CoinShares has deployed TS Imagine’s TS One for comprehensive trading and risk management solution for its new Relative Value equities hedge fund. The announcement comes as CoinShares further expands its digital asset business across the globe, with offices in France, Sweden, Switzerland, the UK, and the US. The firm delivers a broad range of financial services across investment management, trading, and securities to a wide array of clients that includes corporations, financial institutions, and individuals. CoinShares is regulated in Jersey by the Jersey Financial Services Commission, in France by the Autorité des marchés financiers, and in the US by the Securities and Exchange Commission, National Futures Association, and the Financial Industry Regulatory Authority. TS Imagine’s TS One was launched last year TS Imagine is a leading global, cross-asset provider of trading, portfolio, and risk management solutions for financial institutions. TS One, which empowers the whole investing team to perform together at the highest levels with integrated Portfolio Management, Trading, Risk Management, Compliance, Finance, and Operations, was launched last year. The cross-asset class, SaaS-based solution is designed for investing teams who are seeking access to global markets, advanced execution management tools, risk management models, and comprehensive accounting software through a single intuitive interface. TS One unites and empowers the entire investing team, including during hybrid and remote work, and eliminates the need for multiple investment management software systems. Hedge funds can leverage TS One to scale without the need for significant headcount increases or investments in disparate trading technology. The main features included in TS One offered by TS Imagine are: Comprehensive multi-asset coverage: TS One allows clients to access any asset class with sophisticated trading tools and protocols, including equities, OTC, futures, fixed income, and derivatives. Cultivated risk models: TS One includes powerful risk models built on thirty years’ experience. Users are therefore able to run complex stress tests and visualize risk across asset classes, an essential feature during periods of volatility. Configurable, scalable, SaaS architecture: TS One is a scalable, configurable, SaaS solution which continuously evolves as clients grow AUM. TS One has most recently been enhanced with treasury management capabilities in partnership with Kayenta. “Capitalize on the convergence between Trad-Fi and Crypto” Lewis Fellas, Head of Hedge Fund Solutions at CoinShares, said: “Our team requires modern execution and risk management solutions to efficiently navigate markets and capitalize on the convergence between Trad-Fi and Crypto. With its embedded portfolio management, trading execution, and battle-tested risk capabilities, TS One was the obvious choice for our new Relative Value Opportunities fund focused on crypto related equities.” Andrew Morgan, President and Chief Revenue Officer of TS Imagine, commented: “We are thrilled to have been selected by CoinShares, a leader in digital asset investing. Since we introduced TS One last year, it has piqued interest from sophisticated investors across geographies and asset classes, including several of the world’s leading buy-side financial institutions.”

Galaxy Digital, the New York-based cryptocurrency financial services company founded by Mike Novogratz, has reported a net loss of $177 million for the second quarter. The figure is nearly four times the loss recorded in the same period last year, reflecting the adverse impact of a sluggish crypto market. The digital asset firm, which offers trading, asset management, and investment banking services, announced its ongoing incorporation process in Delaware and future plans to list on Nasdaq. Recently, the company acquired nearly all assets of CryptoManufaktur, including almost $1 billion worth of ether. Galaxy Digital’s founder and CEO Mike Novogratz has likened the firm’s ambitions to becoming the “Goldman Sachs of crypto.” As such, Galaxy’s financial performance often mirrors broader industry trends due to its diverse operations. The downturn in crypto markets has impacted many of the company’s activities. Bitcoin (BTC), the largest cryptocurrency by market capitalization, fell by 12% over the three-month period, marking its steepest decline since the fourth quarter of 2022. Revenue from counterparty trading plummeted by more than 50% to $24 million compared to the same quarter last year. This drop was attributed to lower trading volumes and unfavorable asset price movements. Despite a 7% rise in Bitcoin over the past year, touching record highs in the first quarter of 2024, the market retreat has hurt trading revenues. While mining revenue saw a slight increase of 2% to $24 million, the profit margin from direct mining activities narrowed to 56% from 64%, largely due to April’s mining reward halving. Galaxy Digital is among the issuers of spot Bitcoin and Ether ETFs in the U.S., in collaboration with investment manager Invesco. The Bitcoin ETF (BTCO) manages assets worth $525 million, whereas the Ether ETF (QETH) holds $15.3 million. The total assets under management at Galaxy Asset Management stood at $4.6 billion. For the first half of 2024, Galaxy Digital posted a net income of nearly $245 million, reflecting a more than 175% increase compared to the first half of 2023. The digital asset specialist posted $302 million in net income for the fourth quarter 2023, up 421% from the third quarter, where the company reported a net loss of $94 million. The Q4 earnings marked a substantial recovery from the end of 2022, when Galaxy Digital faced a net loss of $288 million.  

The Warsaw Stock Exchange (GPW) plans to roll out its new trading system, WATS, on 10 November 2025. The new official launch date represents a one-year delay from the original scheduled date, which was November 2024. WATS (Warsaw Automated Trading System) will bring multiple technological and operational benefits to the entire GPW Group, the company stated. WATS to execute shares, Treasury and corporate bonds, derivatives, electricity, and gas GPW’s new proprietary trading system WATS is expected to significantly improve the quality and efficiency of exchange operations by offering advanced functionalities and enhancing the security and reliability of trading. The system is seen as a key element of the GPW Group’s competitive advantage, enabling its further development and digital transition. GPW Group operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity, and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. Market participants can plan the necessary adaptation Sławomir Panasiuk, Vice-President of the GPW Management Board, said: “The implementation of GPW’s new trading system WATS is a key step in the further development of the Warsaw Stock Exchange. Setting the roll-out date has been necessary to schedule preparatory and implementing activities on the part of GPW and other stakeholders. A specific date was expected by some market participants in order to optimally plan the necessary adaptation and preparation work.” The implementation timetable for all stakeholders, adjusted to the roll-out date, will be regularly monitored by the GPW WATS Implementation Committee as well as the GPW Management Board and Supervisory Board. Equinix WA3 to host WATS Last year, GPW partnered with Equinix to host its proprietary Warsaw Automated Trading System (WATS). The state-of-the-art data center, Equinix WA3, will be the new home of GPW’s primary matching engine and platform. With the global reach of Equinix, GPW is tapping into the ecosystem where all the major market players are present enabling us to achieve unparalleled growth potential in the sector. Equinix’s robust ecosystem will enable GPW to seamlessly integrate with thousands of other financial partners globally, providing an environment that supports multiple trading strategies. The Equinix data center offers a dedicated trading room with latency-equalized cross-connects for those seeking the lowest latency market data and trading access to GPW’s new matching engine. Discounts for GPW members GPW has declared advanced support for market participants in adapting to the new infrastructure. It has established the GPW WATS Data Centre Migration Support Programme in connection with the localization of WATS in the new data center. Under the new Programme, GPW will offer monthly discounts on technology fees for Exchange Members from the time of connection to the GPW WATS Data Centre. The Programme is addressed to all Exchange Members who are authorized to operate on GPW Main Market, NewConnect, and Catalyst. Each Member must apply for qualification in the Programme. The discount will be based on due and paid invoices related to the connection to the GPW WATS Data Centre. With a modern, multi-asset trading platform replacing its legacy system, the Warsaw Stock Exchange is set to make waves in the increasingly competitive landscape of global financial markets.

