The American Securities Association (ASA) filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) on Thursday for failing to comply with the Freedom of Information Act (FOIA). The ASA seeks to compel the SEC to disclose records related to its “recordkeeping sweep initiative” that imposed penalties on broker-dealers for retaining off-channel communications, such […]
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Robert Kiyosaki Predicts ‘End of the American Empire’ Similar to Roman Collapse
Rich Dad Poor Dad author Robert Kiyosaki has cautioned about the impending downfall of the American empire, drawing parallels to the decline of the Roman Empire. “The Roman Empire ended in the same way with massive gladiators entertaining chubby Romans while their bankers debased their currency to pay soldiers and bills,” he said, adding that […]
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SEC Charges American Bitcoin Academy Founder With Fraud That Cost Students $1.2 Million
The U.S. Securities and Exchange Commission (SEC) has charged the founder of American Bitcoin Academy, accusing him of running an online fraudulent crypto scheme that cost students .2 million. The defendant “falsely claimed that his investment strategies would be guided by his own ‘artificial intelligence’ and ‘machine learning’ technology which, like the fund itself, never existed.”
SEC Charges Founder of Online Crypto Fraud
The U.S. Securities and Exchange Commission (SEC) announced Friday that it has charged the founder of American Bitcoin Academy “with fraud targeting students.” Brian Sewell and his company, Rockwell Capital Management, agreed to settle fraud charges in connection with a scheme, the regulator said, adding:
The SEC alleges that the fraudulent scheme cost 15 students .2 million.
The SEC alleges that, between early 2018 and mid-2019, Sewell encouraged hundreds of his online students to invest in the Rockwell Fund, a hedge fund he promised to launch. He claimed the fund would use advanced technologies like AI and crypto-asset trading strategies to generate returns for investors.
The securities watchdog further alleges that Sewell, who formerly resided in Utah before moving to Puerto Rico, received .2 million from 15 students for the Rockwell Fund. However, he never launched the fund or implemented the promised trading strategies. Instead, he held onto the invested money in bitcoin, which he claimed was stolen when his digital wallet was hacked.
Gurbir S. Grewal, Director of the SEC’s Division of Enforcement, commented: “We allege that Sewell defrauded students in his online American Bitcoin Academy of over a million dollars through a series of lies about investment opportunities in his purported crypto hedge fund.” The SEC official stressed:
Among other things, he falsely claimed that his investment strategies would be guided by his own ‘artificial intelligence’ and ‘machine learning’ technology which, like the fund itself, never existed.
The SEC’s complaint charges the defendants with violating antifraud provisions of the federal securities laws. The defendants have agreed to settle the charges and have consented to injunctive relief without admitting or denying the allegations in the complaint. “Defendant Rockwell Capital Management also agreed to pay disgorgement and prejudgment interest totaling ,602,089 and Defendant Sewell agreed to a civil penalty of 3,229. The settlement is subject to court approval,” the SEC detailed.
What do you think about the SEC charging the founder of American Bitcoin Academy? Let us know in the comments section below.
Ripple CEO Blasts Gary Gensler as ‘Political Liability’ — Says New SEC Chair Will Be Good for the American People
The CEO of Ripple, Brad Garlinghouse, has slammed the chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, as a “political liability.” Emphasizing that Gensler is not acting in the interests of the people or the long-term growth of the economy, the Ripple executive said: “I think at some point there will be a new chair of the SEC, and I think that will be a good thing for the American people.”
Garlinghouse Calls SEC Chair a ‘Political Liability’
Ripple CEO Brad Garlinghouse directed strong criticism towards U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler in Davos on Tuesday. Calling Gensler a “political liability” due to his approach to the crypto industry, Garlinghouse said:
I do think the chair of the SEC, Gary Gensler, is a political liability in the United States. And I think he’s not acting in the interests of the citizenry, he’s not acting in the interests of the long-term growth of the economy, and I don’t understand it.
“I think at some point there will be a new chair of the SEC, and I think that will be a good thing for the American people,” the Ripple executive opined.
