SEC chair Gary Gensler called the unregulated crypto market the ‘Wild West’.
Alex Wong/Getty Images
Regulators in the US and the UK have warned investors about crypto pump-and-dump schemes.
Scammers ‘pump’ prices by spreading misinformation, then ‘dump’ the coin once it reaches a price target.
Crypto and finance experts told Insider how smart investors can protect themselves.
See more stories on Insider’s business page.

Kim Kardashian seems an unlikely target for investigation by the UK’s financial markets regulator.
But the celebrity and influencer found herself in regulatory hot water last week when she used her instagram account to promote the little-known ethereum max cryptocurrency token – which bears no relation to ether, the native coin of Vitalik Buterin’s Ethereum Foundation.
“I can’t say whether this particular token is a scam,” said Financial Conduct Authority chair Charles Randell, speaking at the Cambridge International Symposium on Economic Crime about Kardashian’s promotion of ethereum max. “But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation.”
“Some influencers promote coins that turn out simply not to exist at all,” he added.
2.3 million Brits have invested in crypto products, according to the FCA, and an estimated 12% incorrectly believe that the regulator offers them financial protection against these scams. Security tokens like bitcoin and ether are currently unregulated in both the UK and the US.
“The concern the FCA has is that many of those 2.3 million Brits don’t understand the risks they’re getting into,” Mark Lewis, a consultant at Macfarlanes LLP specializing in technology regulation, said in a recent interview with Insider.
Kim Kardashian promoted an unknown crypto token to her followers in June.
NurPhoto/Getty Images
Regulators across the Atlantic have raised similar concerns about cryptocurrencies. In an August 3 speech, SEC chair Gary Gensler described the unregulated crypto market as the “Wild West.”
“Right now, we just don’t have enough investor protection in crypto,” he told the Aspen Institute. “If we don’t address these issues, I worry a lot of people will be hurt.”
Insider spoke to crypto analysts and personal finance experts to determine what a crypto pump-and-dump scam looks like and how investors can better protect themselves.
Scams are often ‘too good to be true’
Most observers of cryptocurrency Instagram, TikTok, and Twitter will already have a sense for what a pump-and-dump scam looks like. Active users and bots promote misinformation about the potential returns of a little-known coin to encourage investment. They then ‘dump’ their holdings once they believe the price has topped out, meaning later investors have to absorb losses.
“It can be easier for crypto investors to fall victim to a pump-and-dump scheme,” Simon Peters, a crypto analyst at financial services firm eToro, said. “Big returns are possible for investors, and many are looking for the next big crypto and chasing extraordinary returns.”
“Those looking for quick wins and who fail to do their research can be susceptible to the spread of misinformation, and encouraged to buy a particular asset they otherwise might not have,” he added.
Other experts agreed that investors should be wary of unknown tokens promising triple-digit returns.
“The chatter on social media platforms and potential for fraud and scams is rising, with so many people desperate to emulate tales of getting rich quick,” said Susannah Streeter, an investment and markets analyst at UK broker Hargreaves Lansdown. “Some of the most financially vulnerable are gambling with money they can’t afford to lose.”
In both the US and the UK, there have been horror stories about retail investors losing their life savings in crypto scams, with one 70-year-old telling the BBC recently he had lost over £250,000 ($350,000). The chief executive of crypto data and software specialists Lukka tells his parents to think carefully about their own risk profile before investing in cryptocurrencies.
“I tell them not to go crazy, buy some safe assets with the majority of their portfolio and just hold them – this is definitely a long strategy,” Robert Materazzi told Insider in a recent interview. “Go dabble with some of the other coins with an amount you’re willing to lose, but count on losing that money if you’re investing in true altcoins.”
Look into the community behind a coin
Crypto experts told Insider investors should take the time to research a coin’s developers before making a decision to get involved.
“If you’re looking for signs I would point to the actual community behind a coin, you can tell what people are there for,” said Mason Nystrom, an analyst at the crypto research firm Messari. “Look at developer metrics, look at actual growth, look at whether people are depositing their capital into a protocol and using it for something specific.”
“Some projects have no clear goals, just want to take consumer capital, and have no interest in returning it,” he added.
eToro’s Peters agreed with Nystrom that investors should investigate the community behind a coin.
“Investors should always look at the credentials of the people behind the project – mainly to understand their experience and if they have been involved in other, similar projects, or are new to the space,” he said. “If the founding members or organization behind the crypto is holding most of the circulating supply, that could also be a reason to be wary.”
Peters pointed to the 2017 initial coin offering craze as a period when many investors poured money into little-known crypto tokens. 78% of ICOs that year ended up being identified as scams, according to the advisory firm Satis Group.
“Many scam projects managed to mislead investors, purely based on a whitepaper and a website,” he said. “There was no real credibility in these projects, yet they managed to convince many to buy.”
Ignore the influencers
Kardashian is just the latest high-profile celebrity to use social media to promote a little-known cryptocurrency. Ethereum Max’s 28,000-follower Twitter account boasts of a collaboration with world champion boxer Tyson Fury, with the British heavyweight reportedly set to be sponsored by the coin in his upcoming title fight against Deontay Wilder.
Ethereum max claim to have collaborated with the heavyweight boxer Tyson Fury.
Photo by MB Media/Getty Images
In April, 17-year-old TikToker Matt Lorion apologized for promoting the Star Wars-themed cryptocurrency Mando to his followers. He said he lost $10,000 in the pump-and-dump scam.
“The developers pretty much scammed everyone, including me,” Lorion said in an apology video. “To make sure that something like this doesn’t happen again, my management team is going to get in contact with every single developer before I promote a cryptocurrency.”
One prominent investing influencer told Insider they receive offers of “thousand of dollars or more” to promote “random cryptocurrencies” on a daily basis.
Experts agreed that one of an investor’s first steps should be to check whether a token is listed on a major exchange such as Coinbase or Binance. Ethereum max, for example, cannot be traded on either platform.
“If the crypto is not listed on a major regulated crypto exchange, that could raise a few question marks, so always proceed with caution,” eToro’s Peters said. “Exchanges and brokers should vet projects before deciding to list them on their respective platforms.”
Right now, the only way that investors can protect themselves in the influencer-driven ‘Wild West’ world of crypto is by asking those questions.
“Speculation is going to continue to be a part of crypto; that’s how you fund ideas that couldn’t otherwise be funded,” Messari’s Nystrom told Insider. “So it’s up to investors to do their due diligence and for the community to self-regulate when it can.

