The United States Commodity Futures Trading Commission (CFTC) announced that a whistleblower who assisted the financial regulator in an enforcement action “connected to digital asset markets” would receive a $1 million reward.
In an Aug. 8 notice, the CFTC said it had brought an enforcement action against a firm connected to the digital asset space based on “information about improper trading” provided by an unnamed whistleblower. The regulator did not suggest which crypto firm it was referring to.
“Identifying unlawful conduct in the digital asset marketplace is a major priority for the CFTC, especially as everyday Americans are increasingly victimized by digital asset scams,” said CFTC enforcement director Ian McGinley. “During the last fiscal year, digital asset cases accounted for almost 50% of the CFTC’s docket, and the majority of whistleblower tips that year were related to digital assets.”
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Source: Coin Telegraph
FTX, Alameda Research Must Pay Customers $12.7 Billion In Fraud Suit
Collapsed crypto exchange FTX and its sister trading firm Alameda Research must pay $12.7 billion to resolve a suit from the Commodity Futures Trading Commission (CFTC), according to a court order on Thursday, marking the latest financial blow for convicted head Sam Bankman-Fried’s once thriving crypto empire.
THIS COULD BE THE CASE ASSOCIATED WITH THE $1M Whistleblower Payout!
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Source: Forbes
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US lawmakers introduce legislation to expand Secret Service authority in battling crypto crimes
The bill aims to address the urgent need for robust measures against the complex landscape of digital asset crimes.
A new bill introduced in the Senate seeks to strengthen the US Secret Service’s authority to investigate crimes involving crypto.
The bipartisan effort, led by Senator Catherine Cortez Masto (D-NV) and Senator Chuck Grassley (R-IA), aims to combat transnational cybercriminal activities, including unlicensed money-transmitting businesses, structured transactions, and fraud against financial institutions.
The bill aims to address the urgent need for robust measures against the complex landscape of digital asset crimes. The lawmakers said the legislation will empower the Secret Service to act decisively against these threats, ensuring the safety and security of the financial system.
Expanding authority
The proposed legislation aims to expand the Secret Service’s investigative authority, granting it increased jurisdiction to address crimes involving digital assets, including fraud, money laundering, and illegal money-transmitting businesses.
This expansion will equip the agency with the necessary tools to tackle the evolving nature of cybercriminal activities. According to Grassley:
“Cybercriminals are becoming more innovative and elusive. By enhancing the Secret Service’s authority, we can better protect Americans from financial fraud and other cyber-related crimes.”
The bill encourages enhanced collaboration between the Secret Service and other federal agencies, such as the Department of Justice and the Financial Crimes Enforcement Network (FinCEN).
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Source: CryptoSlate
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BitGo secures major payment license from Singapore’s MAS
California-based digital asset trust and security company BitGo has received a Major Payment Institution license from the Monetary Authority of Singapore.
The company made the announcement on Aug. 8, stating that the MPI license allows it to offer regulated crypto payment services in Singapore, including custody and trading.
Following the approval, BitGo’s Singapore clients will be able to buy and sell crypto from the company’s cold storage custody solutions. Additionally, according to BitGo, the services will include access to its liquidity as well as insured cold storage custody solutions.
The crypto custodian now joins 27 other digital asset companies, including Coinbase and Ripple XRP, which have already secured full MPI licenses to offer crypto services in the city state.
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Source: Crypto News
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Thiel-backed One Trading secures license from Dutch regulator for perpetual futures
Crypto exchange One Trading has been granted an Organized Trading Facility license by the Dutch financial regulator to bring crypto futures onshore in the European Union.
One Trading, a crypto trading platform incubated by Bitpanda, has secured a license from the “Dutch Financial Markets Authority”, becoming the only perpetual futures trading venue in the European Union.
The so-called Organized Trading Facility license positions the Netherlands-headquartered crypto exchange as the first cash-settled perpetuals platform in Europe, including the U.K., the press release reads. One Trading founder Joshua Barraclough says the license is part of the company’s mission to enable all customer types “to go long or short on any asset, use any asset as collateral, settle everything instantly, and perpetually roll contracts.”“With this license, we are well positioned to introduce new regulated products and offer institutional-grade solutions to all customer types starting with BTC and ETH products where no onshore E.U. regulated venue currently exists.”
Joshua Barraclough
One Trading emerged as an independent entity from Bitpanda Pro, a unit of the Austrian exchange catering to institutional crypto traders. In 2023, the exchange raised €30 million in a Series A round led by Peter Thiel’s Valar Venture with participation from other investors, including MiddleGame Ventures, Speedinvest, Keyrock, and Wintermute Ventures. In addition to the OTF license, One Trading also holds a virtual asset service provider license from the Italian regulator.
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Source: Crypto News
Banks and Their Tech Suppliers Face More IT Scrutiny in Europe
Banks and their IT providers will soon face tougher scrutiny in the European Union (EU).
That’s because of the Digital Operational Resilience Act (DORA), which passed last year but isn’t set to be enforced until January of 2025. A report Thursday (Aug. 8) by CNBC examines the implications of the law, particularly in the wake of last month’s CrowdStrike outage.
DORA requires banks to carry out strict IT risk management, digital operational resilience testing, information and intelligence sharing on cyber threats and vulnerabilities, along with taking measures to manage third-party risks.
In addition, the report notes, companies will have to assess their “concentration risk” in relation to outsourcing critical operational functions to third-party companies.
These IT providers often provide “critical digital services to customers,” Joe Vaccaro, general manager of Cisco-owned internet quality monitoring company ThousandEyes, told CNBC.
“These third-party providers must now be part of the testing and reporting process, meaning financial services companies need to adopt solutions that help them uncover and map these sometimes hidden dependencies with providers,” said Vaccaro.
Lenders will also have to “expand their ability to assure the delivery and performance of digital experiences across not just the infrastructure they own, but also the one they don’t,” he added.
As the report notes, DORA aims to help banks escape incidents like the massive IT outage last month when a software update glitch at cybersecurity provider CrowdStrike caused Microsoft Windows systems to crash at airports, hospitals and financial services companies.
Weeks later, the fallout from the outage continues, with Delta Air Lines — which canceled more than 5,000 flights following the disruption and says it stands to lose $500 million — threatening legal action against CrowdStrike.
CrowdStrike struck back against the airline’s claims on Sunday (Aug. 4), arguing that while it accepts responsibility for the outage, it does not accept responsibility for Delta’s IT decisions, noting that “Delta’s competitors, facing similar challenges, all restored operations much faster.”
As PYMNTS wrote earlier this week, the incident underlines the importance of third-party vendors like cloud service providers and IT companies in maintaining resilient infrastructure.
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Source: PYMNTS
