Montenegrin businessman Dusko Knezevic, founder and president of the board of directors of Atlas Group Corporation (AGC), returned to Montenegro from the UK. Knezevic, a prominent figure in the financial world with interests in banks across Serbia, Cyprus, and Great Britain, faces serious legal challenges in his home country. When the Westminster Magistrates’ Court in London approved his extradition in April, Knezevich decided to return. Allegations and Charges While Dusko Knezevic claims that he voluntarily returned to Montenegro, the Montenegrin police, officials from the Department for the Fight against Crime and the Special Purpose Police Sector claim that they successfully extradited the 65-year-old businessman. Knezevic is wanted by Montenegro’s Special State Prosecutor’s Office for multiple charges, including abuse of office through incitement, establishing a criminal organization, and money laundering. These charges stem from his business operations and financial dealings over the years. Upon his arrival in Montenegro’s capital, Podgorica, Knezevic was immediately taken to the High Court. In a statement to Montenegrin media before his extradition, Knezevic mentioned his voluntary return to address the allegations and protect his assets in Montenegro. Controversial Claims and Evidence Knezevic has consistently claimed that he possesses incriminating evidence against former President Milo Djukanovic, his former ally. He has publicly stated that he carries a “blue bag” containing evidence that could expose Djukanovic’s involvement in corrupt activities. This claim has added a layer of political intrigue to his case. In January 2019, a video surfaced showing Knezevic handing over an envelope, purportedly containing $100,000, to Slavoljub Stijepovic, then mayor of Podgorica, allegedly to fund an election campaign for Djukanovic’s Democratic Party of Socialists (DPS). This video sparked protests by the civic movement Resist! in Montenegro. Historical Context and Financial Allegations Knezevic has alleged that he covertly provided financial support to the DPS from the mid-1990s onwards. In 2019, Montenegro’s special prosecution accused him of leading a criminal group that laundered €500,000 through Atlas Banka, with Knezevic allegedly receiving €1.9 million illegally. These charges followed Knezevic’s accusations against Djukanovic and the DPS, which both parties have denied. In a lawsuit filed in June 2019, Djukanovic sought €100,000 in damages from Vijesti newspaper and Knezevic, claiming that their allegations harmed his reputation. This lawsuit was triggered by an interview in which Knezevic alleged that Djukanovic had received money from him, alongside other accusations of wrongdoing involving DPS officials. Arbitration Proceedings Against Montenegrin Government In addition to the criminal charges, Knezevic and his Atlas Group have initiated arbitration proceedings against the Government of Montenegro. Knezevic, along with Atlas Capital Holding Limited and Meljine Complex Limited, is seeking €500 million in damages. According to the Atlas Group‘s legal team, these proceedings started in May 2024. The arbitration has been initiated to protect Knezevic’s interests and recover what he claims to be illegally confiscated property. The €500 million severance request covers damages allegedly incurred by Atlas Capital Holding Limited, Meljine Complex Limited, and Knezevic himself. The damages are said to result from a politically motivated campaign against Knezevic’s investments in Montenegro, which include two banks—Atlas Banka and Invest Bank Montenegro (IBM)—and a hotel complex development project on the seashore. Legal and Political Ramifications Knezevic’s extradition and the unfolding legal proceedings are expected to have significant implications for Montenegro’s political and financial landscape. Some political opponents of Djukanovic have argued that Knezevic should be granted the status of a cooperating witness due to the alleged evidence he holds. However, Montenegrin law currently precludes this possibility while he remains under suspicion as the organizer of a criminal group. The arbitration proceedings and the criminal charges mark a critical moment in Montenegro’s ongoing efforts to address corruption and financial misconduct. Knezevic’s trial and the arbitration are likely to attract considerable attention both domestically and internationally. Share Information With FinTelegram CategoriesCorruption PoliticsTagsAtlas BankaAtlas GroupAtlas Group CorporationDusko KnezevicThe post Charged Montenegrin Businessman Dusko Knezevic and the €500 Arbitrage Case Against Montenegro! first appeared on FinTelegram News.

In recent developments, FinTelegram has highlighted the troubling disappearance of the ByPin e-voucher system. ByPin, operated by Berry Solutions Ltd, a Maltese-registered company, has been placed on the Red Compliance and Red Risk lists by the cyberfinance rating agency PayRate42. This follows our recent review of e-voucher schemes CASHlib and ByPin, both of which were subsequently added to the FinTelegram Red Compliance List. ByPin Website Unavailability For the past few days, visitors to the ByPin homepage (ByPin.online) have encountered a 503 error message, indicating that the website is temporarily unavailable. The sudden disappearance of the ByPin website raises significant questions about the stability and transparency of the e-voucher system, which is frequently utilized in high-risk segments, including online casinos, sports betting, and gambling. Go to the ByPin profile on PayRate42. Background and Licensing Berry Solutions Ltd. operates ByPin and CASHlib. This entity has licensed the ByPin domain and brand to various companies, including Sureswipe E.M.I. PLC. Sureswipe, authorized as an e-money institution in Cyprus, provides e-money services for both ByPin and CASHlib schemes. These e-voucher systems serve as popular payment options for merchants operating in high-risk sectors, raising potential compliance and risk issues. Sureswipe E.M.I. Review In light of the recent developments, we urge readers to refer to our comprehensive review of Sureswipe E.M.I. This Cypriot e-money institution’s business model relies heavily on licensing domains and brands from its EMD agents to service high-risk merchants while its own Revsto brand remains minimally active. Our review underscores the non-transparent licensing system and the need for greater regulatory scrutiny. Read our Sureswipe E.M.I. review here. Call for Information We are seeking more information about the sudden disappearance of the ByPin website and the circumstances surrounding it. If you have any knowledge or insights about the ByPin e-voucher system’s current status or its operational background, we encourage you to share this information through our whistleblowing system, Whistle42. Your insights and information can help shed light on these developments and contribute to ensuring better compliance and regulatory oversight. Share Information with FinTelegram CategoriesHigh-risk payment processors WhistleblowerTagsBerry SolutionsByPinCASHlibSureswipe E.M.I.The post FinTelegram Exclusive: Disappearance of ByPin E-Voucher System Raises Compliance Concerns first appeared on FinTelegram News.