The European Securities and Markets Authority (ESMA) has published an opinion on global crypto firms using non-EU execution venues. The European regulator recognizes risks associated with global crypto firms’ complex structures where execution venues fall outside of the scope of MiCA. This opinion is part of broader efforts by ESMA and NCAs to ensure the effective application of MiCA and convergent supervisory practices throughout the EU. The risk of EU-authorized brokers serving as conduits for non-EU execution venues ESMA’s intervention aims at addressing the risks presented by global crypto firms seeking authorization under the Markets in Crypto Assets (MiCA) Regulation for part of their crypto brokerage activities while keeping a substantial part of their intra-group execution venues outside the European Union (EU) regulatory scope. The regulator stated that global crypto firms’ complex structures may include the involvement of an EU-authorised broker effectively routing orders to an intra-group execution venue based outside the EU, potentially leading to diminished consumer protection and an unlevel playing field with EU-authorised execution venues. Considering these risks, ESMA recommends National Competent Authorities (NCAs) be vigilant during the authorization process and assess the business structures of global firms to ensure that they do not bypass obligations established in MiCA, to protect consumers, and to ensure transparent and orderly functioning of crypto markets. ESMA is calling for a case-by-case assessment, outlining the specific requirements that should be met regarding best execution, conflicts of interest, the obligation to act honestly, fairly, and professionally in the best interests of clients, and the obligation relating to the custody and administration of crypto-assets on behalf of clients. Crypto-asset execution venues play an important role in the functioning of the crypto-asset ecosystem and MiCA sets out comprehensive rules regarding the functioning of trading platforms for crypto-assets, the financial watchdog concluded. The EU’s MiCA mandate This opinion, rooted in ESMA’s mandate under Article 29(1)(a) of Regulation (EU) No 1095/2010, aims to address regulatory and supervisory challenges presented by crypto-asset trading platforms and multifunction crypto-asset intermediaries (MCIs). MiCA, published in the Official Journal on June 9, 2023, establishes a comprehensive regulatory framework for crypto-asset issuers and service providers within the EU. This framework mandates transparency, disclosure, and the authorization and supervision of transactions involving crypto-assets, including asset-reference tokens and e-money tokens. The regulation aims to bolster investor protection, market integrity, and financial stability by regulating public offers of crypto-assets and informing consumers about associated risks. Trading platforms play a crucial role in the crypto-asset ecosystem. MiCA sets out detailed requirements for these platforms, including: Detailed operating rules. Resilient systems and procedures. Pre-trade and post-trade transparency requirements. Transparent fee structures. Fair and open access to the trading platform. Ensuring fair and orderly trading and efficient execution of orders. These provisions are designed to ensure that crypto-asset trading platforms in the EU uphold investor protection, market integrity, and financial stability. “Reserve solicitation” exemption should not be exploited ESMA’s opinion draws parallels with the principles developed during the UK’s withdrawal from the EU to support supervisory convergence. These principles include ensuring that authorizations are granted in full compliance with Union law and that outsourcing or delegation arrangements are strictly supervised. Moreover, ESMA clarifies the narrow scope of the “reverse solicitation” exemption under MiCA, which allows third-country firms to provide crypto-asset services in the EU only when initiated exclusively by the client. This exemption should not be exploited to circumvent MiCA’s requirements. NCAs are advised to conduct thorough assessments of applications for authorization, scrutinizing group structures, marketing policies, and the overall activities of applicant MCIs. Particular attention should be paid to potential conflicts of interest and the risk of EU-authorized brokers serving as conduits for non-EU execution venues.

EURAUD currency pair can be expected to fall further toward the next support level 1.6425 (former top of the minor correction 4 from the start of June). – EURAUD reversed from resistance area – Likely to fall to support level 1.6425 EURAUD currency pair recently reversed down from the resistance area located between multi-month resistance level 1.6675 (which has been reversing the price from the start of this year, as you can see from the daily EURAUD chart below) and the upper daily Bollinger Band. The downward reversal from this resistance area formed the clear daily Japanese candlesticks reversal pattern Shooting Star Doji, which stopped the C-wave of the previous ABC correction (2). Given the strength of the aforementioned resistance area and the strong downtrend, EURAUD currency pair can be expected to fall further toward the next support level 1.6425 (former top of the minor correction 4 from the start of June). EURAUD analysis The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

Match-Trade Technologies has upgraded its Match-Trader platform offer to specifically boost the growth of proprietary trading (prop) firms. The latest developments include the integration of TradingView charts directly into the Match-Trader platform, at no extra cost, and special pricing dedicated to Tournaments. With the integration of TradingView charts and special pricing for Tournaments, Match-Trader is offering prop clients unique conditions to start and grow their business with a full server or white-label platform. Prop firms and brokers get dual-charting solution Earlier this year, the firm entered a strategic collaboration with TradingView, and, inspired by GBE Brokers, the full integration between the two renowned platforms available exclusively to regulated forex brokers has now been extended to prop firms. The integration marks a significant expansion of the Match-Trader platform’s capabilities, ensuring prop traders can now use TradingView’s powerful charting tools directly within their trading environment. Prop firms and brokers offering the Match-Trader platform now provide a dual-charting solution that includes both TradingView and the platform’s proprietary charts. Traders can seamlessly switch between the two chart types.  Alexis Droussiotis, Head of the Match-Trader platform, said: “By integrating TradingView charts directly into our platform, we are addressing a key challenge faced by traders who need robust, versatile tools within a unified interface. This upgrade underscores our commitment to meeting traders’ needs and enhancing their trading environment.” Match-Trade introduces special pricing for Tournament accounts The Match-Trader platform offers unique built-in prop trading solutions, featuring dashboards for tracking user performance, purchasing challenges directly from the platform, and a host of other features designed in response to feedback from the prop trading community. Match-Trade Technologies has also introduced special pricing for Tournament accounts. Tournaments, a popular activity among prop firms, help attract traders by allowing them to participate in challenges and test the platform before committing. Understanding the importance of these initiatives, Match-Trade Technologies offers Tournament accounts at a fraction of the regular cost, demonstrating a commitment to supporting the growth of their clients. The fintech provider also plans to release an update to their proprietary Prop CRM to facilitate the management of Tournaments and user rankings within the system.

