Author: Mia

Article: Crypto Must Apply Safety Lessons of the Existing Financial System

Crypto Must Apply Safety Lessons of the Existing Financial System

Rick McDonell, 25 March 2021

There is a revealing, albeit slightly morbid, maxim that “safety standards are written in blood.” Humans and human-created systems generally tend to be reactive rather than proactive when it comes to developing protective rules. Nevertheless, today’s construction workers and consumers are more shielded from danger than those of the past because we’ve learned from prior mistakes.

Rick McDonell was the executive secretary of the Financial Action Task Force from 2007 until 2016. Prior to that, he was chief of the United Nations Global Program against Money Laundering at the UNODC. He is now executive director of ACAMS, the Association of Certified Anti-Money Laundering Specialists.

The same dynamic exists in financial regulation, where it could be said that “financial standards are written in fraud.” For example, the U.S. Securities and Exchange Commission didn’t exist in the first iterations of the stock market. It was only after “Black Tuesday,” the 1929 stock market crash so severe that it was a major contributing factor to the Great Depression, that new laws and regulations were introduced that continue to define modern finance. But the world has morphed into two: the real world and the virtual world. The old rules do not suit either of them.

Article: Texas man pleads guilty to $24.8 million PPP loan scheme involving luxury cars

Texas man pleads guilty to $24.8 million PPP loan scheme involving luxury cars

Alison Medley, 25 March 2021

Federal investigators didn’t mince words when a Texas man admitted to using COVID-19 relief funds for lavish expenditures, including a Bentley Convertible, Porsche Macan and Corvette Stingray.

Coppell native Dinesh Sah, 55, pleaded guilty to orchestrating a $24.8 million PPP scam that used small business loans to purchase opulent homes and expensive cars, according to the Department of Justice.

“As the nation was crippled by a global pandemic, Sah fraudulently obtained over $17 million in PPP funds intended to help legitimate small businesses and spent that money on luxury cars and multiple homes,” Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division stated in response to the case.

In order to get control of millions in PPP loans, Sah submitted 15 fraudulent applications filed under different names of businesses he owned or controlled, according to the Justice Department. Through eight separate lenders, Sah managed to obtain $24.8 million in PPP loans by misrepresenting the number of employees on his payroll and amount of expenses therein. Investigators eventually discovered the incongruities on Sah’s applications, the Justice Department stated. Continue reading “Article: Texas man pleads guilty to $24.8 million PPP loan scheme involving luxury cars”

03/25/202103/26/2021

Article: CFTC hits former fuel-oil trader with $100,000 penalty for market manipulation

CFTC hits former fuel-oil trader with $100,000 penalty for market manipulation

Reuters, 25 March 2021

WASHINGTON — The U.S. Commodity Futures Trading Commission (CFTC) has settled charges against a former fuel oil trader for market manipulation, the regulator said in a statement on Thursday.

Emilio José Heredia Collado admitted to manipulating, and attempting to manipulate, a U.S. fuel oil benchmark. The CFTC hit Heredia with a $100,000 civil penalty and permanently banned him from trading commodity interests, the statement said.

03/25/202103/26/2021

Article: Report: Robinhood Is Building A Platform To Democratize IPOs

Report: Robinhood Is Building A Platform To Democratize IPOs

Sarah Hansen, 25 March 2021

Robinhood is working on a platform that will allow its users to buy into initial public offerings, Reuters exclusively reported Thursday, citing people familiar with the process, marking another push by the popular investment app to democratize investment opportunities that are traditionally only available to big banks and Wall Street firms.

The allocation of IPO shares is a complex process—it doesn’t happen the same way for every listing and can depend on the type of industry and market conditions at the time. In general, the majority of available shares go to institutional investors. Some shares can also be reserved for retail investors, who are then able to buy them through their brokerage firms. More established and wealthier retail investors often have a better chance of receiving IPO shares than lay people, especially in popular listings. Continue reading “Article: Report: Robinhood Is Building A Platform To Democratize IPOs”

