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United States SEC sues Chicago Crypto Capital- Here’s why

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United States SEC sues Chicago Crypto Capital- Here’s why

The Securities and Exchange Commission (SEC) of the United States has sued Chicago Crypto Capital, for allegedly selling unregistered crypto securities worth $1.5 million. These tokens were being sold to unsuspecting investors from August 2018 to September 2019.

SEC has alleged that Chicago Crypto Capital, a Chicago-based DeFi advisory firm, its owner and president Brian B. Amoah, salesmen Darcas Oliver Young and Elbert Elliott sold crypto assets called BXY tokens worth at least $1.5 million to 100 investors.

What is the BXY token?

To understand the case, we must first know the history of BXY tokens.

BXY is the native cryptocurrency of another Chicago-based crypto exchange Beaxy which is now defunct. In 2018, the exchange began selling BXY crypto securities to a range of investors in order to raise capital for team expansion and project development.  

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Beaxy exchange entered into an agreement with the Chicago Crypto Capital after which the latter began selling BXY tokens to investors. As per the agreement, Chicago Crypto Capital kept three cents for every five cents of tokens sold through it.

SEC alleges many frauds

Chicago Crypto Capital was compensated with a markup charge of up to 150% on each BXY token sold. The investors were told that the capital would be used by Beaxy for its operations, marketing, and other functions but a lot of these funds were used for Amoah’s personal expenses, including travel and dining. Funds were also used to compensate the salesmen of Chicago Crypto Capital and make investments in BXY tokens, the SEC alleged.

Chicago Crypto Capital not only did not inform the investors about its deal with Beaxy while selling BXY tokens, but it also failed to deliver these tokens to some of those investors. 

The individuals named above also made materially false and misleading statements in their offer. They didn’t inform the investors either about their individual investments in BXY or about the financial and management problems taking place at Beaxy in 2019.

SEC also stated that BXY offering was not registered with the Commission and did not satisfy any exemption from registration. Besides, none of the defendants from the Chicago Crypto Capital were registered with the SEC as brokers. 

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Well, the SEC is seeking to investigate the case further and bar defendants from offering crypto securities.

Only recently, SEC Chair Gary Gensler reiterated in a speech that the vast majority of crypto tokens are securities and their sale is covered under the securities laws. Non-security crypto tokens represent only a small number of tokens.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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EU Bans Crypto Services For Russians In New Sanctions Over Ukraine Escalation

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EU Bans Crypto Services For Russians In New Sanctions Over Ukraine Escalation

An array of crypto-related services have been targeted in the latest round of sanctions on Russia approved by the EU. The measures are part of an expected tightening of the economic and financial restrictions in response to Moscow’s decision to annex Ukrainian territories.

EU Council Adopts Full Ban on Crypto Wallet and Custody Services for Russian Persons

The Council of the European Union announced new sanctions against Russia on the backdrop of the deepening military conflict in Ukraine. The penalties, expected to hurt the Russian government and economy, come after Moscow took steps to annex the Ukrainian regions of Donetsk, Luhansk, Zaporizhzhia, and Kherson.

In a statement, the EU’s High Representative for Foreign Affairs and Security Policy Josep Borrell emphasized that the sanctions are a response to the latest escalation with the “fake referenda” in these four oblasts. Russian individuals and entities that have played a role in their organization will be specifically targeted.

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Other Russian citizens and businesses are also going to take a hit, including those that deal with cryptocurrencies. The new measures include a full ban on the provision of wallet, account, or custody services for crypto assets to Russian persons and residents. That’s regardless of the value of these assets, according to the eighth package of sanctions imposed by Brussels.

This spring, when the EU approved its fifth round of such measures, the Council prohibited only the provision of “high-value” crypto-asset services to Russians and organizations registered in their country. The ban applied to digital funds exceeding €10,000 (close to $11,000 at the time).

New European Sanctions to Hit Russian Imports and Exports

While the earlier restrictions were meant to limit the transfer of wealth through digital assets and close other loopholes in the crypto space, a recent report revealed that pro-Russian groups have been actively using cryptocurrency, often in small transactions, to fund paramilitary operations in Ukraine. According to the research, they have raised $400,000 in crypto since the start of the invasion in late February. Russian authorities have also been working to allow businesses to employ crypto payments for international settlements.

With the latest move, the EU also bans the provision of IT consultancy and legal advisory services to Russia as well as architectural and engineering services. Russian imports and exports have been targeted, too, including the maritime transport of crude oil and petroleum products to third countries. The provision of related services will be allowed only if these have been purchased at or below a pre-established price cap, which is yet to be determined.

Among the other measures is a ban on EU nationals to hold any posts on the governing bodies of some Russian state-owned or government-controlled entities. The Council also decided to broaden the criteria under which persons can be designated as facilitating the circumvention of restrictions imposed by the European Union. The European Commission, the executive body in Brussels, welcomed the latest sanctions package.