Bitpanda has partnered with Solaris to leverage the RegTech firm’s fully digital and scalable KYC solution, Bankident, to identify customers in Germany. Solaris, a leading European embedded finance platform, was already acting as an issuer and processor for Bitpanda’s debit card program across the European Economic Area. The deployment of Solaris’ KYC solution marks a new chapter in their longstanding partnership. “To enable our customers to start trading within minutes” Solaris provides a multitude of digital identification service components via RESTful APIs. Its KYC platform is fully compliant with anti-money laundering laws and can be adapted to the specific needs of a company, empowering partners to own the customer journey from start to finish while keeping consistent with corporate branding. Joerg Diewald, Chief Commercial Officer at Solaris said: “We are proud to be providing our market-leading identification method for Bitpanda. Through using Bankident, Bitpanda will benefit from a secure and compliant solution that enables its customers to seamlessly identify themselves within seconds, which in turn helps to increase conversion rates. Providing scalability to partners is at the heart of Solaris, and support Bitpanda in its growth journey.” Maik Brodowski, Commercial lead Germany at Bitpanda added: “To enable our customers to start trading within minutes, we strive to consistently provide a secure, compliant, seamless, and accessible experience when creating and opening their Bitpanda account, regardless of the market. Solaris’s Bankident KYC solution empowers us to achieve this goal in Germany. We are excited to extend our partnership with Solaris.” Founded in Viena in 2014, Bitpanda has grown into one of Europe’s leading crypto brokers with a selection of over 2,800 digital assets, including more than 350 crypto assets and numerous stocks, ETFs, precious metals, and commodities. The Austrian fintech unicorn offers one of the most comprehensive ranges of digital assets available in Europe. Already trusted by over 4 million users, and dozens of institutional partners, Bitpanda Holding licenses in several countries and maintaining partnerships with several banks and retail brokers, the Austrian fintech unicorn currently serves more than 4 million users. Bitpanda leverages Deutsche Bank’s real-time payment solution Bitpanda recently expanded its partnership with Deutsche Bank to leverage the German bank’s real-time payment solutions for both incoming and outgoing transactions. The API-based account solution will provide Bitpanda with access to German IBANs, streamlining and enhancing the experience for users, in order to reinforce Bitpanda’s position as a leading digital-asset trading platform in Europe. Deutsche Bank already supports the operational needs of Bitpanda as its European Hausbank for cross-currency solutions in Austria and Spain. Bitpanda now targets big money Bitpanda, the Austrian fintech company, has recently launched Bitpanda Wealth, a service that caters to High Net Worth Individuals (HNWIs), Family Officers, External Asset Managers, and Corporate Treasuries. Bitpanda Wealth aims to help these users diversify their portfolios using a regulated broker in Europe. This launch is in response to increased demand and reflects Bitpanda’s commitment to serve all types of investors in the European Union. Bitpanda Wealth is built on infrastructure trusted by major European banks. It offers a comprehensive range of services for investing, managing, and reporting on crypto-related assets. The service simplifies investing, storing, and managing crypto assets, offering a bespoke investment experience for wealthy investors. It includes leveraged products, crypto indices, stocks, ETFs, commodities, and metals. Bitpanda aggregates market liquidity, ensuring tailored execution and a seamless investment experience.

The Securities and Exchange Commission has charged Abraham Shafi, the founder and former CEO of Get Together Inc., a privately held social media startup known as “IRL,” with defrauding investors, including SoftBank. According to the complaint, Shafi made false and misleading statements about the company’s growth and concealed his and his fiancée’s extensive use of company credit cards to pay for personal expenses. “Shafi took advantage of investors’ appetite” The Hawaii-based executive raised about $170 million from investors by portraying IRL as a viral social media platform that organically attracted the vast majority of its purported 12 million users. IRL, however, spent millions of dollars on advertisements that offered incentives to download the IRL app and Shafi hid those expenditures with offering documents that significantly understated the company’s marketing expenses and by routing advertising platform payments through third parties. Monique C. Winkler, Director of the SEC’s San Francisco Regional Office, said: “As we alleged, Shafi took advantage of investors’ appetite for investments in the pre-IPO technology space and fraudulently raised approximately $170 million by lying about IRL’s business practices. Investors in this space should continue to be vigilant.” The SEC’s complaint further alleges that Shafi failed to disclose to investors that he and his fiancée, Barbara Woortmann, charged hundreds of thousands of dollars to IRL’s business credit cards for personal expenses, including for clothing, home furnishings, and travel. Can SoftBank do its due diligence? Shafi was suspended by the IRL board in April amid misconduct claims. By June, the board found that 95% of IRL’s 20 million users were fake. The founders claim investors fabricated this figure to shut down the company and return capital to shareholders. IRL founders Abraham Shafi and Genrikh Khachatryan decided to sue Chi-Hua Chien of Goodwater Capital, Serena Dayal of SoftBank, and Mike Maples of Floodgate over this claim. IRL raised over $200 million, reaching a $1.17 billion valuation, with SoftBank leading a $170 million Series C round in 2021. Shafi and Khachatryan allege investors wanted to shut down IRL to cover the company’s $40 million cash on hand. The bitter conflict has raised new concerns about the adequacy of SoftBank’s due diligence, following its multibillion-dollar losses due to WeWork’s charismatic founder.

