The White House has rehired Carole House, who helped develop President Joe Biden’s Executive Order on Ensuring Responsible Development of Digital Assets, as Special Advisor for Cybersecurity and Critical Infrastructure Policy at the National Security Council. Previously, House worked at the U.S. Treasury’s Financial Crimes Enforcement Network (FinCEN), leading efforts on cybersecurity and virtual currency […]
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Nigerian Presidential Adviser Assails Binance, Calls for Measures Against the Crypto Exchange
Bayo Onanuga, a special adviser to the Nigerian president, has leveled accusations against Binance, blaming it for exacerbating the local currency’s depreciation against major currencies. Onanuga called for immediate action against Binance, warning that its activities could potentially undermine the economy. Binance, however, has refuted these allegations, attributing the naira’s depreciation to “complex factors” that […]
Bitcoin News
New Zealand Police Seize Residential Property and Cash Owned by Fugitive Former Luxembourg Spy and Onecoin Adviser
A residential property in Wellington, New Zealand and more than 2,000 belonging to an adviser of Onecoin mastermind Ruja Ignatova was recently seized by the police. Detective Inspector Christiaan Barnard said his organization has no reason to believe that Onecoin masterminds are hiding in New Zealand.
Property Purchased by Third Party
The police in New Zealand have reportedly seized a residential property and more than 2,000 in cash, both of which allegedly belonged to Frank Schneider, the fugitive adviser to the Onecoin mastermind Ruja Ignatova. According to the police, the seized assets might be proceeds of a global Ponzi scheme.
A report in The Post states that Schneider, a Luxembourg national, may have purchased the residential property through a third party. The money used to buy the property is thought to have been sent to the unnamed individual sometime between 2018 and 2020.
After his arrest by the French police in April 2021, Schneider reportedly spent seven months in prison before being released under house arrest. In August, while awaiting his extradition to the U.S., where he faced the prospect of 40 years in jail, he reportedly claimed in a podcast that he would not get a fair trial in that country.
Schneider cited the cost of litigation as well as the so-called plea bargain system commonly employed by U.S. prosecutors. However, just a year after vowing to fight his extradition, Schneider disappeared even though he was wearing an ankle tag.
Onecoin Masterminds Are Not Hiding in New Zealand
Meanwhile, in his remarks following the New Zealand police’s seizure of the assets, Detective Inspector Christiaan Barnard, said:
The New Zealand Police will continue to work with our international partners to ensure that New Zealand’s financial system is not abused to hide illicit income.
The detective inspector added that his organization has no reason to believe that Onecoin masterminds are hiding in New Zealand. According to the report, the New Zealand police are now seeking to forfeit the seized assets.
What are your thoughts on this story? Let us know what you think in the comments section below.
SEC Charges Crypto Investment Adviser for Publishing Misleading ‘Hypothetical Performance Projections’
The U.S. Securities and Exchange Commission (SEC) has charged Titan Global Capital Management for publishing misleading “hypothetical performance projections” regarding its crypto investment product. Titan Global is also accused of violating the marketing rule when it advertised hypothetical performance metrics without taking the required steps.
Improper Use of Hedge Clauses
The U.S. Securities and Exchange Commission (SEC) said on Aug. 21 that it had charged a New York-based fintech investment adviser, Titan Global Capital Management, for publishing misleading information regarding its crypto investment product. In a statement, the securities regulator revealed that Titan Global has also been charged “with multiple compliance failures” which culminated in the release of “misleading disclosures about custody of clients’ crypto assets.”
According to the SEC, the same compliance failures are also believed to have led to the use of improper “hedge clauses” in client agreements. They also resulted in the illegal use of client signatures and “the failure to adopt policies concerning crypto asset trading by employees.”
Meanwhile, in its order, the U.S. securities regulator highlighted its concerns with the investment adviser’s misleading advertisements.
“The order alleges that Titan’s advertisements were misleading because they failed to include material information, for example, that the hypothetical performance projections assumed that the strategy’s performance in its first three weeks would continue for an entire year,” the SEC said.
