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17 Jan 2026, 08:45
Democrats press SEC over dropped crypto lawsuits
The liberal lawmakers are accusing the US Securities and Exchange Commission (SEC) of abandoning crypto enforcement cases and blindly falling in line with the demands of crypto executives. Democratic Party representatives in the Financial Services Committee sent a letter to SEC Chairman Paul Atkins, asking the regulator if it knowingly retreated from enforcing laws on Coinbase, Binance, and Kraken. The policymakers, led by Rep Maxine Waters, said the commission has dismissed or closed at least a dozen crypto-related cases, including actions it had previously deemed legally sound. Several of those cases had already survived motions to dismiss and received favorable rulings from federal judges. “Given the industry’s history of investor-harm and the clear mandate of the securities laws to protect market participants, this turn raises troubling questions about the SEC’s priorities and effectiveness. Frankly, it puts both investors and the US economy at risk,” wrote the representatives. SEC left cases with clear probable cause, lawmakers argue In the letter, Democrats bashed the SEC for turning away from “meritorious” litigation even though the courts had already validated the commission’s claims. The lawmakers said this pattern has fueled perceptions that enforcement decisions are being influenced by outside interests and the Trump administration. Waters and her colleagues mentioned that the Commissions’ actions occurred while crypto executives and firms gave financial support to the US president and his allies. But according to the letter, securities laws require the Commission to protect market participants, regardless of their political biasness. They devoted significant attention to the SEC’s dismissal of its case against Binance after it sued the crypto exchange and its founder, Changpeng Zhao, in June 2023 for securities violations. The entity accused the company of deceptive practices, conflicts of interest, and running businesses in America without proper registration. Zhao pleaded guilty to criminal charges related to Bank Secrecy Act violations in Binance’s compliance failures and served a prison term, which he was pardoned for by US President Trump last year. In June 2024, US District Judge Amy Berman Jackson upheld most of the SEC’s allegations and allowed the case to proceed. The court found that the regulator had plausibly alleged fraud and unregistered securities activity in its token listings and services. Despite that ruling, the SEC dismissed the case with prejudice in May 2025 while “exercising discretion,” away from a judgment on the merits of its claims. Liberals said the dismissal was concerning, given the seriousness of the allegations and the court’s findings, in addition to the Trump administration’s pardon of Zhao, claiming the POTUS was making sure he and his companies “would avoid accountability.” Coinbase and Kraken cases were also dropped The documents also talked about the Commissions’ retreat from its actions against Coinbase and Kraken, where federal judges had also shunned the companies’ attempts to dismiss the lawsuits, much like the Binance case. The SEC charged Coinbase in June 2023 with operating as an unregistered exchange, broker, and clearing agency, alongside failing to register its staking services. In the following year, a federal judge sided with the Commission and ruled that certain tokens sold on Coinbase qualified as securities under federal law. Fast forward to February last year, the commission reached an agreement with the US-based crypto trading platform to dismiss the case, citing the pending work of its Crypto Task Force as justification for ending the litigation. Kraken was facing similar allegations in a lawsuit filed in 2023, but the Commission and Kraken jointly moved to dismiss the case last March. FSC members Rep. Waters, Sean Casten, and Brad Sherman surmised that the choice to drop cases against crypto firms came at a time when political donations were pouring into the US government, with at least $85 million to President Trump’s reelection campaign. The firms whose cases or investigations were dismissed included Coinbase, Kraken, Ripple, Robinhood, and Crypto.com, which all supposedly donated at least $1 million to Trump’s inauguration each. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .
17 Jan 2026, 08:43
Bitcoin Faces a Rocky Recovery: Is It Just a Head Fake?
Bitcoin's rise seems a "false breakout" amid technical concerns. Shiba Inu and XRP face their own technical challenges without major resistance tests. Continue Reading: Bitcoin Faces a Rocky Recovery: Is It Just a Head Fake? The post Bitcoin Faces a Rocky Recovery: Is It Just a Head Fake? appeared first on COINTURK NEWS .
