Common operational techniques in the cryptocurrency industry and their legal consequences in the US stock market: 💥 1. Market manipulation 🪙 Performance of the cryptocurrency industry: Banker joint pulling/smashing, pin bursting Utilize community public opinion to control the market 📜 Corresponding to US stock laws: Violation of Article 9 and Article 10 (b) of the Securities and Exchange Act (especially SEC Rule 10b-5) Prohibition of "false transactions, price manipulation, and deceptive behavior" ⚖️ Punishment case: Jordan Belfort (prototype of the movie 'Wolf of Wall Street'): Manipulating stock prices, sentenced to 4 years in prison, fined over $100 million Elon Musk (2018 tweet 'preparing to privatize Tesla'): sued by SEC for stock price manipulation, settlement fine of $40 million 🕵️ 2. Insider trading 🪙 Performance of the cryptocurrency industry: The team knows the positive/negative news in advance and buys and sells tokens in advance The project party privately notifies VC to ship the goods Early leakage of information on the exchange, private transactions 📜 Corresponding to US stock laws: Violation of Article 10 (b) and Rule 10b5-1 of the Securities and Exchange Law Prohibit anyone from using 'non-public material information' for trading ⚖️ Punishment case: Martha Stewart (founder of celebrity kitchenware brand): profiting from insider trading, sentenced to 5 months in prison Former Coinbase employee Ishan Wahi (2023): sentenced to 2 years in prison and fined for early disclosure of listed token information 💸 3. Dumping tokens 🪙 Performance of the cryptocurrency industry: Team or VC sells heavily after unlocking period Issuing coins under the guise of 'fundraising', the development team runs away 📜 Corresponding to US stock laws: Suspected of securities fraud, fraud, and false statements Possible application of Article 17 (a) of the Securities Law and Article 10 (b) of the Securities and Exchange Law ⚖️ Punishment case: Theranos founder Elizabeth Holmes sentenced to 11 years in prison for false statements and investor fraud Bitconnect executive: Charged by SEC for Ponzi structure+false token promises+asset freeze, some personnel detained 🧪 4. False advertising and misleading investors 🪙 Performance of the cryptocurrency industry: The white paper promises to be extravagant, but in reality, there is no product CEO/KOL releases false progress (cooperation, investment, technology) Marketing team brainwashes to promote 'the next Bitcoin' 📜 Corresponding to US stock laws: False prospectus/public documents=securities fraud Intentionally misleading investors may be held accountable by SEC/FTC CEOs of listed companies who release false information may be subject to criminal prosecution ⚖️ Punishment case: Nikola founder Trevor Milton sentenced to 4 years in prison for publishing false demonstration videos to mislead investors FTX advertising spokespersons Tom Brady, Shaquille O'Neal, and others are being held accountable for misleading retail investors in a class action lawsuit