Sureswipe E.M.I. operates as an e-money institution (EMI) within high-risk segments such as online casinos, sports betting, and gambling, primarily through licensed domains and brands rather than its own Revsto brand. The licensing from EMD agents to service merchants in these segments raises significant transparency concerns. The company’s regulated status by the Central Bank of Cyprus and its lack of disclosure about its high-risk segment activities further compound these concerns. Business Model Sureswipe E.M.I. leverages a network of licensed domains and brands to operate in high-risk areas, bypassing the direct use of its Revsto brand. This model is exemplified by several key license agreements: OKTO: This Greek payment scheme, known for its e-voucher and wallet system used in high-risk sectors, licenses its brand to Sureswipe E.M.I. OKTO Group licenses the brand, while Oktopay Deutschland GmbH acts as an EMD agent. CASHlib and ByPin: Managed by Berry Solutions Ltd, these e-voucher schemes are licensed to Sureswipe E.M.I., Fenix Technology SA, and Prepaid Optimal Solutions SA. Both Fenix and Prepaid Optimal Solutions serve as e-money distribution partners for Sureswipe E.M.I. Despite the extensive use of licensed brands in high-risk segments, the Revsto website (Revsto.com) shows minimal visitor traffic and does not actively promote these activities. Compliance Check As an e-money institution regulated by the Central Bank of Cyprus, Sureswipe E.M.I. is expected to maintain transparency in its operations. However, we found some issues to be addressed: Transparency Issues: The Revsto website fails to disclose the license agreements and associated high-risk segment activities. This omission is concerning, given these sectors’ regulatory implications and potential risks. Founders and Executive Roles: The dual roles of Yiannos Christofides and George Christofides in Sureswipe E.M.I. and Meerkat City, a regulatory services provider, raise potential conflicts of interest. Meerkat Solutions d/b/a Meerkat City promotes EU licensing applications for financial institutions, yet there is a lack of transparency in Sureswipe E.M.I.’s disclosures. Executive Backgrounds: Shavasb Bohdjalian and Yervant Bohdjalian’s involvement with Eurivex, a CySEC-regulated entity, and the appointment of Helen Varnava as CEO in 2020, who previously served as Head of Compliance at Payabl, a Cypriot-German payment processor, bring experienced regulatory oversight. However, this experience has not translated into adequate transparency for Sureswipe E.M.I. Red listing: In our reviews of illegal online casinos and gambling sites, we found CASHlib to be one of the payment processors. Consequently, the cyberfinance rating agency PayRate42 has included CASHlib in its Red Compliance and Red Risk lists. Go to the CASHlib profile on PayRate42. Sureswipe E.M.I.’s business model, reliant on licensing from EMD agents to operate in high-risk sectors, while innovative and interesting, presents significant transparency issues. The lack of disclosure on its Revsto website suggest a need for greater regulatory scrutiny. Ensuring compliance and transparency is crucial for maintaining trust and integrity within the financial services industry. Key Data Sureswipe Trading nameRevstoRelated trading namesOKTOCASHlibByPinBusiness activityE-Money InstitutionDomainhttps://revsto.comRelated domainshttps://cashlib.comhttps://bypin.onlinehttps://oktowallet.euhttps://okto.cashSocial mediaLinkedInLegal entitySureswipe EMI PLC (Cyprus)Related legal entitiesBerry Solutions Limited (Malta)FENIX Technology SAS (France)Prepaid Optimal Solutions SA (Luxembourg)Oktopay Deutschland GmbH (Germany)Related individualsHelen Varnava (LinkedIn) – CEOYiannos Christofides (LinkedIn)George Christofides (LinkedIn)Shavasb Bohdjalian (LinkedIn)Yervant Bohdjalian (LinkedIn)Koumis Poyiadjis (LinkedIn)Maria Kouridou (LinkedIn)JurisdictionCyprusAuthorizationAuthorized as EMI bythe Central Bank of CyprusCompliance ratingOrange Request for Information Given the opacity surrounding Sureswipe E.M.I.’s operations, we urge stakeholders to provide further information about the company’s activities, its key personnel, and partners. Insights shared via our whistleblowing system Whistle42 will contribute to a clearer understanding of Sureswipe E.M.I.’s business practices and compliance with regulatory standards. Share Information with FinTelegram CategoriesCompliance Orange Compliance Reviews & Ratings tickerTagsBerry SolutionsByPinCASHlibFenix TechnologyGeorge ChristofidesHelen VarnavaKoumis PoyiadjisMaria KouridouOKtoOKTO GroupOktopay DeutschlandPrepaid Optimal SolutionsShavasb BohdjalianSureswipe E.M.I.Sureswipe EMIYervant BohdjalianYiannos ChristofidesThe post Review: The Networked Cyprus-Based High-Risk Payment Prozessor Sureswipe E.M.I. first appeared on FinTelegram News.

On July 5, 2024, the Hong Kong Monetary Authority (HKMA) announced that it had imposed a pecuniary penalty of HK$10,000,000 ($1.3 million) on DBS Bank (Hong Kong) for contraventions of the Anti-Money Laundering and Counter-Terrorist Financing Ordinance (AMLO). The fine was issued following an investigation that revealed several control deficiencies at DBS Bank: Failure to Monitor Business Relationships: DBS failed to continuously monitor business relationships and conduct enhanced due diligence in high-risk situations during various periods between April 2012 and April 2019 Inadequate Record-Keeping: The bank failed to keep records regarding some of its customers, which is a critical aspect of anti-money laundering (AML) compliance. Ineffective Procedures: DBS failed to establish and maintain effective procedures for carrying out its duties under the AMLO, including inadequate guidance for analysts to examine transaction alerts and document their findings. Failure to Identify Suspicious Transactions: Between March 1 and September 30, 2017, DBS failed to identify transactions with no apparent economic or lawful purpose when reviewing alerts generated from its transaction monitoring system. DBS Hong Kong acknowledged the seriousness of their AML obligations and pledged to comply with the HKMA’s directives. The bank has since introduced new group policies to enhance its ability to identify and address emerging money laundering risks. The fine was imposed after considering the seriousness of the investigation findings and the need to send a clear deterrent message to the industry about the importance of effective controls and procedures to address money laundering and terrorist financing risks. DBS Hong Kong cooperated with the HKMA during the investigation and enforcement proceedings, and the penalty took into account the bank’s remedial actions to address the identified deficiencies and improve its controls. Report Money Laundering Acitivities to FinTelegram CategoriesHKMA Money LaunderingTagsDBS Bank Hong KongThe post The Hong Kong Monetary Authority Fines DBS Bank (Hong Kong) Over AML Violations! first appeared on FinTelegram News.

The Russian-born British citizen Nik Storonsky, founder and CEO of the UK-based fintech giant Revolut, is set to partially cash out his stake in the company through a $500 million (£391 million) secondary share sale, Sky News reports. Storonsky, whose stake in Revolut is valued at several billion dollars, plans to sell shares worth tens to hundreds of millions of dollars in the coming months. Revolut has enlisted Morgan Stanley to manage the share sale, with expectations to attract a valuation of no less than $33 billion (£26 billion), matching its primary funding valuation from 2021. However, the valuation could reach as high as $40 billion (£31 billion), depending on investor interest and final allocation decisions by the company and its advisers. Revolut, boasting over 40 million customers, will not raise new capital in this transaction, though the share sale will be closely monitored within the global fintech sector. The sale is expected to be limited to company employees, many of whom have stock options as part of their compensation. The company recently announced record earnings of £438 million for the previous year, with revenues nearly doubling to £1.8 billion. Despite facing regulatory and compliance challenges, Revolut‘s customer base has grown rapidly, from 16.4 million at the time of its Series E fundraising nearly three years ago. Insiders believe Revolut’s sustained growth justifies its status as Britain’s most valuable fintech despite a downturn in tech valuations. Other fintechs, such as Monzo, have also seen significant funding, but many tech companies with unicorn valuations now struggle to stay afloat. Revolut’s shareholders include prominent investors like SoftBank’s Vision Fund and Tiger Global. Prospective investors have shown significant interest in the upcoming share sale. Additionally, news of the share sale comes amid ongoing anticipation for Revolut’s UK banking license, pending for over three years. Storonsky has publicly criticized the delays, suggesting reluctance towards listing on the London Stock Exchange due to regulatory frustrations. Board members might also participate in the secondary share sale, including Martin Gilbert, the company’s chairman, and Michael Sherwood, a former Goldman Sachs executive. However, the exclusion of non-employees from this deal could draw criticism from some external investors. Share Information with FinTelegram CategoriesFintech People Radar tickerTagsNik StoronskyThe post Revolut Founder Nik Storonsky to Participate in $500M Share Sale! first appeared on FinTelegram News.