17 Jan 2026, 08:40
COVID March 2020-Style Event Potentially Brewing for Bitcoin: Luke Gromen
Macro guru Luke Gromen says a potential COVID March 2020-style market capitulation could rock bitcoin and financial markets in the near future before any sort of liquidity-driven rally arrives. Sudden AI Deflation Could Cause COVID-Style Market Crash, Investor Luke Gromen Argues Speaking in an update to investors on his YouTube channel, Luke Gromen, founder of
17 Jan 2026, 08:40
Elon Musk OpenAI Lawsuit: The Staggering $134 Billion Damages Demand That’s Not About Money
BitcoinWorld Elon Musk OpenAI Lawsuit: The Staggering $134 Billion Damages Demand That’s Not About Money In a legal filing that has sent shockwaves through the technology and financial worlds, Elon Musk is seeking damages ranging from $79 billion to a staggering $134 billion from OpenAI and Microsoft. This demand, first reported by Bloomberg on March 15, 2025, emerges not from financial necessity for the world’s wealthiest individual but from a profound dispute over the founding principles of artificial intelligence. The case, set for trial in late April in Oakland, California, represents one of the most consequential legal battles in tech history, pitting a visionary founder against the AI giant he helped create. Elon Musk OpenAI lawsuit: Unpacking the $134 billion damages calculus Financial economist C. Paul Wazzan, an expert witness with extensive experience in complex commercial litigation, prepared the damages analysis for Musk’s legal team. Wazzan’s calculation rests on a foundational premise: Musk should receive compensation equivalent to what an early investor would typically earn when a startup achieves extraordinary success. Specifically, Wazzan determined Musk deserves a substantial portion of OpenAI’s current estimated $500 billion valuation based on his $38 million seed donation in 2015. This methodology yields a potential 3,500-fold return on Musk’s initial investment. Furthermore, Wazzan’s analysis incorporates more than just financial contributions. It accounts for Musk’s technical expertise and business guidance during OpenAI’s formative years. The economist calculated wrongful gains of $65.5 billion to $109.4 billion for OpenAI itself and an additional $13.3 billion to $25.1 billion for Microsoft, its major partner. Musk’s attorneys argue this compensation framework reflects standard startup economics. Early investors who provide capital and strategic direction during a company’s vulnerable initial phase typically expect outsized returns if that company becomes a market leader. Consequently, they contend Musk’s requested damages represent the financial value of his early, risk-taking support. The contextual backdrop of unprecedented wealth The sheer magnitude of Musk’s damages demand becomes even more remarkable when viewed against his current financial standing. According to the latest Forbes billionaires list, Musk’s personal fortune now approaches $700 billion. This figure exceeds the wealth of Google co-founder Larry Page, the world’s second-richest person, by approximately $500 billion. In November 2024, Tesla shareholders separately approved a historic $1 trillion compensation package for Musk. This corporate pay deal remains the largest in recorded business history. Against this backdrop of almost incomprehensible wealth, a $134 billion payout from OpenAI would represent a significant sum by any ordinary measure. However, it would constitute a relatively modest percentage increase to Musk’s existing net worth. This financial context fuels OpenAI’s characterization of the lawsuit as strategic rather than financial. Company representatives have described Musk’s legal actions as part of an “ongoing pattern of harassment.” They suggest the case serves purposes beyond monetary recovery, potentially involving competitive positioning or philosophical disagreement about AI’s future direction. Expert analysis: Legal precedents and valuation challenges Legal experts following the case note several unprecedented aspects. First, damages calculations in breach-of-contract or fraud cases typically focus on actual financial losses, not hypothetical investment returns. Second, valuing a private company like OpenAI at $500 billion involves substantial estimation, as the firm hasn’t conducted a recent public funding round. Third, attributing specific valuation increases to individual founders presents complex causal challenges. Technology companies grow through collective efforts of