BB DAILY 01-08-2025: Coinbase secures legal victory in SEC lawsuit, Do Kwon’s 2026 trial date set amid discovery delays, and China announces blockchain-based national data infrastructure by 2029
Coinbase wins appeal to pause SEC proceedings as the Second Circuit reviews crypto asset classification, Do Kwon’s criminal fraud trial postponed to 2026 due to data review hurdles, China outlines plans for a blockchain-powered national data system, and Avi Eisenberg’s Mango Markets sentencing delayed until April.
Because Bitcoin
January 8, 2025
Coinbase wins appeal to send crypto assets case to Second Circuit, halting SEC lawsuit proceedings
Coinbase secured a significant legal victory as Judge Katherine Polk Failla granted its motion for an interlocutory appeal on whether crypto assets qualify as investment contracts. This pivotal question, central to multiple lawsuits nationwide, will now be considered by the Second Circuit. The court proceedings are paused until the appeal is resolved, which could take months. A favorable ruling could set a precedent for the crypto industry, but the case remains unresolved.
Do Kwon’s U.S. criminal fraud trial set for January 2026 as discovery process faces delays
The criminal fraud trial of Terraform Labs co-founder Do Kwon is tentatively scheduled for January 2026, giving time to review six terabytes of discovery data. Challenges include encrypted information, translating Korean documents, and accessing four cell phones from Montenegrin authorities. Judge Paul Engelmayer called the lengthy timeline “unprecedented” but left the door open for an earlier trial date if Kwon, held without bail, requests it. Kwon has pleaded not guilty to multiple fraud and money laundering charges tied to the $40 billion Terra/LUNA collapse. A status conference is set for March 6.
China unveils plans for blockchain-based national data infrastructure, targeting completion by 2029
China’s National Development and Reform Commission announced plans to develop a blockchain-powered national data infrastructure by 2029 as part of its push for a unified data market. The guidance emphasizes creating standards for data assets and transaction certificates using blockchain, encryption, and smart contracts to improve trust and traceability. Authorities encourage industries and local governments to pilot advanced technologies like blockchain networks. Deputy Director Zhulin Shen projected annual direct investments of $54.5 billion, totaling $272.7 billion over five years. While cryptocurrency remains banned, China embraces non-tokenized blockchain applications.
Avi Eisenberg’s sentencing for Mango Markets exploit rescheduled to April 10
Avraham “Avi” Eisenberg, convicted of fraud and market manipulation in the $100 million Mango Markets exploit, will be sentenced on April 10 following a court-approved delay requested by his legal team. Eisenberg, arrested in December 2022, has been in custody for two years. He returned $67 million to the platform but retained over $40 million. If given the maximum penalty, he could face 20 years in prison. Civil enforcement actions from the SEC and CFTC, paused since March 2023, may resume after the sentencing.
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