A few days ago, Israeli citizen Sabrina Elofer was sentenced to six months of house arrest by U.S. District Judge Paula Xinis in connection with the vast Israeli binary options fraud scheme Yukom Communications. As part of her settlement, Elofer has also agreed to pay more than $2.9 million in restitution. Binary options were banned in most regulatory regimes in 2017, but fraud schemes will keep the courts busy for longer. The Yukom Communications Fraud Yukom Communications was a major player in the fraudulent binary options industry, alongside GreyMountain Management (GMM) operated by the Cartu brothers. This industry, originating in Israel around 2010, quickly became a global fraudulent enterprise, defrauding hundreds of thousands of customers worldwide of billions of dollars until the schemes were banned. Key Figures and Operations Founders: Yukom was founded and controlled by Yosef “Yossi” Herzog and Yakov “Kobi” Cohen. CEO: Lee Elbaz, responsible for the boiler rooms. Brands: Operated several brands, Yossi including BinaryBook and BigOption. Legal Actions Yosef “Yossi” Herzog and Yakov “Kobi” Cohen: Indicted but currently on the run. Lee Elbaz: Arrested in September 2017, indicted in March 2018, convicted in 2019, currently serving a 22-year prison sentence and ordered to pay USD 28 million in damages. Sabrina Elofer’s Involvement Sabrina Elofer, also known as Mila Morales in client interactions, was an account executive for BinaryBook from October 2015 to at least November 2016. At her re-sentencing hearing on February 2, 2024, Elofer pleaded guilty to conspiracy to commit wire fraud. On June 28, 2024, Judge Xinis sentenced her to six months of house arrest. Elofer faced a potential sentence of 51 to 63 months based on sentencing guidelines. Her defense attorney, Todd Spodek, secured a significantly reduced sentence of six months of home detention, which was seen as a major victory. Yukom Scheme Sentencing Overview The following table summarizes the sentencing details of various Yukom Communications employees and directors: NameSentencing DateSentenceRestitutionSabrina EloferJune 28, 20246 months house arrest$2,900,000Lee Elbaz201922 years imprisonment$28,000,000Liora WellesSeptember 20, 201914 months imprisonment$2,395,310Yair HadarSeptember 23, 20198 months imprisonment$1,200,000Lissa MelAugust 201812 months imprisonment$288,024Shira UzanNovember 21, 20194 months imprisonment, 3 years supervised release$1,819,595Afik ToriJanuary 2, 202420 months imprisonment, 3 years supervised release$3,580,836Nissim AlfasiNovember 3, 202318 months imprisonment, 3 years supervised release$4,679,527Ori MaymonOctober 30, 202336 months imprisonment, 3 years supervised release$1,899,074Gilad MazugiOctober 20, 202310 months imprisonment, 3 years supervised release$1,531,341Elad BigelmanOctober 26, 202236 months imprisonment, 3 years supervised release$3,766,449 (jointly with Elbaz)Yousef BisharaJanuary 22, 20217 months imprisonment, 3 years supervised release$1,130,488Oron MontgomerySentencing on July 19, 2024Pleaded guilty to conspiracy to commit fraudTBD Preliminary Conclusion The sentencing of Sabrina Elofer marks another milestone in the ongoing legal proceedings related to the Yukom Communications binary options scam. This case highlights the widespread impact of fraudulent binary options schemes and the continued efforts of legal authorities to bring those responsible to justice. Report Scams If you have any information about scammers and their fraudulent activities, please let us know via our whistleblowing system, Whistle42. Report Scams to FinTelegram CategoriesBinary Options Court Cases ticker YukomTagsBigOptionBinaryBookCartu BrotherGMMKobi CohenLee ElbazSabrina EloferYesso HerzogYukomYukom CommunicationsThe post Binary Options Fraud: Recent Sentencing of Boiler Room Agent Sabrina Elofer in Yukom Scheme! first appeared on FinTelegram News.

Disclaimer: This update on B90 Holdings PLC has been prepared with the utmost care and is based exclusively on factual information. However, it is essential to note that Dirk-Jan Bakker, a Dutch investor and one of the beneficial owners of B90 Holdings, has filed a lawsuit against FinTelegram in Amsterdam for defamation. As a result, FinTelegram is called upon to prove the truth of its reports, which we are confident we can do. Due to this ongoing legal matter, FinTelegram’s objectivity may be perceived as compromised. Thus, we have endeavored to ensure that this report, as all others, is grounded in verified facts, and we have minimized subjective conclusions to maintain the highest level of integrity and accuracy. Readers are advised to consider this context when evaluating the information provided in this update. B90 Holdings Overview B90 Holdings PLC (formerly Veltyco Group PLC) operates in the high-risk online casino, sports betting, and gambling segment and is listed on the London Stock Exchange AIM. Under the leadership of Norwegian CEO Ronny Breivik, the company has experienced significant financial challenges and controversies. Its co-founder and former CEO Uwe Lenhoff was arrested in 2019 over fraud allegations and died in prison in 2020. Financial Performance The financial results for 2023, published in May 2024, were alarming, with a loss of €5.5 million on a turnover of only €3 million. The company shows continuity in its loss-making production: 2023 has seamlessly continued the loss-making previous years. Even after the arrest of former CEO and main shareholder Lenhoff in 2019, the company has only produced massive losses. YearLossin Mio EURRevenuein Mio EURSource20194.44(link)20202.20.8(link)20213.30.8(link)20224.22.2(link)202353(link) These figures reveal a troubling trend where losses consistently exceed turnover, raising concerns about the company’s sustainability and financial health. In the last 5 years, a total loss of almost €20 million was made on a turnover of just under €11 million. That is astonishing. Why run a listed company as a loss producer and money burner for so many years? CEO Ronny Breivik describes 2023 as a transformation year in which a change in strategy from B2C to B2B is to be implemented. According to reports, the company will have already achieved a positive EBITDA in the first quarter of 2024. However, there is currently no official announcement of Q1 2024 results. It will be interesting to see. Both as Veltyco Group and as B90 Holdings, the company consistently burned through cash and relied on capital increases through convertible bonds to secure fresh funds from shareholders. In 2023, the company raised again €6.6 million through convertible loan notes and equity placements. The executives never provided clear explanations on how these funds were used to develop a profitable business, a lack of transparency that persists under the current CEO Ronny Breivik. Historical Context Between 2016 and 2020, B90 Holdings generated its revenue primarily as a marketing fund for the illegal activities of its co-founder and CEO, the late German national Uwe Lenhoff. This period is euphemistically referred to as “The Start” periodin B90’s 2023 presentation. The company’s past, marred by cybercriminal activities under Lenhoff, who died in prison, continues to cast a long shadow. Recent Developments In June 2024, a due diligence report on co-founder and main shareholder Dirk-Jan Bakker was published, criticizing B90 Holdings’ cybercriminal history. Download the Bakker Due Diligence Report here. Despite these revelations, there have been efforts to instill confidence among shareholders: Oddsen.nu: In May, B90 Holdings announced that Oddsen.nu, acquired from Performance Media SIA in September 2021, had signed fixed marketing agreements projected to generate €200,000 in revenue for 2024. Oddsen assets transaction: In September 2021, B90 Holdings acquired the assets of Oddsen.nu from Performance Media SIA, a company controlled by the current CEO, Ronny Breivik. Director Dealings Following the publication of the due diligence report, both CEO Ronny Breivik and non-executive director Mark Rosman purchased shares, likely to reassure shareholders: June 11, 2024: Ronny Breivik bought 33,000 shares at 3.35 pence each, increasing his interest to approximately 7.05% of the issued ordinary share capital. June 17, 2024: Mark Rosman purchased 20,000 shares at 3.40 pence each, raising his stake to about 5.33%. Major Shareholders The largest shareholder remains Mark Blandford‘s Winforton Investments Ltd, also serving as a strategic advisor. However, the Amsterdam bloc, consisting of Dirk-Jan Bakker, Paul Westerterp, and Mark Rosman, controls nearly 20% of the shares, maintaining their dominance in B90 Holdings. One of the major shareholders listed on the website is Ulen Holdings Ltd (see screenshot right), the dissolved Cyprus entity that belonged to co-founder Uwe Lenhoff, who died in prison on 2020. Shareholder%UBOWinforton Investments Ltd19.5Mark Blandford (family)Ronny Breivik7,05=> personal holdings4.6=> via Performance Media SIA2,45Ronny BreivikAmsterdam Connection19.6=> Paul Westerterp8.6=> Diman B.V. 5.7Dirk-Jan Bakker=> Mark Rosman5.3Mark Rosman Compliance and Governance Concerns Just a few weeks ago, the well-known German satirist and TV presenter made the cybercrime past of B90 Holdings and its co-founder Uwe Lenhoff known to the general public. Since its inception in 2016 by Dirk-Jan Bakker and Uwe Lenhoff, B90 Holdings has faced continuous losses and allegations of misleading shareholders. Significant revenue has been tied to companies controlled by executive board members, raising serious governance and compliance issues. Conclusion Given the ongoing financial instability, historical controversies, and lack of transparency, we maintain our Red Compliance Rating for B90 Holdings. We continue to advise against investment in this stock. Call for Whistleblowers We urge insiders and whistleblowers to provide any additional information regarding B90 Holdings. Your insights are crucial in uncovering the true nature of the company’s operations and ensuring transparency for shareholders and potential investors. Please share information via our whistleblower system, Whistle42. Share Information About B90 Holdings with FinTelegram This update aims to provide shareholders and potential investors with a comprehensive overview of B90 Holdings’ recent activities and financial health while emphasizing the need for greater transparency and accountability within the company. CategoriesRed Compliance Reviews & Ratings tickerTagsB90 HoldingsDirk-Jan BakkerIlan TzoryaMark BlandfordMark RosmanPaul WesterterpRonny BreivikUwe LenhoffVeltyco GroupThe post The Q2 2024 Update on B90 Holdings PLC first appeared on FinTelegram News.