US-based prop firms have experienced some of the weakest performance in H1 2024, according to the latest Acuiti Proprietary Trading Management Insight Report. Bucking a long-standing trend of out-performance against their peers in Europe and Asia, the weak US performance is largely explained by reduced volumes in US options markets, found the study conducted by Acuiti and produced in partnership with Avelacom. Regulation, lack of volatility, and competition for fills are the main challenges for prop firms The report, based on a survey of the Acuiti Proprietary Trading Expert Network, a group of senior executives at over 100 global proprietary trading firms, found that, while 47% of firms reported a better business performance than in H1 2023, less than a third said that H1 2024 has been better than an average year. Proprietary trading revenues are highly dependent on underlying trading volumes and overall global volumes have increased this year by 75%. Still, performance has failed expectations. The Acuiti report highlighted that market conditions favored ultra-low latency and predominantly algorithmic firms over their peers, and that regulation, a lack of volatility in the market, and competition for fills were cited as the top three challenges in H1 2024 by prop firms. In terms of asset classes, cryptocurrencies and metals performed the best, the study found. Commodities also performed well, while FX and equity options performed relatively weakly for firms. Other key findings in this quarter’s report include: 40% of proprietary trading firms now deploy artificial intelligence or machine learning, with a further 34% actively exploring it 82% of proprietary trading firms trading European markets would support alignment of trading calendars among exchanges 53% of proprietary trading firms reported increases in margin costs over the past 12 months 67% of US proprietary trading firms say that the SEC Dealer Rule is not appropriate for their firm “Performance has been more challenging over the past two years” Aleksey Larichev, CEO of Avelacom, said: “As competition increases, firms are driven to equip themselves with better strategies and technologies. The report highlights that algorithmic firms using latency-sensitive strategies have performed better, illustrating the importance of keeping up with market changes.” Ross Lancaster, head of research at Acuiti, commented: “After stellar years in 2020 and 2021, performance for proprietary trading firms has been more challenging over the past two years. However, new markets are providing firms with opportunities and overall the environment remains positive compared to the mid-2010s. And with growing uncertainty around the US election results in November, 2024 still could turn out to be a very good year for the market.” SEC Dealer Rule came into effect this year It was earlier this year that the SEC adopted two rules aimed at expanding the definition of “dealers” and “government securities dealers” within the market. The new rules mandate that certain market participants, especially those playing substantial roles in providing liquidity, must now register with the SEC. Additionally, they are required to become members of a self-regulatory organization (SRO) and adhere to the federal securities laws along with various regulatory responsibilities. The rules, specifically Exchange Act Rules 3a5-4 and 3a44-2, clarify activities that classify participants as “dealers” or “government securities dealers” under the Securities Exchange Act of 1934. This classification triggers the need for registration under Sections 15 and 15C of the Act, for those involved in certain liquidity-providing roles, barring any exceptions or exemptions. With these rules, any person whose activities align with the described criteria must register with the Commission and become a member of an SRO. They are also required to comply with federal securities laws, regulatory obligations, and applicable SRO and Treasury rules. Entities affected by these regulations will have one year from the effective date to comply with the new requirements. This move represents a significant step towards closing regulatory gaps and ensuring a more transparent, resilient, and integrity-driven market. Could traders be incorrectly classified as dealers? As usual, the SEC’s adoption of new rules expanding the definition of “dealers” and “government securities dealers” has generated a mix of perspectives. There is criticism from industry figures. Jack Inglis, CEO of the Alternative Investment Management Association (AIMA), expressed concerns, stating that the SEC has stretched the definition of a dealer beyond its traditional understanding. According to Inglis, this redefinition could mistakenly classify customers of dealers, including certain AIMA members, as dealers themselves. This interpretation marks a significant departure from the past 90 years’ understanding of what constitutes a securities dealer. SEC Commissioner Hester Peirce also expressed her opposition to the final rule regarding the expanded definitions of “dealers” and “government securities dealers.” She stated that the definition of a dealer as outlined in the final rule is inconsistent with the statutory framework it is supposed to fit within. Peirce argued that this redefinition would distort market behavior, degrade market quality, and incorrectly classify many traders, who are actually customers, as dealers. This perspective highlights her concern that the rule could have unintended negative impacts on the market by broadening the scope of who is considered a dealer too far​​.

Tether, the company behind the popular stablecoin USDT, has disclosed a record net profit of $5.2 billion for the first half of 2024. The company’s latest attestation outlined a big jump in profits primarily attributed to gains from its U.S. Treasury holdings, alongside profits from bitcoin and gold positions. The issuer also achieved a net operating profit of $1.3 billion in the second quarter, driven by its yield-bearing investments and reserves, according to a press release. The attestation was conducted by BDO, a global independent accounting firm. Tether, which issues the largest stablecoin, USDT, now boasts a market capitalization of nearly $115 billion. The firm has benefited from the post-COVID inflationary environment and the subsequent rise in interest rates aimed at cooling an overheated economy. “Tether Group continues to demonstrate its financial strengths thanks to a strong and persistent revenue base from traditional asset-class investments (mainly U.S. Treasuries),” the company stated. Tether has been reinvesting its profits into various initiatives, including decentralized AI, Bitcoin mining, and a peer-to-peer messaging platform called Keet. The company has reported growing profits every year since at least 2022. Tether’s USDT issuance skyrocketed in the first quarter of 2024, reaching $12.5 billion. Additionally, the company boosted its excess reserves by $1 billion, bringing the total to nearly $6.3 billion, in order to further support its stablecoin offerings. USDT, which is claimed to be backed 1:1 by U.S. dollars or dollar equivalents, faced controversy due to the lack of an official audit of its reserves. In February 2021, the New York Attorney General ordered Tether to post quarterly attestations and pay an $18.5 million settlement for misrepresenting the stablecoin’s backing for several years. USDT plays a pivotal role in the digital asset market as a crucial infrastructure component. Acting as a bridge between traditional fiat currency and blockchain-based markets, USDT provides liquidity for trading and lending activities. Moreover, its utility extends to facilitating transfers and savings, particularly in developing regions, where it offers access to dollar-denominated assets outside the confines of traditional banking systems.

eToro has added support for on-chain staking of Solana and Ethereum, which allows clients in select markets to tap into rewards offered by these types of tokens running on proof-of-stake networks. Stakers earn passive rewards from their holdings by supporting the network through transaction validation and securing network operations. Staking rewards can fluctuate based on network inflation, the amount of coins staked, validators’ commission rates, and market conditions. The new offering expands eToro’s existing staking services, which already include Cardano and Tron. To qualify for staking rewards, users must be in a country where staking is permitted and must have held an open position in the staked cryptocurrency for a specific period, referred to as ‘intro days’. Positions held through CFDs, CopyTrader, Smart Portfolios, or short positions are not eligible for staking rewards. eToro retains a portion of the staking yield to cover operational, technical, and legal costs. The broker explains that during the staking period, assets may have limited or no liquidity, and their value can fluctuate. Additionally, if a blockchain validator breaches protocol rules, the network may impose penalties or ‘slash’ the staked assets. Users holding an open SOL position will be automatically opted into staking, while those wishing to stake ETH need to actively opt into the program. Eligible users will receive monthly email updates detailing their staking rewards and the calculations behind them. Users can opt out of the staking program at any time. “Staking is essential to blockchains that use a proof-of-stake consensus mechanism, such as Solana and Ethereum, as it helps validate and secure transactions without a payment processor. For investors, staking their cryptoassets can bring the extra benefit of token rewards,” said head of crypto business at eToro. Staking enables users to earn dividends or interest on their digital assets for validating transactions and also allows them to vote on changes in the blockchain. Users are rewarded for simply depositing and holding coins on eToro platform as they normally would. Earlier this year, eToro announced a major change in the custody of crypto assets for its customers in Germany. The custody of these assets was transferred to Tangany GmbH, a Munich-based crypto custody service provider overseen by the German Federal Financial Supervisory Authority (BaFin). Following this transfer, eToro Germany ceased its crypto custody services. However, customers are still be able to sell or transfer their crypto assets to another custodian through the eToro platform. But transferring assets to another custodian means they can no longer be sold via eToro.