Despite approving 11 spot bitcoin ETFs last week, SEC Chair Gary Gensler clarified that this does not constitute an endorsement of bitcoin. He reiterated his warnings about the risks associated with crypto investments. Furthermore, Gensler sees an irony in the approval, noting that it has led to the centralization of what’s supposed to be a decentralized system.
The SEC’s legal journey in the cryptocurrency space was fraught with challenges last year. After filing a lawsuit against Ripple, Garlinghouse, and Chris Larsen in December 2020, the agency faced a partial victory for Ripple from Judge Analisa Torres. The SEC’s attempt to appeal was rejected, and the agency later dropped the charges against Garlinghouse and Larsen. Further, the regulator lost a court case against Grayscale Investments as the asset manager attempted to convert its bitcoin trust (GBTC) into a spot bitcoin ETF.
Garlinghouse further said on Tuesday: “One of the definitions of insanity is doing the same thing over and over again and expecting a different outcome.” The Ripple executive opined:
I think Gary Gensler is doing the same thing over and over again, and he thinks that somehow he’s going to win in court. He has continued to lose in court.
Crypto investors and lawmakers are increasingly critical of Gensler’s regulatory approach. There is currently a bill introduced in Congress by Rep. Warren Davidson (R-OH) seeking to remove Gensler as the chairman of the SEC.
What do you think about the statements by Ripple CEO Brad Garlinghousea about SEC Chair Gary Gensler? Let us know in the comments section below.
American Investment Bank TD Cowen Says Ethereum ETF Will Be Delayed
Despite the United States Securities and Exchange Commission (SEC) granting approval for Spot Bitcoin ETFs, TD Cowen, a prominent American investment bank and financial service firm, foresees potential delays in the approval process of Ethereum Spot ETFs.
Ethereum Spot ETF Faces Potential Hold-Up
TD Cowen, an investment bank and financial service division of TD Securities has made a bold forecast, predicting that the US SEC is unlikely to approve Ethereum Spot ETFs before its deadline. Presently, the SEC is obligated to make its final decision on its rejection or acceptance of Ethereum Spot ETF from May 23 to August 7, 2024.
Earlier on January 10, the SEC officially approved Spot Bitcoin ETFs, triggering expectations that ETH Spot ETFs would follow suit. Several major firms including Ark 21 Shares, VanEck, Fidelity, BlackRock, and Hashdex have submitted applications for a Spot Ethereum ETF. Additionally, the regulatory agency has fixed a new deadline for Grayscale’s Ethereum Spot ETF to January 25.
TD Cowen’s predictions align with the SEC’s typical cautionary approach towards cryptocurrency-related investment products. The investment bank has disclosed that the regulator may delay ETH Spot ETFs until it accumulates sufficient knowledge and experience from its previously approved Bitcoin Spot ETFs. The bank estimates that while the delay may not take as long as 26 months, it is likely to persist beyond the upcoming elections.
Similarly, Scott Melker, a crypto investor on X (formerly Twitter) has highlighted the possibility of the SEC hesitating to approve Ethereum Spot ETFs. Melker predicted that the SEC would be reluctant to approve Ethereum ETFs without external legal pressures similar to those observed during the approval process of Spot Bitcoin ETFs.
“Gary Gensler isn’t going to entertain an Ethereum Spot ETF unless the courts force it on him. I very seriously doubt we will see one anytime soon, but would love to be proven wrong,” Melker stated.
Class Before Approval
JP Morgan, an American multinational financial service firm has introduced another layer of complexity in the approval process of Ethereum Spot ETFs. Managing Director at JP Morgan, Nikolaos Panigirtzoglou stated that there was a 50% chance of the US SEC approving these Spot ETFs by its May deadline.
Panigirtzoglou revealed that the SEC would need to classify ETH as a commodity, similar to Bitcoin before it can officially grant authorization for Spot Ethereum ETFs.
In contrast, Bloomberg senior analyst, Eric Balchunas is more optimistic on Ethereum Spot ETF approvals. The analyst has disclosed a 70% chance of the SEC approving ETH Spot ETFs. Balchunas said previously that he could not imagine a scenario where the SEC would approve Spot Bitcoin ETFs and reject Ethereum Spot Bitcoin ETFs.