[Read More] […]

Read More…

Regulators in the US and the UK have warned investors about crypto pump-and-dump schemes.
Scammers ‘pump’ prices by spreading misinformation, then ‘dump’ the coin once it reaches a price target.
Crypto and finance experts told Insider how smart investors can protect themselves.

Kim Kardashian seems an unlikely target for investigation by the UK’s financial markets regulator.
But the celebrity and influencer found herself in regulatory hot water last week when she used her instagram account to promote the little-known ethereum max cryptocurrency token – which bears no relation to ether, the native coin of Vitalik Buterin’s Ethereum Foundation.
“I can’t say whether this particular token is a scam,” said Financial Conduct Authority chair Charles Randell, speaking at the Cambridge International Symposium on Economic Crime about Kardashian’s promotion of ethereum max. “But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation.”
“Some influencers promote coins that turn out simply not to exist at all,” he added.

2.3 million Brits have invested in crypto products, according to the FCA, and an estimated 12% incorrectly believe that the regulator offers them financial protection against these scams. Security tokens like bitcoin and ether are currently unregulated in both the UK and the US.
“The concern the FCA has is that many of those 2.3 million Brits don’t understand the risks they’re getting into,” Mark Lewis, a consultant at Macfarlanes LLP specializing in technology regulation, said in a recent interview with Insider.

Kim Kardashian promoted an unknown crypto token to her followers in June. NurPhoto/Getty Images
Regulators across the Atlantic have raised similar concerns about cryptocurrencies. In an August 3 speech, SEC chair Gary Gensler described the unregulated crypto market as the “Wild West.”
“Right now, we just don’t have enough investor protection in crypto,” he told the Aspen Institute. “If we don’t address these issues, I worry a lot of people will be hurt.”
Insider spoke to crypto analysts and personal finance experts to determine what a crypto pump-and-dump scam looks like and how investors can better protect themselves.
Scams are often ‘too good to be true’
Most observers of cryptocurrency Instagram, TikTok, and Twitter will already have a sense for what a pump-and-dump scam looks like. Active users and bots promote misinformation about the potential returns of a little-known coin to encourage investment. They then ‘dump’ their holdings once they believe the price has topped out, meaning later investors have to absorb losses.
“It can be easier for crypto investors to fall victim to a pump-and-dump scheme,” Simon Peters, a crypto analyst at financial services firm eToro, said. “Big returns are possible for investors, and many are looking for the next big crypto and chasing extraordinary returns.” 
“Those looking for quick wins and who fail to do their research can be susceptible to the spread of misinformation, and encouraged to buy a particular asset they otherwise might not have,” he added.

Other experts agreed that investors should be wary of unknown tokens promising triple-digit returns.
“The chatter on social media platforms and potential for fraud and scams is rising, with so many people desperate to emulate tales of getting rich quick,” said Susannah Streeter, an investment and markets analyst at UK broker Hargreaves Lansdown. “Some of the most financially vulnerable are gambling with money they can’t afford to lose.”
In both the US and the UK, there have been horror stories about retail investors losing their life savings in crypto scams, with one 70-year-old telling the BBC recently he had lost over £250,000 ($350,000). The chief executive of crypto data and software specialists Lukka tells his parents to think carefully about their own risk profile before investing in cryptocurrencies.
“I tell them not to go crazy, buy some safe assets with the majority of their portfolio and just hold them – this is definitely a long strategy,” Robert Materazzi told Insider in a recent interview. “Go dabble with some of the other coins with an amount you’re willing to lose, but count on losing that money if you’re investing in true altcoins.”
Look into the community behind a coin
Crypto experts told Insider investors should take the time to research a coin’s developers before making a decision to get involved.
“If you’re looking for signs I would point to the actual community behind a coin, you can tell what people are there for,” said Mason Nystrom, an analyst at the crypto research firm Messari. “Look at developer metrics, look at actual growth, look at whether people are depositing their capital into a protocol and using it for something specific.”
“Some projects have no clear goals, just want to take consumer capital, and have no interest in returning it,” he added.
eToro’s Peters agreed with Nystrom that investors should investigate the community behind a coin.

“Investors should always look at the credentials of the people behind the project – mainly to understand their experience and if they have been involved in other, similar projects, or are new to the space,” he said. “If the founding members or organization behind the crypto is holding most of the circulating supply, that could also be a reason to be wary.”
Peters pointed to the 2017 initial coin offering craze as a period when many investors poured money into little-known crypto tokens. 78% of ICOs that year ended up being identified as scams, according to the advisory firm Satis Group.
“Many scam projects managed to mislead investors, purely based on a whitepaper and a website,” he said. “There was no real credibility in these projects, yet they managed to convince many to buy.”
Ignore the influencers
Kardashian is just the latest high-profile celebrity to use social media to promote a little-known cryptocurrency. Ethereum Max’s 28,000-follower Twitter account boasts of a collaboration with world champion boxer Tyson Fury, with the British heavyweight reportedly set to be sponsored by the coin in his upcoming title fight against Deontay Wilder.