teams, market conditions, and technological breakthroughs. Isolating one person’s contribution, especially from the earliest days, requires sophisticated economic modeling that courts may scrutinize heavily. Finally, the case intersects with evolving legal standards for nonprofit organizations that transition toward commercial models. OpenAI began as a nonprofit research lab dedicated to developing safe artificial intelligence for humanity’s benefit. Its subsequent creation of a for-profit subsidiary and partnership with Microsoft forms the core of Musk’s allegations about mission abandonment. The core allegation: Mission drift and breached trust Musk’s lawsuit fundamentally alleges that OpenAI defrauded him by departing from its original nonprofit mission. When Musk co-founded the organization in 2015 alongside Sam Altman and others, the stated goal was to develop artificial intelligence safely and distribute its benefits widely. The organization’s charter explicitly prioritized humanity’s welfare over shareholder returns. The complaint argues that OpenAI’s 2019 restructuring and subsequent Microsoft partnership violated these founding principles. Specifically, Musk contends the organization effectively became a closed-source, for-profit entity primarily serving Microsoft’s commercial interests. This alleged shift, according to the lawsuit, constitutes a fundamental breach of the trust and agreement under which Musk provided his early support. OpenAI has consistently defended its evolution. Company statements emphasize that the partnership with Microsoft provided essential resources for developing advanced AI systems like GPT-4. They maintain that their work continues to prioritize safety and broad benefit, even within a structure that includes commercial elements. Comparative perspective: Tech industry founder disputes The Musk-OpenAI conflict follows other notable disputes between founders and the companies they helped establish. For instance, Facebook’s early legal battles with the Winklevoss twins involved allegations of stolen ideas rather than mission drift. Similarly, Uber’s conflicts with former CEO Travis Kalanick centered on governance and culture, not fundamental purpose. What distinguishes the current case is its focus on ethical and structural transformation. The lawsuit alleges not merely contractual breach but betrayal of a philosophical commitment to AI safety and accessibility. This dimension introduces novel questions about how courts evaluate promises made during a technology organization’s idealistic beginnings. Furthermore, the involvement of Microsoft adds another layer of complexity. As a strategic partner providing substantial computing resources and investment, Microsoft’s role in OpenAI’s direction becomes relevant to the damages calculation. The lawsuit suggests Microsoft benefited improperly from OpenAI’s alleged mission shift, hence the inclusion of Microsoft in the damages claim. Broader implications for AI governance and ethics Beyond the immediate legal and financial stakes, the case raises profound questions about AI development governance. If successful, Musk’s lawsuit could establish precedent regarding the obligations of AI organizations to their founding principles. It might influence how courts view transitions from nonprofit to commercial structures in the technology sector. The trial also highlights ongoing debates about concentrated power in artificial intelligence. With a handful of companies controlling advanced AI capabilities, questions about accountability, transparency, and equitable access grow increasingly urgent. Musk’s allegations touch directly on whether commercial incentives inevitably undermine commitments to safety and broad benefit. Additionally, the case demonstrates how personal relationships among tech leaders can shape industry trajectories. Musk, Altman, and other OpenAI founders initially collaborated based on shared concerns about AI risks. Their subsequent divergence illustrates how strategic disagreements among influential figures can escalate into legal confrontations with industry-wide consequences. Conclusion The Elon Musk OpenAI lawsuit represents far more than a financial dispute between billionaires. At its core, the case grapples with fundamental questions about innovation, ethics, and accountability in artificial intelligence development. The staggering $134 billion damages figure underscores the immense value created in the AI sector, while the contrast with Musk’s $700 billion