Article: NFTs: Legal Risks from “Minting” Art and Collectibles on Blockchain

NFTs: Legal Risks from “Minting” Art and Collectibles on Blockchain

Quinn Emanuel Urquhart & Sullivan, LLP, 25 March 2021

The growth of NFTs in art has been fueled by its unique attributes. NFTs can allow artists to better monetize their work by selling NFTs directly online without middlemen. Access to a readily accessible online resale market could also mean that works gain value quickly. And unlike the traditional U.S. art market, artists may benefit from the rise in value of their work by incorporating commission requirements in the smart contracts that accompany NFTs (for example, the SuperRare NFT marketplace requires that creators receive a 10% commission when artwork continues to trade on the secondary market).[2]

Some hope that NFTs will open up a new revenue source for artists, including underrepresented artists, either by allowing artists who traditionally do not sell in galleries to sell directly to buyers online, or by allowing artists to sell something in addition to their tangible works. For example, an artist could sell an NFT of the digital image of a painting or sculpture to one buyer, while selling the physical work to another buyer, allowing the artist an additional opportunity to profit from the work. Continue reading “Article: NFTs: Legal Risks from “Minting” Art and Collectibles on Blockchain”

Article: Fidelity Joins Race for US Bitcoin ETF

Fidelity Joins Race for US Bitcoin ETF

THESTREET CRYPTO, 25 March 2021

Fidelity has made an application with the U.S. securities regulator to offer a Bitcoin exchange-traded fund (ETF), according to public filings. The Block was the first to report on the application.

The asset management firm lodged paperwork for the Wise Origin Bitcoin Trust, which would track the price of Bitcoin using data from predominantly U.S.-based exchanges: Coinbase, Gemini, ItBit, Kraken and Bitstamp.

“An increasingly wide range of investors seeking access to Bitcoin has underscored the need for a more diversified set of products offering exposure to digital assets,” a Fidelity spokesperson told Bloomberg.

Fidelity is perhaps the highest profile name to apply for a Bitcoin ETF this year. Five other contenders are vying to become the first U.S. Bitcoin ETF, including VanEck, First Advisors/Skybridge and NYDIG. Continue reading “Article: Fidelity Joins Race for US Bitcoin ETF”

Article: FD Funds Management Backed by Fidelity Files for Bitcoin ETF with SEC

FD Funds Management Backed by Fidelity Files for Bitcoin ETF with SEC

Steve Muchoki, 25 March 2021

Fidelity Investments, an American multinational financial services corporation based in Boston, Massachusetts, through its subsidiary FD Funds Management has filed for a Bitcoin ETF with the United States Securities and Exchange Commission. According to Form S-1 filed by Fidelity Investments, the ETF will be called Wise Origin Bitcoin Trust, if the SEC approves it.

Notably, the United States Securities and Exchange Commission has rejected two other applications for a Bitcoin ETF. According to the commission, Bitcoin is a very volatile asset that may put investors’ capital at risk.

However, with already two Bitcoin ETFs approved in the Canadian market, there are high chances the United States will move towards considering a similar move. Furthermore, more institutional investors are showing the will to hold digital assets as a hedge against the deflationary fiat currencies. Continue reading “Article: FD Funds Management Backed by Fidelity Files for Bitcoin ETF with SEC”

Article: Amazon calls on India not to alter e-commerce investment rules – sources

Amazon calls on India not to alter e-commerce investment rules – sources

Aditya Kalra, 25 March 2021

NEW DELHI (Reuters) – Amazon asked the Indian government on Thursday not to change e-commerce foreign investment rules until investigations into its business practices had been concluded, two sources familiar with the discussions told Reuters.

The commerce ministry met e-commerce players after allegations by retailers, which are a crucial part of Prime Minister Narendra Modi’s support base, that Amazon and Walmart’s Flipkart create complex structures to bypass federal foreign investment rules and damage small traders.

Both companies deny any wrongdoing and say they are helping small businesses in India. Continue reading “Article: Amazon calls on India not to alter e-commerce investment rules – sources”

Article: NFT Market Is Like Gambling in a Casino: L’Atelier BNP Paribas CEO

NFT Market Is Like Gambling in a Casino: L’Atelier BNP Paribas CEO

Scott Chipolina, 25 March 2021

The NFT boom has seen a lucky few make fortunes overnight—but, according to the CEO of L’Atelier BNP Paribas, buying them is akin to gambling in a casino.

