Tag: Legal

Singapore police allegedly investigate Hodlnaut

by Blockchain News

It has been claimed that the authorities in Singapore are looking into allegations of cheating and fraud involving the cryptocurrency lender Hodlnaut.

There were multiple complaints lodged against the platform between the months of August and November 2022, according to reports that were published in the local media. As a result of these complaints, the commercial affairs department of the police department has opened an investigation into the founders of the exchange.

The bulk of complaints, according to the Singapore authorities, focus on deceptive claims and misinformation about the company’s exposure to a particular digital token.

Investors who were adversely affected by the Hodlnaut problem were also instructed by the police to register a complaint online and present verified evidence of their transaction histories on the site.

The cryptocurrency lending platform showed the first symptoms of difficulty on August 8, when it temporarily halted withdrawals on the site, claiming a liquidity shortage as the reason.

At the time, the platform said that they had no exposure to the algorithmic Terra stablecoin, which has since been discontinued and is now known as TerraUSD Classic (USTC).

On-chain data, however, contradicted the assertions made by crypto lenders and revealed that they possessed at least $150 million dollars worth of USTC.

In October, a court report provided more evidence that the data stored on the chain were accurate.

According to the article, the cryptocurrency lender suffered a loss of around $190 million as a result of Terra’s collapse. Subsequently, in order to conceal their level of risk, they destroyed thousands of papers linked to their investments.

After the collapse of the Terra ecosystem, Hodlnaut was able to keep its exposure to USTC a secret for almost three months. However, it eventually fell victim to the liquidity crunch, which forced the company to seek judicial management, during which a court appointed a new interim CEO for the company.

After a delay of three months, the directors of the company are now the subject of an investigation by the police for failing to keep the users informed.

In August, the cryptocurrency lender said that it was working on a strategy to restructure in the hopes that it would soon be able to resume operations.

Source

Tagged : / / / /

Senate Banking Committee Democrats caution SoFi about deadlines

by Blockchain News

Sherrod Brown, who chairs the United States Senate Banking Committee, and three other Democratic members of the committee sent letters on November 21 to a number of government authorities as well as to Anthony Noto, the president of SoFi Technology. Noto was also copied on the letters. Brown chairs the committee.

They were concerned about the efforts that the online bank was making to satisfy the standards that were laid out by the Federal Reserve Board, as well as the trading of nonbank digital assets that was being conducted by SoFi Digital Assets. Specifically, they were concerned about the trading of nonbank digital assets by SoFi Digital Assets.

Sherrod, along with Senators Jack Reed, Chris Van Hollen, and Tina Smith, mention in their letter to Noto that the Federal Reserve has stated that SoFi is “currently engaged in crypto-asset related activities that the Board has not found to be permissible” for a bank holding company (BHC) or financial holding company. This information is included in the letter that Sherrod sends to Noto. This assertion is made in relation to the reality that SoFi is “now participating in actions linked to crypto assets that the Board has not deemed to be acceptable. “

After SoFi completed its purchase of Gold Pacific Bancorp, a bank holding company, at the beginning of this year, the Federal Reserve acknowledged SoFi as a suitable candidate for the post of financial holding company.

However, the company did “announce a new service that lets customers of its national bank invest a portion of every direct deposit into digital assets for free.” Although SoFi was not allowed to expand its illegal activities or conduct cryptocurrency transactions within its national bank subsidiary, the company did “announce a new service that lets customers of its national bank invest a portion of every direct deposit into digital assets for free.”

In addition to this, “SoFi’s facilitation of customer digital asset trading and holding digital assets on the balance sheet raises questions about the appropriate calculation of capital requirements.” [Citation needed] [Further citation is required]

In conclusion, the senators have a few questions and concerns concerning the digital assets that are made available by SoFi.

In the investor protection documents that it provides, SoFi classified one of the cryptocurrencies it distributes as “a crypto pump-and-dump” Despite this description, the business did not stop providing the cryptocurrency to its customers.

A response to the issues mentioned above is required by the authors by December 8 at the latest. In addition, the senators expressed their concerns once again in a letter that was sent to Michael Barr, who is the vice chair of the Federal Reserve; Martin Gruenberg, who is the acting head of the Federal Deposit Insurance Corporation; and Michael Hsu, who is the acting comptroller of the currency.

Source

Tagged : / / / /

First US DAO to battle SEC without lawyers

by Blockchain News

Concerning the 2021 token registrations, the first legally recognized decentralized autonomous organization (DAO) in the United States has launched a lawsuit against the Securities and Exchange Commission (SEC).

The Decentralized Autonomous Organization (DAO) registered its native, interdependent tokens in the 2021 filing that it submitted to the SEC. These tokens included the stablecoin Ducat and the governance token Locke. Despite this, the regulatory body has started the legal proceedings necessary to seek a stop order, citing a broad variety of problems with the registration.