A Warning to Investment Advisers
In addition, Titan Global is also accused of violating the marketing rule by advertising hypothetical performance metrics without taking the required steps. The SEC said the fintech adviser’s alleged violations were committed between Aug. 2021 and October 2022.
Commenting on the SEC’s decision against the fintech investment adviser, Osman Nawaz, the Chief of Enforcement’s Complex Financial Instruments Unit, said:
Titan’s advertisements and disclosures painted a misleading picture of certain of its strategies for investors. This action serves as a warning for all advisers to ensure compliance.
The Commission also revealed that Titan Global had cooperated with the investigation and consented to the entry of an SEC order. Titan Global subsequently agreed to a cease-and-desist order, a disgorgement fee of 2,454, and a civil penalty of 0,000 which will be distributed to affected clients.
What are your thoughts on this story? Let us know what you think in the comments section below.
De-Dollarization: China, Brazil Can Be Instrumental in Building Less Centralized World With No Hegemony, Says Lula’s Adviser
Brazil’s President Luiz Inacio Lula da Silva’s chief adviser on foreign policy, Celso Amorim, says China and Brazil “are coming closer together” and they could play important roles in building a less centralized world with no hegemony. Commenting on de-dollarization, he stressed: “I think it’s very important that we are free from the dominance of one single currency because sometimes it is used politically.”
Brazil, China ‘Coming Closer Together’
Brazilian President Luiz Inacio Lula da Silva’s senior foreign policy adviser, Celso Amorim, discussed de-dollarization on Friday in an interview with the Chinese government-owned Global Times. Amorim previously served as Brazil’s Minister of Foreign Affairs, Minister of Defence, and ambassador to the United Kingdom. He was appointed as Chief Advisor to the president of Brazil by Lula in January.
Amorim explained the importance of Lula’s visit to China where the Brazilian president met with Chinese President Xi Jinping. It was the first visit Lula made outside the American continent after assuming office on Jan. 1. The former Minister of Foreign Affairs said:
Brazil and China are coming closer together.
China and Brazil have agreed to conduct trade in their respective currencies, rather than using the U.S. dollar. Additionally, both countries are part of the BRICS group that is reportedly working to create a new form of currency that will further shift them away from USD reliance. The BRICS countries consist of Brazil, Russia, India, China, and South Africa.
De-Dollarization
Regarding de-dollarization, Amorim opined: “I think it’s natural that we can do our own trade in our own currencies … It’s only natural because the dollar has become dominant after WWII; before it was the English pound … So now, if we can work with a basket of currencies and use our own currencies to a large extent, that’s the best thing.”
While admitting that it is “not yet totally clear” whether the BRICS nations will adopt a common currency or maintain their respective national currencies, the Brazilian president’s adviser stressed:
But I think it’s very important that we are free from the dominance of one single currency, because sometimes it is used politically.
A number of people have warned that the U.S. dollar may lose its status as the world’s reserve currency due to the government weaponizing it. Economist Jim Rickards, for example, said the Treasury Department is the USD’s biggest threat because it has “weaponized the dollar” and “frozen the reserves of the Central Bank of Russia.” Investment manager Larry Lepard predicted that the USD could lose most of its value in five years. Economist Nouriel Roubini said the global reserve currency system is shifting from unipolar to bipolar with the Chinese yuan as an alternative to the U.S. dollar.
Creating Multipolar World With Less Centralized Power, No Hegemony
The foreign policy adviser to Lula also told the Chinese news outlet that the Brazilian president’s visit to China is an expansion of an already existing strategic partnership between the two countries. “China is our most important trading partner by far. Brazil is becoming one of the places in which China invests more,” he said, emphasizing:
But not only that, I think the two countries can also have an important role in building a more multipolar world, in which power is less centralized and there is no hegemony. I think this is a very important aspect in which China and Brazil can play important roles.