On July 5, 2024, Europol announced that in an international law enforcement action against organized crime, French and Spanish authorities had arrested five members of an alleged Chinese money laundering network operating across Europe. The joint law enforcement operation, supported by Europol, highlights the network’s extensive capacity to smuggle over €1 million in cash daily. Money laundering is still a highly attractive business. Money Laundering & Operation Details Assessing the precise scale of money laundering is challenging, but its magnitude is widely recognized as substantial. According to estimates by the United Nations Office on Drugs and Crime (UNODC), between 2% and 5% of the global GDP is laundered annually. This translates to an astonishing EUR 715 billion to EUR 1.87 trillion each year. The announced law enforcement action action took place between July 2 and 3 and involved extensive searches across multiple locations in Spain, including Madrid, Valencia, Alicante, and Barcelona. Approximately 100 Spanish police officers, assisted by French Judicial Customs investigators and Europol experts, searched homes, company headquarters, commercial warehouses, and restaurants. During the raids, authorities seized close to €160,000 in cash. Among those arrested was the alleged leader of the criminal network, marking a significant blow to the group’s operations. Investigation Background The investigation began in February 2021, following a substantial cash seizure by French Customs in Perpignan. Authorities discovered over half a million euros hidden in a vehicle equipped with a concealed compartment, triggering a deeper probe into the money laundering activities. Under the direction of the Specialised Interregional Jurisdiction (JIRS) of Marseille, the French National Anti-Fraud Office (ONAF) uncovered a sophisticated network of Chinese nationals believed to have been active since at least 2019. This network was involved in various illicit activities, including trafficking counterfeit goods, tax and customs fraud, and prostitution. Operational Scope The criminal network utilized a complex logistical setup to facilitate the movement of large sums of cash across Europe. The scale and efficiency of their operations allowed them to launder significant amounts of money daily. Bottom Line The arrests and seizures mark a significant milestone in the fight against money laundering and organized crime in Europe. As investigations continue, authorities remain vigilant in their efforts to track and eliminate similar criminal enterprises, ensuring the integrity and security of financial systems across the continent. FinTelegram will continue to monitor and report on the developments in this case and other significant financial crime activities. Share Information with FinTelegram CategoriesEuropol Law Enforcement Money LaunderingThe post French and Spanish Authorities Dismantle Chinese Money Laundering Network first appeared on FinTelegram News.

Former Brazilian President Jair Bolsonaro‘s legal troubles have deepened with his recent indictment on charges of money laundering and criminal association related to undeclared diamonds from Saudi Arabia. It’s the second formal accusation against the embattled far-right leader. Brazil’s Supreme Court has yet to receive the police report with the latest indictment and the prosecutor-general has to decide whether to file charges and force Bolsonaro to stand trial. Indictment Details Federal Police confirmed the indictment on Thursday, which comes on the heels of a previous accusation in May alleging Bolsonaro falsified his COVID-19 vaccination certificate. The indictment centers around allegations that Bolsonaro attempted to smuggle diamond jewelry worth $3 million from Saudi Arabia without declaring it, thereby evading taxes. The Federal Police allege that in August 2022, Bolsonaro received nearly $70,000 from the sale of luxury watches gifted by Saudi Arabia. Brazilian law mandates the declaration of goods valued over $1,000 upon arrival from abroad, with taxes applicable on amounts exceeding this threshold. The diamonds, if considered a state gift, should have been added to the presidential collection rather than kept by Bolsonaro. Mauro Cid, Bolsonaro’s former aide-de-camp, is implicated in the sale of a Rolex and a Patek Philippe watch in the U.S. for $68,000. Cid, who has entered a plea bargain, confirmed these transactions. Additionally, Bolsonaro’s eldest son, Senator Flávio Bolsonaro, denounced the indictment as blatant persecution. Legal Process and Potential Consequences The indictment awaits review by Brazil’s Supreme Court. Upon receipt, Prosecutor-General Paulo Gonet will assess the police report and decide whether to formally charge Bolsonaro, potentially leading to a trial. The former president and his legal team have consistently denied any wrongdoing, claiming the accusations are politically motivated. Escalating Legal Threats This indictment significantly escalates the legal risks for Bolsonaro. His detractors see it as a necessary step toward justice, while his supporters decry it as political persecution. The former president is also under investigation for his alleged role in inciting the January 8, 2023, uprising in Brasilia, aimed at overthrowing his successor. Legal Defense Reactions Bolsonaro’s lawyers, Frederick Wassef and Fábio Wajngarten, have criticized the investigation. Wassef claimed he is being targeted for defending Bolsonaro, while Wajngarten asserted that the Federal Police have no evidence implicating him. Political Ramifications Bolsonaro maintains a strong political base, evidenced by significant public support, such as the February protest in Sao Paulo with approximately 185,000 participants. Critics, especially those aligned with President Luiz Inácio Lula da Silva, have consistently pushed for Bolsonaro’s arrest. It is assumed that the Supreme Court and Justice Alexandre de Moraes will proceed cautiously to avoid inflaming Bolsonaro’s supporters. Bolsonaro will face increasing legal challenges, particularly in light of last year’s ruling that rendered him ineligible for elections until 2030 due to abuse of presidential powers during his re-election campaign. Report Money Laundering Activities to FinTelegram CategoriesCorruption Money LaunderingTagsAlexandre de MoraesFabio WajngartenFrederick WassefJair BolsonaroThe post Former Brazilian President Jair Bolsonaro Indicted for Money Laundering in Connection with Undeclared Saudi Diamonds first appeared on FinTelegram News.

