Gambling on Sports Betting: Maverick and the Future of Gaming in Washington 

By Sofia Ellington

In 2018, a huge decision by The United States Supreme Court changed the landscape of legalized gambling. In Murphy v. NCAA, the Court functionally legalized sports betting by striking down a federal law that had categorically prohibited the practice. The decision left the door open for states to decide how to handle regulation. Sports betting is a multi-billion dollar industry, and many states have moved to legalize the practice to get a piece of the growing pie. 

Washington State took the opportunity to legalize sports betting by entering into tribal-state compacts with 29 federally recognized Tribes under the Indian Gaming Regulatory Act (IGRA). Under the compact, sports betting is legal, but only if done on tribal land. Regulating sports betting through the IGRA framework is in line with how the State has regulated class III gaming since the late 1980s. However, in January 2022, Maverick Gaming, a non-Tribal affiliated gaming and casino enterprise, filed suit to challenge the compacts. The outcome of the case, which is currently pending in the Ninth Circuit, could jeopardize the future of sports betting in the state and create chaos in the gaming regulatory framework. 

A Short Summary of Tribal Gaming’s Long History

Before diving into the controversy around sport betting, it is essential to understand the tension between the States, Federal Government, and Tribes in regulating the activity. Gaming as we know it today, started with Tribal bingo operations in the 1970’s. Tribes are critical to regulating gaming nationwide and their operations are estimated to bring in around $6.6 billion a year to the Washington State economy alone, funding schools, roads, and creating thousands of jobs. 

As sovereigns, Tribes have inherent authority to authorize gaming on their lands absent interference from the State. However, Congress has authorized several encroachments on that sovereignty, such as Public Law 280. P.L. 280 conferred criminal and civil jurisdiction over certain activities in Indian Country to the state, where before they had no inherent authority. In California v. Cabazon Band of Mission Indians, California attempted to enforce criminal charges on Tribal bingo operations under their P.L. 280 authority, citing concern over the connection between gaming and organized crime. The U.S. Supreme Court rebuked this effort to infringe on Tribal sovereignty, holding that the state was not able to prohibit gaming in Indian Country if that activity was otherwise legal in the state. 

In 1988, the year after Cabazon was decided, Congress once again imported the State’s interest into regulation of Indian country by passing IGRA. Under IGRA, Tribes could run Class I and Class II gaming without state interference. They could only operate higher stakes games under Class III, such as roulette, craps, slot machines, and other casino-style games, by entering into a compact with the state. Sports betting is a Class III game, therefore subject to state-tribal compacts. Each compact must be reviewed and approved by the United States Secretary of the Interior under IGRA. Washington State, along with the majority of states, has chosen to regulate Class III gaming through these compacts. Since IGRA was passed, the law has been a mutually beneficial source of economic development both in and out of Indian Country. 

Maverick Gaming LLC v. United States 

In January 2022, Maverick Gaming filed suit against the United States for approving Washington’s sport betting compacts with Tribes in violation of the Administrative Procedures Act (APA). Maverick alleges sweeping claims, including that the compacts violate IGRA, Equal Protection, and the Tenth Amendment by allowing a “discriminatory tribal gaming monopoly.” They are also pursuing the nuclear option, alleging that IGRA itself is unlawful and must be struck down. 

While the Ninth Circuit is expected to publish a decision that rests on the threshold issue of the Tribe’s immunity from suit instead of on the merits, Maverick would still be unlikely to succeed on the merits of their equal protection claim. Generally, the government is allowed to treat individuals differently as long as the reasons for the distinction are rationally related to a legitimate government interest. This is a fairly easy standard to meet as courts are generally highly deferential to the legislature under rational basis scrutiny. However, higher levels of scrutiny are used when the government is either impermissibly interfering with the exercise of a fundamental right, or disadvantageous to a suspect class such as race, or sex. Maverick is asking the court to review the gaming compacts under strict scrutiny because they argue that the compacts are making a racially based classification, but that is a fundamental misunderstanding of the legal status of tribes. 

As Washington State has pointed out in their reply brief, Tribal status is considered a political, not a racial, classification. This means that if the merits of the equal protection claim were analyzed, it would be under rational basis, not strict scrutiny, and the classification would only need to be reasonable. Washington has an interest in keeping gambling highly regulated and thus less prone to organized crime. That interest is achieved through allowing Tribes to run sports betting operations because they have a long history of safely regulating other Class III games. Therefore, treating Tribal gaming operations differently than non-tribal operations passes rational basis scrutiny and is not a violation of equal protection. 

