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☆ Factbox: Major cryptocurrency cases probed by U.S. authorities
▼ + stars: | 2022-12-14 | by ( ) www.reuters.com time to read: +5 min

BITMEX EMPLOYEESEmployees of BitMEX, including the cryptocurrency exchange's founders, pleaded guilty this year to willfully failing to establish, implement and maintain programs to prevent money laundering. The firm's cofounders pleaded guilty in federal court in New York and each agreed to pay a $10 million criminal fine. Another of the firm's employees also pleaded guilty, and agreed to a $150,000 fine. ONECOIN LTDIn 2019, U.S. authorities charged the alleged leaders of a multibillion-dolar pyramid scheme involving a fraudulent cryptocurrency called OneCoin. After a six-month court battle, Telegram agreed to pay an $18.5 million civil penalty and return $1.2 billion to investors.

Lawmakers are generally in agreement that crypto firms should have greater regulation, but there are divergent views on how the industry should be regulated. U.S. prosecutors on Tuesday charged FTX founder Sam Bankman-Fried with money laundering and fraud, among other violations. "It is time for Congress to make the crypto industry follow the same money-laundering rules as everyone else," U.S. She and Republican Senator Roger Marshall from Kansas earlier announced legislation aimed at closing money laundering loopholes in the crypto industry. Without U.S. regulation, the value of crypto investments could disappear, said hearing witness and American University law professor Hilary Allen.

☆ The SEC and CFTC need to write joint crypto trading platform standards, says fmr. CFTC commissioner
▼ + stars: | 2022-12-14 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailThe SEC and CFTC need to write joint crypto trading platform standards, says fmr. CFTC commissionerTimothy Massad, former Commodity Futures Trading Commission chairman, joins 'TechCheck' to discuss designating virtual currencies as commodities or securities, regulatory action following the FTX bankruptcy and identifying regulatory authorities for crypto.

☆ Disgraced FTX CEO Sam Bankman-Fried 'orchestrated yearslong fraud' on investors and customers, SEC and criminal charges say
▼ + stars: | 2022-12-13 | by ( Marlene Lenthang | Https | Media-Cldnry.S-Nbcnews.Com Image Upload Newscms | ) www.nbcnews.com time to read: +8 min

Sam Bankman-Fried, the former CEO of cryptocurrency giant FTX, defrauded investors by funneling money into his private hedge fund and conspired to commit wire fraud against customers and lenders, federal authorities said Tuesday. The Manhattan panel indicted Bankman-Fried on eight counts: conspiracy to commit wire fraud on customers, wire fraud on customers, conspiracy to commit wire fraud on lenders, wire fraud on lenders, conspiracy to commit commodities fraud, conspiracy to commit securities fraud, conspiracy to commit money laundering and conspiracy to defraud the United States and violate the campaign finance laws. $8 billion loss to customersThe wire fraud on lenders and customers started in or about 2019 and lasted through November, according to the filing. Separately, in a filing Tuesday also in the Southern District of New York, the SEC charged him with defrauding investors and enriching Alameda. FTX CEO pledges continued cooperationAlso Tuesday, the company’s new CEO, John J. Ray III, testified at a congressional hearing on FTX’s collapse and missteps.

☆ Sam Bankman-Fried denied bail in Bahamas on FTX fraud charges, judge cites flight risk
▼ + stars: | 2022-12-13 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

A magistrate judge in the Bahamas on Tuesday denied bail to FTX co-founder Sam Bankman-Fried, citing heightened flight risk, and said he should be remanded to Bahamian custody until February 8, 2023, hours after a U.S. federal criminal indictment against Bankman-Fried alleging a massive fraud at FTX was unsealed in New York City. Bankman-Fried was arrested Monday evening by Bahamas law enforcement acting on a request from the United States Attorney for the Southern District of New York. Bankman-Fried was charged with several counts in federal court, including wire fraud, securities fraud, money laundering, and campaign finance violations. Reuters reported that Bankman-Fried lowered his head and hugged his parents, who are both Stanford Law professors. Bankman-Fried's parents were animated during the proceeding, at times laughing or putting their fingers in their ears, according to CoinDesk.

The Commodity Futures Trading Commission announced new charges against Bankman-Fried, FTX and Alameda Research, alleging that FTX commingled customer funds and that the onetime crypto billionaire violated the Commodities Exchange Act. From the founding of FTX in 2019, the CFTC alleged, Alameda "accessed and used FTX customer funds for Alameda's own operations and activities, including to fund its trading, investment, and borrowing/lending activities." The CFTC filing echoed charges that the SEC unveiled earlier Tuesday, which said Bankman-Fried operated his empire as a fraud "from the start." FTX allowed Alameda access to massive amounts of liquidity, backstopping risky bets on crypto assets and derivatives, the CFTC alleged. "At Bankman-Fried's direction, FTX executives created features in the underlying code for FTX that allowed Alameda to maintain an essentially unlimited line of credit on FTX," the CFTC alleged.

