[COINTELEGRAPH] US prosecutors to pursue ex-SafeMoon CEO case despite DOJ memo
FTX and Celsius repayments left billions in value behind. The DOJ may change that https://t.co/CU7xe1MGxZ
Prosecutors told a Brooklyn federal judge Friday they plan to proceed in an investor fraud case against the CEO of crypto firm SafeMoon, after reviewing a Justice Department directive not to pursue certain charges related to digital assets. https://t.co/JBDco0g1Wr
The U.S. Department of Justice (DOJ) is reviewing its procedures for compensating investors in digital asset fraud and theft cases, aiming to address concerns that current reimbursement methods do not adequately reflect market value fluctuations following platform collapses. This reassessment comes amid notable cases such as FTX and Celsius, where repayments have left billions of dollars in value unreturned. Despite a recent DOJ directive suggesting limits on pursuing certain charges related to digital assets, prosecutors in Brooklyn have announced plans to continue with an investor fraud case against the CEO of crypto firm SafeMoon. Experts caution that changes in DOJ policy have not alleviated risks for developers associated with platforms like Samourai Wallet and Tornado Cash. Additionally, a former SEC lawyer warned that ending SEC enforcement actions against cryptocurrencies could potentially trigger contagion risks in the banking sector.