The closure of the Vienna-based European American Investment Bank AG (EURAM) has sent shockwaves through the financial world in Vienna. The Financial Market Authority (FMA) has intervened, halting the bank’s operations entirely due to severe deficiencies. With deposits totaling €276.3 million, the fallout from this move is significant, leaving hundreds of clients in uncertainty about their funds. The EURAM Bank has long been under scrutiny, particularly for its failure to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations. Established in 1999, EURAM built its reputation through its dealings with foreign clients, often engaging in international transactions. However, repeated failures in AML compliance, identified as early as 2022, placed the bank squarely on the regulatory radar. A follow-up review in October 2023 showed no improvements, triggering the FMA’s decisive action to suspend the bank’s business activities. One of the major red flags highlighted was EURAM’s loan portfolio, which had been marked by significant write-downs, pointing to high-risk lending practices over the past years. These internal financial issues only exacerbated the problems related to compliance with legal standards. Despite the FMA’s escalating concerns, EURAM repeatedly refuted the allegations. The situation became untenable by early 2023 when the FMA barred the bank from conducting new business and installed a government administrator in August to oversee operations. Ultimately, the bank’s failures were deemed too severe to rectify. For EURAM’s 757 clients, the collapse of the bank has triggered fears over their savings. While the majority of the bank’s clientele—often high-net-worth individuals—held substantial deposits, only €37.6 million of the total €276.3 million is secured through Austria’s deposit guarantee scheme. Fortunately, for deposits up to €100,000, the Austrian deposit protection entity, Einlagensicherung Austria (ESA), has assured customers that compensation will be processed within seven working days. ESA has promised swift action to reimburse affected clients. Stefan Tacke, ESA’s managing director, assured that the process will be handled online for maximum efficiency. He also noted that ESA is closely cooperating with the Austrian Financial Intelligence Unit (A-FIU), reflecting the gravity of the AML deficiencies uncovered at EURAM. Share Information with FinTelegram CategoriestickerTagsEURAMEuropean Amercian Investment Bank

Financial Action Task Force (FATF), the Paris-based intergovernmental organization that leads the fight against money laundering and terrorism financing, will decide whether to put Russia on its blacklist next week, according to a recent POLITICO report. FATF has so far held back from slashing Russia’s ranking, but Ukraine has upped its campaign to change that. Key Points: FATF to consider blacklisting Russia over money laundering and terrorist financing risks. Russia’s membership was suspended in February 2023 following its invasion of Ukraine. Ukraine intensifies campaign to downgrade Russia to FATF’s highest-risk list. The decision could place Russia alongside Iran, North Korea, and Myanmar. Short Narrative: The Financial Action Task Force (FATF) is set to make a crucial decision next week on whether to blacklist Russia, a move that could severely damage the country’s financial standing. Despite suspending Russia’s membership in February 2023 due to its invasion of Ukraine, FATF has so far refrained from downgrading Russia’s ranking. Ukraine has been pushing for Russia to be classified as a high-risk jurisdiction, submitting evidence of Russia’s financial ties with rogue states like North Korea and Iran, as well as its use of Telegram channels and cryptocurrencies to facilitate terrorism financing. Actionable Insight: If FATF blacklists Russia, it would face increased financial isolation, affecting global markets and sanctions enforcement. This could be a significant move toward tightening the economic noose on Russia, potentially driving further illicit activities underground. Call for Information: Is there additional evidence of Russia’s financial ties with other high-risk nations or the use of crypto in money laundering schemes? Any insights on FATF’s internal dynamics for the upcoming vote? Share Information with FinTelegram CategoriesFATF ticker

At the request of the European Public Prosecutor’s Office (EPPO) in Palermo (Italy), the Italian Financial Police (Guardia di Finanza) of Trapani executed a €9 million freezing order in the context of an investigation into fraud involving EU funds, money laundering, and self-laundering. The suspects allegedly misused more than €8.7 million from the European Social Fund (ESF). Key Points: EPPO freezes €9 million in Sicily fraud probe. Involvement of local politicians, a former senator, and a training center in misusing EU funds. €8.7 million from the European Social Fund intended for vocational training diverted for personal and political purposes. Palermo court issues prohibitive measures and house arrests for key suspects. Short Narrative: The European Public Prosecutor’s Office (EPPO) in Palermo, Italy, initiated a major freezing order against €9 million in funds tied to a fraud scheme in Sicily. The Italian Guardia di Finanza of Trapani executed the order, uncovering misuse of €8.7 million from the European Social Fund. The funds were meant for vocational training programs but were siphoned off by local politicians and a private training center. Key figures, including a former senator, allegedly redirected the funds for personal and political use, with six politicians benefiting from job promises in exchange for supporting the scheme. Actionable Insight: This case exemplifies how political ties can be leveraged to misappropriate public funds and evade scrutiny. The freeze highlights the importance of EU-wide vigilance in tackling fraud involving subsidies and public financing. Call for Information: Are there more networks involved in similar schemes across Italy or the EU? Any leads on other public funds being mishandled? Report Suspicious Activities to FinTelegram CategoriesEPPO