Amorim further stressed that Brazil is eager to enhance its strategic cooperation with China, noting that he believes Lula’s visit will elevate the relations between Brazil and China to a new level. The Brazilian president’s adviser also urged developing countries to cooperate more closely. President Lula recently called on developing nations to dump the U.S. dollar as the world’s reserve currency.
Do you think the U.S. dollar is at risk of losing its status as the world’s reserve currency? Let us know in the comments section below.
Crypto Comeback: Chief Economic Adviser Optimistic Over Renewed Risk-On Tone
When the pandemic first struck, crypto investors feverishly began reducing overall risk across their asset portfolio.
This sentiment has since changed, and with it the has the tone of a chief economic advisor who previously told investors to “buckle” up, and prepare for the worst. The increase in risk-on interest may help the high-risk asset class of cryptocurrencies stage a long-overdue comeback.
Chief Economic Adviser Optimistic Over Return Of Risk-On Tone
Fearing the unknown and uncertain about the future impact lockdown conditions would have on the economy, an investor mad dash to sell anything and everything resulted in a liquidity crisis now known as Black Thursday.
The massive selloff crushed the stock market and even precious metals gold, silver, palladium and more. The continued economic constraints also fueled a severe drop into negative territory in the oil market.
Related Reading | Mark Cuban’s ,000 Trickle Up Stimulus Could Provide Boost For Crypto
High risk, illiquid crypto assets like Bitcoin, Ethereum, and many others, were decimated in the collapse. Chainlink flash crashed to nearly zero in the madness.
But the economy is now reopening, the curve is flattening, and investors are once again taking on risk, according to Mohamed El-Erian, chief economic adviser at Allianz.
Citing “good news across the board,” the economist says he is now seeing positive, “risk-on tone, which we haven’t had really for quite a while.”
Though he warns the economic recovery will not be a “smooth process” there is “big hope” that the return to risk-on sentiment is sustainable. This is a far more an optimistic outlook than the tone El-Erian took previously, warning investors to “buckle our seat belts.”
Crypto Comeback Possible If Risk Appetite Sustains
The return to risk will see stocks continue to rise, but potentially cryptocurrencies to surge.
After over two years of a downtrend, these assets are oversold and had been midway through making a recovery from low prices when Black Thursday struck.
The crypto asset class has recently come into the spotlight with institutional investors due to their hard-capped, digitally scarce supplies. Assets with limited supply can act as a hedge against inflation as the Fed adds trillions to its budget sheet.
Related Reading | Stimulus Checked: Here’s The ROI on a ,200 Investment in Top Crypto Assets
That stimulus effort also may be helping to boost crypto assets. Investors with stimulus money to burn are risking what they perceive to be free money handed to them from the government. Putting it at risk may seem less risky overall, compared to wagering one’s own hard-earned funds.
Coinbase data shows that purchases of crypto in the exact amount of what stimulus checks were issued had increased following their beginning to reach taxpayers.
Whatever is fueling the risk-on tone, it could cause a full-blown crypto comeback.
NewsBTC
Adviser to President of Russia Proposes Digital Currency in Crimea
n An adviser to the president of Russia has proposed to adopt a digital currency in Crimea to attract investors and avoid sanctionsn
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UK Member of Parliament Joins Crypto Exchange as Adviser, Quits Four Days Later
One of the U.K.’s Conservative Party members has both joined and left an advisory role at a cryptocurrency exchange platform in the last week.
Stephen Hammond, MP, stated that his position at the IronX digital asset trading venue might be seen as a conflict of interest.
IronX Promotes Risks Hammond Has Previously Warned About
According to a report in the Financial Times’s Alphaville column, Conservative MP Stephen Hammond started working for a digital currency exchange platform last week. However, today it emerged he lasted just four days in the position before announcing his intentions to quit.
The role Hammond had taken was described on the IronX website as advising “on government relations.” For this, the MP would be paid in the platform’s native token, IRX. For just two or three days work each quarter, he would be awarded 50,000 IRX – today valued at around £16,000.
