The U.S. Securities and Exchange Commission (SEC), the Federal Reserve Board (FRB), and the California Department of Financial Protection and Innovation (DFPI) have taken action against Silvergate Capital Corp., the holding company for Silvergate Bank, and its former executives for misleading investors and failing to monitor significant transactions. Silvergate has agreed to pay penalties without […]
Bitcoin News
Australian Court Exempts Block Earner from Paying Penalty; Criticizes Regulator’s Misleading Press Release
A Federal court in Australia has relieved the crypto firm Block Earner from paying a penalty for breaching the financial services law when it offered the Earner product. According to the ruling, Block Earner “acted honestly and not carelessly,” hence it should not be made to pay a pecuniary penalty. The Federal Court judge criticized […]
Bitcoin News
UK Shuts Down Crypto Advisory Firm for Misleading Investors and Poor Financial Records
The UK government announced this week that the Insolvency Service has secured a winding-up order against cryptocurrency advisory firm Amey Finance Academy Ltd at the High Court. The company, created by Desmond Amey in 2018, claimed to offer investment advice and financial education. However, complaints emerged that consumers lost money, and the Financial Conduct Authority […]
Bitcoin News
Coinbase Legal Chief Urges SEC Chair to Stop Misleading the Market About Crypto Tokens Being Securities
Coinbase’s chief legal officer has publicly urged U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler to stop misleading the market regarding crypto tokens being securities. His request followed Gensler’s repeated assertions that numerous crypto tokens conform to the legal definition of securities, thereby requiring compliance with SEC regulations. Coinbase’s CLO to Gensler: Please Stop […]
Bitcoin News
Turmoil in Crypto Market — Misleading SEC Post Triggers Significant Bitcoin Volatility
Bitcoin’s value experienced a turbulent Tuesday, largely due to a rogue post from the U.S. Securities and Exchange Commission’s hijacked X account, mistakenly proclaiming the green light for all spot bitcoin exchange-traded funds (ETFs).
False Spot ETF Approval Post Causes Chaos in Bitcoin Markets
This erroneous message from the official Twitter of the U.S. Securities and Exchange Commission (SEC) sparked a rapid increase in bitcoin’s price, soaring close to ,000 per unit. Yet, this surge was short-lived as the price promptly dropped to around ,000 once the market recognized the false nature of the announcement. This event stirred unease among investors and crypto enthusiasts, with some drawing parallels to a pump-and-dump strategy. Tennessee Senator Bill Hagerty demanded clarity from the SEC, pointing to possible market manipulation.
Hagerty stated:
Just like the SEC would demand accountability from a public company if they made such a colossal market-moving mistake, Congress needs answers on what just happened. This is unacceptable.
Before this downturn, there was a noticeable upward movement, signifying strong buying interest during this timeframe. The price encountered a ceiling near ,897, peaked, and then plunged dramatically. Currently, bitcoin’s value is striving to stabilize above the ,000 zone as of 6:45 p.m. Eastern Time. The anticipation surrounding the endorsement of a spot bitcoin ETF has injected considerable volatility, as traders respond to each update pertaining to its potential sanction. A similar situation unfolded when Cointelegraph inaccurately reported the approval of Blackrock’s spot bitcoin ETF.
The fluctuation in bitcoin’s price on Jan. 9, 2024, mirrors the intricate dynamics of market responses to regulatory developments (both accurate and spurious), expectations of key happenings like the spot BTC ETF sanction, trends in institutional investment, and the overall market mood. Despite these ups and downs, optimism persists around bitcoin, with its market capitalization eclipsing major entities such as Berkshire Hathaway in late 2023. Some believe that the sanction of a spot bitcoin ETF could significantly sway the market, likely boosting institutional involvement and enhancing liquidity.
Ahead of this approval, bitcoin had already seen notable price growth, surging over 160% within a year. The sector has been preparing for this event, and its occurrence might trigger diverse reactions, particularly following two previous misleading announcements.
Amid the SEC’s recent fake announcement, .58 million in BTC long positions were liquidated within the past four hours according to coinglass.com stats. Moreover, the SEC is trending on the social media platform X with more than 172,000 posts about the subject trending at 7 p.m. Eastern Time.
What do you think about the rogue tweet from the SEC on Tuesday and how it impacted bitcoin’s market? Share your thoughts and opinions about this subject in the comments section below.
Senate Ethics Committee Urged to Investigate Senator Elizabeth Warren on Misleading Crypto Statements
The CEO of the Chamber of Digital Commerce says the Senate Ethics Committee should launch a full investigation on Senator Elizabeth Warren for making false and misleading statements about crypto. “Senator Elizabeth Warren has misled the American people as well as the U.S. Congress on multiple fronts,” she stressed.
‘Senate Ethics Committee Should Launch a Full Investigation’
Chamber of Digital Commerce founder and CEO Perianne Boring slammed U.S. Senator Elizabeth Warren (D-MA) for making false and misleading statements regarding cryptocurrency in an interview with Fox Business on Thursday.