☆ King Dollar is not ready to abdicate
▼ + stars: | 2022-12-13 | by ( Francesco Guerrera | ) www.reuters.com time to read: +5 min

LONDON, Dec 13 (Reuters Breakingviews) - Dollar bears have come out of hibernation. An 11-year upswing has made the bill featuring George Washington the world’s most overvalued currency, according to research from Deutsche Bank. Plus, other risk factors that have sent investors fleeing to the dollar – the war in Ukraine, China’s Covid-19 struggles and fear of a deep recession in the United States – are abating. Traders moved to place bets against the dollar for the first time in 16 months in November, according to U.S. Commodity Futures Trading Commission data. Net flows into fixed-income funds in the United States reached $1.3 trillion over the past 12 months, according to Deutsche Bank analysts.

New York CNN —FTX founder Sam Bankman-Fried was indicted on eight criminal charges including wire fraud and conspiracy by misusing customer funds, according to an indictment from the US Attorney of the Southern District of New York. Separately Tuesday, US markets regulators charged Bankman-Fried with defrauding investors and customers in his failed crypto exchange FTX. The Securities and Exchange Commission said Bankman-Fried, “orchestrated a years-long fraud” to conceal from FTX investors the diversion of customer funds to Alameda Research, his crypto-trading hedge fund. Star athletes and celebrities who backed FTX also reportedly received a stake in the company, including Tom Brady and Gisele. That meant there was no meaningful distinction between FTX customer funds and Alameda’s funds that Bankman-Fried used as his “personal piggy bank,” the complaint says.

The exemption allowed Alameda to keep borrowing funds from FTX irrespective of the value of the collateral securing those loans. The other was a mechanism whereby FTX customers deposited over $8 billion in traditional currency into bank accounts secretly controlled by Alameda. Indeed, he told investors that Alameda received no preferential treatment from FTX, the SEC complaint said. This would allow Alameda to keep borrowing more FTX funds without the need to provide more collateral. Bankman-Fried's house of cards "began to crumble" in May 2022, the SEC complaint said.

☆ Breakingviews: FTX sins don’t absolve its big-money enablers
▼ + stars: | 2022-12-13 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +4 min

NEW YORK, Dec 13 (Reuters Breakingviews) - The U.S. Securities and Exchange Commission wants everyone to know that Sam Bankman-Fried was a bad actor. The financial watchdog and the Commodity Futures Trading Commission on Tuesday alleged that the founder of bankrupt currency exchange FTX committed fraud, while federal prosecutors made a criminal case. The U.S. government, meanwhile, has accused Bankman-Fried of eight criminal violations, ranging from wire fraud to conspiracy to commit money laundering. Follow @thereallsl on TwitterloadingCONTEXT NEWSU.S. federal prosecutors filed a criminal lawsuit against Sam Bankman-Fried, alleging he committed fraud and violated campaign finance laws. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission also alleged Bankman-Fried committed fraud in complaints filed on Dec. 13.

☆ FTX sins don’t absolve its big-money enablers
▼ + stars: | 2022-12-13 | by ( Lauren Silva Laughlin | ) www.reuters.com time to read: +4 min

NEW YORK, Dec 13 (Reuters Breakingviews) - The U.S. Securities and Exchange Commission wants everyone to know that Sam Bankman-Fried was a bad actor. The financial watchdog and the Commodity Futures Trading Commission on Tuesday alleged that the founder of bankrupt currency exchange FTX committed fraud, while federal prosecutors made a criminal case. The CFTC focused on customers, whose money it says FTX sent to Bankman-Fried’s hedge fund Alameda Research, which allegedly used it for venture investments and loans to FTX executives. loadingCONTEXT NEWSU.S. federal prosecutors filed a criminal lawsuit against Sam Bankman-Fried, alleging he committed fraud and violated campaign finance laws. The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission also alleged Bankman-Fried committed fraud in complaints filed on Dec. 13.

☆ Congress considers crypto consumer protection bill that Sam Bankman-Fried backed before FTX collapse
▼ + stars: | 2022-12-13 | by ( Chelsey Cox | ) www.cnbc.com time to read: +3 min

The shocking collapse of cryptocurrency exchange FTX has increased the urgency in Congress to understand what went wrong and pass legislation to try to prevent another debacle that would affect hundreds of thousands of investors. One bill, the Digital Commodities Consumer Protection Act, introduced in August, gives the Commodity Futures Trading Commission more authority to regulate digital commodities like FTX. The bill arrived before FTX's collapse ignited fresh debate over how to protect consumers in the relatively young and untamed crypto industry. Bankman-Fried was charged in a U.S. indictment with eight criminal counts: conspiracy to commit wire fraud and securities fraud, individual charges of securities fraud and wire fraud, money laundering and conspiracy to avoid campaign finance regulations. Nor does it make the CFTC the 'primary' crypto regulator," Stabenow said during an agriculture committee hearing Dec. 1.

