US SEC Adds Fraud to List of Charges Against ‘Crypto’ Firm Longfin

The United States Securities and Exchange Commission (SEC) has filed fraud charges against supposed cryptocurrency firm Longfin Corp. and its CEO Venkata S. Meenavalli, according to a press release on June 5. Longfin saw a massive jump in its share price in 2017 when it claimed that it had redirected its business model toward blockchain technology. The associate director of the Division of Enforcement, Anita B. Bandy, summarized the allegations as such: “In our complaint against Longfin and Meenavalli and our amended complaint against Altahawi, we allege a multi-pronged fraud…

Firm That Saw Stock Boost After Crypto ‘Pivot’ Hit With New SEC Charges

The U.S. Securities and Exchange Commission (SEC) filed new charges against fintech company Longfin Corp. and its CEO, Venkata Meenavalli, alleging that the company committed fraud when it claimed to bring in more revenue than it had in order to secure an exchange listing for its shares. According to a press release Wednesday, the SEC is accusing Longfin, whose share price jumped some 2,000 percent in 2017 after announcing a blockchain pivot, of falsifying its revenue and fraudulently getting the company listed on the Nasdaq exchange. The charges come on…

SEC Sues Kik for Conducting Allegedly Unregistered $100 Million ICO in 2017

The United States Securities and Exchange Commission (SEC) has sued Canadian startup Kik for an unregistered $100 million token offering, the regulator officially announced on June 4. According to the SEC’s complaint, Kik violated the registration requirements of Section 5 of the Securities Act of 1933. The agency is seeking a permanent injunction, disgorgement plus interest, and a penalty. Specifically, the securities watchdog alleged that in late 2017, Kik raised $100 million through a digital token sale that was not compliant with U.S. securities laws, as it had not registered…

SEC Commissioner Hester Peirce Encourages Less Caution Toward ETF Innovation

Hester Peirce, commissioner at the United States securities regulator, has urged for a less cautious approach towards innovation in the exchange-traded funds (ETFs) space on the regulator’s part. The Financial Times reported on her remarks on June 2. Per the report, the Security and Exchange Commission’s (SEC) Peirce called on her co-commissioners to allow for innovation in the ETF space by lessening their caution. She reportedly commented on the SEC’s approach towards this category of highly regulated financial derivatives, noting that the SEC is “still smothering ETFs with personalised attention…

Does Kik Stand a Chance Against the Goliath of the SEC in a US Court?

It’s difficult to fight progress. Although, if you’re the United States Securities and Exchange Commission (SEC), you can at least try, which could explain why the agency has so far refrained from producing clear and favorable cryptocurrency regulation. Since February 2018, the SEC has taken to consider all initial coin offerings (ICOs) as being securities. Meanwhile, in June 2018, SEC Chairman Jay Clayton proclaimed that the commission is “not going to do any violence to the traditional definition of a security that has worked for a long time.” And given…

Kik Launches $5 Million Crypto Funding Campaign for Lawsuit Against US SEC

Canadian tokenized social media startup Kik has launched a $5 million crypto initiative to fund a lawsuit against the United States Securities and Exchange Commission (SEC), Kik CEO announced in the crypto-focused Unchained podcast by Laura Shin on May 28. Ted Livingston, Kik CEO and founder of Kik’s crypto project the Kin Foundation (KIN), revealed the formation of DefendCrypto fund to legally challenge the U.S. SEC in order to get regulatory clarity from the major U.S. financial watchdog. While the fund’s domain DefendCrypto.org was registered 25 days ago as of…

SEC Postpones VanEck Bitcoin ETF, Yet Again. Should We Expect an Approval in 2019?

Yesterday, the United States Securities and Exchange Commission (SEC) postponed its decision on the VanEck/SolidX bitcoin (BTC) exchange-traded fund (ETF) proposal, signaling that the regulator is still not ready to see crypto-based funds being traded on regulated exchanges. However, while the general sentiment is that the agency will continue to push back, there’s a slight chance that a crypto ETF might come as soon as later this year.    What’s an ETF and how can it affect the crypto market?    In short, an ETF is a type of an…

SEC Shuts Down Ponzi Scheme Which Duped 300 Into ‘Diamond-Backed’ Cryptocurrency

The United States Securities and Exchange Commission (SEC) has halted a confirmed cryptocurrency Ponzi scheme after it took funds worth $30 million, the regulator confirmed in a press release on May 21. The principal behind Argyle Coin, Jose Angel Aman, is now subject to legal action for running a Ponzi scheme using funds he gained from investors in his alleged diamond resale outfit. Aman had previously drawn suspicion over similar diamond-related companies, each promising investors huge returns through the reselling of wholesale diamonds. Argyle Coin, it was claimed, had full…

NYSE Arca Files Proposed Rule Change with SEC for Bitcoin-, T-Bills-Backed Investment Trust

NYSE Arca has filed a proposed rule change with the United States Securities and Exchange Commission (SEC) for an application to list shares in a bitcoin (BTC) investment trust that would be backed by the cryptocurrency and T-bills. The development was revealed in an SEC filing published on May 20. The Chicago-headquartered exchange — a subsidiary of the New York Stock Exchange Group — outlined that the proposed trust would invest solely in bitcoin and short-term U.S. Treasury securities with a maturity of less than one year, also known as…

US SEC Postpones Verdict on VanEck ETF Application, Again

The United States Securities and Exchange Commission (SEC) has delayed its decision on the VanEck bitcoin (BTC) exchange-traded fund (ETF) proposal, according to an official SEC filing on May 20. The SEC has added a 35 day period for gathering more information and opinions on the proposal, which was initially filed by the Chicago Board Options Exchange (CBOE) last year. In January, CBOE withdrew its request for a rule change when the U.S. government shutdown decreased the SEC’s operational abilities, then subsequently reapplied on January 31 after the government shutdown…