The Future of Sports Betting 

While non-tribal gaming enterprises and sports teams may hope to see the court invalidate IGRA and the state-tribal compacts in order to get a piece of the pie, a decision that touches the merits of IGRA could have unintended consequences and throw the entire industry into chaos. States still have the option of criminalizing ALL gambling, regardless of the entity engaged in the activity. In fact, if the court invalidates the Washington State compacts, Maverick would not get the relief they desire because sports gambling would remain unlawful for non-Tribal entities, as well as become unlawful for Tribes. 

Although Maverick is unlikely to prevail in their challenge to IGRA and the Washington State-Tribal compacts, the fervor around expanding sports betting beyond tribal operations is growing nationwide. Challenges to IGRA compacts are concerning because they could potentially affect the ability of Tribes to expand their economic development and tread on their authority to run gaming activities on their land if they are struck down. Currently, another sports betting case is pending at the U.S. Supreme Court on a petition of certiorari. The U.S. Supreme Court has not demonstrated, with the surprising exception of Justice Gorsuch, a deep understanding of the role of Tribal sovereignty in our constitutional structure. Any case that reaches them on questions of American Indian Law are in danger of being misconstrued in a way that backslides to limit Tribal sovereignty. Sports betting is no exception. 

Pretty Legal Liars: Polygraph Pre-Employment Screening and Admissibility

By: Sam Kuper 

When (fingers crossed) I graduate from law school next spring, my six-figure law school investment will come up against the bar—a test that almost every attorney in Washington State has taken since the Multistate Bar Examination (MBE) was introduced in 1972. While the content of the test itself has changed forms across time and jurisdictions—the exam was only administered orally for over a hundred years, and the Washington Supreme Court just announced huge changes for 2026—one requirement for bar admission has stayed consistent: “Every person . . . must be of good moral character and possess the requisite fitness to practice law.” The character and fitness test (“C&F”) requires disclosure of an incredible amount of personal information, from listing the addresses of every place one has ever lived, to that one speeding ticket received in Yakima six years ago, there are few stones left unturned. Many states even require the disclosure of expunged and sealed convictions. According to the American Bar Association, the C&F requirement “In theory . . . protects the public from individuals whose past conduct shows they will not be scrupulous lawyers.” Yet, applicants are rarely refused admission based on character and fitness issues. Once admitted to the bar, lawyers then must abide by the Washington State Rules of Professional Conduct or risk administrative investigation and sanctions. These rules mostly do not apply to law students, save for ABA Rule 8.1“An applicant for admission to the bar . . . shall not: (a) knowingly make a false statement of material fact.” But if bar examiners are concerned with complete disclosure on bar applications, why do they not require a polygraph test? The answer lies in part on its controversial scientific backing, along with the structure of the legal profession itself. 

Polygraphs as “Junk Science”

Invented in 1921 by a Berkley police officer, modern polygraphs measure changes in physiological factors such as heart rate, blood pressure, respiration, perspiration, and skin conductivity to, in theory, detect when subject is lying versus telling the truth. According to a 2006 Department of Justice report, polygraphs have been used for over seven decades by federal agencies, but were not widespread or centralized until the 1970s. Their most common uses include aiding criminal and administrative investigations, foreign counterintelligence, and counterterrorism investigations. While Wikipedia refers to polygraphs as “junk science” in the first sentence of its entry, the American Polygraph Association—a professional organization that establishes training, standards, ethical practices, research, and instrumentation for polygraph examiners—claims “accuracy rates exceeding 90 percent.” Wikipedia is hardly the polygraph’s only naysayer—a 2003 National Academy of Sciences (NAS) report concluded that, at least in the context of pre-employment screening, “its accuracy in distinguishing actual or potential security violators from innocent test takers is insufficient to justify reliance on its use in employee security screening in federal agencies.” This conclusion prompted the Department of Energy to promulgate a regulation in 2006 that eliminated screening tests without specific cause. A 2019 report by a University of Minnesota psychology professor concluded that, even after two decades, NAS skepticism surrounding the polygraph’s efficacy stands. 