In addition to this, American CryptoFed has announced that it would be taking legal action to push out the deadline for the submission of its response to the order that the SEC issued to initiate administrative proceedings.

It will now have a window of opportunity of twenty days during which it may craft its response against the SEC’s request to stop the registration of American CryptoFed because of this development.

In its file dated September 2021, the DAO explains how the Locke and Ducat toks, which are instruments for the DAO’s intended money system headquartered in Wyoming, work together. The month of September 2021 is shown on this paper.

The DAO participants, which may include governments, commercial firms, financial institutions, cryptocurrency exchanges, and other types of organizations, are the intended users of these tokens. If American CryptoFed were to register with the Securities and Exchange Commission (SEC), then it would become a reporting corporation and be required to fulfill its requirements to make periodic reports to the regulatory body. If this registration were to take place, then American CryptoFed would be subject to the obligations outlined in this sentence.

As stated in the company’s white paper, CryptoFed intends for the native ecosystem tokens that it distributes to be put to use in the capacity as utility tokens when they are put into circulation.

The goal of the DAO was to “ensure compliance with the Securities Act and related regulations.” to head off any possible disputes with the Securities and Exchange Commission by registering both Ducat and Locke as securities (SEC).

Source

Tagged : / / / /

US court sets deadline for Celsius bankruptcy claimants

by Blockchain News

The Celsius bankruptcy case is still pending in the United States Bankruptcy Court for the southern district of New York State, which has established a new deadline for the submission of documents related to the case.

Those who intend to register any claims against the former digital asset lender are advised to do so before the deadline that has been established, which is stated in an official document.

Whoever chooses to do so is required to provide evidence of claim no later than January 3, 2023 at 5:00 p.m. Eastern Time. This includes individuals, partnerships, companies, joint ventures, and trusts.

Celsius created a thread on Twitter to remind its former users of the recent court deadline approval along with detailed information on the filing process for claims.

The judgement was taken not long after the independent examiner who was looking into the Celsius case made an accusation that the corporation had “insufficient” accounting and operational controls in its administration of client monies.

The actions of Celsius have been subject to the constant surveillance of authorities.

Customers alleged that the former cryptocurrency lender used the assets of new users to cover existing yields and facilitate withdrawals, which resulted in a court ruling being issued on November 1 by the judge who was presiding over the case. The ruling ordered an investigation into the possibility that Celsius was a Ponzi scheme.

The lawsuit is set to proceed in court once again on December 5 of this year, when the next scheduled hearing occurs.

The latest developments in the bankruptcy case involving Celsius come on the wake of the failure of yet another major cryptocurrency platform.

The present liquidity problem at FTX, which has developed into a bankruptcy scandal, is just one more instance in which authorities need to assist previous customers and investors who have suffered financial losses.

Source

Tagged : / /

US SEC Issues Summons to Influencers Promoting HEX, PulseChain, PulseX

by Blockchain News

According to a media report released on Sunday, the U.S. Securities and Exchange Commission (SEC) has reportedly issued a subpoena to influencers who were found promoting crypto coins, such as HEX, PulseChain, and PulseX.

Over the weekend, Swedish researcher Eric Wall shared an official letter from the SEC dated November 1, which was addressed to the influencers. The letter said the influencers might possess documents and data relevant to an ongoing investigation conducted by the SEC staff.

The regulator accompanied the letter with a subpoena that was issued as part of the investigation, which demanded the influencers in question produce the required documents by November 15.

In recent years, the world has seen the rise of crypto influencers – individuals who use their social media platforms to promote cryptocurrencies and blockchain-based projects.

There is no doubt that crypto influencers have the potential to reach a vast audience and bring much-needed attention to the industry. However, many have recently been promoting dubious crypto projects and pump-and-dump schemes.

Recently, social media mogul Kim Kardashian has been involved in what the class action case considered a pump-and-dump scheme.

Last month, Kim Kardashian was charged $1.26 million by the SEC for failing to disclose that she was paid £250,0000 to promote EthereumMax cryptocurrency on her Instagram page.

SEC Chairman Gary Gensler said the case was a “reminder” that celebrity endorsement did not necessarily make a product worth investing in.

In August, Ben Armstrong, a prominent crypto influencer on his YouTube channel popularly known as BitBoy Crypto, narrated how he partnered with a cryptocurrency project that ended up being a scam.  

The problem is that most influencers are not financial experts and may not fully understand the risks involved in investing in cryptocurrency. Furthermore, influencers are paid to promote particular projects, which means that they may not be impartial.

Working with reputable brands with a good track record and transparency about their fees may help mitigate some of the risks associated with crypto investment.