At the Fintech Unplugged: Afterparty, hosted during the iFX EXPO International 2024 in Limassol, Cyprus, Konstantin Shulga, CEO of Finery Markets, shared his insights on the evolving digital assets landscape. The event, sponsored by Sumsub, Nexpay, and Finery Markets, featured the Crypto ECN and trading SaaS provider’s chief executive speaking about the positive shift in the crypto market, institutional inflows, stablecoins, market fragmentation, and the global regulatory landscape. The Crypto vibe is way more positive this year Fintech Unplugged: The Afterparty brought together professionals from the fintech, trading, crypto, and blockchain sectors. FinanceFeeds covered the event and our Editor-in-Chief, Nikolai Isayev, had the opportunity to interview Konstantin Shulga, CEO of Finery Markets. Finery Markets is a premier non-custodial crypto ECN that provides advanced trading infrastructure for institutional players in over 35 global markets. Since its launch in 2019, Finery Markets has served over 150 financial institutions, encompassing brokerage, OTC desk, payment providers, exchanges, and liquidity providers. Shulga highlighted the success of last year’s event and the value of informal discussions post-conference. These gatherings provide a relaxed environment for clients and partners to engage meaningfully, free from formalities.”It is always great to have this informal discussion with all of our clients and partners after the main event, after all of the formalities are left behind, and we all can enjoy some nice cocktail under the Cyprus sun.” The chief executive noted a significant positive shift in the crypto market compared to last year’s “crypto winter.” He emphasized the bullish market, marked by ETF approvals and favorable regulatory changes, which have driven more institutions into the crypto space. The optimistic vibe at this year’s event reflects this upward trend. “iFX, the main event, is a cross-asset class and Finery Markets is focused on digital assets.  Last year was challenging for digital assets, often considered a “crypto winter.” This year, however, we see a bull market, ETF approvals, and regulatory changes that are making crypto mainstream, with more institutions entering the space. The vibe this year is definitely more positive.” Market fragmentation provides an opportunity for a marketplace Konstantin Shulga discussed the substantial inflows into digital assets following ETF approvals, underscoring the growing institutional interest. He mentioned the emergence of more institutional infrastructure players and increased demand globally. Regulatory developments, particularly in Europe, have also influenced the market, with local regulations leading to market fragmentation—a scenario Finery Markets aims to address. “So, there were significant changes in the perception from the institutional side, particularly due to the ETF approval, which led to massive inflows— a development that should not be underestimated. I believe this is only the beginning; we will see an increasing number of institutional players entering the space. Once again, we are witnessing more institutional infrastructure players and heightened demand from institutional clients globally. Probably the second largest shift is in local regulation, which has led to even more fragmentation in the markets. Whenever there is fragmentation, there is always an opportunity for a marketplace. That’s exactly what Finery Markets is addressing in this market.” The rise of stablecoins in Europe while Tether is under debate Shulga pointed out the ongoing debates around USDT and the potential for other regulated stablecoin issuers, such as Circle, to capture market share in Europe. Finery Markets addresses fragmentation and regulatory challenges by offering clients fully regulated counterparties across various regions. “So if we talk about the key regulatory outcomes, it’s basically the fragmentation that we see plus, especially in Europe, there’s a lot of discussion around USDT […] But I guess some other stablecoin issuers that are fully regulated in Europe will be definitely picking up the market share. And once again, we’re happy to address both the fragmentation issue and the regulatory issue. Because on Finery Markets, every client can face a fully regulated counterparty, either within the European Union, UK, or elsewhere in the world.” The Crypto ECN executive also touched on the global regulatory landscape, noting the industry’s close watch on SEC actions. He observed a trend of companies relocating to regions with favorable regulations, such as Singapore, UAE, and parts of Europe, driven by frameworks like MiCA. “Yeah, it’s challenging to briefly comment on regulatory actions. The entire industry is closely following the SEC. What I can point out is that sadly […] we still see a lot of partners moving outside of the US.. Numerous new companies and businesses are being established in Singapore, the UAE, London, and other European hubs in particular with MICA being at the forefront of regulation.” As Finery Markets continues to address these challenges, Shulga looks forward to more successful gatherings that foster meaningful connections and insights in the industry.

OFX has partnered with the German finance software company Technosis to launch an integrated multi-currency payment solution. The international foreign exchange services provider will be able to help businesses in Germany save time with fast, secure cross-border payments and competitive foreign exchange rates. Founded in 1998 and headquartered in Sydney, Australia, OFX offers an innovative and competitive alternative to banks for businesses looking to make and receive cross-border payments. In Europe, OFX is regulated by the Central Bank of Ireland as an Electronic Money Institution (Firm Ref. No. C190174). OFX helps Technosis customers with multi-currency payments OFX offers a simple, self-service online platform with 24/7 localized customer support. Customers can speak to currency specialists anytime, day or night. OFX specializes in currency risk management for SMEs who trade overseas, helping businesses protect themselves from the risk associated with volatile currency markets. With eight offices across the world and more than 700 staff, OFX helps businesses and consumers make international money transfers at great rates in over 50 currencies across 170 countries. OKX’s simplified FX solutions will streamline finance operations for Technosis customers by eliminating the need to juggle multiple payment platforms, lengthy workflows, and manual processes. This integration streamlines the transaction process, reduces transaction costs, and provides real-time tracking and reporting features, making it easier for clients to manage their finances across borders. Germany is a key growth market for OFX Following the establishment of OFX’s European HQ in Dublin in 2020, OFX’s European business has gone from strength to strength. OFX’s growth in the EU increased by 140% in the financial year ending March 2024. OFX is listed on the Australian Securities Exchange. You can access the public investor report here. To date, over 1 million customers globally have trusted OFX with transfers over €176bn+. Maeve McMahon, President of OFX, EMEA, said: “We are delighted to partner with Technosis. This strategic partnership supports our ongoing commitment to the German market. Germany is a key growth market for OFX. We recognise the Mittelstand’s need for a fast, secure solution to send and receive money internationally at competitive exchange rates, coupled with excellent customer service. Our partnership with Technosis, along with several key hires in Germany, enables us to offer a unique and compelling value proposition. We’re proud to work with Technosis and provide seamless and cost-effective financial solutions to businesses in Germany.” Dierk Rathjen, COO of Technosis, added: “Technosis has partnered with OFX to provide our clients with access to favourable exchange rates for bank transfers, combined with the exceptional research and service capabilities of an international partner. This partnership enables our clients to utilise the OFX network to establish bank accounts in countries where their current partners are either not present or inaccessible via EBICS. The integration is seamless, ensuring that existing processes remain unchanged.” OFX becomes the Official Prize Money Payment Partner of the ATP Tour Last month, OFX announced it will provide a range of global payment solutions to ATP, including prize money payments, a prize money player platform, and corporate FX transactions. The partnership aims to simplify payment processes, enhance data security, and expedite payments for players in their preferred currency. OFX becomes the Official Prize Money Payment Partner of the ATP Tour, through 2027, delivering its leading currency exchange services across the global Tour. OFX, headquartered in Sydney, Australia, boasts a significant presence globally, with offices in the U.S., Canada, U.K., Ireland, New Zealand, Hong Kong, and Singapore. The company has established itself as a leader in international money transfer and currency exchange. In addition to its partnership with ATP, OFX holds sponsorships across various sports, including the ITF, Irish Legends Golf Tour, United Rugby Championships, and Super League Triathlon.