Ethereum max claim to have collaborated with the heavyweight boxer Tyson Fury. Photo by MB Media/Getty Images
In April, 17-year-old TikToker Matt Lorion apologized for promoting the Star Wars-themed cryptocurrency Mando to his followers. He said he lost $10,000 in the pump-and-dump scam.
“The developers pretty much scammed everyone, including me,” Lorion said in an apology video. “To make sure that something like this doesn’t happen again, my management team is going to get in contact with every single developer before I promote a cryptocurrency.”
One prominent investing influencer told Insider they receive offers of “thousand of dollars or more” to promote “random cryptocurrencies” on a daily basis.
Experts agreed that one of an investor’s first steps should be to check whether a token is listed on a major exchange such as Coinbase or Binance. Ethereum max, for example, cannot be traded on either platform.
“If the crypto is not listed on a major regulated crypto exchange, that could raise a few question marks, so always proceed with caution,” eToro’s Peters said. “Exchanges and brokers should vet projects before deciding to list them on their respective platforms.”
Right now, the only way that investors can protect themselves in the influencer-driven ‘Wild West’ world of crypto is by asking those questions.
“Speculation is going to continue to be a part of crypto; that’s how you fund ideas that couldn’t otherwise be funded,” Messari’s Nystrom told Insider. “So it’s up to investors to do their due diligence and for the community to self-regulate when it can.

[Read More] […]

Read More…

In a speech warning against the risks of token regulation, the Chair of the Financial Conduct Authority (FCA), Charles Randell, mentioned Kim Kardashian, who had recently been paid to ask her 250m followers on Instagram to speculate on crypto tokens.
When speaking about the celebrity in his speech, Charles Randell said: “When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by ’joining the Ethereum Max Community‘, it may have been the financial promotion with the single biggest audience reach in history.
“In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.
“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.
“There are no assets or real world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.
“These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.”
Industry reaction
Regarding the speech made by the Chair of the FCA, Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown, commented: ‘’It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.
“The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions. It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.
“The FCA is singing from the same song sheet as many other international regulators. It sees investing in cryptocurrencies as extremely high risk. The watchdog had already been quick to warn investors that they could risk losing all their money if they indulge in cryptocurrency trading. It’s worried that too many financially vulnerable people are being lured into ‘get rich quick’ schemes, with 14% getting into debt to speculate in crypto assets.
“The FCA has now warned that by bringing cryptocurrencies into the regulatory sphere, it risks adding more perceived legitimacy to the currencies.”
El Salvador recently adopted BitCoin as legal tender, demonstrating a recent attempt to legitimatise a cryptocurrency.
“Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world,” continued Susannah. “If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100% of potential losses.
“Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world.
“It’s likely lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar. It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.

[Read More] […]

Read More…

In a speech warning against the risks of token regulation, the Chair of the Financial Conduct Authority (FCA), Charles Randell, mentioned Kim Kardashian, who had recently been paid to ask her 250m followers on Instagram to speculate on crypto tokens.
When speaking about the celebrity in his speech, Charles Randell said: “When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by ’joining the Ethereum Max Community‘, it may have been the financial promotion with the single biggest audience reach in history.
“In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.
“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.
“There are no assets or real world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.
“These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.”
Industry reaction
Regarding the speech made by the Chair of the FCA, Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown, commented: ‘’It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.
“The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions. It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.
“The FCA is singing from the same song sheet as many other international regulators. It sees investing in cryptocurrencies as extremely high risk. The watchdog had already been quick to warn investors that they could risk losing all their money if they indulge in cryptocurrency trading. It’s worried that too many financially vulnerable people are being lured into ‘get rich quick’ schemes, with 14% getting into debt to speculate in crypto assets.
“The FCA has now warned that by bringing cryptocurrencies into the regulatory sphere, it risks adding more perceived legitimacy to the currencies.”
El Salvador recently adopted BitCoin as legal tender, demonstrating a recent attempt to legitimatise a cryptocurrency.
“Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world,” continued Susannah. “If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100% of potential losses.
“Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world.
“It’s likely lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar. It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.

[Read More] […]

Read More…

In a speech warning against the risks of token regulation, the Chair of the Financial Conduct Authority (FCA), Charles Randell, mentioned Kim Kardashian, who had recently been paid to ask her 250m followers on Instagram to speculate on crypto tokens.
When speaking about the celebrity in his speech, Charles Randell said: “When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by ’joining the Ethereum Max Community‘, it may have been the financial promotion with the single biggest audience reach in history.
“In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.
“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.
“There are no assets or real world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.
“These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.”
Industry reaction
Regarding the speech made by the Chair of the FCA, Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown, commented: ‘’It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.
“The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions. It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.
“The FCA is singing from the same song sheet as many other international regulators. It sees investing in cryptocurrencies as extremely high risk. The watchdog had already been quick to warn investors that they could risk losing all their money if they indulge in cryptocurrency trading. It’s worried that too many financially vulnerable people are being lured into ‘get rich quick’ schemes, with 14% getting into debt to speculate in crypto assets.
“The FCA has now warned that by bringing cryptocurrencies into the regulatory sphere, it risks adding more perceived legitimacy to the currencies.”
El Salvador recently adopted BitCoin as legal tender, demonstrating a recent attempt to legitimatise a cryptocurrency.
“Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world,” continued Susannah. “If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100% of potential losses.
“Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world.
“It’s likely lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar. It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.

[Read More] […]

Read More…

In a speech warning against the risks of token regulation, the Chair of the Financial Conduct Authority (FCA), Charles Randell, mentioned Kim Kardashian, who had recently been paid to ask her 250m followers on Instagram to speculate on crypto tokens.
When speaking about the celebrity in his speech, Charles Randell said: “When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by ’joining the Ethereum Max Community‘, it may have been the financial promotion with the single biggest audience reach in history.
“In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.
“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.
“There are no assets or real world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.
“These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.”
Industry reaction
Regarding the speech made by the Chair of the FCA, Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown, commented: ‘’It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.
“The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions. It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.
“The FCA is singing from the same song sheet as many other international regulators. It sees investing in cryptocurrencies as extremely high risk. The watchdog had already been quick to warn investors that they could risk losing all their money if they indulge in cryptocurrency trading. It’s worried that too many financially vulnerable people are being lured into ‘get rich quick’ schemes, with 14% getting into debt to speculate in crypto assets.
“The FCA has now warned that by bringing cryptocurrencies into the regulatory sphere, it risks adding more perceived legitimacy to the currencies.”
El Salvador recently adopted BitCoin as legal tender, demonstrating a recent attempt to legitimatise a cryptocurrency.
“Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world,” continued Susannah. “If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100% of potential losses.
“Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world.
“It’s likely lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar. It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.