Image source: Shutterstock

Source

Tagged : / / / / / /

US SEC Issues Summons to Influencers Promoting HEX, PulseChain, PulseX

by Blockchain News

According to a media report released on Sunday, the U.S. Securities and Exchange Commission (SEC) has reportedly issued a subpoena to influencers who were found promoting crypto coins, such as HEX, PulseChain, and PulseX.

Over the weekend, Swedish researcher Eric Wall shared an official letter from the SEC dated November 1, which was addressed to the influencers. The letter said the influencers might possess documents and data relevant to an ongoing investigation conducted by the SEC staff.

The regulator accompanied the letter with a subpoena that was issued as part of the investigation, which demanded the influencers in question produce the required documents by November 15.

In recent years, the world has seen the rise of crypto influencers – individuals who use their social media platforms to promote cryptocurrencies and blockchain-based projects.

There is no doubt that crypto influencers have the potential to reach a vast audience and bring much-needed attention to the industry. However, many have recently been promoting dubious crypto projects and pump-and-dump schemes.

Recently, social media mogul Kim Kardashian has been involved in what the class action case considered a pump-and-dump scheme.

Last month, Kim Kardashian was charged $1.26 million by the SEC for failing to disclose that she was paid £250,0000 to promote EthereumMax cryptocurrency on her Instagram page.

SEC Chairman Gary Gensler said the case was a “reminder” that celebrity endorsement did not necessarily make a product worth investing in.

In August, Ben Armstrong, a prominent crypto influencer on his YouTube channel popularly known as BitBoy Crypto, narrated how he partnered with a cryptocurrency project that ended up being a scam.  

The problem is that most influencers are not financial experts and may not fully understand the risks involved in investing in cryptocurrency. Furthermore, influencers are paid to promote particular projects, which means that they may not be impartial.

Working with reputable brands with a good track record and transparency about their fees may help mitigate some of the risks associated with crypto investment.

Image source: Shutterstock

Source

Tagged : / / / / / /

Twitter Sued Amid Musk’s Plans to Lay Off 50% of Employees

by Blockchain News

Elon Musk might be the new owner of the social media giant, Twitter Inc, but he sure isn’t getting off on the right footing.

LAWSUIT2.jpg

The company has recently been sued through a class action lawsuit that seeks to prohibit the firm from laying off over 50% of its staff as planned.

 

Rumors of impending staff retrenchment have always been a major fear since the negotiations leading to the completion of the $44 billion company. According to several reports, Musk started firing the projected 3700 staff on Friday, a move that has drawn criticism from observers across the board.

The class action lawsuit was filed by Shannon Liss-Riordan, the attorney who also took Elon Musk and his electric automaker offshoot, Tesla Inc to court back in June when 10% of the workforce was laid off at the time. Though Liss-Riordan lost the suit at the time, she is confident that Musk cannot continue to thump his feet on the law everywhere he goes.

“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” Shannon Liss-Riordan said in an interview.

Specifically, Elon Musk is being accused of breaking both California and Federal laws as the federal Worker Adjustment and Retraining Notification Act (WARN) Act demands that large companies be expected to give a 60-day notification in the case of a layoff. 

The lawsuit, filed in San Francisco demands that Musk and Twitter do the right thing while also preventing staff from signing documents that will make them give up their rights in civil litigation against the company.

As the renowned advocate of Dogecoin (DOGE), the prospect of the lawsuit as well as the rocky start to his tenure as owner of Twitter with ad customers pulling off the platform, the memecoin has derailed on its growth path, dropping by 4.37% to $0.1244, the only coin in the top 10 with a loss over the past 24 hours.

Image source: Shutterstock

Source

Tagged : / / / / /

Twitter Sued Amid Musk’s Plans to Lay Off 50% of Employees

by Blockchain News

Elon Musk might be the new owner of the social media giant, Twitter Inc, but he sure isn’t getting off on the right footing.

LAWSUIT2.jpg

The company has recently been sued through a class action lawsuit that seeks to prohibit the firm from laying off over 50% of its staff as planned.

 

Rumors of impending staff retrenchment have always been a major fear since the negotiations leading to the completion of the $44 billion company. According to several reports, Musk started firing the projected 3700 staff on Friday, a move that has drawn criticism from observers across the board.

The class action lawsuit was filed by Shannon Liss-Riordan, the attorney who also took Elon Musk and his electric automaker offshoot, Tesla Inc to court back in June when 10% of the workforce was laid off at the time. Though Liss-Riordan lost the suit at the time, she is confident that Musk cannot continue to thump his feet on the law everywhere he goes.

“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” Shannon Liss-Riordan said in an interview.

Specifically, Elon Musk is being accused of breaking both California and Federal laws as the federal Worker Adjustment and Retraining Notification Act (WARN) Act demands that large companies be expected to give a 60-day notification in the case of a layoff. 

The lawsuit, filed in San Francisco demands that Musk and Twitter do the right thing while also preventing staff from signing documents that will make them give up their rights in civil litigation against the company.

