SEC - Page 28

Two attorneys from the U.S. Securities and Exchange Commission (SEC), Michael Welsh and Joseph Watkins, have resigned following a district court’s harsh criticism of the agency’s conduct in a cryptocurrency case.

According to a Bloomberg report dated April 22, the lawyers stepped down earlier in the month after being warned of potential termination.

Welsh and Watkins, who were relatively recent additions to the SEC, were leading the case against DEBT Box, a crypto platform.

Welsh joined the SEC as a trial attorney in December 2022, and Watkins started as an attorney in the Division of Enforcement in January 2023, their LinkedIn profiles show.

Their resignations came in the wake of a decision by Chief Judge Robert J. Shelby, who presided over the case in Salt Lake City, Utah.

In March, Judge Shelby rebuked the SEC for making false statements and misrepresentations in its lawsuit against Digital Licensing Inc., also known as DEBT Box.

He criticized the SEC for a “gross abuse of the power entrusted to it by Congress,” which he said “substantially undermined the integrity of these proceedings and the judicial process.”

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In his March 18 filing, Judge Shelby articulated that the evidence presented by the SEC “lacked any basis” and was put forth in “deliberately false and misleading ways.”

He specifically noted that Welsh was aware of inaccuracies in his statements during a temporary restraining order (TRO) hearing, but instead of correcting these errors, “he and the Commission attempted to subtly shift the language to gloss over and perpetuate the misconduct.”

Earlier, in August 2023, the SEC had secured emergency relief against DEBT Box, temporarily freezing the Utah-based company’s assets and issuing restraining orders against its principals, accusing them of a $50 million crypto fraud scheme.

The crypto industry has frequently criticized the SEC’s regulatory tactics under Chair Gary Gensler, particularly attacking the so-called “regulation by enforcement” strategy.

Critics argue this approach has bred regulatory uncertainty, stifled innovation, and diminished the competitiveness of the U.S. in the global digital asset market.

This criticism follows amidst high-profile SEC actions against major crypto platforms like Coinbase and Binance, and anticipated enforcement against the decentralized finance platform Uniswap.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

Business leaders are putting their money where the majority of interest is. Artificial Intelligence (AI) has already attracted interest from 250 million+ companies who are either using or exploring its use-cases across operations. For the last 10 years, Qtum Foundation has positioned itself as the creme-de-la-creme of leapfrogging the space by diligently innovating and launching potent solutions. The foundation is looking to seize AI’s market value which grew from $60 billion in 2022 to $196 billion in 2023, as per Grand View Research, projections have it that the value could grow to $1.81 trillion by 2030. 

Qtum has already positioned itself as a game-changing scaling solution that has the best of the Bitcoin and Ethereum networks. With AI, the goal is to continue pursuing the blockchain project’s goal of producing cutting-edge technologies that will bring change, and drive innovation.

10,000 NVIDIA GPUs Dedicated to AI

In the latest news, Qtum Foundation has rolled out its AI services after onlining 10,000 GPUs from NVIDIA. The services include a conversational chatbot much like ChatGPT and a text-to-image generator akin to Midjourney. Both of them, dubbed Qtum Solstice and Qtum Qurator are based on the latest open-source models and will run on vast amounts of computing power.

Qtum is betting that customers and businesses of the future will not only want innovative AI tools but they will also want to interact with these solutions in a decentralized environment. 

For this reason, the foundation has rolled out its Artificial Intelligence plan in three phases. The first phase has come out,, and two more will be announced later. 

The Three Phases of Qtum’s Blockchain AI Ecosystem Rollout

1. Phase 1 focuses on the applications, with the Chabot and image generator already rolled out, Qtum will release more AI-based applications for Web3 users;
2. Phase 2 will release more decentralized AI models;
3. Phase 3 will add the decentralized infrastructure layer, matching computing power with AI computing needs. The long-term plan is to build a computing infrastructure that supports decentralized inference.

Immediately after this roll-out, Qtum’s engineers will start working on the infrastructure to improve the underlying technology and the available product offerings.  According to Qtum’s Co-Founder Patrick Dai, the next logical step for Qtum Foundation is Artificial Intelligence. “We are unveiling the first phase today, an image generator and chatbot”

Emerging Areas in Artificial Intelligence

The engineers have been on top of their game since the release of ChatGPT. For this reason, they have acquired technical expertise across four major areas:

1. Intelligent Dialogue which takes into account the knowledge base for intelligently answering questions, and text-based games.
2. Image Generation for converting text to images, 3D cartoon image generation, image super-resolution, AI-based face swapping, and detection.
3. Video Generation for face swapping, video-re-rendering, video manipulation, and animated illustrations.
4. Speech Generation which involves speech-to-text, text-to-speech, cross-language conversations, and other speech-generation systems.