[Read More] […]

Read More…

In a speech warning against the risks of token regulation, the Chair of the Financial Conduct Authority (FCA), Charles Randell, mentioned Kim Kardashian, who had recently been paid to ask her 250m followers on Instagram to speculate on crypto tokens.
When speaking about the celebrity in his speech, Charles Randell said: “When she was recently paid to ask her 250 million Instagram followers to speculate on crypto tokens by ’joining the Ethereum Max Community‘, it may have been the financial promotion with the single biggest audience reach in history.
“In line with Instagram’s rules, she disclosed that this was an #AD. But she didn’t have to disclose that Ethereum Max – not to be confused with Ethereum – was a speculative digital token created a month before by unknown developers – one of hundreds of such tokens that fill the crypto-exchanges.
“Of course, I can’t say whether this particular token is a scam. But social media influencers are routinely paid by scammers to help them pump and dump new tokens on the back of pure speculation. Some influencers promote coins that turn out simply not to exist at all.
“There are no assets or real world cashflows underpinning the price of speculative digital tokens, even the better-known ones like Bitcoin, and many cannot even boast a scarcity value.
“These tokens have only been around for a few years, so we haven’t seen what will happen over a full financial cycle. We simply don’t know when or how this story will end, but – as with any new speculation – it may not end well.”
Industry reaction
Regarding the speech made by the Chair of the FCA, Susannah Streeter, Senior Investment and Markets Analyst at Hargreaves Lansdown, commented: ‘’It’s unusual to hear the chair of Britain’s financial watchdog dedicate a big chunk of his speech to superstar reality TV queen Kim Kardashian – but it shows just how concerned the FCA is about the level of financial promotion of crypto assets on social media.
“The watchdog is clearly horrified at the lack of controls implemented by major social media platforms and has urged them to crackdown on posts which aren’t clearly identified as promotions. It reckons given the seriousness of the situation legislation forcing them to do so should be the solution, highlighting that the current Online Harms bill just won’t go far enough.
“The FCA is singing from the same song sheet as many other international regulators. It sees investing in cryptocurrencies as extremely high risk. The watchdog had already been quick to warn investors that they could risk losing all their money if they indulge in cryptocurrency trading. It’s worried that too many financially vulnerable people are being lured into ‘get rich quick’ schemes, with 14% getting into debt to speculate in crypto assets.
“The FCA has now warned that by bringing cryptocurrencies into the regulatory sphere, it risks adding more perceived legitimacy to the currencies.”
El Salvador recently adopted BitCoin as legal tender, demonstrating a recent attempt to legitimatise a cryptocurrency.
“Now it appears to be throwing its weight behind recommendations made by the influential Basel committee which brings together regulators from around the world,” continued Susannah. “If banks and other regulated financial institutions dabble in crypto, the committee is considering making them put aside enough capital to cover 100% of potential losses.
“Giving speculative tokens a high-risk price tag is likely to make cryptocurrency dealing and investment very expensive and could limit the number of new institutional entrants into the crypto world.
“It’s likely lower financial buffers would be needed for stable coins, which are seen as less volatile as they are pegged to currencies like the dollar. It is clear the FCA wants to push the financial industry towards these digital assets, seeing them as a useful way to improve the payments market away from the crypto Wild West.

[Read More] […]

Read More…

[co-author: Lauren Bass]
Alcohol, Athletics, and Art: NFT Adoption Continues to Expand
By Lauren Bass
To celebrate National Rum Day, a privately held liquor label has reportedly launched a platform from which it will auction a specially designed non-fungible token (NFT) – a 3D video that details the history and journey of the label. Sale proceeds will be donated to an initiative that helps Black-owned establishments obtain liquor licenses. In related news, having previously launched several NFTs, an international brewery has reportedly expressed interest in leveraging the NFT market and creating virtual “brand activations”. According to the company’s global head of technology the brewer’s intention is to build more “loyal and engaged communities” through the digital metaverse.
In athletic industry news, a Spanish football club has reportedly become the first European league to mint an NFT of each of its players. According to reports, once purchased, the unique player collection can be used by owners to create and compete in virtual fantasy football tournaments on Sorare, a French fantasy football digital trading platform. In arts and entertainment news, earlier this week a prominent female rapper reportedly launched an exclusive NFT collection on OneOf, a new “green” NFT platform built on the Tezos blockchain and backed by music moguls. According to press releases, the NFTs start at $5, and each purchase includes the chance to win an instant “golden ticket,” which provides the winner access to exclusive concerts and other VIP experiences. A recent fine arts auction of Yuga Labs’ “101 Bored Ape Yacht Club” NFT collection has reportedly generated a $19 million bid. According to reports, the collection also includes a feature that allows the artwork’s characteristics to mutate, thereby increasing the rarity and value of the digital collectible. In other art NFT news, a hacker reportedly posed as the pseudonymous English artist/activist Banksy to auction an NFT titled “Great Redistribution of the Climate Change Disaster” through the street artist’s official website. According to reports, however, once the scam was revealed, the hacker returned the $336,000 in Ethereum that the winning bidder had paid.
For more information, please refer to the following links:

US, UK and Thailand Regulators Warn of Crypto Risks, Act Against Exchange
By Kayley B. Sullivan
In a recent Investor Alert, the U.S. Securities and Exchange Commission (SEC) issued a warning to consumers about the risks associated with digital asset and crypto investment scams. The announcement highlights the “devastating losses” faced by retail investors due to scams that exploit the rising popularity of digital assets. The SEC urged digital asset investors to understand and evaluate risks as well as to look out for warning signs of possible frauds, including “guaranteed” high investment returns, unlicensed or unregistered sellers, investment opportunities sounding “too good to be true,” skyrocketing account values and fake testimonials.
In another warning to cryptocurrency investors, Charles Randell, the chair of the U.K.’s Financial Conduct Authority (FCA), gave a speech this week commenting on cryptocurrency scams and the role of the FCA in combating the associated harm to consumers. Among other things, Randell urged that legislation is needed to address risks in online advertisements for digital financial products. Randell also noted that cryptocurrency regulations should consider how to make it harder for digital tokens to be used for financial crime, how to support useful innovation, and the extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions to do so.
Last, according to a statement on its website, Thailand’s Securities and Exchange Commission (Thai SEC) will ask its Ministry of Finance to revoke the digital asset trading license of Huobi Thailand. The Thai SEC reports that Huobi Thailand has failed to comply with local regulations related to its operations and management structure and to fix such system flaws after they were identified more than five months ago.
For more information, please refer to the following links:

DOJ and SEC Actions Target Crypto Fraud Scheme and Crypto Exchanges
By Veronica Reynolds
According to a press release from the U.S. Department of Justice (DOJ), an Ohio man pled guilty this week to one count of wire fraud for his role in orchestrating a multimillion-dollar cryptocurrency fraud scheme whereby he raised over $30 million from investors under fraudulent claims that the money would be invested in a fund that used a proprietary cryptocurrency trading algorithm. According to the press release, in reality the defendant reported falsified returns while using investor funds to bankroll his lavish lifestyle. The defendant agreed to make restitution of at least $30,667,738.79; agreed to forfeiture of $36,268,515; and faces a potential maximum prison sentence of 20 years.
The U.S. Securities and Exchange Commission (SEC) filed a complaint this week alleging that between July and September 2017, two men, using a Cayman Islands-registered company, conducted an unlawful unregistered securities offering through a token offering, primarily to raise funds for the company. The defendants allegedly raised funds from over 7,200 investors worldwide, with over 30% of the investors residing in the U.S. The SEC alleged that the “RvT tokens” at the time of sale, could not be used to purchase any products or services. According to a press release, the SEC alleged that the “offers and sales of RvT, which raised the equivalent of $18 million in digital assets from investors, were not registered with the SEC and did not qualify for any exemption from registration.”
According to reports, the SEC has been looking into the marketing and business activities of two large cryptocurrency exchanges in recent weeks. In one instance, the SEC is reportedly investigating the world’s largest decentralized exchange, which facilitates swaps between Ethereum-based coins and other tokens. In another instance, the SEC has reportedly issued a Wells notice to one of the largest centralized cryptocurrency exchanges in the U.S. related to the exchange’s planned cryptocurrency lending program. According to a blog post, as a result, the exchange will delay the launch of the program.

[Read More] […]

Read More…

[co-author: Lauren Bass]
Alcohol, Athletics, and Art: NFT Adoption Continues to Expand
By Lauren Bass
To celebrate National Rum Day, a privately held liquor label has reportedly launched a platform from which it will auction a specially designed non-fungible token (NFT) – a 3D video that details the history and journey of the label. Sale proceeds will be donated to an initiative that helps Black-owned establishments obtain liquor licenses. In related news, having previously launched several NFTs, an international brewery has reportedly expressed interest in leveraging the NFT market and creating virtual “brand activations”. According to the company’s global head of technology the brewer’s intention is to build more “loyal and engaged communities” through the digital metaverse.
In athletic industry news, a Spanish football club has reportedly become the first European league to mint an NFT of each of its players. According to reports, once purchased, the unique player collection can be used by owners to create and compete in virtual fantasy football tournaments on Sorare, a French fantasy football digital trading platform. In arts and entertainment news, earlier this week a prominent female rapper reportedly launched an exclusive NFT collection on OneOf, a new “green” NFT platform built on the Tezos blockchain and backed by music moguls. According to press releases, the NFTs start at $5, and each purchase includes the chance to win an instant “golden ticket,” which provides the winner access to exclusive concerts and other VIP experiences. A recent fine arts auction of Yuga Labs’ “101 Bored Ape Yacht Club” NFT collection has reportedly generated a $19 million bid. According to reports, the collection also includes a feature that allows the artwork’s characteristics to mutate, thereby increasing the rarity and value of the digital collectible. In other art NFT news, a hacker reportedly posed as the pseudonymous English artist/activist Banksy to auction an NFT titled “Great Redistribution of the Climate Change Disaster” through the street artist’s official website. According to reports, however, once the scam was revealed, the hacker returned the $336,000 in Ethereum that the winning bidder had paid.
For more information, please refer to the following links:

US, UK and Thailand Regulators Warn of Crypto Risks, Act Against Exchange
By Kayley B. Sullivan
In a recent Investor Alert, the U.S. Securities and Exchange Commission (SEC) issued a warning to consumers about the risks associated with digital asset and crypto investment scams. The announcement highlights the “devastating losses” faced by retail investors due to scams that exploit the rising popularity of digital assets. The SEC urged digital asset investors to understand and evaluate risks as well as to look out for warning signs of possible frauds, including “guaranteed” high investment returns, unlicensed or unregistered sellers, investment opportunities sounding “too good to be true,” skyrocketing account values and fake testimonials.
In another warning to cryptocurrency investors, Charles Randell, the chair of the U.K.’s Financial Conduct Authority (FCA), gave a speech this week commenting on cryptocurrency scams and the role of the FCA in combating the associated harm to consumers. Among other things, Randell urged that legislation is needed to address risks in online advertisements for digital financial products. Randell also noted that cryptocurrency regulations should consider how to make it harder for digital tokens to be used for financial crime, how to support useful innovation, and the extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions to do so.
Last, according to a statement on its website, Thailand’s Securities and Exchange Commission (Thai SEC) will ask its Ministry of Finance to revoke the digital asset trading license of Huobi Thailand. The Thai SEC reports that Huobi Thailand has failed to comply with local regulations related to its operations and management structure and to fix such system flaws after they were identified more than five months ago.
For more information, please refer to the following links:

DOJ and SEC Actions Target Crypto Fraud Scheme and Crypto Exchanges
By Veronica Reynolds
According to a press release from the U.S. Department of Justice (DOJ), an Ohio man pled guilty this week to one count of wire fraud for his role in orchestrating a multimillion-dollar cryptocurrency fraud scheme whereby he raised over $30 million from investors under fraudulent claims that the money would be invested in a fund that used a proprietary cryptocurrency trading algorithm. According to the press release, in reality the defendant reported falsified returns while using investor funds to bankroll his lavish lifestyle. The defendant agreed to make restitution of at least $30,667,738.79; agreed to forfeiture of $36,268,515; and faces a potential maximum prison sentence of 20 years.
The U.S. Securities and Exchange Commission (SEC) filed a complaint this week alleging that between July and September 2017, two men, using a Cayman Islands-registered company, conducted an unlawful unregistered securities offering through a token offering, primarily to raise funds for the company. The defendants allegedly raised funds from over 7,200 investors worldwide, with over 30% of the investors residing in the U.S. The SEC alleged that the “RvT tokens” at the time of sale, could not be used to purchase any products or services. According to a press release, the SEC alleged that the “offers and sales of RvT, which raised the equivalent of $18 million in digital assets from investors, were not registered with the SEC and did not qualify for any exemption from registration.”
According to reports, the SEC has been looking into the marketing and business activities of two large cryptocurrency exchanges in recent weeks. In one instance, the SEC is reportedly investigating the world’s largest decentralized exchange, which facilitates swaps between Ethereum-based coins and other tokens. In another instance, the SEC has reportedly issued a Wells notice to one of the largest centralized cryptocurrency exchanges in the U.S. related to the exchange’s planned cryptocurrency lending program. According to a blog post, as a result, the exchange will delay the launch of the program.

[Read More] […]

Read More…

[co-author: Lauren Bass]
Alcohol, Athletics, and Art: NFT Adoption Continues to Expand
By Lauren Bass
To celebrate National Rum Day, a privately held liquor label has reportedly launched a platform from which it will auction a specially designed non-fungible token (NFT) – a 3D video that details the history and journey of the label. Sale proceeds will be donated to an initiative that helps Black-owned establishments obtain liquor licenses. In related news, having previously launched several NFTs, an international brewery has reportedly expressed interest in leveraging the NFT market and creating virtual “brand activations”. According to the company’s global head of technology the brewer’s intention is to build more “loyal and engaged communities” through the digital metaverse.
In athletic industry news, a Spanish football club has reportedly become the first European league to mint an NFT of each of its players. According to reports, once purchased, the unique player collection can be used by owners to create and compete in virtual fantasy football tournaments on Sorare, a French fantasy football digital trading platform. In arts and entertainment news, earlier this week a prominent female rapper reportedly launched an exclusive NFT collection on OneOf, a new “green” NFT platform built on the Tezos blockchain and backed by music moguls. According to press releases, the NFTs start at $5, and each purchase includes the chance to win an instant “golden ticket,” which provides the winner access to exclusive concerts and other VIP experiences. A recent fine arts auction of Yuga Labs’ “101 Bored Ape Yacht Club” NFT collection has reportedly generated a $19 million bid. According to reports, the collection also includes a feature that allows the artwork’s characteristics to mutate, thereby increasing the rarity and value of the digital collectible. In other art NFT news, a hacker reportedly posed as the pseudonymous English artist/activist Banksy to auction an NFT titled “Great Redistribution of the Climate Change Disaster” through the street artist’s official website. According to reports, however, once the scam was revealed, the hacker returned the $336,000 in Ethereum that the winning bidder had paid.
For more information, please refer to the following links:

US, UK and Thailand Regulators Warn of Crypto Risks, Act Against Exchange
By Kayley B. Sullivan
In a recent Investor Alert, the U.S. Securities and Exchange Commission (SEC) issued a warning to consumers about the risks associated with digital asset and crypto investment scams. The announcement highlights the “devastating losses” faced by retail investors due to scams that exploit the rising popularity of digital assets. The SEC urged digital asset investors to understand and evaluate risks as well as to look out for warning signs of possible frauds, including “guaranteed” high investment returns, unlicensed or unregistered sellers, investment opportunities sounding “too good to be true,” skyrocketing account values and fake testimonials.
In another warning to cryptocurrency investors, Charles Randell, the chair of the U.K.’s Financial Conduct Authority (FCA), gave a speech this week commenting on cryptocurrency scams and the role of the FCA in combating the associated harm to consumers. Among other things, Randell urged that legislation is needed to address risks in online advertisements for digital financial products. Randell also noted that cryptocurrency regulations should consider how to make it harder for digital tokens to be used for financial crime, how to support useful innovation, and the extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions to do so.
Last, according to a statement on its website, Thailand’s Securities and Exchange Commission (Thai SEC) will ask its Ministry of Finance to revoke the digital asset trading license of Huobi Thailand. The Thai SEC reports that Huobi Thailand has failed to comply with local regulations related to its operations and management structure and to fix such system flaws after they were identified more than five months ago.
For more information, please refer to the following links:

DOJ and SEC Actions Target Crypto Fraud Scheme and Crypto Exchanges
By Veronica Reynolds
According to a press release from the U.S. Department of Justice (DOJ), an Ohio man pled guilty this week to one count of wire fraud for his role in orchestrating a multimillion-dollar cryptocurrency fraud scheme whereby he raised over $30 million from investors under fraudulent claims that the money would be invested in a fund that used a proprietary cryptocurrency trading algorithm. According to the press release, in reality the defendant reported falsified returns while using investor funds to bankroll his lavish lifestyle. The defendant agreed to make restitution of at least $30,667,738.79; agreed to forfeiture of $36,268,515; and faces a potential maximum prison sentence of 20 years.
The U.S. Securities and Exchange Commission (SEC) filed a complaint this week alleging that between July and September 2017, two men, using a Cayman Islands-registered company, conducted an unlawful unregistered securities offering through a token offering, primarily to raise funds for the company. The defendants allegedly raised funds from over 7,200 investors worldwide, with over 30% of the investors residing in the U.S. The SEC alleged that the “RvT tokens” at the time of sale, could not be used to purchase any products or services. According to a press release, the SEC alleged that the “offers and sales of RvT, which raised the equivalent of $18 million in digital assets from investors, were not registered with the SEC and did not qualify for any exemption from registration.”
According to reports, the SEC has been looking into the marketing and business activities of two large cryptocurrency exchanges in recent weeks. In one instance, the SEC is reportedly investigating the world’s largest decentralized exchange, which facilitates swaps between Ethereum-based coins and other tokens. In another instance, the SEC has reportedly issued a Wells notice to one of the largest centralized cryptocurrency exchanges in the U.S. related to the exchange’s planned cryptocurrency lending program. According to a blog post, as a result, the exchange will delay the launch of the program.

[Read More] […]

Read More…

[co-author: Lauren Bass]
Alcohol, Athletics, and Art: NFT Adoption Continues to Expand
By Lauren Bass
To celebrate National Rum Day, a privately held liquor label has reportedly launched a platform from which it will auction a specially designed non-fungible token (NFT) – a 3D video that details the history and journey of the label. Sale proceeds will be donated to an initiative that helps Black-owned establishments obtain liquor licenses. In related news, having previously launched several NFTs, an international brewery has reportedly expressed interest in leveraging the NFT market and creating virtual “brand activations”. According to the company’s global head of technology the brewer’s intention is to build more “loyal and engaged communities” through the digital metaverse.
In athletic industry news, a Spanish football club has reportedly become the first European league to mint an NFT of each of its players. According to reports, once purchased, the unique player collection can be used by owners to create and compete in virtual fantasy football tournaments on Sorare, a French fantasy football digital trading platform. In arts and entertainment news, earlier this week a prominent female rapper reportedly launched an exclusive NFT collection on OneOf, a new “green” NFT platform built on the Tezos blockchain and backed by music moguls. According to press releases, the NFTs start at $5, and each purchase includes the chance to win an instant “golden ticket,” which provides the winner access to exclusive concerts and other VIP experiences. A recent fine arts auction of Yuga Labs’ “101 Bored Ape Yacht Club” NFT collection has reportedly generated a $19 million bid. According to reports, the collection also includes a feature that allows the artwork’s characteristics to mutate, thereby increasing the rarity and value of the digital collectible. In other art NFT news, a hacker reportedly posed as the pseudonymous English artist/activist Banksy to auction an NFT titled “Great Redistribution of the Climate Change Disaster” through the street artist’s official website. According to reports, however, once the scam was revealed, the hacker returned the $336,000 in Ethereum that the winning bidder had paid.
For more information, please refer to the following links:

US, UK and Thailand Regulators Warn of Crypto Risks, Act Against Exchange
By Kayley B. Sullivan
In a recent Investor Alert, the U.S. Securities and Exchange Commission (SEC) issued a warning to consumers about the risks associated with digital asset and crypto investment scams. The announcement highlights the “devastating losses” faced by retail investors due to scams that exploit the rising popularity of digital assets. The SEC urged digital asset investors to understand and evaluate risks as well as to look out for warning signs of possible frauds, including “guaranteed” high investment returns, unlicensed or unregistered sellers, investment opportunities sounding “too good to be true,” skyrocketing account values and fake testimonials.
In another warning to cryptocurrency investors, Charles Randell, the chair of the U.K.’s Financial Conduct Authority (FCA), gave a speech this week commenting on cryptocurrency scams and the role of the FCA in combating the associated harm to consumers. Among other things, Randell urged that legislation is needed to address risks in online advertisements for digital financial products. Randell also noted that cryptocurrency regulations should consider how to make it harder for digital tokens to be used for financial crime, how to support useful innovation, and the extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions to do so.
Last, according to a statement on its website, Thailand’s Securities and Exchange Commission (Thai SEC) will ask its Ministry of Finance to revoke the digital asset trading license of Huobi Thailand. The Thai SEC reports that Huobi Thailand has failed to comply with local regulations related to its operations and management structure and to fix such system flaws after they were identified more than five months ago.
For more information, please refer to the following links:

DOJ and SEC Actions Target Crypto Fraud Scheme and Crypto Exchanges
By Veronica Reynolds
According to a press release from the U.S. Department of Justice (DOJ), an Ohio man pled guilty this week to one count of wire fraud for his role in orchestrating a multimillion-dollar cryptocurrency fraud scheme whereby he raised over $30 million from investors under fraudulent claims that the money would be invested in a fund that used a proprietary cryptocurrency trading algorithm. According to the press release, in reality the defendant reported falsified returns while using investor funds to bankroll his lavish lifestyle. The defendant agreed to make restitution of at least $30,667,738.79; agreed to forfeiture of $36,268,515; and faces a potential maximum prison sentence of 20 years.
The U.S. Securities and Exchange Commission (SEC) filed a complaint this week alleging that between July and September 2017, two men, using a Cayman Islands-registered company, conducted an unlawful unregistered securities offering through a token offering, primarily to raise funds for the company. The defendants allegedly raised funds from over 7,200 investors worldwide, with over 30% of the investors residing in the U.S. The SEC alleged that the “RvT tokens” at the time of sale, could not be used to purchase any products or services. According to a press release, the SEC alleged that the “offers and sales of RvT, which raised the equivalent of $18 million in digital assets from investors, were not registered with the SEC and did not qualify for any exemption from registration.”
According to reports, the SEC has been looking into the marketing and business activities of two large cryptocurrency exchanges in recent weeks. In one instance, the SEC is reportedly investigating the world’s largest decentralized exchange, which facilitates swaps between Ethereum-based coins and other tokens. In another instance, the SEC has reportedly issued a Wells notice to one of the largest centralized cryptocurrency exchanges in the U.S. related to the exchange’s planned cryptocurrency lending program. According to a blog post, as a result, the exchange will delay the launch of the program.