In the ongoing legal battle between the leading U.S. crypto exchange Coinbase and the Securities and Exchange Commission (SEC), the crypto exchange has renewed its efforts to access the personal emails of SEC Chair Gary Gensler. Coinbase asserts that these communications are a crucial part of the discovery process. The argument is that Gensler’s communications and views on cryptocurrencies as SEC Chair are essential to its “fair notice” defense. Background of the Dispute Coinbase is challenging the SEC’s attempt to block what it deems “reasonable discovery” from Gensler. The SEC previously rejected Coinbase‘s request, labeling it as an “improper intrusion into a public official’s private life.” Coinbase’s Chief Legal Officer, Paul Grewal, emphasized the importance of transparency and due process, stating, “Democracy, as well as due process, dies in darkness. We appreciate the Court’s careful consideration of this matter.” Relevance to the Case In a letter to U.S. District Judge Katherine Failla, Coinbase’s legal team argued that Gensler’s communications are pertinent to their defense. Specifically, they believe these emails could provide insight into the regulatory status of digital assets and exchanges, which is central to Coinbase’s fair notice defense. Coinbase contends that understanding Gensler’s perspective and communications is key to evaluating whether the company had a “reasonable opportunity to know” what the securities laws prohibited regarding digital assets. Coinbase cites the Ripple case, where the court confirmed that agency personnel’s communications, even if not public, can provide insight into the public’s understanding of regulatory requirements. Discovery Requests Coinbase’s request includes documents and communications dating back to 2017, encompassing the period before Gensler assumed his role as SEC Chair in April 2021. The exchange hopes to uncover any discussions that might shed light on the SEC’s stance on digital assets and securities laws. SEC’s Stance The SEC has firmly opposed the request. In a June 28 letter to the judge, the agency described Coinbase’s demand to search Gensler’s personal emails as unnecessary and invasive. The SEC argued, “The Subpoena should be directed at the SEC… it is an improper intrusion into a public official’s private life, based on his decision to serve.” The SEC further warned of the potential chilling effect such a precedent could have on public service. Recent Legal Actions In addition to this discovery dispute, Coinbase has recently filed two lawsuits against the SEC and the Federal Deposit Insurance Corporation (FDIC) for failing to comply with Freedom of Information Act (FOIA) requests. Coinbase seeks judicial intervention to compel these agencies to fulfill their FOIA obligations. Implications The outcome of this discovery dispute could set a significant precedent for how public officials’ personal communications are handled in regulatory cases. For Coinbase, gaining access to Gensler’s emails could bolster their defense and potentially impact the broader regulatory landscape for digital assets. Share Information and Insights with FinTelegram CategoriesFinTelegramTagsCoinbaseGary GenslerKatherine FaillaPaul GrewalThe post The Struggling Regulator: Coinbase Argues Gary Gensler’s Emails are Critical for Discovery in SEC Lawsuit! first appeared on FinTelegram News.

As the trial of former Wirecard CEO Markus Braun unfolds in Munich, a new twist in the Wirecard saga emerges, intertwining financial scandal with espionage intrigue. Recent revelations by Austrian law enforcement have uncovered that Jan Marsalek, the fugitive former COO of Wirecard, allegedly paid €500,000 to “Austrian spies” in September 2017. This discovery has profound implications for the ongoing trial and raises questions about the extent of Russian involvement in the Wirecard collapse. New Espionage Allegations The espionage case involving Marsalek and Wirecard, set against the backdrop of Vienna’s long-standing role as a hub for Russian espionage activities, could easily be a plot straight out of a Frederick Forsyth thriller. The investigative Austrian online platform ZackZack published an interesting article. According to Austrian judicial findings, Jan Marsalek is believed to have facilitated payments to former Austrian intelligence officers, who in turn leaked sensitive information to the Russian Federal Security Service (FSB). The funds were allegedly transferred through a complex network of companies spanning Germany, Luxembourg, and Singapore. Austrian authorities have formally requested legal assistance from Germany to delve deeper into these transactions. Markus Braun’s Defense These new espionage allegations support Braun’s defense strategy. Braun, along with co-defendants Oliver Bellenhaus and Stephan von Erffa, has maintained that he was unaware of Marsalek’s illicit activities. The defense argues that Marsalek exploited Wirecard for malicious activities without Braun’s knowledge or involvement. The evolving narrative suggests that Wirecard’s financial infrastructure may have been systematically used for Russian espionage, a claim that could potentially exonerate Braun from direct culpability. The Espionage Network Austrian prosecutors assert that Marsalek orchestrated payments to Austrian intelligence officers, including the fugitive Martin Weiss and the recently released Egisto Ott. These payments were allegedly made in exchange for sensitive information, funneled to the FSB. Documentation seized during the Wirecard investigation indicates that payment of €494,320 was made to “Austrian spies” via Marsalek’s company network in September 2017. This payment was labeled as “compensation” for espionage activities. It is expected that more payments may be found in this context, insiders assume. International Investigations The Vienna Public Prosecutor’s Office, following an explosive tip-off from German authorities, is pursuing new leads that trace financial flows from Germany to Luxembourg and Singapore. These investigations reveal a shadowy network managed by British national James Henry O’Sullivan, a close associate of Marsalek. O’Sullivan, currently on trial in Singapore, is accused of managing millions of euros for Wirecard in Asia. Notes found during searches in Luxembourg mention payments labeled as “Compensation of spies,” pointing to the clandestine nature of these transactions. Consequences for Braun’s Trial The new findings could significantly impact Markus Braun‘s trial. If Braun’s defense successfully argues that Marsalek co-opted Wirecard’s infrastructure for espionage without Braun’s knowledge, the narrative of the trial may shift. The focus could move from financial misconduct to a broader geopolitical conspiracy, potentially mitigating Braun’s liability. According to German law, the court’s responsibility in a trial is to ascertain the truth and render a judgment based on that truth. However, in light of the new findings by the prosecution regarding Marsalek and Wirecard, uncovering the complete truth in the trial against Markus Braun and his co-defendants in Munich seems increasingly challenging. This development threatens to undermine the trial’s credibility. Markus Braun’s defense team has requested the inclusion of the criminal files related to the Marsalek espionage case in the trial proceedings, but the court has yet to rule on this matter. The revelations of espionage tied to Wirecard underscore the vulnerabilities in the financial sector, particularly concerning the use of complex financial systems for illicit activities. This case highlights the necessity for robust regulatory frameworks and vigilant oversight to prevent similar abuses in the future. Preliminary Conclusion As the Wirecard trial in Munich continues, the unfolding espionage allegations add a new layer of complexity to an already convoluted case. Russian intelligence’s involvement and the misuse of financial networks for espionage purposes reveal the dark underbelly of international finance. The coming months will be critical in determining the full extent of these activities and their implications for those standing trial. For Markus Braun, the emerging evidence could either exonerate him or entangle him further in the web of deceit that has defined the Wirecard scandal. Share Information About Wirecard with FinTelegram CategoriesBankruptcies Court Cases Money Laundering tickerTagsEgisto OttJames Henry O'SullivanJan MarsalekMarkus BraunMartin WeissOliver BellenhausStephan von ErffaWirecardThe post Wirecard & The Forsyth Twist: Russian Espionage Allegations and Implications for CEO Markus Braun’s Trial! first appeared on FinTelegram News.

Cyberfinance rating agency PayRate42 has awarded Circle, the issuer of the stablecoin USDC, with top ratings for both compliance and risk. The “Green Compliance” and “Green Risk” ratings reflect Circle’s adherence to stringent regulatory standards and its robust risk management framework. This recognition comes as Circle becomes the first stablecoin issuer to secure a license under the European Union’s Markets in Crypto-Assets (MiCA) regulation. MiCA Regulation and Its Impact on Stablecoin Issuers The MiCA framework, adopted by the EU in 2024, represents a landmark regulatory initiative aimed at creating a comprehensive and harmonized approach to digital assets. MiCA encompasses a wide range of provisions designed to ensure legal certainty, consumer protection, market integrity, and financial stability within the crypto-asset sector. Key aspects of MiCA regulation for stablecoin issuers include: Licensing Requirements: Stablecoin issuers must obtain a license to operate within the EU, ensuring they meet strict operational and financial standards. Capital Requirements: Issuers must maintain sufficient capital reserves to back their stablecoins, ensuring stability and trustworthiness. Governance and Transparency: Issuers are required to implement robust governance structures and provide transparent reporting to regulators and the public. Consumer Protection: Enhanced measures to safeguard consumer funds and data, including clear disclosures about the nature and risks of stablecoins. Circle’s MiCA License and Its Implications Circle’s acquisition of a MiCA license underscores its commitment to regulatory compliance and positions USDC as a secure and reliable stablecoin within the European market. This regulatory approval enables Circle to expand its operations across Europe, providing greater assurance to users and institutional investors. The MiCA license for Circle and its USDC stablecoin could have significant implications for the stablecoin market, particularly for Tether (USDT), the current market leader. Unlike Circle, Tether has faced ongoing scrutiny and regulatory challenges concerning its reserves and transparency practices. Go to the Circle profile on PayRate42. Impact on Market Dynamics Increased Trust and Adoption: Circle’s compliance with MiCA standards is likely to boost confidence among users and investors, potentially leading to increased adoption of USDC over USDT. Regulatory Pressure on Tether: Tether may face heightened pressure to enhance its transparency and compliance practices to remain competitive, especially as regulatory scrutiny intensifies globally. Market Diversification: With Circle setting a high compliance benchmark, other stablecoin issuers may seek MiCA licenses or equivalent regulatory approvals to differentiate themselves and gain market share. Innovation and Competition: The entry of MiCA-regulated stablecoins like USDC could spur innovation within the stablecoin segment, encouraging the development of new features and use cases that adhere to regulatory standards. Future Scenarios for the Stablecoin Segment Regulatory Harmonization: As more jurisdictions implement similar regulatory frameworks, the stablecoin market could become more standardized, reducing risks and enhancing cross-border usability. Increased Institutional Participation: Greater regulatory clarity and compliance may attract more institutional investors to stablecoins, driving further growth and integration into traditional financial systems. Competitive Landscape: The competition between USDC and USDT could lead to better products and services for consumers, as each issuer strives to maintain and grow their user base through innovation and enhanced security. Conclusion The “Green Compliance” and “Green Risk” ratings awarded to Circle by PayRate42 highlight the firm’s exemplary commitment to regulatory standards and risk management. As the first stablecoin issuer to receive a MiCA license, Circle sets a precedent for the industry, fostering greater trust and stability in the stablecoin market. This development is poised to shape the future dynamics of the sector, driving increased transparency, competition, and innovation. Share Information with FinTelegram CategoriesCrypto Compliance PayRate42 tickerTagsCircleThe post PayRate42 Awards Circle with “Green Compliance” and “Green Risk” Ratings first appeared on FinTelegram News.

Money laundering is still a significant and attractive business. Indeed, for certain jurisdictions, including Panama. The country’s new president, José Raúl Mulino, has controversially dismissed the Panama Papers as a “hoax” following the acquittal of 28 defendants in a high-profile money laundering trial, ICIJ reports. The ruling has sparked concerns among legal experts about Panama’s commitment to combating corruption. Acquittal Details By the end of June, Judge Baloisa Marquínez acquitted all defendants, citing insufficient evidence and prosecutors’ failure to adhere to chain-of-custody protocols for electronic evidence. The trial involved figures linked to the Mossack Fonseca law firm, which was central to the 2016 Panama Papers leak, which exposed widespread offshore financial activities. Carlos Barsallo, a Panamanian attorney and former president of Transparency International’s Panama chapter, criticized the prosecution’s mishandling of digital documents. “Maintaining the chain of custody for digital evidence like emails should have been straightforward,” he remarked. The case underscores the challenges of prosecuting complex corruption cases and highlights the need for enhanced resources. Barsallo emphasized that more economic, human, and technical resources are essential for successful prosecution. Trial Background The 85-hour trial began in April, nearly eight years after the Panama Papers revelations. Prosecutors argued that Mossack Fonseca facilitated money laundering through shell companies linked to corruption scandals in Brazil, Germany, and Argentina. Despite the high-profile nature of the Panama Papers, Barsallo clarified that the trial focused on specific money laundering allegations rather than broader tax evasion issues. Political Reactions President Mulino’s inauguration speech on July 1 condemned the Panama Papers as an attack on Panama’s reputation. He vowed to restore the country’s image, asserting that the investigation unfairly targeted Panama. Economist Joseph Stiglitz, co-author of a transparency report following the Panama Papers, defended the investigation’s significance. “The Panama Papers were instrumental in raising awareness about tax avoidance and money laundering,” he noted. While Panama’s government seeks to move past the scandal, the acquittals raise broader questions about the effectiveness of anti-corruption measures and the global fight against financial crime. Report Money Laundering Activities to FinTelegram CategoriesCourt Cases Money Laundering PanamaTagsBaloisa MarquinezCarlos BarsalloJose Raul MulinoJoseph StiglitzMossack FonsecaPanama PapersThe post Panama’s New President Labels Panama Papers a ‘Hoax’ Amid Money Laundering Acquittals first appeared on FinTelegram News.

Rumors are swirling around Genesis Digital Assets‘ (GDA) potential Initial Public Offering (IPO). GDA is a prominent US bitcoin mining firm, that once was financially backed by the collapsed Alameda Research of former convicted crypto mogul Sam Bankman-Fried. According to a Bloomberg report, GDA is exploring options for a U.S. IPO, underscoring the ongoing bullish sentiment in the crypto market. IPO Considerations and Strategic Moves GDA is reportedly consulting with advisers about the potential IPO and is planning a pre-IPO funding round, which could commence in the coming weeks. This strategic maneuver highlights the firm’s ambition to capitalize on the current market conditions and expand its financial resources. The interest in an IPO comes when many Bitcoin mining companies seek to boost their revenues and expand their mining capacities. This trend follows the April bitcoin halving, which reduced mining rewards by 50%, prompting firms to innovate and scale their operations to maintain profitability. Financial Backing and Market Valuation Alameda Research, once the sister trading firm of the now-bankrupt FTX exchange, invested approximately $1.15 billion in GDA in 2022. This significant investment valued the mining firm at $5.5 billion, reflecting strong market confidence in its potential and operational capabilities. GDA’s extensive operations span over 20 mining facilities across four continents, including major sites in Texas, North Carolina, and South Carolina. The firm boasts a total power capacity exceeding 500 megawatts, highlighting its substantial role in the Bitcoin mining industry. Recent expansions include a new mining center launched in Argentina in May, and a 36 MW facility announced in Texas in April. Implications for the Crypto Market The potential IPO of Genesis Digital Assets is yet another indicator that the crypto market is expected to continue its bullish trend. The increasing interest in IPOs among major players in the crypto space suggests growing confidence in the sector’s long-term viability and profitability. This development also reflects the broader trend of traditional financial mechanisms, such as IPOs, being adopted by crypto companies to fuel their growth and integration into mainstream financial markets. As Genesis Digital Assets considers this significant step, it signals a maturation of the crypto market and a move towards greater institutionalization. Share Information with FinTelegram CategoriesCrypto IPOTagsAlameda ResearchFTXGDAGenesis Digital AssetsSam Bankman-FriedThe post Genesis Digital Assets Weighs IPO, Signaling Continued Bull Cycle in Crypto Market first appeared on FinTelegram News.