The Israeli Mining magnate Beny Steinmetz was arrested Sunday at Athens International Airport on the basis of a European Arrest Warrant issued by Romania, despite a Greek court rejecting his extradition two years ago. However, the European Court of Justice (ECJ) ruled that it was unlawful for courts to reject a European Arrest Warrant. He was released on bail and is prohibited from leaving the country. Key Points: Mining magnate Beny Steinmetz was arrested at Athens International Airport on a European Arrest Warrant from Romania. The arrest comes despite a 2021 Greek court ruling against his extradition. Steinmetz was arrested again in August last year in Cyprus. However, the Supreme Court there also rejected his extradition. Steinmetz was sentenced in absentia to 5 years in Romania for fraud but denies the charges. Released on €5,000 bail; prohibited from leaving Greece pending case resolution. Short Narrative: Beny Steinmetz, the Israeli mining tycoon, was arrested in Greece on Sunday under a European Arrest Warrant issued by Romania. This follows his conviction in Romania for conspiring with Prince Paul Philippe to fraudulently acquire over $100 million in real estate. Although Greece’s courts previously blocked his extradition in 2021, citing issues with Romania’s judicial process, Steinmetz faces renewed legal battles. He spent the night in custody before being released on €5,000 bail but is prohibited from leaving Greece until further proceedings. Steinmetz has consistently denied all charges, pointing to violations of his right to a fair trial. Actionable Insight: Steinmetz’s arrest highlights ongoing cross-border legal challenges tied to the European Arrest Warrant system. Compliance professionals should stay alert to legal precedents that could impact multinational cases involving financial fraud and real estate crime. Call for Information: FinTelegram seeks additional information on Steinmetz’s legal battles and the potential ramifications of his latest arrest. Could this case signal a shift in Greece’s stance on extradition? Share Information with FinTelegram CategoriesCorruption Court CasesTagsBeny Steinmetz

The Anti-Money Laundering Authority (AMLA) will supervise cross-border finance companies that are at high risk of money laundering and terrorism financing. Italy’s Bruna Szego, Germany’s Marcus Pleyer, and Jan Reinder De Carpentier of the Netherlands are the remaining three candidates in the race to chair the new financial watchdog, POLITICO reported. The job is expected to come with pay of approximately €290,000. Key Points: Italy’s Bruna Szego, Germany’s Marcus Pleyer, and the Netherlands’ Jan Reinder De Carpentier are shortlisted to lead the EU’s new Anti-Money Laundering Authority (AMLA). The authority will oversee high-risk cross-border financial companies and enforce penalties up to millions of euros. Frankfurt, Germany, will host AMLA (website), raising concerns among other EU countries about Germany’s influence. Short Narrative: The race to lead the EU’s newly established Anti-Money Laundering Authority (AMLA) has narrowed to three candidates: Italy’s Bruna Szego, Germany’s Marcus Pleyer, and Jan Reinder De Carpentier of the Netherlands. Each candidate brings significant experience in anti-money laundering roles, with Szego and De Carpentier leading national efforts in their respective central banks, while Pleyer chaired the Financial Action Task Force (FATF) from 2020-2022. The final selection process will involve closed-door interviews with the European Parliament, followed by a public interview with the top-ranked candidate. The role is a four-year term with potential for renewal, overseeing an office in Frankfurt. Actionable Insight: Germany securing both the AMLA headquarters and a strong candidate in Marcus Pleyer could shift the balance of influence in the EU’s fight against financial crime. Compliance professionals should monitor how this impacts AML regulations across member states. Call for Information: FinTelegram is seeking insights into potential conflicts of interest arising from the selection of the AMLA leadership. Could this affect the transparency and fairness of enforcement across the EU? Share Information with FinTelegram CategoriesAMLA Job MovementsTagsBruno SzegoJan Reinder De CarptentierMarcus Pleyer

