with violating the Bank Secrecy Act and operating an unlicensed money-transmitting business.

Uniswap

Uniswap Labs, the company behind the largest decentralized crypto exchange Uniswap, was charged by the SEC for reasons yet to be disclosed.

Samourai Wallet

The DOJ arrested and charged the founders of privacy-focused bitcoin wallet Samourai accusing them of enabling over $100 million in laundered funds. The wallet services were shut down and their websites seized.

These are many instances of the United States authorities clamping down on crypto entities over issues of compliance or links to money laundering.

The United States SEC led by Gary Gensler have been very active in pursuing compliance of crypto firms and securing the American public from the negative side of trading cryptocurrencies.

What To Know 

The DOJ charged Binance and its founder, Changpeng Zhao (CZ), with willfully violating the Bank Secrecy Act. The case saw the crypto exchange pay a fine of $4.3 billion, while CZ resigned from the role of CEO with a $50 million penalty.
Despite the various clampdown by US regulatory agencies, The SEC also approved the launching of Spot Bitcoin Exchange traded funds in the country leading to a bull run and growing the confidence of investors on the future of cryptocurrency in the country.

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