In a year marked by remarkable financial achievements, Revolut has reported record profits for 2023, prompting cyberfinance rating agency PayRate42 to reaffirm its Green Compliance and Green Risk ratings for the London-based fintech giant. PayRate42 positions itself as a private extension of state financial regulators and aims to inform and protect investors and customers of cyberfinance institutions through its rigorous assessments. Financial Performance and Regulatory Challenges Revolut‘s financial performance in 2023 was nothing short of impressive. The company swung to a £438 million profit, a dramatic turnaround from the £25 million loss recorded the previous year. This surge in profitability was driven by higher interest rates and an ambitious expansion strategy that added 12 million new customers to its user base, boosting revenues by 95% to £1.8 billion. Despite these strong results, Revolut continues to face challenges in securing a UK banking license, a process that has been ongoing for over three years. The license would enable Revolut to hold customer deposits and expand its financial offerings in the UK. The delay is partly due to past regulatory breaches and accounting concerns, but Revolut remains committed to addressing these issues and is working closely with the Prudential Regulation Authority. Customer Satisfaction and Financial Stability Customer reviews of Revolut have been overwhelmingly positive, with high satisfaction levels reflected in top ratings on both Apple and Google app stores. This customer approval, combined with Revolut‘s strong financial resources, underpins PayRate42’s decision to maintain the company on its Green Risk list. The Green Risk rating highlights Revolut’s financial stability and minimal risk profile, assuring investors and customers of its solid foundation. PayRate42’s Green Ratings In light of Revolut’s significant progress and strong financial standing, PayRate42 has reiterated its Green Compliance and Green Risk ratings for the company. These ratings reflect Revolut’s adherence to regulatory standards and its robust risk management framework. PayRate42’s role as a cyberfinance rating agency is to act as a complement to state financial regulators, providing detailed analysis and ratings to help safeguard investors and customers in the cyberfinance sector. Go to the Revolut profile on PayRate42. IPO Prospects Revolut has also hinted at plans for an initial public offering (IPO), emphasizing its efforts to enhance financial controls in line with the standards expected of publicly listed companies. These preparations follow improvements in its financial reporting processes, which allow auditors to gain a clearer understanding of Revolut’s operations and release timely financial results. Share Information about Revolut with FinTelegram CategoriesCompliance PayRate42 tickerTagsRevolutThe post Revolut’s Strong 2023 Results Lead to Confirmed Green Ratings from PayRate42 first appeared on FinTelegram News.

The FBI has taken decisive action against the notorious Israeli money recovery scheme, Pay Back, by seizing its website. FinTelegram has long warned about this fraudulent operation, also known as Payback and Money Back, placing it on our black compliance list. For years, we believe that this scheme has exploited fraud victims by falsely promising to recover lost funds, operating under various brands, domains, and websites. We ask insiders and victims to provide additional information. Background and Recent Developments Pay Back, founded by Israelis Amir Geva and Daniel Poleb, has been masquerading as a legitimate fund recovery expert while allegedly defrauding countless victims. The UK Financial Conduct Authority (FCA) recently issued an updated warning, identifying Pay Back as a clone of an FCA-regulated company. FinTelegram has received several hostile communications from Pay Back’s associates in response to our warnings. Despite this, we continue to expose their deceptive practices. Fund recovery scams like Pay Back prey on the desperation of scam victims, compounding their financial and psychological distress. Call to Action We currently lack detailed information about the FBI’s enforcement action against Pay Back. FinTelegram appeals to whistleblowers and victims for more information. If you have any details about this case or have been affected by Pay Back’s operations, please get in touch with us through our Whistle42 system. The Impact of Fund Recovery Scams Fund recovery scams occupy a particularly heinous place in the cybercrime hierarchy. They not only rob victims of their remaining resources but also shatter their hopes of financial restitution. These scams are devastating both financially and psychologically, often leaving victims in worse conditions than before. FinTelegram is committed to shedding light on these unscrupulous activities and supporting victims in their pursuit of justice. We encourage anyone with pertinent information to come forward and aid in the fight against such malicious schemes. Share Information with FinTelegram CategoriesFund Recovery tickerTagsAmir GevaDaniel PolebThe post Breaking News: FBI Seizes Pay Back’s Website Amid Fund Recovery Scam Allegations first appeared on FinTelegram News.

The U.S. Securities and Exchange Commission (SEC) has brought charges against Silvergate Capital Corporation, its former CEO Alan Lane, and former Chief Risk Officer (CRO) Kathleen Fraher for allegedly misleading investors about the robustness of their AML compliance program and the monitoring of crypto customers, notably FTX. Additionally, the SEC has charged Silvergate and its former CFO (CFO), Antonio Martino, with providing false information regarding the company’s financial losses. Allegations and Compliance Failures According to the SEC’s complaint, from November 2022 to January 2023, Silvergate, along with Alan Lane and Kathleen Fraher, misled investors by claiming that Silvergate had an effective BSA/AML compliance program and that it was continuously monitoring its high-risk crypto clients, including FTX. These assertions were part of an effort to counter public speculation that FTX had used its accounts at Silvergate to facilitate misconduct. In reality, Silvergate’s automated transaction monitoring system failed to track over $1 trillion in transactions conducted by its customers on the Silvergate Exchange Network. Financial Misrepresentation The SEC’s complaint also accuses Silvergate and Antonio Martino of misrepresenting the company’s financial condition during the liquidity crisis and bank run that followed FTX‘s collapse. Specifically, it is alleged that Silvergate and Martino understated the company’s losses from anticipated securities sales and falsely claimed that Silvergate remained well-capitalized as of December 31, 2022. By March 2023, Silvergate announced its intention to wind down its banking operations, leading to its stock plummeting to near zero. Legal Actions and Settlements The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Silvergate, Lane, and Fraher with negligence-based fraud and accuses Silvergate of violating various reporting, internal accounting controls, and books-and-records provisions. Without admitting or denying the allegations, Silvergate has agreed to a final judgment that includes a $50 million civil penalty and a permanent injunction to settle the charges. Lane and Fraher also settled, agreeing to permanent injunctions, five-year officer-and-director bans, and civil penalties of $1 million and $250,000, respectively. These settlements are subject to court approval, and Silvergate‘s payment may be offset by penalties paid to the Board of Governors of the Federal Reserve System (FRB) and/or the California Department of Financial Protection and Innovation (DFPI). Martino faces charges for violating antifraud and books-and-records provisions of federal securities laws and for aiding and abetting Silvergate’s violations. Report Money Laundering Activities to FinTelegram CategoriesCrypto Compliance Money Laundering SEC tickerTagsAlan LaneAntonio MartinoFTXKathleen FraherSilvergate Capital CorporationSivergateThe post SEC Charges Former Silvergate Executives for Misleading Investors on Compliance and Financial Health Amid FTX Collapse! first appeared on FinTelegram News.

