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On 2 October 2024, the U.S. Securities and Exchange Commission (US SEC) announced the resignation of Gurbir S. Grewal, Director of the Division of Enforcement, effective 11 October 2024. Following Mr. Grewal’s departure, Sanjay Wadhwa, the current Deputy Director of Enforcement, will assume the role of Acting Director, while Sam Waldon, Chief Counsel of the Division, will become Acting Deputy Director. Mr. Grewal joined the U.S. SEC in July 2021 and oversaw the Division of Enforcement through a period of active regulatory enforcement. During his tenure, he emphasised the importance of ensuring that remedies, penalties, and enforcement actions provided a deterrent effect for non-compliance. Under his leadership, the Division focused on matters such as compliance with registration provisions, whistleblower protections, and addressing deficiencies in recordkeeping across various sectors. Mr. Grewal, before joining the U.S. SEC, served as Attorney General for the State of New Jersey and...

On 30 September 2024, the United States’ Commodity Futures Trading Commission (US CFTC) announced that Barclays Bank PLC had reached a settlement in response to charges of violating several key reporting regulations under the United States Commodity Exchange Act. These violations occurred between 2018 and 2023 and involved Barclays' failure to accurately and timely report over five million swap transactions. These errors, which resulted from systemic deficiencies in Barclays' reporting systems, impacted the US CFTC's ability to assess market exposure, monitor compliance, and maintain market integrity. The CFTC initiated proceedings under Sections 6(c) and 6(d) of the US Commodity Exchange Act, based on the bank’s violations of Sections 2(a)(13) and 4r(a)(3), as well as Regulations 43.3 and 45.3-4. Barclays admitted to the findings and acknowledged that it had failed to meet the reporting standards required by the CFTC during the Relevant Period. The errors were widespread, with...

On 27 September 2024, the High Court of the Republic of Singapore issued an order in the ongoing case of Zettai Pte. Ltd., a company undergoing restructuring amidst significant financial and operational challenges. This order, granted under Section 64 of the Singapore’s Insolvency, Restructuring and Dissolution Act 2018 (SG IRDA), offers a four-month moratorium to Zettai Pte. Ltd., which effectively protects the company from any legal actions, including winding-up resolutions and other judicial proceedings initiated by creditors or stakeholders. The Honourable Judicial Commissioner Kristy Tan presided over the case, issuing a comprehensive ruling aimed at stabilizing the company while restructuring efforts are underway. Zettai Pte. Ltd., a Singapore-based entity, found itself in a difficult position due to operational difficulties that arose when several of its cryptocurrency wallets were compromised by hackers, leading to asset losses amounting in hundreds of millions. In response...

On 30 September 2024, the UK Financial Conduct Authority (UK FCA) made a landmark announcement regarding the conviction of Olumide Osunkoya, who pleaded guilty to five significant offences at Westminster Magistrates' Court. This case marks the UK's first-ever conviction for operating an illegal network of crypto ATMs, a groundbreaking moment in the enforcement of crypto regulations. Osunkoya's network of at least 11 crypto ATMs, which processed over £2.6 million in transactions between December 2021 and September 2023, operated without FCA registration, circumventing vital anti-money laundering safeguards. The court heard how Osunkoya, undeterred by the FCA’s refusal to register his business in 2021, expanded his operations in convenience stores across the UK, facilitating illegal transactions without performing due diligence or verifying the sources of funds. In addition to these regulatory breaches, he was charged with creating false documents, using a fake alias to evade...

On 30 September 2024, the Bank of England and the UK Financial Conduct Authority (UK FCA) launched the Digital Securities Sandbox (DSS) and published the policy statement and guidance note on Digital Securities Sandbox operation under the UK Financial Services and Markets Act 2023 (FSMA). This initiative allows firms to test new financial market technologies, such as distributed ledger technology (DLT), in a real-world environment. The DSS provides a modified regulatory framework that supports innovation while maintaining financial stability and market integrity. The DSS operates through a phased structure, guiding firms through four stages known as gates. Firms begin by applying for sandbox entry at Gate 1, where they start testing under regulatory supervision. In Gate 2, firms can conduct live business under set limits, such as £600 million for gilts and £900 million for corporate bonds. Gate 3 allows firms to scale their activities, increasing their limits as they meet higher...

On 27 September 2024, the United States’ Commodity Futures Trading Commission (US CFTC) filed a civil enforcement action in the U.S. District Court for the Western District of Washington against Aipu Limited, Fidefx Investments Limited, Qian Bai, Lan Bai, and Chao Li. The CFTC’s complaint alleges that, beginning on or around 6 February 2023, the defendants fraudulently solicited and misappropriated at least US $3.6 million from 32 customers through a fraudulent investment scheme. The defendants are accused of falsely offering trading in leveraged commodity and forex contracts, misappropriating customer funds, and presenting fabricated account statements through a network of fake platforms, websites, and solicitors. The fraudulent activity primarily targeted Asian American customers in the U.S., with the defendants claiming to provide high-yield returns from trading commodities and foreign currencies. The facts of the case reveal that the defendants operated through their companies,...