Binance’s American VIPs: A Revealing Look at High-Net-Worth Influence Amid DOJ Settlement
On Tuesday, charges against crypto exchange titan Binance Holdings Limited were revealed by the U.S. Department of Justice (DOJ), which reached a significant .316 billion settlement with the world’s largest crypto exchange for noncompliance with anti-money laundering (AML) laws. Despite Binance’s 2019 claims to bar U.S. users, prosecutors asserted the firm persisted in providing market access to elite, VIP American patrons, who supplied roughly “one-third” of company trading revenue.
The Whales of Binance Decoded in DOJ Court Filing
Shockwaves continue rippling through the crypto sphere following the seismic DOJ, U.S. Treasury and Commodity Futures Trading Commission (CFTC) .3 billion settlement with Binance over allegations of knowingly shirking registration as a money services business. As alleged within the unsealed court documents, Binance and ex-CEO Changpeng Zhao (CZ) violated AML laws and the Bank Secrecy Act among other agency regulations.
The charges also highlighted Binance’s practice of maintaining a steady stream of very important people (VIPs) from the U.S., even after claiming to no longer serve U.S. customers following the establishment of Binance US. The unsealed document delved into Binance’s VIP clientele, revealing that high-net-worth individuals had contributed significantly to the exchange’s revenue.
“Although Binance announced it would block U.S. users and establish a separate exchange that would serve the U.S. market, Binance retained a substantial portion of its user base on Binance.com, with a particular focus on U.S.-based VIPs, including trading firms that made markets on Binance.com,” the court filing details.
11,000 VIP Whales Accounted for 70% of Binance’s Revenue in 2019
Per the court documents originally sealed on November 14, 2023, upon learning the formidable roster of 3,500 American VIP users in June 2019, CZ was briefed that 11,000 whale clients represented 70% of Binance’s trading volume, with U.S. VIPs comprising “about one-third” of this highly-lucrative bracket. By June 25th, CZ and three Binance brass began sketching strategies to clandestinely retain U.S.-based VIP users through direct phone communication.
An unnamed informant mentioned in the court filing revealed that Binance executives labeled American patrons “miscategorized,” with an internal “VIP handling” guidebook coaching employee management of these elite spenders. For example, this document reportedly demanded that privileged users open accounts sans any “U.S. documentation,” to ensure the confidentiality of the user. By 2020, the DOJ said that Binance still had a substantial amount of U.S.-based clientele but these customers were referred to as “unknown.”
In August 2021, Binance publicly explained that all users complied with know-your-customer (KYC) regulations, but the DOJ said that a higher tier of customers who did not submit KYC documentation were grandfathered until May 2022. During that time, the DOJ claims that Binance did not “systematically monitor transactions” on the platform. While none of the VIPs or market makers were mentioned in the court document, the filing gives a glimpse at how much power and impact crypto whales have in the industry.
What do you think about the details about Binance’s VIP customers? Share your thoughts and opinions about this subject in the comments section below.
American Economist Jeffrey Sachs Heralds End of Dollar Hegemony: ‘Central Bank Digital Currencies Will Become the Basis of Payments’
Jeffrey Sachs, an American economist and best-selling author, has stated that the end of the dollar’s hegemony is near and that central bank digital currencies (CBDCs) will become the basis of cross-border settlements. For Sachs, the abuse of the U.S. dollar as a geopolitical weapon is one of the factors that will contribute to its demise in the coming decade.
Sachs Predicts Dollar Hegemony’s End in Next Decade
Jeffrey Sachs, an American economist, professor at the University of Columbia, and best-selling author, has issued his opinion about the end of the dollar’s status as the dominant world currency. In statements given at the 20th annual meeting of the Valdai Discussion Club, a Moscow-based think tank, Sachs explained that the end of U.S. dollar hegemony might happen in the next decade due to the misguided use the country has given to its currency, which is currently the standard for cross-border settlements.
Sachs stated:
The epoch of the international financial system dominated by the dollar is drawing to an end, and this will happen in the next decade.
Furthermore, Sachs stressed that this process is ongoing, with the economy of the U.S. only accounting for 15% of the world’s production after producing 30% of the world’s goods after World War II.
