The US Securities and Exchange Commission (SEC) has agreed to voluntarily dismiss all litigation tied to crypto exchange Coinbase, permanently ending the case. This included withdrawing from its initial June 2023 lawsuit and requesting an interlocutory appeal with the US Court of Appeals. The dismissal aims to formally end the legal dispute between the SEC and Coinbase that began on February 21. Bitcoin has fallen below $80,000 due to mounting macroeconomic uncertainty over US President Donald Trump’s proposed tariffs. On Feb. 27, Bitcoin plummeted to $79,752, reflecting a 2.65% price decline over the past hour. The drop led to the liquidation of $100.01 million in long positions.
Prior to this, traders had been eyeing $82,000 as a potential bottom but are now preparing for a move towards $70,000.
The emerging American crypto ethos: “build things, break things, don’t ask permission, ask forgiveness, but whatever you do, don’t cheat people.” My comments to @emilyjnicolle @markets @crypto @business https://t.co/qlg2TN0Rcl via @crypto
— Chris Giancarlo (@giancarloMKTS) February 28, 2025
Sec dismisses Coinbase litigation permanently
A US district court judge has dismissed the SEC’s fraud suit accusing Hex founder Richard Heart of raising over $1 billion through unregistered crypto offerings and defrauding investors of $12.1 million. Heart allegedly spent these funds on luxury items, including the world’s largest black diamond.
However, Judge Carol Bagley Amon noted that the SEC failed to establish that the US had jurisdiction over Heart’s global crypto activities. The SEC has once again delayed its decision on whether to permit Cboe Exchange to list options tied to Ether exchange-traded funds (ETFs), extending the deadline to May. Cboe had initially requested to list these options in August 2024, but the SEC sought extra time in October.
It’s official: case dismissed.
Time for fair legislation for the entire industry. pic.twitter.com/fRsZVX4sBk
— Coinbase 🛡️ (@coinbase) February 27, 2025
🚨SCOOP: The @SECGov and @Consensys have reached an agreement in principle to end the agency’s lawsuit against the blockchain software company, according to people with direct knowledge of the matter. The dismissal is subject to approval by the commission and an announcement by…
— Eleanor Terrett (@EleanorTerrett) February 27, 2025
The exchange is particularly interested in listing options on the Fidelity Ethereum Fund, which boasts around $1.3 billion in net assets. The US Federal Bureau of Investigation (FBI) has called on exchanges and the private sector to block transactions from addresses used to launder funds from the $1.4 billion Bybit hack. In a Feb. 26 public service announcement, the agency attributed the hack to a group dubbed “TraderTraitor.” This group is also known in the industry as APT38, BlueNoroff, and Stardust Chollima.
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