fortune reveals the suit’s symbolic and strategic dimensions. As the trial approaches in Oakland, California, the technology world watches closely. The outcome could influence how AI companies structure their organizations, how they honor founding commitments, and how courts evaluate damages in cases involving rapidly evolving technologies. Regardless of the verdict, this legal battle has already illuminated the tensions between idealism and commercial reality that define contemporary artificial intelligence development. FAQs Q1: Why is Elon Musk suing OpenAI for $134 billion? Elon Musk alleges that OpenAI defrauded him by abandoning its original nonprofit mission to develop safe AI for humanity’s benefit. His lawsuit claims the organization’s shift to a more commercial model, including its partnership with Microsoft, violated founding agreements. The $134 billion damages figure represents what an expert witness calculates as Musk’s rightful share of OpenAI’s current value based on his early contributions. Q2: How does Musk’s $700 billion fortune affect the lawsuit? Musk’s extraordinary wealth makes the financial damages less significant to his personal net worth, reinforcing OpenAI’s argument that the lawsuit constitutes “harassment” rather than legitimate financial grievance. The contrast highlights that the case primarily concerns AI ethics, governance, and alleged breach of trust rather than monetary need. Q3: What is OpenAI’s response to the allegations? OpenAI has characterized Musk’s legal actions as part of an “ongoing pattern of harassment.” The company defends its evolution, arguing that partnership with Microsoft provided necessary resources for developing advanced AI safely. OpenAI maintains it continues to prioritize beneficial AI development despite structural changes. Q4: Who is C. Paul Wazzan and how did he calculate the damages? C. Paul Wazzan is a financial economist specializing in valuation and damages in complex commercial litigation. He calculated Musk’s potential damages by estimating what return an early investor would receive from OpenAI’s current $500 billion valuation, considering both Musk’s $38 million seed funding and his non-financial contributions during OpenAI’s founding period. Q5: What broader implications does this case have for AI development? The lawsuit raises fundamental questions about AI governance, ethical commitments, and how organizations transition from nonprofit ideals to commercial realities. The outcome could influence legal standards for founder agreements, AI safety accountability, and how courts evaluate damages in rapidly evolving technology sectors. This post Elon Musk OpenAI Lawsuit: The Staggering $134 Billion Damages Demand That’s Not About Money first appeared on BitcoinWorld .
17 Jan 2026, 08:24
Steak ’n Shake makes $10 million Bitcoin purchase for reserves
The American fast-food chain has made a $10 million Bitcoin purchase for its Strategic Reserve to deepen the integration of the cryptocurrency into its business. Steak ’n Shake made the announcement on Saturday through the company’s official X account, eight months after it began accepting Bitcoin payments in its US restaurants. The rollout began in May after weeks of teasers, and the company says it has seen improvements in same-store sales thanks to the Bitcoin initiative. “Eight months ago today, Steak n Shake launched its burger-to-Bitcoin transformation when we started accepting bitcoin payments. Our same-store sales have risen dramatically ever since.” The post added that all Bitcoin payments are funneled directly into the Strategic Bitcoin Reserve, with the latest purchase increasing exposure by “$10,000,000 in notional value,” the fast food company wrote . Steak ‘n Shake boasts of being the first restaurant with a Bitcoin reserve Steak ’n Shake is claiming a first-mover position among restaurant chains, saying it “made history as the first major restaurant to establish a Strategic Bitcoin Reserve.” The company did not disclose the timing or execution details of the $10 million Bitcoin acquisition, nor whether it was purchased in a single transaction or accumulated over time. Our newly remodeled Steak n Shake leans hard into nostalgia. Funded by beef tallow and bitcoin 🇺🇸 pic.twitter.com/2Z0gfRjMgp — Steak 'n Shake (@SteaknShake) August 29, 2025 At the Bitcoin 2025 conference held that month, Chief Operations Officer Dan Edwards told attendees that the bitcoin payments had delivered immediate financial benefits for the Steakburgers