Sachs had talked about this before, stating that the decline in dollar hegemony was a consequence of its weaponization against nations like Russia, Venezuela, and Iran. According to Sachs, the U.S. “became reliant on using the financial system for the sake of achieving geopolitical goals.”
Rise of CBDCs
Sachs detailed that this percentage will continue to decrease as other countries continue to outgrow the U.S. in the future. Nonetheless, for Sachs, none of the standard currencies available today will become a successor of the dollar.
On this, Sachs declared:
Central bank digital currencies will become the basis of payments.
Central bank digital currencies (CBDCs) are central bank-issued digital equivalents of today’s fiat currencies that offer a set of incentives for issuers, like better cross-border payment services, increased traceability, and enhanced control. According to a Bank for International Settlements (BIS) survey published in July, 24 central banks will have implemented their CBDCs by 2030 to improve their settlement capabilities.
Furthermore, according to the Atlantic Council, a U.S.-based think tank, 130 countries representing 98% of the global gross domestic product (GDP), are exploring a CBDC.
What do you think about Jeffrey Sachs’ thoughts on the future of the U.S. dollar and its possible replacements? Tell us in the comments section below.
American Bankers Association States a CBDC Is ‘Unnecessary’ and Presents ‘Unacceptable Risks’ to the US Financial System
The American Bankers Association (ABA), an organization that represents banks custodying trillion in deposits and processing trillion in loans, believes that issuing a central bank digital currency (CBDC) in the U.S. is “unnecessary” and would introduce “unacceptable risks” to the financial system, given that the dollar “is already digital.”
ABA Opposes Idea of U.S. CBDC
The American Bankers Association (ABA) has criticized the proposal of issuing a central bank digital currency (CBDC) in the U.S., stating that it would introduce disturbances to the banking system. In a prepared statement directed to the U.S. House Financial Services Committee, the ABA emphasized that introducing a digital dollar would be “unnecessary” and presents “unacceptable risks and costs to the financial system.”
For the ABA, the U.S. dollar is already digital, and is supported by a wide array of payment systems, including debit and credit cards, Zelle, ACH, wire, RTP, Paypal, Venmo, Cashapp, and other fintech apps that facilitate the movement of dollars inside and outside the U.S.
Even on the institutional side, the ABA explains that Fednow, the financial institution-focused payment system, allows wholesale transactions 24 hours a day without needing a new tool. However, the association states that banks are researching the implementation of distributed ledger tools for payments, but without the need or involvement of a CBDC.
The ABA comments that a CBDC would debilitate the role that banks serve in the U.S. financial system, constituting an “advantaged competitor to retail bank deposits,” as these would migrate to the Federal Reserve, limiting or eliminating the ability for banks to issue credit.
Wholesale CBDC
Nonetheless, the ABA accepts that another kind of CBDC, not directed to be used by the general public, might warrant further evaluation. Wholesale CBDCs, which would be used just for transacting between financial institutions and the Federal Reserve, could be used by the financial system in various ways.
A pilot for this use case, in which payments between financial institutions were settled using a wholesale CBDC, was carried out by the New York Federal Reserve Innovation Center with the involvement of BNY Mellon, Citi, HSBC, Mastercard, PNC Bank, TD Bank, Truist, U.S. Bank, and Wells Fargo. A results report issued in July revealed that the wholesale CBDC system “could operate successfully as a payment system on a new technology platform.”
What do you think about the position of the American Bankers Association on issuing a digital dollar? Tell us in the comments section below.
50 US Lawmakers Reintroduce ‘CBDC Anti-Surveillance State Act’ to Protect ‘the American Way of Life’
Fifty U.S. lawmakers have reintroduced the CBDC Anti-Surveillance State Act to prohibit the Federal Reserve from issuing a retail central bank digital currency “while protecting innovation and any future development of true digital cash.” Congressman Tom Emmer stressed: “President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC. I don’t believe in compromising Americans’ rights.”
CBDC Anti-Surveillance State Act Updated, Reintroduced
U.S. Congressman Tom Emmer (R-MN) announced Tuesday that he and 49 other lawmakers have reintroduced the CBDC Anti-Surveillance State Act “to halt the efforts of unelected bureaucrats in Washington, D.C. from issuing a central bank digital currency (CBDC) that dismantles Americans’ right to financial privacy.”