EM FX payments platform AbbeyCross has teamed up with low-latency microservices provider Chronicle to further develop the ABX Platform. ABX Platform provides a single, flexible integration to global FX payments prices from multiple banks and real-time payments platforms. Its first product, ABX Studio, was launched in May. ABX Studio provides unique FX market price data to global banks, MSBs and NGOs to support greater price transparency, insights and rate benchmarking capabilities. The next service to be launched, ABX Sync, will enable users to act on these insights to optimise transaction execution and send payment instructions to multiple FX payment partners. AbbeyCross initially engaged a third-party trading technology company to build out a tactical ‘Proof of Concept’ before engaging specialist service provider Chronicle to work directly alongside its internal development teams (and other service providers). This approach resulted in faster design and development timelines for the development and phased launch of ABX initiatives in 2024. Chronicle continues to work closely with AbbeyCross, providing specialist advisory services, dedicated software development resources, and proprietary software solutions. “Better international payments, especially in Emerging Markets” Peter Lawrey, CEO and Founder at Chronicle said: “Our successful engagement with AbbeyCross is another financial services industry endorsement of our commitment to bridging the gap between ‘buy and build’, and the delivery of technology innovation and exceptional performance that enables financial firms to shorten time to market, optimize capital investment and maximize resource capabilities and capacity. We look forward to continuing to work with AbbeyCross on future ABX Platform product innovations that support a more efficient FX payments landscape.” Abid Mumtaz, Head of Commercial at Wise Platform said: “At Wise, our mission is to make moving and managing money faster, cheaper and more transparent for everyone, everywhere. AbbeyCross and Wise share a common vision to modernize the global financial payment system, and we’re delighted to be teaming up to enable better international payments, especially in Emerging Markets. By joining the AbbeyCross ABX Platform, Wise will be able to help global banks and MSBs leverage our global payments infrastructure to improve cross-border money movement seamlessly.” Ben McConnell, AbbeyCross CTO, said: “From the outset, Chronicle has proved to be a great fit for AbbeyCross, enabling us to very quickly reap the benefits of its reputation, expertise and trusted technology. We have been especially impressed with the responsiveness, flexibility, and agility of their service delivery. Their agile approach has resulted in accelerated design and development timelines and reduced time to market for ABX Studio and other Platform initiatives coming to market in 2024.” ABX Studio for banks, MSBs, NGOs, and charities It was in May that AbbeyCross launched ABX Studio, which provides unique emerging market FX pricing data directly from multiple EM payments providers, enhancing price discovery and comparison, to support deliverable payments to emerging markets. The company which specializes in the FX and payments landscape for Emerging Markets (EM) has also welcomed the first US Tier 1 bank client on the ABX Studio. ABX Studio is the first solution to go live on the ABX Platform, developed specifically to address the challenges faced today by commercial banks, Money Services Businesses (MSBs), non-governmental organizations (NGOs), and international charities operating in the world’s emerging markets. AbbeyCross argued that, historically, commercial banks have suffered from a lack of choice when addressing emerging markets payments with most limited to one FX rate provider. In turn, this harms margins, limits services to their clients, and creates compliance risks to regulators. As to MSBs, they may struggle to access banking services and are limited to banks’ wholesale offerings rather than having direct access to provider bank solutions. NGOs and Charitable Trusts face the same challenges as MSBs, along with a heightened need for pricing transparency for governance purposes. With ABX Studio, these organizations can benefit from a single access point to accurate and transparent EM FX payment pricing sourced directly from multiple payment partners. ABX Studio users can: View and compare real-time and historic deliverable FX rates from multiple payment providers Benchmark existing payment providers against the wider market to drive competition, improve margins, and support more accurate customer pricing Address regulatory and supervisory challenges with independent verification of payment-relevant EM FX execution rates

Sterling Trading Tech has announced the appointment of Vedant Gaur as Sales Director. The industry veteran will bring his expertise to further build the global bank and brokerage segments with a focus on the proprietary OMS and Risk & Margin product offerings. Sterling believes that current marketplace offerings underserve the industry and has developed its OMS and Risk & Margin product suites to provide unique capabilities in asset coverage and RegTech. Vedant Gaur led Barclays’ futures electronic trading Vedant Gaur has a rich background in algorithmic and electronic trading sales and coverage. He has extensive experience in financial markets technology, data-driven solution sales, eTrading platforms, and risk management. He joins Sterling from Open Origin, where he was Chief of Investments & Investor Relations. Prior roles include Executive Director at Saving Jane, Business Advisor at Ionixx, and ten years at Barclays, leading the bank’s futures electronic trading division, with a focus on algo sales and as a 3rd party OMS/EMS specialist. As Sales Director, Vedant Gaur will lead business development and sales efforts for Sterling Trading Tech’s market access solutions: – Focusing on expanding the footprint of our SaaS offerings, including risk and margin management, OMS, and trading platforms. – Seeking out and assessing new strategic client and partner opportunities to drive revenue growth. – Building and maintaining strong relationships with clients and partners to enhance their understanding of Sterling’s exceptional market access platform. “Sophistication of an OMS system aids in the performance equation” Andrew Actman, Managing Director of Business Development at Sterling, said: “Sterling’s products are designed to meet and anticipate the complexity and challenges large firms face in the current global trading environment. 2024 has seen substantial interest in and success with Sterling’s approach across all market segments worldwide and the firm is poised for further growth.” Jennifer Nayar, President and CEO at Sterling, said: “Sterling provides unparalleled OMS and Risk & Margin capabilities so our clients can have confidence in the efficiency of their trading and efficacy of their risk models. We believe that the sophistication of an OMS system aids in the performance equation. The design and implementation of a risk and margin system can affect the viability of an enterprise. With his broad and deep financial service experience, Vedant brings this conversation to an audience that is aware of the pressures they are under and who are seeking newer and more innovative approaches.” What makes Sterling OMS and Risk & Margin unique Sterling argues that its multi-asset OMS enhances liquidity and alpha generation in U.S. equities and options. It also fosters client growth and competitiveness by creating operational and infrastructure efficiencies. The OMS offers real-time balances and positions, advanced margin methodologies, customizable risk controls, broad reporting capabilities, and API connectivity, enabling seamless trading. Advanced order queuing allows traders to place orders at any time and receive international orders in real time outside of U.S. trading hours. The Risk & Margin capability is delivered across a menu of technical alternatives, covers U.S. & International equities and options, Fixed Income and Futures while delivering proprietary and unique RegTech capability including recently launched zero day option expiration API. This includes Risk & Margin together in one system, and RegT and Custom House Policy updates in real time. Post-execution analysis is done utilizing real-time market data. Plans to expand asset classes to fixed income and mutual funds are on target to launch this year.

Bitvavo has reached an agreement with Nasdaq to deploy its Market Surveillance technology across the largest cryptocurrency Euro spot exchange. The digital asset exchange aims to enhance the trust, transparency, and integrity of its marketplace by enabling its compliance framework to keep pace with the rapid growth and development of the business. Bitvavo is largest crypto EUR spot exchange Established in 2018 in Amsterdam and registered with the Central Bank of the Netherlands (DNB), Bitvavo facilitates the crypto trading activity of more than 1.5 million users, who can buy, sell, and store over 300 digital assets at competitive trading fees. The partnership with Nasdaq will enable Bitvavo to further enhance detection of market abuse through: detailed trading insights and visualizations, replay its order book with a consolidated audit trail across asset classes, and interrogate suspicious activity through a wide range of alerts. The scalable platform will also optimize Bitvavo’s case workflow through the Nasdaq Market Surveillance event analysis and processing framework, and produce granular reports to share with regulators. EU’s MICA has strict rules on digital asset exchanges The Markets in Crypto-Assets Regulation (MiCA) institutes uniform EU market rules for digital assets, regulating large parts of the industry not covered by existing financial services legislation. The new legal framework is intended to support digital asset market integrity and financial stability by regulating trading of crypto-assets and by ensuring consumers are better protected and informed about their associated risks. It also places strict rules and requirements on digital asset exchanges to ensure they can adequately detect and report potential market abuse, similar to rules already in place for traditional asset classes. Nasdaq Market Surveillance is the most widely used market surveillance technology globally, serving over 45 exchanges and 15 international regulators, helping to maintain integrity of marketplaces around the world. With over 30 years of expertise detecting market abuse, Nasdaq’s robust surveillance platform includes advanced market monitoring analytics to help promote fair, transparent, and safe markets. Bitvavo wants to better detect, monitor, and mitigate market abuse risks Jeetan Patel, Chief Risk Officer at Bitvavo, said: “Bitvavo recognizes the critical importance of robust market surveillance and is thrilled to collaborate with Nasdaq, the industry leader in this domain. Partnering with Nasdaq allows us to leverage their proven expertise to effectively detect, monitor, and mitigate market abuse risks, enhance operational efficiency, and provide a more secure and stable trading environment for our clients. As Bitvavo continues to innovate and lead in the cryptocurrency exchange industry, our commitment to security, trust, and stability remains paramount. We look forward to supporting the success of the digital asset ecosystem as we grow and expand across Europe.” Tony Sio, Head of Regulatory Strategy and Innovation at Nasdaq, said: “Our market surveillance technology can play a powerful role enhancing the integrity of digital asset exchanges, helping to deliver many of the objectives of the incoming MiCA regulation. The digital asset market faces significant challenges as it looks to match the level of investor protection and market confidence of traditional markets. Nasdaq’s industrial grade technology simplifies the complex challenges associated with regulatory compliance and we welcome the opportunity to partner with Bitvavo to support the development of its marketplace.”

Global market volatility driven by Middle East tensions, diverging central bank policies, mixed economic signals, and anticipation of Fed actions. Global Market Uncertainty Escalating Tensions in the Middle East Stoke Market Volatility The ongoing conflict between Israel and Iran, coupled with rising tensions in other parts of the Middle East, is creating significant uncertainty in the global market. Investors are seeking safe-haven assets like gold as a hedge against potential risks. This geopolitical instability is likely to continue impacting market sentiment in the near future. Fed Stands Pat While BoJ Surprises with Rate Hike, JPY Tumbles The Federal Reserve’s decision to maintain interest rates at current levels is in contrast to the Bank of Japan’s unexpected rate hike and tapering of bond purchases. This divergence in monetary policy is causing market volatility, particularly impacting the USD/JPY currency pair. The Japanese Yen has weakened significantly against the US dollar as a result. Economic Indicators Pointing to a Potential Slowdown Mixed Signals: China’s Manufacturing Slumps, Australian Retail Sales Falter Recent economic data is painting a mixed picture of the global economic landscape. China’s manufacturing sector has contracted, raising concerns about a potential slowdown in the world’s second-largest economy. Additionally, retail sales in Australia have shown signs of moderation. These developments, along with other indicators, suggest that the global economy may be headed for a period of slower growth. This could have a ripple effect on commodity prices and currency exchange rates. US Labor Market Still Strong, But Signs of Moderation Emerge The US labor market remains robust, with unemployment at historically low levels. However, there are some early signs of moderation, such as a slower pace of job growth. This could influence the Federal Reserve’s monetary policy decisions in the coming months. A significant slowdown in the labor market could prompt the Fed to adjust its stance, impacting the US dollar and broader market sentiment. Market Focus on Key Economic Events All Eyes on Fed Chair Powell’s Press Conference for Clues on Future Rate Hikes The upcoming Federal Open Market Committee (FOMC) meeting and subsequent press conference by Chair Jerome Powell are highly anticipated events for market participants. Investors are eagerly awaiting any signals about the Fed’s future monetary policy direction, particularly regarding the possibility of additional interest rate hikes. The Fed’s stance will significantly influence market sentiment and asset prices. ADP Employment Change Data to Provide Insights into US Job Market Health The release of economic data, such as the ADP Employment Change report, will provide valuable insights into the health of the US economy. This data will shed light on the pace of job growth in the private sector, which can influence the Fed’s monetary policy decisions and impact the US dollar. Strong job growth data could reinforce the Fed’s hawkish stance, while weaker numbers could suggest a shift towards a more dovish approach. Main Economic Events for this week:   Consumer Price Index (QoQ) – AUD (08/02/2024): – Impact: High – Description: The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key indicator of inflation, as rising prices indicate that inflation is increasing, which can influence monetary policy decisions.   NBS Manufacturing PMI – CNY (July 31, 2024, 01:30:00): – Impact: High – Description: The NBS Manufacturing Purchasing Managers’ Index (PMI) is a survey of purchasing managers in the manufacturing sector. It provides insights into business conditions, including employment, production, new orders, prices, supplier deliveries, and inventories. A PMI above 50 indicates expansion, while below 50 indicates contraction.   BoJ Monetary Policy Statement – JPY (July 31, 2024, 03:00:00): – Impact: High – Description: The Bank of Japan (BoJ) Monetary Policy Statement provides details on the bank’s decisions regarding monetary policy, including interest rates and other measures aimed at achieving its inflation target. This statement can significantly impact financial markets as it offers insights into the future direction of monetary policy.   ADP Employment Change – USD (July 31, 2024, 12:15:00): – Impact: High – Description: The ADP National Employment Report measures the monthly change in non-farm, private sector employment. This report is a precursor to the official government employment report and can provide early insights into labor market conditions.   Fed Interest Rate Decision – USD (July 31, 2024, 18:00:00): – Impact: High – Description: The Federal Reserve’s interest rate decision is a critical event that influences the cost of borrowing and the broader economic environment. Changes in the federal funds rate can affect consumer spending, business investment, and inflation. The decision is followed by a statement that provides insights into the economic outlook and future policy direction. The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