Malta-based Samara Asset Group (previously Cryptology Asset Group) has mandated Pareto Securities as Sole Manager to arrange a series of fixed-income investor meetings. The company is making waves in the crypto world with its ambitious plans to issue a €30 million ($32.8 million) bond to finance Bitcoin purchases and investments in cryptocurrency funds. Samara AG’s Bitcoin Strategy Samara AG was co-founded by Christian Angermayer‘s family office, Apeiron Investment Group, and crypto legend Mike Novogratz. CEO Patrick Lowry leads the company. Samara AG, a publicly traded asset management company, has announced its intention to use the proceeds from the bond issuance to expand its diversified investment portfolio, focusing on two key areas: Increasing its Bitcoin holdings Acquiring stakes in alternative investment funds The company already uses Bitcoin as its primary treasury asset, demonstrating a strong commitment to the cryptocurrency. Patrick Lowry, CEO of Samara AG, emphasized that the funds will be used to “acquire more Bitcoin and continue to seed the world’s best emerging managers.“ Bond Issuance Details The bond will be issued through a newly created entity, Samara Asset Holdings Ltd., which will act as the guarantor. Key features of the bond include: Total value: Up to €30 million ($32.8 million) Listing: Unregulated markets of the Oslo and Frankfurt Stock Exchanges Minimum investment: €100,000 (approximately $109,288)1 Samara AG’s Business Activities Samara AG is primarily an asset management company with a focus on innovative investment strategies. The company’s main activities include: Seeding emerging asset managers Investing in disruptive technologies Maintaining a robust Bitcoin treasury Christian Angermayer, a member of Samara’s Advisory Committee, stated that the company’s mission is to “drive humanity forward through innovation by seeding the world’s best managers and builders.” The MicroStrategy Parallel Samara AG‘s strategy bears similarities to that of MicroStrategy, a U.S.-based business intelligence company that has become known for its significant Bitcoin investments. MicroStrategy, under the leadership of Michael Saylor, has made headlines by consistently acquiring Bitcoin as part of its treasury reserve strategy.Key aspects of the MicroStrategy approach include: Using corporate cash and debt to purchase Bitcoin Holding Bitcoin as a long-term store of value Regularly adding to their Bitcoin holdings Samara AG appears to be following a similar playbook, albeit on a smaller scale, by using bond proceeds to increase its Bitcoin position and maintain it as a primary treasury reserve asset. Institutional Adoption Trend Samara AG‘s move is part of a broader trend of institutional Bitcoin adoption. Other companies, such as Japanese firm Metaplanet, have also been increasing their Bitcoin holdings. This growing interest from corporations and financial institutions is seen as a positive sign for Bitcoin’s long-term prospects and mainstream acceptance. As the cryptocurrency market continues to evolve, Samara AG‘s bold strategy may inspire other companies to consider Bitcoin as a viable treasury asset and investment opportunity. The success of this approach could have significant implications for both the corporate world and the cryptocurrency market as a whole. Share Information with FinTelegram CategoriesFinTelegram

A recent investigation by the Organized Crime and Corruption Reporting Project (OCCRP) has uncovered a connection between the alleged Hong Kong-based crypto fraudster Su Weiyi and a sophisticated money laundering syndicate operating in Singapore. Hong Kong police have called Su Weiyi the “mastermind” behind Atom Asset Exchange (AAX), which had more than two million users before collapsing in 2022. Key Points: Su Weiyi, charged with theft in Hong Kong, linked to the collapse of Atom Asset Exchange (AAX). Business ties to suspects in Singapore and Philippine money laundering and human trafficking investigations. Su Weiyi is also listed as an owner of two Hong Kong companies along with a man named Wang Dingkai. AAX collapse affected over 2 million users; over $30 million in crypto was allegedly stolen. Singapore police seized $2.3 billion in assets tied to money laundering syndicate involving Su’s associates. The Hong Kong firms, including Wang Dingkai and Su Weiyi as owners, appear to have been part of the ownership structure behind the AAX cryptocurrency exchange. Short Narrative: Su Weiyi, alleged mastermind behind the 2022 collapse of Atom Asset Exchange, is facing theft charges in Hong Kong. Corporate records reveal his ties to a sprawling money laundering syndicate operating in Southeast Asia. Su’s business partners, including convicted and fugitive suspects, are linked to massive money laundering and human trafficking operations across Singapore and the Philippines. AAX‘s demise, impacting millions of users, raises concerns that the platform may have been used to launder illicit funds. The interconnected business web illustrates the complexity of Southeast Asia’s organized crime networks, with cryptocurrencies playing a central role. Actionable Insight: The case highlights the increasing use of cryptocurrencies in organized crime and money laundering schemes. Compliance professionals should scrutinize complex corporate structures and cross-border transactions involving crypto to detect potential criminal links. Call for Information: FinTelegram seeks further insights into cryptocurrency platforms involved in money laundering. How can compliance teams better detect these illicit networks? Share Information with FinTelegram CategoriesCrypto SchemesTagsAAXAtom Asset ExchangeSu WeiyiWang Dingkai

Money laundering powered by new technologies is on the rise across the world. