June 17 Crypto News – Unveiling Today’s Highlights

June 17 Crypto News – Malaysian Authorities Crack Down on Tax Evaders, Ripple Faces SEC Battle

June 17 Crypto News – Malaysian authorities have launched “Ops Token,” a crackdown operation aimed at curbing tax evasion in the crypto sphere. In a coordinated effort involving the Royal Malaysia Police and CyberSecurity Malaysia (CSM), 10 locations in the Klang Valley were raided. The Inland Revenue Board (IRB) revealed that the operation successfully uncovered cryptocurrency trading data stored in electronic devices, shedding light on significant tax revenue losses.

IRB CEO Datuk Abu Tariq Jamaluddin cautioned crypto traders to ensure proper declaration of their taxes to the nearest IRB offices, emphasizing imminent compliance measures.

SEC Dismisses Ripple’s Plea for Reduced Penalty

In a legal saga against Ripple Labs, the U.S. Securities and Exchange Commission (SEC) rebuffed the company’s plea for a reduced civil penalty. Ripple’s legal representatives argued for a smaller penalty, citing the SEC’s recent case with Terraform Labs as precedent. However, the SEC countered, asserting that the comparison was flawed and the proposed penalty insufficient to serve the statute’s purpose.

The SEC’s proposed penalties against Ripple amount to nearly $2 billion, encompassing prejudgment interest, civil penalties, and disgorgement. The ongoing dispute originated in 2020 when the SEC alleged that Ripple sold unregistered securities, a claim partially upheld by Judge Analisa Torres, who limited it to sales to institutional investors.

Ripple Pushes for “Appropriate” Civil Penalty

Amid its legal tussle with the SEC, Ripple’s legal team urged the court to consider “appropriate” civil penalties. Citing the SEC’s perceived overreach in seeking hefty fines, Ripple’s lawyers referenced the recent $4.5 billion settlement between the SEC and Terraform Labs. They argued that the SEC’s proposed penalties, exceeding $2 billion, were disproportionate, particularly in the absence of fraud allegations and substantial losses to institutional buyers.

Ripple contends that the SEC’s penalty demands deviate from established precedents, advocating for penalties aligned with previous cases, which ranged from 0.6% to 1.8% of the defendant’s gross revenues.

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