Rep. Emmer posted on social media platform X: “Today, with 49 of my Republican colleagues, I reintroduced the CBDC Anti-Surveillance State Act.” The congressman explained:
If not designed to emulate cash, a government digital currency would dismantle Americans’ right to financial privacy & embolden the Administrative State. I won’t let that happen.
“My updated bill prohibits the Fed from issuing a retail CBDC while protecting innovation and any future development of true digital cash,” Emmer clarified. “This bill puts a check on unelected bureaucrats and ensures the U.S. digital currency policy upholds our American values of privacy, individual sovereignty, and free-market competitiveness.”
Majority Whip Emmer first introduced the bill to address central bank digital currency concerns in January 2022. The bill is now co-sponsored by Emmer’s Republican colleagues, including Representatives French Hill (R-AR), Warren Davidson (R-OH), Byron Donalds (R-FL), Pete Sessions (R-TX), Young Kim (R-CA), William Timmons (R-SC), Ralph Norman (R-SC), Barry Loudermilk (R-GA), Bryan Steil (R-WI), Scott Fitzgerald (R-WI), Mike Flood (R-NE), Bill Posey (R-FL), Mike Lawler (R-NY), Andy Ogles (R-TN), and Ann Wagner (R-MO).
Rep. Emmer stressed:
The administration has made it clear: President Biden is willing to compromise the American people’s right to financial privacy for a surveillance-style CBDC. I don’t believe in compromising Americans’ rights.
“Bottom Line: If not open, permissionless, and private — like cash — a CBDC is nothing more than a CCP-style surveillance tool that can be weaponized to oppress the American way of life,” the lawmaker concluded, adding that the House Financial Services Committee will consider his bill this month.
What do you think about Rep. Tom Emmer’s CBDC Anti-Surveillance State Act? Let us know in the comments section below.
Former UN Security Council President Kishore Mahbubani: ‘The American Century Is Over’
Kishore Mahbubani, the former president of the United Nations Security Council, stated China will dominate this century. Mahbubani declared that the so-called “containment policy” against China would fail, leaving the U.S. isolated from other nations due to its military approach to the “contest” between the countries. He also detailed that China, India, and ASEAN (the Association of Southeast Asian Nations) will become the “growth engines” of the world economy.
Kishore Mahbubani: ‘This 21st Century Will Be the Asian Century’
China and other Asian countries will dominate the 21st century, according to Singaporean diplomat Kishore Mahbubani. Mahbutani, who served as President of the United Nations Security Council from January 2001 unit May 2002, believes that a bloc he calls CIA (integrated by China, India, and the ASEAN countries) will become the faster-growing economy in the world in the next decade.
The diplomat detailed that the U.S. is trying to suppress this information by spreading negative news about the state of the Asian economies, ignoring its growth over the last 20 years. In an interview with Global Times, Mahbubani stated:
They always keep telling you stories – why Asia is failing; why China’s economic growth is over; why the Asians will keep fighting each other. They’ll only give you negative stories about Asia.
Mahbubani explained that several countries understand this upcoming new world order, including the Global South and some European countries. However, there is resistance in the U.S. to acknowledging this fact.
The U.S. would like to believe that the 20th century was the American century, the 21st century should also be the American century, but that’s very unrealistic. The American century is over, and the Asian century is coming.
(Not) Containing the Dragon
For Mahbubani, the battlefield of the 21st century will be based on economic growth instead of on the military might of each country. This is why he points out the recent military expansion of the U.S. in the Middle East as a mistake, as the “contest” between these two countries will be solved in the economic arena.
In the same way, Mahbubani perceives the so-called “containment policy” on China (also referred to as “de-risking” ) will fail, leaving the country trying to regain its former position in world commerce. He declared:
I will make a prediction confidently that the containment policy will fail, because China has already integrated itself with the world, more than the U.S. has.
Furthermore, Mahbubani alleges that this policy will leave the U.S. “isolated from the rest of the world,” referring to the U.S. withdrawal from the Trans-Pacific Partnership Agreement as a “bad decision.”
What do you think about Mahbubani’s ideas? Tell us in the comments section below.