Current Polygraph Legislation

Despite the controversy involving its scientific efficacy, the polygraph remains in considerable use by both federal and state agencies. In 1988, Congress enacted the Employee Polygraph Protection Act (EPPA) which prohibits most private employers from using the polygraph either in pre-employment screening or during the course of employment. However, it still exempted federal agencies like the FBI and NSA, along with other private employers who have “significant impact” on the “national security of the United States.” Many states have similar legislation. In Washington State it is unlawful to require lie detector tests for employees or prospective employees—with exemptions for employment involving law enforcement, controlled substances, and national security. In fact, a polygraph exam is a pre-employment requirement for people seeking employment at a law enforcement agency in Washington State, such as any police department officer or corrections officer. Only five states—Massachusetts, Michigan, Minnesota, New Jersey, and Oregon—have complete prohibitions on polygraph usage by employers, public and private, with some limited exceptions based on consent. To provide some context as to the popularity of the polygraph by states, a 1994 survey of the 699 largest police agencies in the United States determined 62% had an active polygraph screening program. The survey also determined that approximately 25% of the people tested by such programs were disqualified from police employment based on information gleaned from the polygraph. While this survey was conducted thirty years ago, there is little reason to believe its popularity, particularly for pre employment screening, has waned among law enforcement agencies. For example, in 2019, the DEA issued a memorandum stating it will no longer hire Special Agent or Intelligence Research Specialist applicants who fail a polygraph examination. In 2020, the Washington State Legislature proposed to remove the polygraph examination as a requirement for law enforcement—but it was quickly reinstituted in an amendment.

Polygraph Litigation and Admissibility

Considering its dubious scientific underpinnings, it should be no surprise that the polygraph and its results have been the subject of plenty of litigation. Neither the Federal Rules of Evidence (FRE) nor the US Code have a specific provision concerning the admissibility of the polygraph examination results. However, admissibility of scientific evidence is generally governed by FRE 702, along with precedent in Frye v. United States (D.C. Cir. 1923) and Daubert v. Merrell Dow Pharmaceuticals, Inc. (1993). These tests involve the judge deciding admissibility based on either “general acceptance” in the scientific community (Frye) or a non-exhaustive list of factors (Daubert) which includes “general acceptance.” While the Supreme Court has not given a blanket prohibition to polygraphs on this basis, in United States v. Scheffer (1998), the Court ruled that Military Rule of Evidence 707—which prohibits the use of polygraph results in court-martial proceedings—did not violate a defendant’s Sixth Amendment right to present a fair defense. There, the defendant wanted to introduce his polygraph results into evidence that he did not use drugs while enlisted in the military. Without specific guidance, federal and state courts are split on the issue, with some having a per se exclusion, and others allowing it if, for example, both sides agree to its inclusion (this is the Washington State rule). For example, in U.S. v. Posado (1995), the Fifth Circuit held that its per se rule against the admission of polygraph evidence in federal court was no longer viable in light of the new Daubert standard.

Will Bar Associations Require Polygraphs?

While there may be legal grounds for the institution of a polygraph on the C&F portion of the bar, we will likely never see this requirement be implemented. Bar associations generally operate under the delegated authority of the state’s highest court. They regulate bar admission, licensing, and discipline for attorneys, but are not necessarily an employer and thus perhaps not subject to the prohibition. This makes the bar association unique from law enforcement agencies, who are both employers and licensors. However, by precluding prospective attorneys from the bar, it effectively eliminates their ability to work for legal employers (this makes for interesting statutory interpretation). Further, considering the legal profession is more or less self-regulated, there would likely be outcry by attorneys if such a “junk science” was required for bar admission.

Momofuku’s Chili Crunch Oil Catastrophe

By: Stella B. Haynes Kiehn 

The famous culinary brand Momofuku’s recent attempt to trademark “Chili Crunch” oil has ignited a sizzling debate between federal trademark law and a beloved cultural staple, ultimately leading to a public apology by the brand’s founder.

Momofuku, a food empire owned by celebrity chef David Chang (“Chang”), comprises four restaurants in New York, Las Vegas, and Los Angeles. Chang founded Momofuku in 2004 with the opening of Momofuku Noodle Bar in New York City. The New York Times credits Momofuku with “the rise of contemporary Asian-American cuisine” and Bon Appétit magazine named Momofuku the “most important restaurant in America.”  Momofuku also sells “restaurant-grade products for home cooks” and bottled versions of their famous sauces – the start of the currently contested trademark issue.

