Investment Education

According to Cointelegraph: David Brend and Gustavo Rodriguez, former promoters of the alleged crypto firm IcomTech, have been found guilty of wire fraud conspiracy by a New York jury. The conviction could have them facing a maximum sentence of 20 years in prison for their role in what has been revealed as a Ponzi scheme. Source: U.S. Attorney SDNY on X The trial, which lasted two weeks, ended on March 14 when the jury at a New York District Court delivered a guilty verdict against Brend and Rodriguez. Each has been charged with one count of conspiracy to commit wire fraud. A press release from the U.S. Attorney's Office for the Southern District of New York, issued on March 15, stated that IcomTech founder David Carmona hired Rodriguez in mid-2018 to develop a website for promoting IcomTech, a newly launched firm presenting itself as a crypto mining and trading entity. Brend, Carmona and others enticed IcomTech's investors claiming the company's guaranteed daily returns through their supposed crypto mining and trading activities. Prosecutors unrevealed this to be a Ponzi scheme, concluding that no significant crypto trading or mining activities occurred, instead, new investor funds were used to pay previous investors. As per the allegations, Rodriguez aided in determining the pricing for so-called "investment packages" and unreal daily returns shown to investors via the site and his administered portal. Meanwhile, Brend and other promoters pocketed substantial amounts of victim funds, often amounting to hundreds of thousands of dollars. The seized money was misused for extravagant ventures, including real estate purchases, travel, organizing opulent expos, and community presentations, during which luxury vehicles and lavish attire were used in attempts to attract further investments. Sentences for Brend and Rodriguez are scheduled for June 27 and June 28, respectively. IcomTech's former CEO Marco Ochoa received a five-year sentence in January after pleading guilty to conspiracy to commit wire fraud. Similarly, founder Carmona, admitted his guilt regarding wire fraud conspiracy in December.

In recent financial developments, Goldman Sachs has expressed its expectations for the Bank of Japan (BOJ) to withdraw its negative interest rates by March. This projection is encouraged by factors like higher wage negotiations results and related reportage believed to catalyze this change. Goldman Sachs' stance from just five days prior suggested some skepticism about the BOJ's communication clarity during this critical phase, hinting at a possible delay in hiking the interest rates. However, their updated forecast signals a more optimistic outlook regarding the BOJ's strategic adjustments.

According to PANews, the Dubai International Financial Centre (DIFC) has announced the implementation of a new digital asset law, aimed at keeping DIFC in sync with technological advancements and providing legal clarity for digital asset investors and users. The law, which came into effect on March 8th, intends to comprehensively regulate the legal characteristics of digital assets as property law and stipulate how to control, transfer, and handle digital assets. DIFC is a tax-free special economic zone in Dubai with an independent legal system and courts based on British common law. The enactment of this law follows a review of regulatory approaches in various regions worldwide and a public consultation conducted last year.

According to CryptoPotato, Ripple's legal battle with the United States Securities and Exchange Commission (SEC) over XRP's classification is set for trial on April 23. The lawsuit's outcome could significantly affect XRP's value, but a final decision might be delayed until 2026 due to potential appeals. Ripple and the SEC have been confronting each other since December 2020 when the regulator accused the firm of illegally raising more than $1.3 billion in an unregistered securities offering by selling XRP. Ripple argues that its native token is a currency rather than a security and thus does not fall under the SEC's jurisdiction. The lawsuit will be resolved at a grand trial scheduled for April 23, with Ripple currently having the upper hand after securing three partial court wins in 2023. Prior to that, there are certain court rules that the parties should comply with. American attorney James Filan posted the schedule for remedies briefing, according to which the SEC's opening brief is due on March 22. Ripple's opposition brief is due on April 22, while the SEC's reply brief should be presented by May 6, Filan added. The lawsuit's outcome is touted as a major factor fueling a rally for XRP in case of a decisive victory for Ripple. However, the start of the trial does not necessarily mean that a resolution will be witnessed this year. ChatGPT estimated that the final judgment might occur in the summer of 2024, but potential appeals from both sides could delay the outcome until 2026.