[Read More] […]

Read More…

[co-author: Lauren Bass]
Alcohol, Athletics, and Art: NFT Adoption Continues to Expand
By Lauren Bass
To celebrate National Rum Day, a privately held liquor label has reportedly launched a platform from which it will auction a specially designed non-fungible token (NFT) – a 3D video that details the history and journey of the label. Sale proceeds will be donated to an initiative that helps Black-owned establishments obtain liquor licenses. In related news, having previously launched several NFTs, an international brewery has reportedly expressed interest in leveraging the NFT market and creating virtual “brand activations”. According to the company’s global head of technology the brewer’s intention is to build more “loyal and engaged communities” through the digital metaverse.
In athletic industry news, a Spanish football club has reportedly become the first European league to mint an NFT of each of its players. According to reports, once purchased, the unique player collection can be used by owners to create and compete in virtual fantasy football tournaments on Sorare, a French fantasy football digital trading platform. In arts and entertainment news, earlier this week a prominent female rapper reportedly launched an exclusive NFT collection on OneOf, a new “green” NFT platform built on the Tezos blockchain and backed by music moguls. According to press releases, the NFTs start at $5, and each purchase includes the chance to win an instant “golden ticket,” which provides the winner access to exclusive concerts and other VIP experiences. A recent fine arts auction of Yuga Labs’ “101 Bored Ape Yacht Club” NFT collection has reportedly generated a $19 million bid. According to reports, the collection also includes a feature that allows the artwork’s characteristics to mutate, thereby increasing the rarity and value of the digital collectible. In other art NFT news, a hacker reportedly posed as the pseudonymous English artist/activist Banksy to auction an NFT titled “Great Redistribution of the Climate Change Disaster” through the street artist’s official website. According to reports, however, once the scam was revealed, the hacker returned the $336,000 in Ethereum that the winning bidder had paid.
For more information, please refer to the following links:

US, UK and Thailand Regulators Warn of Crypto Risks, Act Against Exchange
By Kayley B. Sullivan
In a recent Investor Alert, the U.S. Securities and Exchange Commission (SEC) issued a warning to consumers about the risks associated with digital asset and crypto investment scams. The announcement highlights the “devastating losses” faced by retail investors due to scams that exploit the rising popularity of digital assets. The SEC urged digital asset investors to understand and evaluate risks as well as to look out for warning signs of possible frauds, including “guaranteed” high investment returns, unlicensed or unregistered sellers, investment opportunities sounding “too good to be true,” skyrocketing account values and fake testimonials.
In another warning to cryptocurrency investors, Charles Randell, the chair of the U.K.’s Financial Conduct Authority (FCA), gave a speech this week commenting on cryptocurrency scams and the role of the FCA in combating the associated harm to consumers. Among other things, Randell urged that legislation is needed to address risks in online advertisements for digital financial products. Randell also noted that cryptocurrency regulations should consider how to make it harder for digital tokens to be used for financial crime, how to support useful innovation, and the extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions to do so.
Last, according to a statement on its website, Thailand’s Securities and Exchange Commission (Thai SEC) will ask its Ministry of Finance to revoke the digital asset trading license of Huobi Thailand. The Thai SEC reports that Huobi Thailand has failed to comply with local regulations related to its operations and management structure and to fix such system flaws after they were identified more than five months ago.
For more information, please refer to the following links:

DOJ and SEC Actions Target Crypto Fraud Scheme and Crypto Exchanges
By Veronica Reynolds
According to a press release from the U.S. Department of Justice (DOJ), an Ohio man pled guilty this week to one count of wire fraud for his role in orchestrating a multimillion-dollar cryptocurrency fraud scheme whereby he raised over $30 million from investors under fraudulent claims that the money would be invested in a fund that used a proprietary cryptocurrency trading algorithm. According to the press release, in reality the defendant reported falsified returns while using investor funds to bankroll his lavish lifestyle. The defendant agreed to make restitution of at least $30,667,738.79; agreed to forfeiture of $36,268,515; and faces a potential maximum prison sentence of 20 years.
The U.S. Securities and Exchange Commission (SEC) filed a complaint this week alleging that between July and September 2017, two men, using a Cayman Islands-registered company, conducted an unlawful unregistered securities offering through a token offering, primarily to raise funds for the company. The defendants allegedly raised funds from over 7,200 investors worldwide, with over 30% of the investors residing in the U.S. The SEC alleged that the “RvT tokens” at the time of sale, could not be used to purchase any products or services. According to a press release, the SEC alleged that the “offers and sales of RvT, which raised the equivalent of $18 million in digital assets from investors, were not registered with the SEC and did not qualify for any exemption from registration.”
According to reports, the SEC has been looking into the marketing and business activities of two large cryptocurrency exchanges in recent weeks. In one instance, the SEC is reportedly investigating the world’s largest decentralized exchange, which facilitates swaps between Ethereum-based coins and other tokens. In another instance, the SEC has reportedly issued a Wells notice to one of the largest centralized cryptocurrency exchanges in the U.S. related to the exchange’s planned cryptocurrency lending program. According to a blog post, as a result, the exchange will delay the launch of the program.

[Read More] […]

Read More…