“I think it’s probably akin at this stage to going into the casino,” said John Egan, CEO of L’Atelier, in an interview with BNN Bloomberg. “You know you’re going to spend money, but maybe you’re doing it for the enjoyment, for the experience. If you win, you’ve got lucky.”

BNP subsidiary L’Atelier, which focuses on identifying trends in emerging markets, released a report in 2020 which highlighted non-fungible tokens (NFTs) as a key area of the emerging virtual economy. Their predictions appear to have been borne out, with the market for NFTs exploding in the second half of 2020 and early 2021. Continue reading “Article: NFT Market Is Like Gambling in a Casino: L’Atelier BNP Paribas CEO”

03/25/202103/31/2021

Article: UPDATE 3-Less vocal Swiss central bank still set for loose policy

UPDATE 3-Less vocal Swiss central bank still set for loose policy

John Revill, Silke Koltrowitz, 25 March 2021

ZURICH, March 25 (Reuters) – The Swiss National Bank toned down its verbal commitment to foreign currency interventions and raised its inflation outlook on Thursday, but chairman Thomas Jordan said this did not mean the bank would quit its ultra-expansive policy.

The central bank kept its benchmark interest rate locked at minus 0.75% as forecast by all economists in a Reuters poll, reiterating its commitment to a policy in place since 2015, spearheaded by the world’s deepest negative rate. Continue reading “Article: UPDATE 3-Less vocal Swiss central bank still set for loose policy”

03/25/202103/26/2021

Article: Stocks Dump’n’Pump; Dollar Gains Amid Bitcoin, Bond Pain

Stocks Dump’n’Pump; Dollar Gains Amid Bitcoin, Bond Pain

Tyler Durden,25 March 2021

Thanks to yet another big short-squeeze that began shortly ahead of the EU close. This was the biggest short-squeeze since late January. Small Caps went from down over 1.5% ahead of the EU close to up over 2.5%. Nasdaq ended lower as late day selling pressure hit…

Before today, the last six days have seen the market has dropped in the last hour. S&P and Dow are back to unch on the week, Nasdaq remains red and Small Caps still down over 4.3%.Value outperformed Growth today but both ripped off the EU close…

03/25/202104/06/2021

Article: 180 Life Sciences Corp. (NASDAQ: ATNF) in Hot Pursuit of New Anti-Inflammatory Blockbusters

180 Life Sciences Corp. (NASDAQ: ATNF) in Hot Pursuit of New Anti-Inflammatory Blockbusters

GLOBE NEWSWIRE, 25 March 2021

180 Life Sciences Corp. (NASDAQ: ATNF) today announces its placement in an editorial published by NetworkNewsWire (“NNW”), one of 50+ trusted brands within the InvestorBrandNetwork (“IBN”), a multifaceted financial news and publishing company for private and public entities.

Inflammation has been directly linked to a wide variety of physical and mental health maladies. Inflammation is also a symptom of infectious diseases, implicated in noninfectious diseases, and new findings show a causal relationship with postsurgical trauma. Inflammatory diseases are recognized as the most significant cause of death in the world, with more than 50% of all deaths attributed to inflammation-related diseases. The recognition of the connection between inflammation and disease sparked a flurry of biotech research and a new generation of drug development to treat previously untreatable disorders.

03/25/202103/25/2021

Article: Covéa-SCOR conflict takes new twist

Covéa-SCOR conflict takes new twist

Terry Gangcuangco, 25 March 2021

The soured relationship between Covéa Group and SCOR is not looking any better with the passing of time, with another major development likely to widen the rift between the two.

In a release, French mutual insurance group Covéa said it has filed “on behalf of SCOR” a complaint against the latter’s chief executive for alleged market manipulation and corporate assets misuse. Filed with the Parquet National Financier, the complaint against Denis Kessler spans actions taken between September 2018 and January 2019 involving a share buyback and so-called advisory expenses.

Reacting to the move by its biggest shareholder, the global reinsurer stated: “SCOR wonders what led Covéa to file this complaint, more than two years after it became aware of the facts it pretends to report. Continue reading “Article: Covéa-SCOR conflict takes new twist”

03/25/2021

Article: SEC is investigating Japanese investment giant SoftBank for market manipulation