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annexation, ban, conflict, council, Crypto, crypto services, Cryptocurrencies, Cryptocurrency, custody, escalation, EU, EU Council, european, European Union, Exports, imports, package, prohibition, referenda, referendums, regions, restrictions, round, Russia, russian, Sanctions, Services, Ukraine, Wallets, War

Do you think the new EU sanctions will significantly limit access to cryptocurrencies for Russians? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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EU Council Endorses Markets In Crypto Assets (MiCA) Legislation

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EU Council Endorses Markets In Crypto Assets (MiCA) Legislation

Council of the EU, one of the European Union’s legislative bodies, has approved the proposed regulatory framework for the European crypto space. It’s now up to European lawmakers to approve the Markets in Crypto Assets package before its final adoption.

Comprehensive Crypto Regulation Moves Closer to Adoption in EU

The Committee of Permanent Representatives (COREPER) has approved the final version of the Markets in Crypto Assets (MiCA) legislation, according to a document published by the Council of the European Union after a meeting on Oct. 5. The committee is made up of the heads of missions of the EU member states in Brussels.

COREPER prepares the agenda for the ministerial meetings of the Council and is authorized to take some procedural decisions. The European Parliament has been informed about the endorsement in correspondence to the Committee on Economic and Monetary Affairs (ECON) which is expected to meet and vote next week.

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In a letter, COREPER Chair Edita Hrda confirms that “should the European Union adopt its position at first reading… the Council would, in accordance with Article 294, paragraph 4 of the Treaty, approve the European Parliament’s position and the act shall be adopted in the wording which corresponds to the European Parliament’s position.”

The approval of the draft MiCA package in committee comes after the three main institutions in EU’s complex legislative process – the Parliament, Council and Commission – reached consensus earlier this year on the text of the sweeping proposal to regulate the bloc’s crypto economy. They also agreed on a set of anti-money laundering rules for transactions involving crypto assets.

MiCA should come into force following the completion of the approval process and its publication in the European Union’s Official Journal, expected towards the end of 2022. However, many of its provisions will become applicable in late 2023 or by mid-2024.

The legislation aims to regulate the activities of issuers of crypto assets and providers of related services while protecting customers and investors across the Union. Previous attempts to revise it in the Parliament, including a controversial proposal to ban the provision of services for cryptocurrencies relying on energy-intensive mining methods like Bitcoin, sparked reactions in the crypto industry and community on the Old Continent.

This week, the members of the European Parliament called for introducing effective and uniform taxation rules of crypto assets in the member states. A non-binding resolution adopted with the votes of a large majority of European lawmakers also suggested to employ blockchain technology in the fight against tax evasion and to offer small and occasional crypto traders a simplified tax treatment.

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approval, COREPER, council, Council of the EU, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, ECON, endorsement, EU, EU Council, european commission, European Parliament, European Union, Legislation, Markets, MiCA, Regulation, rules

What effects on Europe’s crypto space do you expect from the MiCA legislation? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Binance And Kazakhstan To Share Information About Crypto-Related Crime

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Binance And Kazakhstan To Share Information About Crypto-Related Crime

Cryptocurrency exchange Binance has agreed to support Kazakhstan in ensuring the safe development of the country’s crypto market. The trading platform and Kazakhstan’s financial regulators intend to inform each other about cases involving the use of digital assets for illicit purposes.

Binance Exchange to Help Kazakhstan Authorities Combat Crime Linked to Cryptocurrencies

The world’s leading coin trading platform, Binance, and Kazakhstan’s Financial Monitoring Agency have recently signed a Memorandum of Understanding expressing their mutual interest in the safe development of the Central Asian nation’s virtual assets market.

An announcement explained that the agreement will govern joint efforts to fight crimes involving digital assets. The crypto exchange and the regulatory body plan to share data that can be used to identify and block crypto holdings obtained by criminal means as well as those employed in the laundering of proceeds from crime and the financing of terrorism.

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According to Tigran Gambaryan, global head of intelligence and investigations at Binance, the company has the most robust compliance program in the industry, incorporating the principles of anti-money laundering and sanctions compliance as well as tools to detect suspicious accounts and fraudulent activity.

During the meeting, Gambaryan and Chagri Poyraz, who heads Binance’s global sanctions department, presented reports devoted to investigations in the crypto space and suppression of illegal activities leading to sanctions evasion using cryptocurrencies.

The signing was also attended by the Chairman of the Financial Monitoring Agency of the Republic of Kazakhstan Zhanat Elimanov, executives and employees of the regulatory body, and other representatives of the Binance ecosystem, the exchange noted in a press release.

The memorandum is part of Binance’s global training program for representatives of regulatory and law enforcement agencies. Its main purpose is to develop cooperation with local and international authorities in the fight against cyber and financial crimes. The initiative has already been implemented in France, Germany, Italy, the U.K., Norway, Canada, Brazil, Paraguay, and Israel.

The agreement follows the signing of another Memorandum of Understanding with Kazakhstan’s Ministry of Digital Development and Innovation in May, under which Binance will advise the government in Nur-Sultan on crypto regulations. In August, the exchange was granted preliminary approval to provide trading and custody services for digital assets in Kazakhstan, a major crypto mining hub.

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agreement, Binance, Crime, Crypto, crypto exchange, crypto trading, Cryptocurrencies, Cryptocurrency, Cryptocurrency Exchange, Exchange, Financial regulators, Kazakhstan, memorandum, Money Laundering, Sanctions, sanctions evasion

Do you expect Kazakhstan to seek assistance from other global crypto companies as it tries to regulate its digital asset economy? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, Binance

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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