The combined position has been cut to just 358 million barrels (12th percentile for all weeks since 2013) down from 579 million barrels (47th percentile) on Nov. 8. Fund managers sold NYMEX and ICE WTI (-5 million barrels), Brent (-4 million), U.S. gasoline (-5 million), U.S. diesel (-11 million) and European gas oil (-5 million). The net position in U.S. diesel and European gas oil was cut to 49 million barrels (41st percentile) from 75 million barrels (62nd percentile) on Nov. 8. Bullish long positions outnumbered bearish short ones by a ratio of 2.92:1 (52nd percentile) down from 5.40:1 (81st percentile) four weeks earlier. The extremely low level of hedge fund positions in crude has created upside price risk if and when managers attempt to rebuild bullish positions.

CNBC's Andrew Ross Sorkin reported that the charges against Bankman-Fried include wire fraud, wire fraud conspiracy, securities fraud, securities fraud conspiracy and money laundering. Neither the Attorney General of the Bahamas nor the Royal Bahamas Police Force would confirm the nature of the charges against Bankman-Fried. "I didn't ever try to commit fraud," Bankman-Fried said. The CFTC and lawmakers have begun their probes into FTX and Bankman-Fried, who told Sorkin he was down to his last $100,000. Failed lender BlockFi sued Bankman-Fried in November, seeking unnamed collateral that the FTX founder provided for the crypto lending firm.

☆ U.S. dollar likely to remain strong in 2023 amid recession fears
▼ + stars: | 2022-12-08 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

NEW YORK, Dec 8 (Reuters) - A breathtaking surge in the U.S. dollar trampled foreign currencies, gouged corporate profits and gave investors one of the year’s few winning trades. Investors flocked to the dollar — a popular destination during uncertain times — to shelter from market volatility spurred by surging global inflation, spiking energy prices and Russia’s invasion of Ukraine. A stronger dollar makes U.S. exporters' products less competitive abroad while hurting U.S. multinationals that need to exchange their earnings into dollars. REUTERS/Lee Jae-Won/File PhotoNike (NKE.N), IBM (IBM.N) and Meta Platforms (META.O) were among the broad range of companies that warned of a hit from a stronger dollar this year. Nearly 80% of strategists polled by Reuters said there was little scope for dollar upside based on monetary policy.

☆ Recession worries could support dollar after monstrous 2022 rally
▼ + stars: | 2022-12-08 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +4 min

A stronger dollar makes U.S. exporters' products less competitive abroad while hurting U.S. multinationals that need to exchange their earnings into dollars. Nike (NKE.N), IBM (IBM.N) and Meta Platforms (META.O) were among the broad range of companies that warned of a hit from a stronger dollar this year. The dollar's rally shaved about 8% from S&P earnings in 2022, according to Tom Lee, head of research at Fundstrat Global Advisors. Whether the dollar's decline continues may depend on the Fed's ability to contain inflation enough to eventually ease monetary policy. Nearly 80% of strategists polled by Reuters said there was little scope for dollar upside based on monetary policy.

☆ Banks Should Be Wary of Crypto, Top U.S. Regulator Says
▼ + stars: | 2022-12-08 | by ( Richard Vanderford | ) www.wsj.com time to read: +3 min

Crypto industry risk management lacks maturity, and some industry practices mean trouble in one firm could spill over to others, the Office of the Comptroller of the Currency said Thursday. The OCC also advised national banks to discuss with regulators any plans to engage in digital assets, and potentially seek clearance for some activities. The OCC itself less than six months ago noted the risks of crypto, but also said crypto products and services could “create opportunities for banks and their customers.” It didn’t mention crypto opportunities in Thursday’s report. The Securities and Exchange Commission, which has yet to sue a major crypto exchange, is also facing pressure to step up its enforcement. Two former chairmen of the Securities and Exchange Commission and the Commodity Futures Trading Commission have also jointly called for stronger regulation.

☆ Dollar to rebound, accumulate safe-haven strength in 2023: Reuters poll
▼ + stars: | 2022-12-07 | by ( Indradip Ghosh | ) www.reuters.com time to read: +4 min

BENGALURU, Dec 7 (Reuters) - The dollar will rebound against most currencies over the coming months, with the growing threat of recession in the U.S. and elsewhere keeping it firm in 2023 through safe-haven flows, according to market strategists polled by Reuters. Nearly two-thirds or 33 of 51 strategists who answered an additional question said the greater dollar risk over the coming month was that it would rebound rather than falling further. "We foresee volatility levels remaining high in the coming months and expect it is too early for USD bulls to fully capitulate." Most major central banks, including the Fed, are expected to end their tightening campaigns in early 2023. An overwhelming 80% majority, or 42 of 51 respondents, said there was not much scope for dollar upside based on monetary policy.