Thanks to the engineering team’s knowledge and expertise in Intelligent dialogue systems, image, video, and speech generation technologies, Qtum plans to launch the following Artificial Intelligence features: 

1. Keyword-based image/video generation for conveniently creating image/video assets using certain keywords.
2. Emotional AI Voice-base Conversation Bots that are intelligent enough to understand user-behaviours, make sense of their queries and even address their questions via voice/text. This AI feature also means the bot will have a natural language understanding that can detect tone and respond to queries with empathy.
3. Intelligent Image Recognition that integrates computer vision techniques to identify the content of an image. This will come in handy when organizing or sorting large files that contain images.
4. AI-based Photo Effects and Filters for users to experience a diverse range of image filters, makeup, and effects.

Qtum is a Leader in Combining AI and Blockchain

Building Artificial Intelligence tools on top of Qtum’s blockchain infrastructure should come naturally to them. They have experience in this field from the earlier technical accomplishments achieved by combining Bitcoin’s UTXO model with Ethereum’s virtual machine in one package. 

Since the organization is pursuing a three stage rollout plan with its blockchain AI ecosystem, the team will add 10 more AI-related offerings over the upcoming months to ensure complete utilization of its vast 10,000 GPUs. This amount of computing power is no small accomplishment, and should attract attention from other organizations and partners that are looking for resources in the AI field.

Qtum’s AI Services are free. However, one will need Qtum tokens to access or rent large amounts of computing power or blockchain-based intellectual property protection. $QTUM, the network’s utility token, is presently trading at $4.3  after gaining over 40% in the last 3-months since the beginning of January.

Qtum price by TradingView

While utility tokens are not a proportional reflection of a network’s health, $QTUM has been performing well in the last one year. From the chart above, the token’s price improved from $3.6 to a yearly high of $6.17. 

Qtum intends to integrate the token with its blockchain AI offerings when building the decentralized economy layer. This means the fundamentals of the coin are looking good over the medium-term and even more promising for the long-term game on the account that emerging technologies will greatly become intertwined.  More users coming to Qtum for AI solutions, and an increase of building activity of developers deploying on the open source model will create demand for the token. 

Conclusion

The Qtum blockchain platform combines Ethereum’s smart contract capabilities with Bitcoin’s security features. Thanks to this, the platform has been lauded for its energy efficiency, speeds, scalability and the focus on governance. Layer 2 solutions building Qtum can achieve super speeds of billions of transactions per second while the average speed on the network is 1100 TPS. By deploying artificial intelligence services through its blockchain infrastructure, Qtum hopes to disrupt an industry valued at $196 billion. The blockchain platform has proved itself before by implementing solutions that other projects took years to fully implement. One of its testimonials was integrating its EVM-capable smart contracts engine with Bitcoin’s native UTXO support. This enabled the platform to benefit from Bitcoin’s security features and Ethereum’s programmability. 

Pro-XRP attorney John Deaton is steadfastly fulfilling his promise to support Coinbase users amid their legal challenges with the U.S. Securities and Exchange Commission (SEC).

On April 19, Deaton filed a motion in the Southern District of New York’s District Court to act as amicus counsel for 4,701 Coinbase customers in a lawsuit that began in June 2023.

In his filing, Deaton confirmed, “I am admitted or otherwise authorized to practice in this court and I appear in this case as counsel for 4,701 Coinbase Customers.”

Deaton’s involvement is driven by a desire to advocate for the average person’s right to financial growth, as he expressed in an April 18 podcast with Fox Business reporter Eleanor Terrett.

“This isn’t about crypto, this is about freedom.

“This is about upward mobility, this is about people who want a fighting chance, people who want to build a little wealth.

“They are not looking to get rich, they’re not crypto bros,” Deaton stated.

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The move to represent Coinbase users comes shortly after Coinbase lodged an interlocutory appeal following a denied motion to dismiss the SEC lawsuit.

The appeal hinges on the question of whether an investment contract necessarily involves a contractual agreement, a point highlighted by Coinbase’s Chief Legal Officer Paul Grewal.

Deaton’s efforts to support the cryptocurrency community are well-documented through several amicus counsel applications in significant legal battles.