As the renowned advocate of Dogecoin (DOGE), the prospect of the lawsuit as well as the rocky start to his tenure as owner of Twitter with ad customers pulling off the platform, the memecoin has derailed on its growth path, dropping by 4.37% to $0.1244, the only coin in the top 10 with a loss over the past 24 hours.

Image source: Shutterstock

Source

Tagged : / / / / /

Two Chinese Agents Charged for Bribing US Law Enforcement Officer with Bitcoin

by Blockchain News

The US has charged two Chinese nationalists with obstruction of justice by bribing a US government employee with $61,0000 in bitcoin.

bitcoin_spy_1200.jpg

According to the statement, these two Chinese called Guochun He and Zheng Wang, respectively, “allegedly attempted to hide their position as Intelligence Officers for the People’s Republic of China (China)”. Two suspects intended to interfere in the prosecution by obtaining classified and confidential information from the U.S. Attorney’s Office for the Eastern District of New York related to the ongoing federal criminal investigation and prosecution of a Chinese telecommunications company based in China.

Per Reuters, citing a person familiar with the matter identified the Chinese company as Huawei Technologies Co Ltd. 

Currently, two suspects are wanted by the FBI.

“Far more than an effort to collect information or intelligence, the actions of the PRC intelligence officers charged in this case must be called out for what they are,” stated Assistant Attorney General for National Security Matthew G. Olsen

According to the statement, the defendant is charged with two counts of money laundering based upon bribe payments totalling approximately $61,000 in Bitcoin, made in furtherance of the scheme. 

The complaints also said the recruit from a US law enforcement agency was actually working as a “double agent” under Federal Bureau of Investigation (FBI) supervision.

Attorney General Merrick Garland added in the statement, “This was an egregious attempt by PRC intelligence officers to shield a PRC-based company from accountability and to undermine the integrity of our judicial system.”

Speaking of Bitcoin Bribes, in 2020, A Russian police officer named Yuri Zaitsev was sentenced to eight years in prison for accepting a Bitcoin and cryptocurrency bribe from a dark web drug dealer in exchange for his professional services.

As reported by Blockchain.News, the investigation started 2 years prior to his downfall. The former cop was reportedly the former head of the department for a drug trafficking task force operating under the Ministry of Internal Affairs for the Republic of Khakassia. He was eventually found guilty of receiving a cryptocurrency bribe and disclosing State secrets.

Image source: Shutterstock

Source

Tagged : / / / / /

Two Chinese Agents Charged for Bribing US Law Enforcement Agent with Bitcoin

by Blockchain News

The US has charged two Chinese nationalists with obstruction of justice by bribing a US government employee with $61,0000 in bitcoin.

bitcoin_spy_1200.jpg

According to the statement, these two Chinese called Guochun He and Zheng Wang, respectively, “allegedly attempted to hide their position as Intelligence Officers for the People’s Republic of China (China)”. Two suspects intended to interfere in the prosecution by obtaining classified and confidential information from the U.S. Attorney’s Office for the Eastern District of New York related to the ongoing federal criminal investigation and prosecution of a Chinese telecommunications company based in China.

Per Reuters, citing a person familiar with the matter identified the Chinese company as Huawei Technologies Co Ltd. 

Currently, two suspects are wanted by the FBI.

“Far more than an effort to collect information or intelligence, the actions of the PRC intelligence officers charged in this case must be called out for what they are,” stated Assistant Attorney General for National Security Matthew G. Olsen

According to the statement, the defendant is charged with two counts of money laundering based upon bribe payments totalling approximately $61,000 in Bitcoin, made in furtherance of the scheme. 

The complaints also said the recruit from a US law enforcement agency was actually working as a “double agent” under Federal Bureau of Investigation (FBI) supervision.

Attorney General Merrick Garland added in the statement, “This was an egregious attempt by PRC intelligence officers to shield a PRC-based company from accountability and to undermine the integrity of our judicial system.”

Speaking of Bitcoin Bribes, in 2020, A Russian police officer named Yuri Zaitsev was sentenced to eight years in prison for accepting a Bitcoin and cryptocurrency bribe from a dark web drug dealer in exchange for his professional services.

As reported by Blockchain.News, the investigation started 2 years prior to his downfall. The former cop was reportedly the former head of the department for a drug trafficking task force operating under the Ministry of Internal Affairs for the Republic of Khakassia. He was eventually found guilty of receiving a cryptocurrency bribe and disclosing State secrets.

Image source: Shutterstock

Source

Tagged : / / / / /
Bitcoin (BTC) $ 27,358.33 0.77%
Ethereum (ETH) $ 1,641.12 1.66%
Litecoin (LTC) $ 64.32 3.11%
Bitcoin Cash (BCH) $ 227.42 8.56%