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has imposed sanctions on a Mexico-based money launderer and several China-based members of a money laundering organization with connections to the notorious Sinaloa Cartel. This action is part of the ongoing efforts by the U.S. government, in collaboration with Mexican authorities, to combat the trafficking of fentanyl and other illicit drugs into the U.S. Treasury’s Strategic Strike Against Illicit Networks Deputy Secretary of the Treasury Wally Adeyemo emphasized the importance of this initiative. The Treasury’s Counter-Fentanyl Strike Force is leveraging the department’s expertise to dismantle these illicit financial networks, which significantly contribute to the drug epidemic claiming thousands of American lives each year. This strategic action was closely coordinated with Mexico’s financial intelligence unit, La Unidad de Inteligencia Financiera (UIF), reflecting the robust partnership between the U.S. and Mexico in addressing the financial underpinnings of the fentanyl trade. Treasury’s sanctions also complement indictments on these designated persons issued by the U.S. Attorney’s Office for the Central District of California. Details of the Sanctioned Individuals The individuals sanctioned include Mexico-based Diego Acosta Ovalle, who assisted the Sinaloa Cartel by managing and delivering drug trafficking proceeds. Ovalle worked alongside PRC-based Tong Peiji (佟霈佶) and He Jiaxuan (何家璇), members of a U.S.-based Chinese Money Laundering Organization (CMLO). These operatives laundered drug proceeds and facilitated financial transactions benefiting the cartel. Their activities included handling bulk cash in the U.S., moving funds internationally, and purchasing cryptocurrency for the cartel’s accounts. Broader Implications and Ongoing Efforts The Treasury’s actions complement indictments issued by the U.S. Attorney’s Office for the Central District of California. This comprehensive effort involved multiple agencies, including the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigations, Homeland Security Investigations, and the Federal Bureau of Investigation, alongside local police departments in California and international partners. According to Treasury’s 2024 National Money Laundering Risk Assessment, Chinese Money Laundering Organizations are becoming significant threats to the U.S. financial system, with drug trafficking organizations like the Sinaloa Cartel increasingly relying on them. Report Money Laundering Activities to FinTelegram CategoriesMoney Laundering OFACTagsWally AdeyemoThe post U.S. Treasury Targets Mexico- and China-Based Money Launderers Linked to the Sinaloa Cartel first appeared on FinTelegram News.

Politics is always dirty and, unfortunately, often confronted with accusations of money laundering. This is also the case in Peru. The trial of Keiko Fujimori, a prominent figure in Peruvian politics, began on Monday in a Lima courtroom. Fujimori, the daughter of former President Alberto Fujimori, faces serious charges of allegedly leading a criminal organization that laundered approximately $17 million to finance her presidential campaigns in 2011 and 2016. Background and Charges Keiko Fujimori has been a significant and polarizing presence in Peru’s political landscape. She has been a presidential candidate three times and leads the largest faction in the Peruvian Congress. The allegations against her involve accepting illicit contributions from notable entities, including the Brazilian conglomerate Odebrecht and the Peruvian financial services company Credicorp. Despite acknowledging some campaign contributions, Fujimori denies any illegal activities. The Trial The proceedings, expected to be extensive and complex, could potentially span several years. Prosecutors are seeking a prison sentence of up to 30 years for Fujimori. Lead prosecutor Jose Domingo Perez, who attended the court session wearing a bullet-proof vest, underscored the high stakes and tension surrounding the case. Fujimori’s defense, led by attorney Giulliana Loza, anticipates a lengthy trial involving over 5,000 exhibits and testimony from around 1,300 witnesses. Loza estimates the trial could last up to two years, marking it as one of the most significant political trials in recent Peruvian history. Context and Implications This trial is a pivotal part of Peru’s broader anti-corruption efforts, especially following the wide-reaching revelations of Odebrecht‘s illegal funding of top Peruvian politicians. Prosecutors have implicated at least four former Peruvian presidents in similar corruption schemes, both during and after their terms in office. Keiko Fujimori is expected to pursue a fourth presidential bid in the upcoming 2026 elections. However, a conviction could severely impact her political ambitions. Additionally, her father, Alberto Fujimori, who was previously imprisoned for human rights violations and later pardoned, is anticipated to play a more active role in the upcoming political cycle. There is even speculation about him potentially appearing on the presidential ticket or running for a newly created senate seat. Conclusion As Keiko Fujimori‘s trial unfolds, it will not only determine her fate but also test Peru’s commitment to combating corruption at the highest levels. The outcome could have profound implications for the nation’s political future and its ongoing efforts to uphold the rule of law. Report Money Laundering Actitivites to FinTelegram CategoriesCourt Cases Money Laundering PeruTagsAlberto FujimoriCredicorpGiulliana LozaJose Domingo PerezKeiko FujimoriOdebrechtThe post Peru Launches Trial Against Keiko Fujimori for Alleged Money Laundering first appeared on FinTelegram News.

In one of the most prominent crypto court cases, SEC v. Binance, the federal judge Amy Berman has ruled that a substantial part of the SEC’s lawsuit against the embattled crypto exchange can proceed. This ruling represents a notable setback for Binance, which had sought to have the case dismissed. The SEC’s lawsuit, filed in June 2023, accuses Binance and its former CEO, Changpeng Zhao, of multiple violations of securities laws. The Non-Settlement with SEC The SEC accusations include allegations of inflating trading volumes, misappropriating customer funds, failing to restrict U.S. customers from trading on its platform, and providing false information to investors. Additionally, the SEC contends that Binance unlawfully facilitated the trading of cryptocurrencies that the regulator classifies as unregistered securities. While the judge did agree with a prior ruling that the SEC had not sufficiently demonstrated that secondary sales of Binance‘s tokens were securities, the overall decision allows the bulk of the SEC’s claims to move forward. This partial victory for the SEC intensifies the challenges already facing Binance, especially following its $4.3 billion settlement with the Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) in November 2023 over charges of financial misconduct. The SEC did not participate in this settlement. This may have been a tactical and coordinated move among the US authorities. At the end of the SEC lawsuit, Binance could face another billion-dollar payment in the wake of a settlement or conviction. Implications for Binance and the Broader Crypto Industry The court’s decision to let most of the SEC’s case proceed has significant implications for Binance’s operations. The exchange now faces the prospect of a prolonged legal battle with the SEC, which could result in increased regulatory scrutiny, potential fines, and further reputational damage. Binance’s ongoing legal troubles highlight the regulatory risks that major cryptocurrency exchanges face in the United States. This ruling also has broader implications for the crypto industry as a whole. It underscores the SEC’s determination to enforce securities laws within the crypto sector, potentially emboldening the regulator to pursue similar actions against other exchanges. The decision supports the SEC’s stance that many cryptocurrencies should be treated as securities, thereby subject to stringent regulatory oversight. Industry Reactions and Future Outlook Reactions within the industry have been mixed. Some see the ruling as a necessary step toward greater regulatory clarity, while others view it as an overreach by the SEC that could stifle innovation. Notably, the ruling may influence the ongoing legal battles between the SEC against Coinbase, Kraken, or Consensys, which are facing similar allegations. The outcomes of these high-profile cases are poised to set important precedents for the regulation of digital assets. As the SEC continues to assert its authority, crypto exchanges may need to reevaluate their compliance strategies to navigate an increasingly complex regulatory landscape. Report Crypto Crime to FinTelegram CategoriesCourt Cases Crypto Compliance tickerTagsBinanceChangpeng ZhaoCoinbaseConsensysKrakenThe post Crypto Compliance: Major Setback for Binance as Judge Allows SEC Lawsuit to Move Forward! first appeared on FinTelegram News.