It seems curious that Hammond would take such a role in the first place. The Conservative MP has a place on the Treasury Committee, which has been investigating cryptocurrency and blockchain technology for a while now. In a recent report, the committee warned of the dangers posed to retail investors taking up positions in cryptocurrency – something that IronX, as an exchange platform, seeks to encourage explicitly. The report reads:
“On account of their volatility alone, crypto-assets are especially risky, particularly for inexperienced retail investors.”
The Treasury Committee also warned about the dangers of ICO fundraising methods. Such a token sale is also part of the IronX business model:
“Crypto assets and ICOs are extremely risky, and the Committee agrees with the FCA that investors should be prepared to lose all their money.”
When asked for comment on his decision to both join and leave the startup within the space of a week, Hammond stated that he initially believed he was well-suited for the role since he had experience in both politics and cryptocurrency.
After mulling the idea properly, however, the MP noticed that there could be a conflict of interest between his role in government and that at IronX:
“… crypto is going to be increasingly going to be a major part of the financial world and therefore it may well affect a number of Treasury Select Committee inquiries, and potentially therefore that might cause a greater conflict than I had first hoped it might.”
Unsurprisingly, when grilled about the IronX’s goals being at odds with the Treasury Committee’s reports on the space, Hammond did not provide comment.
Featured image from Shutterstock.
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Former Trump Economic Adviser Joins Blockchain Startup Spring Labs
One of President Trump’s previous economic advisers has joined Spring Labs. Gary Cohn is the latest former Wall Streeter to take up a position within the ever-expanding blockchain industry.
Cohn Joins Steven Hunt and Christine Sandler in Moving to the Blockchain Industry
Yet another blockchain-related company has managed to poach talent from Wall Street.
Spring Labs is a startup that currently employs 20 members of staff and is hoping to disrupt the credit and identification sectors. The company’s latest hire is Gary Cohn. According to a report in the Financial Times, Cohn had the following to say about the “unique opportunity” presented by Spring Labs’s and the firm’s goals:
“[It’s] an obvious place to take a very, very analogue industry and digitise it.”
The chairman and CEO of Spring Labs, Adam Jiwan, also spoke about the firm’s hopes for the future. He stated that the blockchain-based platform would allow data to be shared between various parties. Blockchain technology would help facilitate this in a secure and anonymous fashion. Finally, he opined that Spring Labs might “ultimately… replace the credit bureaus you see today”.
Cohn once served as an economic adviser to President Trump. He was a crucial contributor to the tax reform package passed at the end of 2017.
However, he voluntarily left the position earlier this year owing to a disagreement over steel and aluminium tariffs. Before taking his position at the Whitehouse, the 58-year-old also served as president of Goldman Sachs.
Cohn’s interest in blockchain began whilst he was still working for Trump. He reportedly looked at a number of companies working in the space during his time at the White House.
However, his belief in blockchain technology should not be construed as an endorsement of cryptocurrencies in general. He clearly distanced himself from such a position to the Financial Times, before going on to state how blockchain technology can benefit various industries:
“We all know all the inefficiencies of the existing currency world and blockchain clearly helps to eliminate them at some point in the future.”
Cohn is the latest in a rapidly expanding list of former Wall Street names to join either cryptocurrency or blockchain firms. The likes of Steven Hunt, of Jump Trading, joined Kraken virtual currency exchange in May of this year. Meanwhile, Coinbase were able to poach Christine Sandler, the former head of sales for the New York Stock Exchange Euronext desk.
Other big names from the world of traditional finance and economics to join the blockchain revolution include a number of Nobel Prize winners. The list of laureates serving as advisers for ICOs and blockchain startups features the likes of Alvin Roth, Oliver Hart, and Eric Maskin.
Featured image from Shutterstock.
The post Former Trump Economic Adviser Joins Blockchain Startup Spring Labs appeared first on NewsBTC.
Ex-Trump Adviser Bannon Says Cryptocurrency Will Bring ‘True Freedom’
Steve Bannon, the former White House strategist and right-wing firebrand, is now touting the liberating potential of cryptocurrency and blockchain.
CoinDesk