maker. He mentioned that Bitcoin payments were cutting processing costs by 50% compared to fiat payment methods, while increasing transaction speeds at the register. “Bitcoin is a win for the customer, it’s a win for us as the merchant, and it’s a win for you in the Bitcoin community,” Edwards said during his remarks at the event. Steak ’n Shake confirmed all Bitcoin payments received will be retained in their digital currency form instead of being converted to dollars, a policy that directly feeds the Strategic Bitcoin Reserve. The firm reported an increase of about 10.7% in sales during the second quarter, followed by a 15% increase in the third quarter. Per Dan Edwards, its third-quarter performance exceeded that of competitors in the fast-food category, including McDonald’s, Burger King, Taco Bell, and Starbucks. Twitter co-founder Jack Dorsey lauded the restaurant by sharing images in June showing he had spent $100 in Bitcoin for meals. Steak ’n Shake has also woven Bitcoin into its menu and promotions through the Bitcoin Burger, a menu item featuring a bun stamped with the Bitcoin logo, alongside a Bitcoin Meal program, which takes funds from purchases to charitable and customer rewards. Last October, Steak ’n Shake said it would donate 210 satoshis from every Bitcoin Meal sold to Open Sats Initiative, Inc. over the next 12 months. However, the company has yet to provide an estimated total donation amount. Those who purchase and register a Bitcoin Steakburger or Bitcoin Meal can receive $5 in Bitcoin through the Fold app. The process requires customers to upload their receipt to a dedicated website, receive a redemption code, and activate an account within the Fold app to claim the reward. In November last year, the fast food chain took its operations into El Salvador after participating in the country’s Bitcoin Histórico event. El Salvador was the first country to adopt Bitcoin as legal tender, a decision that executives purportedly resonated with. Join a premium crypto trading community free for 30 days - normally $100/mo.
17 Jan 2026, 08:24
Evernorth Sets XRP on a Direct Path to Wall Street
Evernorth Targets Q1 2026 Nasdaq IPO to Make XRP Exposure as Easy as Buying a Stock Crypto has long been out of reach for institutions, blocked by custody, compliance, and regulatory hurdles. Evernorth aims to change that by bringing XRP to Wall Street as a familiar, publicly traded asset. Evernorth aims for a Q1 2026 Nasdaq IPO under ticker XRPN, offering investors direct XRP exposure without the hassle of wallets or compliance. Unlike typical crypto firms, it will actively manage an XRP treasury , buying from the open market and deploying assets into regulated yield strategies. During a recent interview, Evernorth CEO Asheesh Birla acknowledged that today's crypto landscape is unlike past cycles: institutions now benefit from clearer regulations, supportive policies, and growing investor demand for digital assets within familiar market framework. Birla said, “It was a record-breaking few weeks with XRP ETFs. That’s great news. That shows that there is a demand from the public market to gain exposure to XRP, a digital asset that is at the forefront of the financial revolution on blockchain.” Well, Evernorth leverages existing momentum by offering XRP exposure through a Nasdaq-listed public-equity structure, sidestepping the compliance and custody hurdles of direct crypto ownership. Investors simply buy Evernorth shares, while the company manages XRP holdings, treasury strategy, and DeFi participation behind the scenes. This model mirrors how institutions access commodities or digital assets via public vehicles, creating a compliant bridge for pensions, asset managers, and funds restricted from holding crypto directly. Beyond passive holdings, Evernorth plans to actively manage its XRP treasury, deploying assets into vetted DeFi strategies to generate yield and boost shareholder value. If executed successfully, the company could serve as both an XRP proxy and a digital asset income engine. With a potential Q1 2026 IPO, Evernorth could redefine XRP’s institutional story, offering regulated, stock-like exposure to the token and making it as accessible as buying shares on Wall Street. Conclusion Evernorth’s Nasdaq IPO could transform institutional crypto access. By offering XRP through a regulated, publicly traded vehicle, it eliminates custody and compliance hurdles, providing investors a secure, familiar gateway to the booming digital asset market.