Early this year, Momofuku launched a pre-packaged version of their infamous chili sauce, calling it “Chili Crunch.” The sauce is described as “a spicy-crunchy chili oil inspired by Chinese chili crisp and Mexican salsa seca and salsa macha.” Consumers can purchase the Chili Crunch through Momofuku’s website for $13 per 5.5oz jar. On March 29, 2024, shortly after the product was introduced, Chang applied for federal trademark registration of the term “Chili Crunch.” The mark’s application sought to cover “condiments; sauces; food flavorings being non-essential oils; chili oil for use as a seasoning or condiment; chili oils being condiments.”

The names of foods can be trademarked in certain situations. A trademark is a word, phrase, symbol, or design that identifies and distinguishes one party’s goods from those of another party. In other words, a trademark sets one product apart from its competitors. Therefore, in the culinary world, a food trademark is a name, logo, or phrase used to brand and distinguish a food product from similar food products made by other companies. Momofuku likely would have applied sooner for federal trademark protection but was limited because federal registration requires the mark to have been used (or have a bona fide intention to use) in commerce.

Currently, the mark is merely at the application stage, and no decision has been issued by the United States Patent and Trademark Office (USPTO) as to the validity of the mark. Despite this, Chang’s team began to send out cease and desist letters to other businesses using the term “chili crunch” to describe their chili oil sauces. One such recipient, Michelle Tew (“Tew”), founder of the Malaysian food brand Homiah, told The Guardian that the letter states “that Momofuku is the ‘owner of all trademark rights’ for ‘chile crunch’ and ‘chili crunch’ (two different spellings) and that her product, Homiah Sambal Chili Crunch, is a trademark infringement. Tew said her chili crunch is based on her Malaysian family’s recipe, where she grew up.” Buzzfeed published a similar story about another cease and desist letter recipient; “MìLà, a company specializing in frozen soup dumplings and founded by husband-and-wife team Caleb Wang and Jen Liao, posted a similar statement on Instagram after receiving their own cease-and-desist from Momofuku, stating that there’s ‘’” In both letters, Momofuku informed recipients that they had 90 days to cease use of the “Chili Crunch” mark prior to legal action.

The registration of names for food products is nothing new. However, at issue here is both the general community’s and the AAPI (Asian American Pacific Islander) community’s argument that Chang’s excessive policing of “Chili Crunch” essentially turned him into a “trademark bully.” Notably, businesses that were the subject of the cease and desist letters were quick to take to social media and point out that they were all recipients were members of the AAPI restaurant community. Additionally, many recipients also noted that the term “chili crunch” was a “generic cultural term.”

On April 15, likely due to pushback from the culinary AAPI community, Chang announced that he would not enforce the trademark for “Chili Crunch.” While Momofuku still owns the rights to the term “Chile Crunch” (spelled with an “e”), Chang stated that Momofuku will no longer enforce that mark (Momofuku acquired the trademark for the name “chile crunch” from Chile Colonial in 2023). Momofuku elaborates that their decision to no longer enforce the mark could open the door for another company to claim the mark in the future.

Ultimately in a statement to The Eater a Momofuku spokesperson stated; “this situation has created a painful divide between Momofuku, the AAPI community we care deeply about, and other companies sharing grocery store shelves. But the truth is, we all want the same things: to grow, to succeed, and to make America’s pantries and grocery stores a more diverse place.” Ultimately, Momofuku’s case has highlighted that while companies may pursue trademark protection to safeguard their brand identity and market position, companies must also navigate the delicate balance of respecting cultural heritage and community sentiments.

Are Pig Kidneys Patentable? The Legal Landscape Around The First Genetically Engineered Pig Kidney Transplant

By: Bethany Butler

Last month, doctors at Massachusetts General Hospital successfully transplanted a genetically engineered pig kidney into a 64-year-old patient. Scientists removed porcine genes and added human genes via the CRISPR-Cas 9 gene editing technology. In total, sixty-nine of the pig’s genes were modified prior to transplantation. The surgery took approximately four hours, with the kidney functioning almost immediately after transplantation. eGenesis, a biotechnology company focused on genetically engineered, human-compatible organs, invented this procedure and the resulting genetically engineered kidney. This novel procedure may help to alleviate critical organ shortages in the US, with more than 100,000 Americans currently on the transplant wait list. Scientists hope this procedure will pave the way to more research and clinical applications that may help to alleviate the organ transplant shortage. 

