Regulation

BaFin issues cease-and-desist orders against MorganTrust and 10CryptoMarket scams

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The German regulator BaFin has issued two cease-and-desist orders against two well-known scam operators – GreenRiver OÜ, the Estonian operator of the broker scams MorganTrust (www.morgantrust.eu), and the 10CryptoMarket (www.10cryptomarket.com) scam of the Joshua Group. The latter is a Ukrainian operated scam on the notorious PumaTS (Leverate) whitelabel provider against which several other regulators have already issued investor warnings.

Crypto Regulation – U.S. SEC Obtains Final Judgment Against Kik and settles case with $5 Mio fine

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The U.S. SEC announced that a federal district court has entered a final judgment on consent against Kik Interactive Inc. (“Kik”) to resolve the SEC’s charges that Kik’s unregistered offering of digital “Kin” tokens in 2017 violated the federal securities laws. On the legal grounds of this final judgment the court approved a settlement between Canadian Kik and SEC. Under the settlement, Kik will pay a US$5 million penalty.

BaFin – Final Cease-and-Desist order against illegal payment processor Global Data Conduct

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Germany is known in the international scam and cybercrime scene for its illegal payment processors. Scammers are fond of their exceptional bank wire services. The BaFin today announced that the Cease-and-Desist order issued in July 2020 against Global Data Conduct GmbH is final and conclusive. This illegal payment processor facilitated the broker scam TradesFX (www.tradesfx.com).

Lessons from BitMEX Case – Arrests, warrants, and bribing regulators with coconuts

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The U.S. Prosecutors charge the BitMex founders Arthur Hayes, Benjamin Delo, Samuel Reed along with the senior manager Gregory Dwyer with (a) violating the Bank Secrecy Act and (b) conspiring to violate the Bank Secrecy Act, by willfully failing to establish, implement, and maintain an anti-money laundering (“AML”) program at the crypto exchange or BitMEX. The charges each carry a maximum penalty of five years in prison.

BitMEX founders resign amid regulatory enforcement actions and criminal actions

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While the CySEC looks away from cryptocurrencies, the U.S. authorities and regulators proceed strictly and consistently in this regard. The U.S. CFTC and U.S. Government announced law enforcement actions action charging the BitMEX co-founders and executives Arthur Hayes, Benjamin Delo, Samuel Reed, Gregory Dwyer, and their legal entities with operating an unregistered trading platform and violating multiple CFTC regulations as well as the U.S. Bank Secrecy Act.

Investor warning against Billion Forex broker scam as part of FCA-regulated Billion Key

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The logo of the broker scam Billion Forex resembles the one of Red Bull and this could be intentional. Currently, there are no warnings against the scam by a financial market regulator but FinTelegram already has whistleblower information and complaints. The scam is operated by BillionTraders Services OÜ, Estonia, and Billion Traders Ltd, St. Vincent and the Grenadines. They claim to be part of FCA-regulated Billion Key Ltd. TEXCENT is the facilitating payment processor.

CMNV Warnings against scam Broker LMFX and FinmaxFX

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The Spanish regulator CNMV issued several investor warnings against several scam brokers earlier this week. These include LMFX operated by Global Trade Partners Ltd, Macedonia, and GTP Global Solutions Ltd in St. Vincent and the Grenadines and FinmaxFX operated by Max Capital Limited in Vanuatu and Gatelinas UAB in Lithuania. As payment processors, both scams …

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Law Enforcement request for information for HybridReserve broker scam

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FinTelegram was asked by an EU law enforcement agency to ask for information about the broker scam HybridReserve. The authorities have received several fraud complaints from retail investors. Already in February 2019 the Belgian regulator Financial Services and Markets Authority (FSMA) and other regulators issued an investor warning against HybridReserve, which is operated by Singlebell Ltd in St. Vincent and the Grenadines and Singlebell OÜ from Estonia.

An alleged fraudsters lifestyle – Josh Cartu, the Cartu Bros, and the $165 million fraud complaint

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FinTelegram has been reporting on the vast global binary options scam scheme around the GreyMountain Management Ltd (“GMM”) of the Cartu brothers. Joshua “Josh” Cartu has contacted FinTelegram via email several times, purported to have nothing to do with the GMM’s fraud scheme, and pointed to his brothers. The U.S. CFTC sees it differently and have filed a fraud complaint against him and his brothers. The end of a lavish lifestyle and Instagram celebrity?