Compliance | FinTelegram News

Category: Compliance

September 10, 2024

UK FCA Charges First Individual for Operating Illegal Crypto ATM Network for Money Laundering!

The UK Financial Conduct Authority (FCA) has charged London-based Olumide Osunkoya with running an illegal crypto ATM network, marking the first case of its kind in the UK. As crypto ATMs are increasingly used for money laundering, the FCA's crackdown on unregistered operators underscores the need for strict regulatory compliance. The ATM scheme allegedly processed £2.6 million in crypto transactions.

September 9, 2024

U.S. Regulator SEC Charges Seven Public Companies for Violating Whistleblower Protection Rules!

The U.S. Securities and Exchange Commission (SEC) charged seven public U.S. companies with using agreements that restricted employees from reporting securities law violations, resulting in over $3 million in penalties. The SEC takes strict action against organizations and individuals who seek to contractually restrict whistleblowers' rights. The regulator needs insiders to disclose financial wrongdoing and compliance violations.

September 8, 2024

Compliance Report: Sergey Mendeleev, Garantex, and Exved – The Rising Role of Crypto in Russia’s Sanctions Evasion Strategy

Sergey Mendeleev, a prominent figure in Russia's cryptocurrency scene, has played a central role in the establishment and operation of two key platforms—Garantex and Exved. These platforms have been instrumental in facilitating cross-border payments and crypto transactions, potentially serving as important tools for Russia’s sanctions evasion strategy. Mendeleev's growing influence in this space, coupled with Russia's evolving regulatory framework, positions him as a key player in Russia.

September 8, 2024

Russia’s New Crypto Strategy for Sanctions Evasion

Russia’s new crypto laws, allowing mining and international payments in digital currencies, are part of a broader strategy to evade Western sanctions and reduce dependence on the U.S. dollar. This move, led by the Central Bank of Russia (CBR), opens up new compliance risks for global financial institutions dealing with Russian entities. The new laws are set to take effect in September for cross-border payments and in November for crypto mining.

September 7, 2024

U.S. Regulator CFTC Lost Court Case Against Kalshi Legal Battle Over Election Bets!

KalshiEx is a U.S.-based prediction market platform that sought to offer trading in derivatives contracts based on the outcomes of Congressional elections, which the CFTC prohibited. KalshiEx challenged the regulator's decision in court and won, opening the door for election-based derivatives markets in the U.S. However, the CFTC is seeking a temporary stay.

September 4, 2024

SEC and Bankrupt Crypto Exchange FTX in Dispute Over Repayment Plan

Bankrupt cryptocurrency exchange FTX has proposed a plan to repay its creditors using U.S. dollar-pegged stablecoins, aiming to distribute between $14.5 billion to $16.3 billion—about $5.3 billion more than the initial owed amount. However, the U.S. Securities and Exchange Commission (SEC) may oppose this plan and has indicated it reserves the right to challenge the proposed transactions, Benzinga reports.

September 4, 2024

SEC Charges Galois Capital for Custody Failures and Misleading Investors

The U.S. Securities and Exchange Commission (SEC) has announced that it has settled charges against Florida-based Galois Capital Management LLC, a former registered investment adviser for a private fund focused on crypto assets. Galois Capital was charged with failing to comply with regulations concerning safeguarding client assets, including crypto assets considered securities.

September 3, 2024

⚠️ WARNING: Do Not Fall For The Pay Back Fund Recovery Scam ⚠️

The UK Financial Conduct Authority (FCA) has issued a renewed warning against Pay Back, a/k/a Money Back fund recovery scheme. This scheme, which operates out of Israel, has been blacklisted by FinTelegram due to its deceptive practices. Despite posing as a legitimate recovery service, Pay Back has been exploiting scam victims by promising to recover their lost funds for an upfront fee.

September 3, 2024

🚨 WARNING: Fake Regulator Alert – FINAEU! 🚨

FinTelegram has uncovered yet another fake regulator—FINAEU. This fraudulent entity falsely claims to be an independent public supervisory authority overseeing the investment services market and other financial sectors in Europe, including crypto-asset services. On their website, fin-eu.com, they even boast about licensing over 85 brokers. However, this is completely false!

August 31, 2024

U.S. DOJ Launches New Corporate Whistleblower Program to Tackle Corporate Crime!

While financial regulators around the world have relied on whistleblower systems for many years to obtain inside information about financial wrongdoing and regulatory violations, the U.S. Department of Justice (DOJ) has only recently implemented a corporate whistleblower program that also pays for tips. This is to help the world's most influential law enforcement agency to act more effectively against corporate crime.

August 30, 2024

Nigerian Fintech Ex-CEO Dozy Mmobuosi Fined $32 Million in SEC Fraud Case!

Nigerian businessman Dozy Mmobuosi, the former CEO of Tingo Group, has been fined nearly $32 million by a New York federal judge in connection with a U.S. Securities and Exchange Commission (SEC) fraud lawsuit. Mmobuosi and his companies were accused of inflating the financial performance of his companies, including fabricating financial statements and misrepresenting assets. Mmobuosi did not defend against the SEC allegations.

August 30, 2024

CFTC Awards Over $4 Million to Insider Whistleblower for Exposing Misconduct

Whistleblowers are invaluable to regulators in monitoring the markets. Recently, the U.S. Securities and Exchange Commission (SEC) has paid $122 million in rewards to whistleblowers. This makes the $4 million awarded by the U.S. Commodity Futures Trading Commission (CFTC) to a whistleblower look almost modest by comparison. The CFTC has awarded an insider whistleblower whose information led to an investigation into ongoing misconduct.

Paxum Bank: The Offshore Bank for the Porn Industry!

Paxum Bank, an offshore financial institution based in Dominica, has found itself at the center of controversy due to its connections with high-risk industries and recent revelations about its relationship with the embattled Tate brothers. Specializing in serving the adult entertainment sector, the bank has become a key player in providing financial services to businesses often shunned by traditional banks. However, this niche focus has also drawn scrutiny from regulators and investigators.

Tate Brothers Case: The Misogynist Influencers Used Offshore Accounts to Launder Proceeds from Sexual Exploitation!

New evidence suggests that the influencer Andrew Tate and his brother Tristan Tate used offshore accounts, including Paxum Bank, to conceal profits from their controversial webcam business. The Tates are facing serious charges, including human trafficking and money laundering. This case highlights the need for robust AML/KYC practices, particularly for payment processors in high-risk sectors like adult entertainment.

UK FCA Charges First Individual for Operating Illegal Crypto ATM Network for Money Laundering!

Public-Listed Crypto Exchange Coinbase Has to Face Shareholder Lawsuit Over SEC Risks!

U.S. crypto exchange Coinbase must face a shareholder lawsuit accusing it of downplaying regulatory risks, specifically the chances of being sued by the SEC. While a U.S. judge dismissed parts of the case, the key allegation of misrepresenting regulatory risks will proceed. This case underscores the importance of transparency in the crypto sector, where regulatory uncertainties continue to loom large, particularly in the U.S.