The Legal Landscape

Novel research and clinical applications surrounding xenotransplantation, the transplanting of animal cells/organs to humans, have the potential to revolutionize access to life saving therapies. However, the legal landscape surrounding this science is far from settled. While areas of xenotransplantation of pig organs into humans have been granted patents, the procedure itself has not been approved by the FDA. These procedures, like the one used for the modified pig kidney transplant, are only currently able to move forward using “compassionate use” exceptions granted by the FDA. These exceptions apply to patients with life-threatening conditions where there is no alternative for treatment. 

Another important aspect of the law surrounding xenotransplantation is informed consent. Informed consent is a protection provided by the Health and Human Services regulation, 45 CFR Part 46. The regulation requires that important information, including any risks, be disclosed to the patient before he or she decides to participate in any trials or undergo treatment. Xenotransplantation procedures carry unique risks, such as zoonotic infections and the need for lifelong monitoring and intervention due to the nature of the procedure. Patients must be informed of and consent to all of the unique risks involved with these types of treatments. 

Xenotransplantation and Patent Law

Biological patents are generally utility patents, which allow the patent holder to exclude others from making, selling, using, or importing their biological invention for a specified period of time, currently twenty years in the United States. Companies like eGenesis can own biological patents for genetically modified animal organs and associated methods for xenotransplantation. Currently, these types of patents are protected by law, provided the claimed subject matter is not naturally occuring. US patent law has exceptions to patentable subject matter that are laws of nature, natural phenomena, and products of nature. The Supreme Court found, in the landmark case Association for Molecular Pathology v. Myriad Genetics, Inc., that “a naturally occurring DNA segment is a product of nature and not patent eligible merely because it has been isolated.” The case concerned whether the BRCA1 and BRCA2 genes can be patent eligible when isolated. These genes are responsible for tumor suppression and mutations in these genes commonly lead to the development of breast cancer. If the Supreme Court had ruled that Myriad Genetics could patent these gene sequences, that ruling would have effectively prevented any other company from offering diagnostic testing for these genes, thereby monopolizing the breast cancer diagnostic market. The Supreme Court’s decision relied on the statutory provisions in 35 U.S.C. § 101, which addresses patentable subject matter. The court has found exceptions to what is patentable, including laws of nature and natural phenomena. In terms of biological material, if the invention or process is something that naturally occurs, then it is ineligible for patent protection. 

Some eligible biological patents granted in the past include the PCR process and transgenic animals – an animal whose genome has been edited to contain genes from another species. The first transgenic mammal patented was the Harvard Oncomouse, developed by Harvard in the 1980s. This mouse was genetically modified to be more likely to develop cancerous tumors, making it a valuable cancer research subject, and patent eligible. 

Innovation for novel developments in the transplant space, like the genetically modified pig kidney, is encouraged by the patent protection of inventions utilized for xenotransplantation technology. eGenesis has received a number of patents related to the xenotransplantation process, including utility patents for the methods to generate genetically modified animals/cells and for genetically modified animals/tissue/cells used for xenotransplantation.  

The narrowing of biological patents to non-naturally occurring subject matter allows for companies like eGenesis to obtain patents for biological innovations while still protecting research and development efforts, particularly diagnostic testing of carrier genes. Patent eligibility of biological and natural phenomena is currently being addressed in Congress. On June 22, 2023, the US Senate released the Patent Eligibility Reform Act of 2023 (“PERA”). If passed, this act would clarify patent-eligible subject matter and potentially allow for the patenting of solely isolated genes, possibly overriding the Myriad decision. 

While patent eligibility of biological subject matter has the potential to allow for greater innovations, like modified organ transplants, expanding patent-eligible material may lead to negative downstream impacts. Granting monopolies can lead to access issues for diagnostic testing and increasing costs to use isolated genes in research and development efforts. Granting patent protection to biological patents is important and the right balance is necessary to further innovation and facilitate problem solving medical solutions. While patent law is complicated and evolving, novel advancements like the pig kidney transplant are largely driven by innovation incentives and a greater need for medical solutions to the transplant wait list issue.

Not So Golden Handcuffs

By: Bella Hood

Wunderkind Sam Bankman-Fried, otherwise known as “SBF”, was sentenced to 25 years in prison and ordered to pay $11 billion on March 28, 2024. A federal court convicted SBF in November on seven counts of fraud, conspiracy, money laundering, and conspiracy to commit commodities and securities fraud.