According to Foresight News, the US Securities and Exchange Commission (SEC) is reportedly investigating internal documents of OpenAI to determine if the company misled investors. The SEC's investigation is related to the sudden dismissal of CEO Sam Altman by the OpenAI board in November last year, accusing him of a lack of consistent honesty in communication. Previously, the OpenAI board stated that they no longer had confidence in Sam Altman's ability to lead the company, and subsequently, OpenAI co-founder Greg Brockman announced his departure from the company.

According to CoinDesk, Virginia's Subcommittee on General Government has allocated $17,192 a year to the Blockchain and Cryptocurrency Commission. The funds will help run the committee and cover travel expenses. The commission was recently legislated to make recommendations related to blockchain technology and cryptocurrencies. The proposed funds will be allocated in 2025 and 2026, slightly less than the $22,048 a year set aside for the Artificial Intelligence Commission over the same period. Meanwhile, the Virginia Autism Advisory Council will receive $12,090 yearly for the two years. Virginia recently established the Blockchain and Cryptocurrency Commission in the legislative branch of the state department, as per a 2024 session report. The commission will consist of 15 members who will study and make recommendations for blockchain technology and digital assets. The yearly expenditure of $17,192 is estimated to cover the costs associated with meetings, including travel expenses.

According to PANews, Bakkt Holdings, Inc. has announced that its Form S-3 registration statement submitted to the U.S. Securities and Exchange Commission (SEC) has been approved and became effective on February 14, 2024. Bakkt stated that as long as the registration statement remains valid, the company will be able to raise a total of $150 million in funds through one or more securities issuances over the next three years. The specific details of future issuances will be described in subsequent prospectus supplement documents. Previously, Bakkt had submitted documents to the SEC last week stating that it might not be able to continue operations, as the company's cash and restricted cash would be difficult to support operations for the next 12 months.

According to PANews, the Japanese Financial Services Agency (FSA) is urging the country's financial institutions to strengthen their monitoring of illegal transfers to cryptocurrency exchange providers. The Japanese National Police Agency's analysis concluded that the damage caused by fraud related to illegal remittances is primarily due to the use of cryptocurrency transfers. The FSA encourages financial institutions to further enhance user protection based on risk. Specifically, the FSA suggests that 'if the sender's name is different from the account name, financial institutions should stop transferring to cryptocurrency asset exchange service providers.'

According to Cointelegraph: Adam Colin Todd, CEO of the Digitex Futures exchange, has been indicted by the United States Attorney’s Office for the Southern District of Florida for violating the Bank Secrecy Act (BSA). The indictment, issued on February 12, accuses Todd specifically of failing to establish and implement an adequate Anti-Money Laundering (AML) program, including the necessary Know Your Customer (KYC) program. According to the accusation, Todd operated an unregistered futures platform from January 2018 to April 2022 and willfully neglected to set up required AML measures. Because of this failure, it's suspected that the platform was open to misuse for money laundering and other illicit activities. The indictment further notes that Todd publicly refused to implement KYC policies for Digitex Futures, which could result in a sentence of up to five years if convicted. The Federal Bureau of Investigation (FBI) Miami investigated the case, led by Assistant U.S. Attorney Trevor Jones. Todd's violation of the BSA, a crucial law in combating financial crimes, is considered a serious offense. The Act compels financial institutions to retain records and report certain transactions to the Financial Crimes Enforcement Network (FinCEN). This latest charge against Todd follows a prior fine of $16 million imposed by U.S. federal court in mid-2021, for Todd's failure to register the futures exchange with the U.S. Commodity Futures Trading Commission (CFTC). In addition to this violation, the CFTC also accused Digitex of manipulating the price of its native DGTX token. Consequently, Todd and four companies under his control were banned from trading in any CFTC-regulated markets and required to pay a $3,912,220 disgorgement and an $11,736,660 civil monetary penalty.

According to Foresight: BlockFi and Three Arrows Capital (3AC) have received approval for their settlement agreement by a U.S. judge, as reported by Foresight News. The nature of the disputes or claims has not been disclosed, and the details of the settlement have been ordered to remain confidential. The approval allows BlockFi to proceed with the distribution of loan properties to its creditors, providing some relief in their operations. The outcome indicates progress in resolving disputes in the rapidly evolving cryptocurrency sector.