Schlagwort: crypto news

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SEC charges fund adviser Galois Capital over crypto custody failures

  • The SEC has charged investment adviser Galois Capital with crypto custody violations, including holding of investor assets on FTX.
  • Galois Capital has settled with the regulator and will pay $225,000 in civil penalty.

The US Securities and Exchange Commission has charged Florida-based investment adviser Galois Capital Management LLC over the company’s failure to properly custody client assets.

In an announcement on September 3, the SEC said the Galois Capital had failed to comply with crypto custody requirements and had violated the Advisers Act, including holding cryptocurrencies with the collapsed crypto exchange FTX. As a result, nearly half of the assets under management of a hedge fund Galois advised were lost when FTX imploded.

Galois Capital also misled investors

The SEC also notes that the firm misled its investors on redemption practices – particularly on “the notice period required for redemptions.”

“By failing to comply with Custody Rule provisions, Galois Capital exposed investors to risks that fund assets, including crypto assets, could be lost, misused, or misappropriated,” Corey Schuster, co-chief of the SEC Enforcement Division’s Asset Management Unit, said.

According to the SEC, Galois agreed to a settlement with the regulator and will pay $225,000 in civil penalties. The fine will be distributed to investors harmed during the collapse.

“Without admitting or denying the SEC’s findings, Galois Capital consented to the entry of an order requiring it to cease and desist from further violations of the Advisers Act, censuring it, and imposing the civil penalty,” the SEC wrote.

The SEC has in recent weeks charged Abra with offering unregistered securities and two brothers in relation to a $60 million Ponzi scheme.

NFT marketplace OpenSea also received a Wells Notice from the regulator.

The post SEC charges fund adviser Galois Capital over crypto custody failures appeared first on CoinJournal.

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Donald Trump unveils plan to make USA the ‘crypto capital of the planet’

  • Donald Trump aims to make the US the “crypto capital of the planet” if elected.
  • His sons’ World Liberty Financial may involve real-world assets and tokenization.
  • Trump has promised a Bitcoin reserve and to replace SEC chair Gary Gensler.

In a bold move that could reshape the landscape of digital assets in the United States, former President Donald Trump has announced his intention to establish the US as the “crypto capital of the planet” if elected.

Trump’s announcement has ignited curiosity and speculation, particularly regarding the World Liberty Financial initiative spearheaded by his sons, Donald Trump Jr. and Eric Trump.

Though details of the World Liberty Financial project remain sparse, early rumours suggest that it may involve real-world assets and tokenization. The initiative’s official Telegram channel, which boasts over 53,000 subscribers, has cautioned crypto enthusiasts to remain vigilant against scams and imitation projects.

Trump’s embrace of cryptocurrency marks a significant shift from traditional political rhetoric. During a May gala, he first presented himself as a champion of the crypto industry, a stance he continued to reinforce at the July Bitcoin 2024 conference. There, he promised to create a strategic Bitcoin reserve and to replace Gary Gensler, the current Securities and Exchange Commission chair, a move likely to resonate with crypto advocates.

Amid fluctuating political odds between Donald Trump and Democratic candidate Kamala Harris, the former president’s crypto policies have garnered attention.

Additionally, a Bitcoin bill introduced by Republican Senator Cynthia Lummis from Wyoming has gained traction, aligning with Trump’s vision by proposing a strategic reserve of Bitcoin backed by gold certificates for a two-decade hold.

As the crypto landscape continues to evolve, Trump’s ambitious plans signal a potential shift in US policy that could influence the future of digital assets and blockchain technology especially if Donald Trump were to be re-elected.

The post Donald Trump unveils plan to make USA the ‘crypto capital of the planet’ appeared first on CoinJournal.

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OpenSea gets Wells Notice from SEC

  • The US Securities and Exchange Commission has issued a Wells Notice to OpenSea, the largest NFT marketplace.
  • OpenSea co-founder Devin Finzer says the NFT platform will fight the SEC’s lawsuit

OpenSea said in a blog post on Aug. 28 that the SEC’s Wells Notice indicates the regulator – widely criticised for is regulation by enforcement action in the crypto space, is considering a lawsuit against the NFT platform.

The SEC’s lawsuit against OpenSea will join a host of others, including against Uniswap, Robinhood and the crypto exchanges Kraken, Binance and Coinbase. SEC also charged Abra this week for its Earn program.

SEC into uncharted waters, OpenSea says

While the SEC has in recent months ramped regulatory crackdown on cryptocurrencies, OpenSea says the potential lawsuit against it over allegations of “collectibles, digital art, game items” being securities is a new low.

