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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...

On 3 September 2024, the Commodity Futures Trading Commission (CFTC) took significant enforcement actions against four online trading platforms, including cryptoiminerstrade.com, FalconForexBot, and Expert Stocks Zone, and swiftminingexpert.com for operating as unregistered futures commission merchants (FCMs) and misleading the public regarding their regulatory status. These platforms were found to be conducting illegal activities by soliciting and accepting customer orders for binary options and other commodities-based financial transactions, including those linked to cryptocurrencies like Bitcoin, without the required registration. The platforms also falsely claimed to be regulated by the CFTC, leading investors to believe that their transactions were safeguarded by U.S. financial laws, which was not the case. The complaint against cryptoiminerstrade.com alleges that the platform presented itself as a major player in the binary options and cryptocurrency trading sector, offering...

On 24 September 2024, the U.S. Securities and Exchange Commission (US SEC) initiated a complaint against TrueCoin LLC and TrustToken Inc. for allegedly engaging in fraudulent practices and the unregistered sale of securities. The companies were involved in the issuance and promotion of TrueUSD (TUSD), a stablecoin, and operated the TrueFi lending protocol, which provided investment opportunities in the crypto space. The US SEC’s complaint highlighted that from November 2020 to April 2023, the companies misled investors by falsely claiming that TUSD was fully backed 1:1 by U.S. dollars. In reality, a substantial portion of the assets backing TUSD had been invested in a speculative offshore fund, posing significant undisclosed risks. Additionally, the SEC alleged that TrueCoin and TrustToken failed to register their offerings as required under federal securities laws, thus violating key provisions of the United States Securities Act of 1933. The complaint against TrueCoin LLC and...

On 23 September 2024, the US Commodity Futures Trading Commission (CFTC) issued an enforcement order against Piper Sandler Hedging Services LLC for violating the United States Commodity Exchange Act (US CEA) and related US CFTC regulations. The settlement followed an extensive investigation into Piper Sandler’s failure to maintain and preserve required business records, including communications by senior employees conducted through unapproved methods such as personal text messages. The violations pertained to recordkeeping requirements under Section 4g of the US CEA and US CFTC regulations 1.31, US CFTC regulations 1.35, and US CFTC regulations 166.3. The enforcement action is against the deficiencies in the firm’s supervisory systems, which allowed employees to use unauthorized channels for business communications, resulting in significant breaches of federal recordkeeping laws. The case is based on Piper Sandler’s long-standing failure to ensure that employees, including...

On 23 September 2024, the U.S. Securities and Exchange Commission (SEC) announced settled charges against Atom Investors LP, a Texas-based registered investment adviser, for violations of federal securities laws related to the firm’s failure to maintain and preserve critical off-channel communications. The US SEC did not impose any civil penalty on Atom Investors due to the firm’s self-reporting of the violations, substantial cooperation with the US SEC, and prompt remediation efforts. The US SEC’s order found that Atom Investors violated the recordkeeping provisions of the United States Investment Advisers Act of 1940 by failing to preserve records, including senior personnel communications, which were subject to federal retention requirements. Without admitting or denying the US SEC’s findings, Atom Investors consented to a cease-and-desist order and received a censure for its violations. Due to the firm’s immediate self-reporting, proactive remedial measures, and significant...

On 20 September 2024, the U.S. Commodity Futures Trading Commission (US CFTC) announced that William Koo Ichioka, a New York resident formerly of San Francisco, was ordered by Judge Vince Chhabria of the U.S. District Court for the Northern District of California to pay over US $36 million. This ruling includes US $31 million in restitution to defrauded investors and a US $5 million civil monetary penalty for his involvement in a fraudulent foreign currency and digital asset trading scheme. The scheme began in 2018 when Ichioka solicited investments under the false promise of guaranteed returns of 10% every 30 business days. He attracted investors by claiming that their funds would be invested in forex and digital asset commodities, including Bitcoin and Ether by portraying himself as a highly successful investor and used various platforms, including a website for his company, Ichioka Ventures, to lure participants. While he did invest portions of the funds in forex and digital...

On 20 September 2024, the U.S. Commodity Futures Trading Commission (US CFTC) issued an extension of its no-action relief for nonbank swap dealers (SDs) domiciled in the European Union (EU) and the United Kingdom (UK). This relief, originally granted under US CFTC Letter No. 21-20 and later extended through US CFTC Letter No. 22-10, allows these entities to comply with their home country’s capital and financial reporting requirements in lieu of US CFTC regulations. The new extension provides relief until 31 December 2026, or until the CFTC finalizes a decision regarding the comparability of foreign regulations to U.S. standards. The No-Action Letter permits these nonbank SDs to operate under their home country’s rules, provided they continue to meet specific conditions, including submitting financial reports to the CFTC, notifying the CFTC if their regulatory capital falls below 120% of the minimum required, and keeping the CFTC informed of their reliance on the No-Action position....

On 19 September 2024, Latvijas Banka announced the return of the Latvian FinTech Forum, scheduled for 5 November 2024, at the Small Guild in Riga. This event will convene key players from the FinTech ecosystem to discuss current industry issues and trends. Notably, the forum will feature the "Fintech Factor 2024" competition, organised by the international accelerator Tenity in collaboration with Latvijas Banka and the Fintech Latvia Association. Early-stage FinTech companies across Europe are invited to participate, with an attractive prize fund aimed at promoting their growth and providing networking opportunities. Early-stage FinTech companies from across Europe are invited to participate in the "Fintech Factor 2024" competition. The prize fund is designed to foster the growth of participating companies and includes ten hours of legal advice from esteemed firms Sorainen and Wallace, ten hours of growth mentoring from Tenity, a cash prize of 2,500 euros, as well as tickets to...