On 27 September 2024, the United States’ Commodity Futures Trading Commission (US CFTC)'s Division of Clearing and Risk announced a public roundtable discussion to explore new and emerging issues in the clearing industry which will convene on 16 October 2024. This event will run from 9:00 a.m. to 1:00 p.m. at the US CFTC's headquarters in Washington, D.C., and will bring together a broad spectrum of participants, including representatives from derivatives clearing organizations, futures commission merchants (FCMs), FCM customers, end-users, custodians, proprietary traders, public interest groups, and state regulators. The goal of this roundtable is to gather expert insights and perspectives on the evolving landscape of clearing, with a particular focus on digital assets, margin requirements, and new models for clearing. Among the key topics to be addressed are the custody and delivery of digital assets, full collateralization, the challenges of 24/7 trading, non-intermediated...

On 26 September 2024, the United States’ Financial Crimes Enforcement Network (FinCEN), a division of the U.S. Department of the Treasury, passed an order whereby PM2BTC, a convertible virtual currency (CVC) exchanger, was officially designated as a financial institution of "primary money laundering concern" due to its involvement in illicit activities related to Russian finance. The order, issued under Section 9714(a) of the Combating Russian Money Laundering Act, prohibits all U.S. financial institutions from transmitting funds to or from PM2BTC. On 23rd September, the U.S. Department of the Treasury, alongside the Department of Justice, Department of State, U.S. Secret Service, and other federal agencies, took action against Russian individuals and entities involved in large-scale cybercrime operations. These efforts were supported by international law enforcement partners, including Europol, the Netherlands Police, and the Dutch Fiscal Information and Investigation Service...

On 25 September 2024, in moratorium hearing before the High Court of Singapore, Zettai Pte. Ltd. was enquired with several questions. The proceedings, presided over by Judicial Commissioner Kristy Tan, took place via Zoom over two days, with numerous creditors raising concerns about Zettai’s transparency, financial practices, and the fairness of the proposed moratorium. Zettai, which is connected to WazirX, a cryptocurrency platform implicated in a significant hack, sought a moratorium to reorganize its financial structure and address the fallout from the hack. However, creditors voiced strong opposition, casting doubt on Zettai's intentions and the legitimacy of its actions. During the hearing, creditors accused WazirX and Zettai of manipulating the voting process related to the moratorium. Several users alleged that they had not been given the opportunity to vote against the moratorium initially, resulting in skewed results in favor of Zettai. One participant remarked that the...

On 26 September 2024, the United Kingdom’s Financial Conduct Authority (FCA), published a consultation paper (CP24/20), to address the existing lacunas and to ensure greater consumer protection in the event of firm failure. The proposed changes in the UK FCA’s consultation paper CP24/20 introduce a two-phase regime designed to address weaknesses in the current regulatory framework. The first phase consists of interim rules aimed at improving compliance with existing safeguarding regulations, while the second phase proposes the introduction of a Client Assets Sourcebook (CASS) style regime. This end-state regime will impose statutory trusts on all relevant consumer funds, offering additional legal protections and expediting the return of funds during insolvency proceedings. The consultation invites feedback from stakeholders until 17 December 2024, with the new rules expected to be implemented in mid-2025. The safeguarding rules currently set out in the Payment Services Regulations...

On 25 September 2024, the Monetary Authority of Singapore (MAS) announced the formation of Singapore’s new Cyber and Technology Resilience Experts (CTREX) Panel, replacing its previous Cyber Security Advisory Panel. The CTREX Panel will have a broader mandate, encompassing both cybersecurity and technology resilience. This dual focus is seen as essential to the operational resilience of Singapore's financial sector, particularly as financial institutions become increasingly reliant on technology for delivering services. The SG CTREX Panel will advise MAS on emerging technology risks, cyber threats facing the financial sector and recommend strategies and measures to bolster the sector’s technology and cyber resilience. The Panel of 13 global experts and thought leaders in cybersecurity and technology resilience will convene its inaugural meeting in mid-2025. This panel will provide global perspectives and insights to help MAS and the financial industry develop the capabilities...

On 23 September 2024, Latvijas Banka announced the launch of the "Energy Coin," a collector coin set to be issued on 26th September 2024. The coin is dedicated to the theme of science, specifically highlighting the role of nuclear fusion as a potential solution for the future of global energy. This project has the potential to reshape the world’s energy landscape by offering a solution that not only preserves natural resources but also achieves a balance between the energy demands of the present and the environmental needs of future generations. The coin focuses on the principles of nuclear fusion, a process in which lighter atomic nuclei combine to form a heavier nucleus, releasing enormous amounts of energy. The Energy Coin aims to symbolize the quest for an inexhaustible energy source that balances modern-day demands with the need to preserve natural resources for future generations. This silver collector coin creatively illustrates the process of nuclear fusion, a powerful...