“Senator Elizabeth Warren has misled the American people as well as the U.S. Congress on multiple fronts,” the Chamber of Digital Commerce chief began. “First, she’s misled us to believe that crypto has an AML [anti-money laundering] problem,” she continued, emphasizing:
It does not have an AML problem. The vast majority of illicit finance go through the traditional financial system and legacy banking infrastructure. It’s not happening in the cryptocurrency space.
Boring then explained that every crypto transaction is recorded on a blockchain, adding that “law enforcement has greater tools to track and trace on a blockchain than they do on legacy infrastructures.”
The second area in which Senator Warren has misled Congress and the American public concerns her bill: the Digital Asset Anti-Money Laundering Act. “This bill was introduced under the guise of anti-money laundering to fix the non-existent compliance gap,” Boring described. “She has misled the U.S. Senate and now 20% of the U.S. Senate is sponsoring this bill that they think is going to address the compliance issue.”
The Chamber of Digital Commerce CEO pointed out: “If you read the legislation, you will quickly understand that the requirements are technically impossible to implement in a blockchain-based environment, making it illegal for U.S. persons to use the technology, which effectively bans it for U.S. persons.” She stressed that if the bill passes, it “would be absolutely detrimental” for the crypto space and innovation in the U.S.
Emphasizing that “misleading statements” about crypto “have been perpetuated by a member of the U.S. Senate, the crypto advocate stressed:
Elizabeth Warren must be taken seriously, and the Senate Ethics Committee should launch a full investigation on this.
The Chamber recently started a petition on Change.org titled “Stop The Crypto Ban.” At the time of writing, over 10,000 signatures have been collected.
Do you think the Senate Ethics Committee should launch a full investigation on Elizabeth Warren for making false and misleading statements about crypto? Let us know in the comments section below.
SEC Makes ‘Materially False and Misleading’ Representations Against Crypto Firm — Judge Threatens Sanctions
The United States District Court for the District of Utah has expressed concerns that the U.S. Securities and Exchange Commission (SEC) is making “materially false and misleading representations” in its lawsuit against a crypto firm. The court has ordered the securities regulator to show cause why it should not be subject to sanctions.
Court Threatens to Sanction SEC
The U.S. Securities and Exchange Commission (SEC) is facing renewed scrutiny for its actions in yet another legal battle involving a cryptocurrency firm.
The United States District Court for the District of Utah issued an order to show cause in the SEC v. Digital Licensing Inc. dba Debt Box, et al. case on Nov. 30, demanding the securities watchdog justify its actions. The court called out the SEC for making “materially false and misleading representations” and warned of potential sanctions if the regulator fails to provide adequate justification. The order states:
The court orders the Commission to show cause why the court should not impose sanctions.
The court is concerned about how the SEC obtained an ex parte temporary restraining order (TRO) against crypto firm Debt Box and related parties. The securities regulator requested a TRO in July. Following a hearing, the court granted the TRO, which included freezing Debt Box’s assets. Multiple defendants subsequently filed Motions to Dissolve the TRO. After a hearing, the court dissolved the TRO, concluding that it was “improvidently issued because the Commission had not shown irreparable harm.”
“TROs are extraordinary relief,” the order describes, adding that among other things, the TRO obtained in this case froze “all monies and assets . . . in all accounts” held by the defendants and related parties, and mandated that they repatriate their assets. Moreover, it was the basis of the Temporary Receivership Order, which gave the receiver “full power over all funds, assets, collateral, premises … and other property belonging to” Debt Box, its affiliates, and its subsidiaries.
The court order states:
After carefully reviewing the Commission’s filings and statements at the ex parte TRO hearing, the court is concerned the Commission made materially false and misleading representations that violated Rule 11(b) and undermined the integrity of the proceedings.
In its order, the court directed the SEC to address several critical issues. One pertains to the SEC’s claim that the defendants are actively attempting to transfer assets and investor funds overseas. The court has requested “factual support” from the SEC to substantiate this allegation. Secondly, the court has inquired about the SEC’s assertion that the defendants have obstructed the SEC’s investigation by blocking access to their social media sites and potentially deleting training materials related to the alleged scheme. Moreover, the court has asked the SEC to clarify the statement made at the TRO hearing regarding the closure of additional bank accounts by the defendants. The SEC has been granted 14 days to respond to this order.
The SEC recently lost several legal battles against crypto firms. “A troubling pattern emerges,” Ripple’s chief legal officer, Stuart Alderoty, commented on social media platform X Friday as he highlighted specific instances where the SEC’s actions were deemed questionable by the courts. On July 12, 2022, the court found that the SEC’s actions demonstrated “hypocrisy” by making consistent arguments to the court and not acting out a “faithful allegiance to the law,” Alderoty detailed. On June 6 this year, the court ruled that the SEC had neglected its duty to respond in good faith to Coinbase’s petition for crypto rulemaking. In addition, the court determined on Aug. 29 in the Grayscale v. SEC case that the SEC’s “inconsistent treatment of similar products is arbitrary and capricious.”
