SEC has sued pump and dumper Ian Balina. Thats fine, but in the lawsuit SEC claim “Since nodes were clustered more in USA, the transaction happened in the USA”. This is absurd and another attempt to seize jurisdiction.

SEC has just sued well known pump and dumper Ian Balina, who has had it coming for long. This guys modus operandi was to sign up shitty ICO scams, promote them while dumping the tokens.

The lawsuit is totally fine, and pump and dumpers who exploit their own followers and dump on them should get the stick end of the law. No questions.

Whats absurd is the SEC’s arguments in the lawsuit, where the agency is looking to take over jurisdiction of transactions that may have occurred outside the country.

SEC: Since the network of nodes were clustered more densely in the United States than in any other country, those transactions took place in the United States

This is potentially another alarming overreach by the SEC where they are claiming jurisdiction over transactions that happen on any blockchain from anywhere in the world, if the majority of validators are in the USA.

People have already started making fun of this.

He communicated in the English language, which is most densely spoken in the United States. As a result, this crime took place in the United States

Balina’s favourite food is a hamburger, which is the favourite takeaway of choice in the United States. As a result this crime took place in the United States

If this is allowed to stand, it could have wide ramifications on all transactions made anywhere.