Notably, he appeared as a friend of the court for over 6,000 XRP holders in the SEC’s 2021 lawsuit against Ripple Labs and more recently in the LBRY vs. SEC case in September 2023.

Adding to his legal activism, Deaton is also eyeing a political role, challenging Senator Elizabeth Warren, a known crypto critic, for her Senate seat.

His campaign has garnered significant financial support, outpacing Warren’s fundraising efforts in the first quarter of this year.

According to an April 15 Cointelegraph report, Deaton raised $1.36 million, surpassing Warren’s $1.09 million.

He also invested $500,000 of his personal funds into his Senate run and appealed to his 324,100 Twitter followers to help raise an additional $500,000.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

The U.S. Securities and Exchange Commission (SEC) has updated its lawsuit against Justin Sun, the founder of Tron, enhancing its jurisdictional claim over him due to his extensive travels in the United States.

In a revised filing on April 17, the SEC submitted to a Manhattan federal court that Sun, Tron, and two other associated entities are within its reach because they deliberately engaged in activities aimed at the U.S. market.

Justin Sun reportedly spent more than 380 days in the U.S. from 2017 to 2019, traveling to major cities such as New York City, Boston, and San Francisco.

These trips, according to the SEC, were made in his capacity as a representative of the Tron Foundation, the BitTorrent Foundation, and Rainberry, which the lawsuit describes as Sun’s “alter ego” organizations.

The SEC’s amended complaint also reiterated its previous allegations that Sun and his companies had issued unregistered securities through Tron and BitTorrent (BTT) tokens and accused him of partaking in “manipulative wash trading.”

These illicit activities are said to have occurred in part during Sun’s visits to the U.S., correlating his presence with promotional activities for TRX and BTT tokens in the country.

Moreover, the SEC alleges that the TRX token wash trades occurred on Bittrex, a crypto exchange based in Seattle, establishing another link to U.S. jurisdiction.

In a counter move, Sun, born in China and a citizen of Grenada, sought to dismiss the charges in late March.

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He argued that the SEC was improperly applying U.S. securities laws to actions predominantly conducted abroad and maintained that the agency had no jurisdiction over him or the Singapore-based Tron Foundation.

Sun contended that the TRX and BTT tokens were entirely sold overseas, with measures taken to specifically bypass the U.S. market, and he highlighted that the SEC did not claim the tokens were initially offered or sold to U.S. residents.

As of the latest updates, Sun’s legal representatives have not provided comments on the ongoing case.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.

Samsung is set to expand its semiconductor manufacturing capabilities in Texas with a $6.4 billion grant from the U.S. government.

This funding, provided under the 2022 Chips and Science Act, underscores a significant effort to strengthen domestic chip production, particularly for the automotive, aerospace, and defense sectors.

These sectors are considered crucial for national security, as per unnamed administration sources in a Reuters report from April 15.

Commerce Secretary Gina Raimondo highlighted the grant’s role in enhancing U.S. competitiveness in various facets of semiconductor production.

“These grants will allow the U.S. to once again lead the world, not just in semiconductor design, which is where we do now lead, but also in manufacturing, advanced packaging, and research and development,” Raimondo stated.

In addition to federal funding, Samsung plans to inject an additional $45 billion into its Texas operations by the end of 2030.

This ambitious expansion will include two new production facilities—one for research and another for packaging—alongside its existing semiconductor plant in Austin.

READ MORE: Victims of $6.2 Billion Chinese Fraud Scheme Seek UK Help to Recover $4.3 Billion in Seized Bitcoin

This development coincides with OpenAI, the creator of ChatGPT, announcing its intent to manufacture its own AI-specific chips, potentially with financial backing from the UAE’s state-backed group, MGX.

The semiconductor industry is currently grappling with a significant chip shortage, which is poised to impact various sectors, notably cryptocurrency mining.

The shortage comes at a critical time, with the Bitcoin mining industry facing the impending Bitcoin halving event.

Riot Platforms, a Bitcoin mining company, reported in its 2023 annual report that the limited supply of chips poses one of the twelve major risks to its profitability.

“The ongoing global supply chain crisis, coupled with increased demand for computer chips, has created a shortfall of semiconductors,” the report noted.

Moreover, U.S.-based Bitcoin miner CleanSpark has expressed concerns about potential disruptions in cryptocurrency hardware and the difficulties in acquiring new equipment, as stated in its 10-K filing.

This underscores the broader impacts of the chip shortage on industries reliant on high-tech components.

To submit a crypto press release (PR), send an email to sales@cryptointelligence.co.uk.