The former 32-year-old billionaire is the son of two Stanford law professors. After graduating from the Massachusetts Institute of Technology, he worked at Jane Street Capital, a quantitative trading firm. FTX, an abbreviation of “Futures Exchange” was founded by SBF in 2018 as a centralized cryptocurrency exchange supporting futures for all major cryptocurrencies. At his height, SBF’s net worth was said to be around $26 billion. For reference, Beyonce’s is roughly $800 million. SBF also founded his own hedge fund, Alameda Research, which would go on to be a key player in his scheme to defraud investors.

In November 2022, FTX filed for Chapter 11 bankruptcy (handled by Sullivan & Cromwell) which requires the reorganization of the company’s assets and liabilities but does not kill the company outright. Even so, FTX is dead for all intents and purposes and announced in January it would not reopen its exchange and would liquidate all assets.

A New York jury found SBF guilty of all seven criminal counts, including wire fraud and conspiracy to commit wire fraud against FTX customers. Against Alameda Research lenders the court found SBF guilty of conspiracy to commit securities fraud, conspiracy to commit commodities fraud against FTX investors, and conspiracy to commit money laundering.

Congress enacted the wire fraud statute in 1952 as an extension of the 1872 mail fraud statute. In 1987, the Supreme Court broadly held in McNally v. United States that the statute applied to any act “designed to defraud by representations as to the past or present, or suggestions and promises as to the future.” Securities fraud refers to illegal activities that involve the deception of investors or the manipulation of financial markets. The Securities and Exchange Commission is the primary securities regulator in the U.S.

Commodities fraud is the sale or purported sale of a commodity through illegal means and often goes hand in hand with securities fraud. Since 2019, the Fraud Section of the Criminal Division of the U.S. Department of Justice has entered six corporate resolutions relating to violations of the commodities laws with a combined total monetary amount of over $1 billion. Money laundering is the act of disguising financial assets so they can be used without detection of the illegal activity that produced them.

Bernie Madoff, orchestrator of the biggest Ponzi scheme in history, was convicted of 11 federal felony counts, including securities fraud, wire fraud, mail fraud, and money laundering, which earned him a sentence of 150 years in prison.  His net assets in 2009 prior to sentencing totaled at least $823 million. It is estimated that he stole as much as $65 billion. In comparison, SBF was found to have cheated customers and investors of at least $10 billion. Jeffrey Skilling, the failed CEO of Enron at the time of its implosion, was convicted of an impressive 19 crimes, including 12 counts of securities fraud. Skilling was ultimately sentenced to 14 years in prison and ordered to pay $42 million in restitution to victims of the fraud. The energy and commodities trading holding company held $63.4 billion in assets before its stocks tanked.

Though a long line of financial fraudsters paved the way for SBF, the use of cryptocurrency to achieve such scale was largely unheard of. Bitcoin was the first cryptocurrency created and is younger than SBF himself, having launched in 2009. The public should expect to see the federal government go after an increasing number of crypto king copycats in the future in an attempt to strengthen guardrails on the industry.

In September of 2023, a cofounder of OneCoin, a now defunct cryptocurrency exchange, was sentenced to 20 years in prison for creating and promoting a phony cryptocurrency. Just this past month, OneCoin’s former head of legal and compliance, Irina Dilkinska was sentenced to four years in prison and ordered to forfeit over $111 million. Dilkinska pled guilty in November of 2023 to one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. March of 2024 was a busy month for the U.S. government because a jury also found the founder of Terraform Labs, a Singapore-based blockchain protocol and payment platform, liable for defrauding investors in 2021. Binance is yet another example of a cryptocurrency exchange riddled with fraud. In November of 2023 (sensing a trend?), the company and founder pleaded guilty to money laundering and other crimes, costing the company over $4 billion.

Treasury Secretary Janet Yellen set the tone when she told the industry: “Let me be clear, we’re also sending a message to the virtual currency industry more broadly – today and for the future, the virtual currency exchanges and financial technology firms wish to realize the tremendous benefits of being part of the US financial system they must play by the rules. If they do not, the US government will take action.” SBF’s sentence serves as a harbinger of the U.S. government’s approach to cryptocurrency fraud and the harsh punishments to come.