☆ A former top tech exec at Bank of America just launched a new consulting business. Here are 3 key mistakes he said firms are making as they plan for the future.
▼ + stars: | 2022-12-07 | by ( Bianca Chan | Carter Johnson | ) www.businessinsider.com time to read: +3 min

Sumeet Chabria, a long-time Wall Street tech exec, is launching a network-based consultancy firm. ThoughtLinks will have a wide range of experts who can offer clients bespoke and practical advice. Chabria was most recently the COO of Bank of America's global technology and operations team. Sign up for our newsletter to get the latest stories in hedge funds, PE, fintech, and banking — delivered daily to your inbox. Ahead of the launch of ThoughtLinks, Chabria detailed three of the biggest mistakes financial firms and those in other industries are making when it comes to digital transformation and the future of their workforces.

☆ Analysis: Investors look to emerging markets as planets align for end of dollar bull market
▼ + stars: | 2022-12-06 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

NEW YORK, Dec 6 (Reuters) - As the U.S. dollar tumbles from multi-decade highs, some investors are betting emerging market currencies will be big winners from a sustained reversal in the greenback. Signs of a broader turn in dollar sentiment are visible in the buck’s 8% decline against a basket of developed market currencies from its September highs. "The planets are lining up for a dollar bear market," said Paresh Upadhyaya, director of fixed income and currency strategy at Amundi US. Emerging market currencies have outperformed their developed market counterparts this year, with MSCI's index of emerging market currencies down 5% year-to-date, while the dollar's G10 peers have lost nearly twice as much. Conversely, tightening by central banks around the world also risks sparking a global recession, a scenario some believe could hurt emerging market currencies and help the dollar.

That resulted in a corn net long of 191,631 futures and options contracts, a three-week high. Managed money net position in CBOT corn futures and optionsFunds covered gross shorts in both corn and soybeans through Nov. 29, though the addition of new longs was the more prominent feature. Open interest in corn futures and options was down 14% on the year as of Nov. 29, and for soybeans it was down 9%. Corn futures lost 3.5% in the last three sessions, on Friday hitting the most-active contract’s lowest levels since August before settling at $6.46-1/4 per bushel. CBOT soy product futures were up in the week through Nov. 29, soyoil to a larger degree at 2%.

Bankman-Fried could face a host of potential charges – civil and criminal – as well as private lawsuits from millions of FTX creditors, legal experts told CNBC. There are three different, possibly simultaneous legal threats that Bankman-Fried faces in the United States alone, Levin told CNBC. He told CNBC, "prosecutors would have to prove beyond a reasonable doubt that Bankman-Fried or his associates committed criminal fraud." (Carter was not an FTX investor, and told CNBC that his fund passed on early FTX rounds.) "People should not jump to the conclusion that something is not happening just because it has not been publicly disclosed," Levin told CNBC.

The answer is simple, according to more than a dozen Washington insiders, FTX employees, and crypto industry observers who spoke with Insider. I don't think anyone believed that he was going to fund candidates who were, quote unquote, committed to ending pandemics who were also hostile to the crypto industry." Alex Wong/Getty ImagesRebuffed by the SEC, Bankman-Fried turned his attention to Congress. "It's not that he was welcoming regulation," says the senior figure in the crypto industry who attended meetings with Bankman-Fried. But while Bankman-Fried was busy wooing Washington, FTX was about to become Exhibit A in the case for more effective oversight of the crypto industry.

☆ Oil dips 1.5% ahead of OPEC+ meeting, EU Russian oil ban
▼ + stars: | 2022-12-02 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +3 min

Brent crude futures settled down $1.31, a 1.5% drop, at $85.57 per barrel. U.S. West Texas Intermediate (WTI) crude futures fell $1.24, or 1.5%, to $79.98 per barrel. Russian oil output could fall by 500,000 to 1 million bpd early in 2023 due to the European Union ban on seaborne imports from Monday, two sources at major Russian producers said. European Commission President Ursula von der Leyen said the Russian oil price cap will be adjustable over time so that the union can react to market developments. The cap was designed to limit revenues to Russia while not resulting in an oil price spike.

☆ Crypto trading venues don't follow standards in securities and derivatives markets: Research fellow
▼ + stars: | 2022-12-02 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCrypto trading venues don't follow standards in securities and derivatives markets: Research fellowTimothy Massad, research fellow at the Harvard Kennedy School of Government and former chair of the Commodity Futures Trading Commission, discusses the need for better regulation in the cryptocurrency industry.

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