What do you think about the court calling out the SEC for making materially false and misleading representations against a crypto firm and threatening to sanction the regulator? Let us know 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.
Rand Plunges After US Weapons Accusations Against South Africa, Schiff Criticizes Misleading Inflation Numbers, and More — Bitcoin.com News Week in Review
Another exciting week in crypto and finance has come and gone, with news of U.S. government accusations against South Africa, regarding the alleged supply of the Russian state with ammunition. In other news, ten Southeast Asian nations are challenging U.S. dollar dominance, having agreed to “encourage the use of local currencies for economic and financial transactions.” In the world of crypto, Monday’s Bitcoin Cash network upgrade now sees the protocol with thousands of tokens being created via the Cashtokens functionality. This and much more, just below.
South African Currency Plunges to New Low Versus the Dollar a Day After the US Accused Country of Secretly Supplying Ammunition to Russia
The South African currency’s exchange rate versus the U.S. dollar plunged to a new all-time low of ZAR19.51:US on May 12. The rand’s latest fall came a day after the U.S. ambassador to South Africa accused the country of secretly supplying weapons to Russia. Banking giant JP Morgan said it now projects South Africa’s gross domestic product to contract by 0.2%, down from the earlier positive projection of 0.3%.
10 Southeast Asian Nations Challenge Dollar Dominance With Push for Local Currencies
The leaders of 10 Southeast Asian nations, members of the Association of Southeast Asian Nations (ASEAN), have agreed to “encourage the use of local currencies for economic and financial transactions.” The group comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. This move will help them reduce their reliance on the U.S. dollar.
Economist Peter Schiff Warns About a New, Incoming Great Depression Crisis, Criticizes Misleading Inflation Numbers
Peter Schiff, best-selling author and chief economist of Europac, has warned about the coming of a new Great Depression period in America. In an interview, Schiff stated that official Consumer Price Index (CPI) numbers were designed to mislead the public and that the country was going to face a depression worse than the one it faced back in the 1930s.
Cashtokens Take Center Stage Following Bitcoin Cash Upgrade: Over 26,000 Tokens Created
Following the recent Bitcoin Cash upgrade on Monday, data reveals that approximately 1,308 fungible tokens and 25,336 non-fungible tokens (NFTs) have emerged on the blockchain. Moreover, the Cashtokens token ecosystem is now accessible through the blockchain explorers 3xpl.com and salemkode.com, allowing users to explore its potential.
What are your thoughts on this week’s stories? Join the conversation in the comments section below.
Economist Peter Schiff Warns About a New, Incoming Great Depression Crisis, Criticizes Misleading Inflation Numbers
Peter Schiff, best-selling author and chief economist of Europac, has warned about the coming of a new great depression period in America. In an interview, Schiff stated that official Consumer Price Index (CPI) numbers were designed to mislead the public and that the country was going to face a depression worse than the one it faced back in the 1930s.
Peter Schiff Warns of Great Depression With Prices Rising
Peter Schiff, economist and best-selling author, has warned about an upcoming economic crisis that will unleash a new Great Depression far worse than the one the U.S. faced back during the 30s. In an interview, Schiff commented that this crisis will be in part originated by the high inflation levels that the government is fueling by increasing public spending, which will affect the qualification of the U.S. public debt.
Schiff stated:
We’re going to have a crisis because we do raise the debt ceiling. Because we’ve continued to raise that debt ceiling instead of dealing with the real problem, which is not the ceiling, but the debt. The ceiling would be the solution to the problem if they only stopped raising it.
The economist explained that this upcoming new Great Depression will be different due to the continued rise of prices and the loss of purchasing power of Americans. Schiff declared:
It’s probably going to be worse. It is a depression, but unlike the depression of the 1930s, where the people at least got the benefit of falling prices that provided some relief. This time, even the people who don’t lose their jobs are going to suffer because they’re going to lose the value of their paychecks.
How Inflation Numbers Can Be Misleading
Schiff also criticized the way the Consumer Price Index (CPI), data used to determine inflation, is calculated, stating that it is designed to give a low result. He said that “you basically have to double the official numbers to get a better idea of what’s actually happening with prices,” indicating that the real inflation number should be currently closer to 10%.
Even so, Schiff believes that high interest rates will not be able to control inflation and that the U.S. will have to deal with both. “Interest rates are prices. It’s the price you pay when you borrow money. The price is going up, just like the price of everything else,” he explained. Finally, he remarked that “as interest goes up, well, that’s just another cost that you need to pass on to your customers through higher prices.”
What do you think about Peter Schiff and his warning about an upcoming great depression? Tell us in the comments section below.