“By targeting NFTs, the SEC is diving into new, uncharted waters, with potentially harmful consequences for consumers, creators, and entrepreneurs alike,” OpenSea wrote in a blog post.

Devin Finzer, the co-founder and CEO of OpenSea, shared a similar reaction via X. According to Finzer, the SEC’s move is shocking. However, the platform is prepared to “stand up and fight.”

OpenSea also asserts that non-fungible tokens are fundamentally creative goods. As digital art or collectibles cannot be regulated in the same way as collateralized debt obligations.

“In addition to standing our own ground, we’re pledging $5M to help cover legal fees for NFT creators and devs that receive a Wells notice. Every creator, big or small, should be able to innovate without fear,” Finzer said.

The post OpenSea gets Wells Notice from SEC appeared first on CoinJournal.

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Argentina’s Ministry of Education adds Ethereum to high school curriculum

  • Buenos Aires high schools will start offering blockchain internships on August 27.
  • ETH Kipu will train 500 students in Solidity and prepare 30 instructors.
  • Argentina’s high inflation drives strong local engagement with digital assets.

In a groundbreaking move to advance blockchain education, Argentina’s Ministry of Education has partnered with ETH Kipu to introduce Ethereum and blockchain technology into the high school curriculum in Buenos Aires.

Starting August 27, high schools across the city will offer blockchain internships, providing students with invaluable hands-on experience in this rapidly evolving field.

Spurring blockchain adoption in Argentina

The collaboration with ETH Kipu, a prominent organization dedicated to Ethereum education in Latin America, marks a significant step in integrating cutting-edge technology into secondary education.

The program will include a specialized online Solidity course, designed to train 500 students in the intricacies of decentralized application (DApp) development.

Solidity, a high-level programming language used to create smart contracts on the Ethereum blockchain, has gained prominence in various networks, including the BNB Smart Chain and Avalanche.

ETH Kipu aims to equip students with the skills necessary to thrive in the blockchain sector, while also preparing 30 instructors to deliver comprehensive Ethereum and blockchain training.

According to Paula Doy, co-founder of ETH Kipu, this initiative not only introduces students to advanced technology but also opens new career opportunities, positioning Argentina at the forefront of the global blockchain movement.

Argentina’s soaring inflation driving crypto adoption

The Ministry of Education initiative comes against the backdrop of Argentina’s soaring inflation rate, which has driven significant local engagement with digital assets.

With an annual inflation rate of 276%, many Argentinians are turning to cryptocurrencies like Tether (USDT) to safeguard their assets.

Recently Forbes analysts reported that Argentina leads the Western Hemisphere in crypto adoption, with substantial activity on major platforms like Binance.

ETH Kipu’s partnership with Buenos Aires is a promising development, reflecting the country’s commitment to fostering technological innovation and preparing its youth for the future of digital finance.

The post Argentina’s Ministry of Education adds Ethereum to high school curriculum appeared first on CoinJournal.

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Judge denies Kraken motion to dismiss SEC lawsuit

  • US District Judge William H. Orrick has ruled that the US Securities and Exchange Commission has a plausible case against crypto exchange Kraken.
  • According to the judge, the SEC’s lawsuit against Kraken will proceed.

The US Securities and Exchange Commission’s lawsuit against crypto exchange will proceed, a judge has ruled.

On Friday, August 23, 2024, US District Judge William Orrick denied Kraken’s motion to dismiss SEC’s lawsuit. In court documents filed on Friday, the judge noted that the regulator’s allegations that the crypto exchange had offered unregistered securities were plausible.

“Kraken does not deny it never registered with the agency, but says that it does not need to because the transactions it enables on its platform do not involve securities and do not fall within the SEC’s regulatory purview. But the SEC has plausibly alleged that at least some of the cryptocurrency  transactions that Kraken facilitates on its network constitute investment contracts, and therefore securities, and are accordingly subject to securities laws,” Judge Orrick wrote in the ruling.

Solana among alleged unregistered securities

In its lawsuit against Kraken, the SEC listed 11 cryptocurrencies it said were sold as investment contracts. These are Cardano (ADA), Algorand (ALGO), Cosmos Hub (ATOM), Filecoin (FIL), Flow (FLOW), and Internet Computer (ICP).

Others are Decentraland (MANA), Polygon (MATIC), Near (NEAR), OMG Network (OMG) and Solana (SOL).

The judge’s opinion, delivered as part of the ruling, is that “all the SEC must do is plausibly allege that at least one of these crypto assets is being traded as an investment contract to make its claims feasible.”

SEC has sued multiple crypto exchanges, including Binance and Coinbase. The regulator filed its lawsuit against Kraken in November 2023.

The post Judge denies Kraken motion to dismiss SEC lawsuit appeared first on CoinJournal.