Monero can be expected to rise further toward the next resistance level 165.00 – Monero reversed from support area – Likely to fall to support level 165.00 Monero cryptocurrency recently reversed up from the support area located between key support level 154.75 (which has been reversing the price from the middle of July, as you can see from the daily Monero chart below), lower daily Bollinger Band and the 50% Fibonacci correction of the previous sharp upward impulse wave 1 from the start of July. The upward reversal from this support area stopped the previous minor correction 2. Given the clear daily uptrend, the strength of the aforementioned the support area and the rising bullish sentiment that can be seen across the cryptocurrency markets today, Monero can be expected to rise further toward the next resistance level 165.00 (which reversed the price multiple times in July). MONERO – technical Analysis The subject matter and the content of this article are solely the views of the author. FinanceFeeds does not bear any legal responsibility for the content of this article and they do not reflect the viewpoint of FinanceFeeds or its editorial staff. The information does not constitute advice or a recommendation on any course of action and does not take into account your personal circumstances, financial situation, or individual needs. We strongly recommend you seek independent professional advice or conduct your own independent research before acting upon any information contained in this article.

The Securities and Exchange Commission (SEC), along with the US Attorney’s Office for the Southern District of New York, announced charges against Nader Al-Naji, founder of BitClout. They allege he sold $257 million in unregistered securities through BitClout’s native token, BTCLT, and committed fraud. The SEC’s complaint claims that Al-Naji misused $7 million of customer funds on personal luxuries, including leasing a Beverly Hills mansion and giving cash gifts to family members. These payouts were allegedly made despite promises to investors that funds would not be used for compensation of BitClout team members. The SEC also accused Al-Naji of mischaracterizing the core operations of the BitClout project. While promoting BitClout as a decentralized entity with no governing company, Al-Naji was allegedly managing the project behind the scenes. While the pyramid operators lived the good life with the money, they made phony excuses to investors for their failure to return funds and deliver promised profits. The complaint indicates that Al-Naji attempted to avoid regulatory scrutiny by portraying the project as decentralized. Gurbir S. Grewal, director of the SEC’s Division of Enforcement, stated: “As alleged in our complaint, Al-Naji attempted to evade the federal securities laws and defraud the investing public, mistakenly believing that ‘being “fake” decentralized generally confuses regulators and deters them from going after you.’” Al-Naji’s wife, mother, and related business entities were also named as relief defendants in the complaint, accused of receiving investor funds from Al-Naji. However, the SEC is seeking to retrieve the funds contributed to the scheme, alongside assets that relief defendants received from defendant to which they have no legitimate claim. A relief defendant is a person or entity who has received funds or assets as a result of the illegal acts of the other named defendants. He is typically named because the plaintiff seeks injunctive relief to protect the sought funds or assets and apply them to any eventual recovery in the case. In response to the allegations, Jordan and Luke Lintz, founders of HighKey Agency, which invests in Al-Naji’s newer project, Decentralized Social (DeSo), stated that the SEC’s allegations pertain to BitClout and claimed that the DeSo treasury remains untouched. They refrained from commenting on Al-Naji’s personal expenses as detailed in the SEC complaint.

The U.S. Securities and Exchange Commission (SEC) has posted an information page for investors affected by Terraform Labs, the company behind the collapsed algorithmic stablecoin Terra USD (UST). The SEC has received numerous inquiries from investors regarding compensation following a settlement reached with Terraform Labs last month. Under the terms of the settlement, Terraform Labs has agreed to pay $4.47 billion, which includes $3.58 billion in disgorgement and a $420 million civil penalty. The agency had sought to impose a $5.3 billion penalty, its largest fine yet on a cryptocurrency project. The settlement also prohibits co-founder Do Kwon from serving as an officer or director of any public firm. On his part, Do Kwon is personally responsible for $110 million in disgorgement penalties and roughly $14.3 million in prejudgment interest, as per the settlement agreement. The settlement follows a jury verdict holding Terraform Labs and Kwon accountable for the Terra ecosystem collapse, which resulted in a $40 billion loss for investors. The SEC clarified that it will not receive any payments until investors and creditors are fully compensated in the related bankruptcy case. The Chapter 11 plan confirmation hearing is scheduled to take place in the fall. In February 2023, the SEC charged Terraform Labs and Do Kwon with misleading investors and civil fraud related to the collapse of Terra USD, which wiped out billions of dollars. Terra USD was an algorithmic stablecoin linked to Luna, a governance token, designed to maintain a stable price through market incentives and algorithms. A jury found both Terraform Labs and Kwon liable for civil fraud in April. CFTC issues fraud advisory The U.S. Commodity Futures Trading Commission (CFTC) also issued a customer advisory warning about “follow-on frauds.” These frauds typically target victims of previous scams, convincing them to participate in fraudulent recovery schemes or move stolen money. Melanie Devoe, director of the CFTC’s Office of Customer Education and Outreach, highlighted the severe impact of such frauds, stating that they often result in significant financial losses and emotional distress. The CFTC advised against sending cryptocurrency to individuals known only online and recommended verifying the registration of crypto platforms with the Financial Crimes Enforcement Network before trading. The SEC has particularly taken issue with Terraform’s decision to hire the law firm Dentons, arguing that such a move is designed to shield funds from potential judgments in the lawsuit related to the collapse of TerraUSD. Many enforcement authorities and financial regulators, as well as the Interpol, were already on the hunt for Kwon for his alleged involvement in the collapse of terraUSD (UST) stablecoin and the Terra ecosystem.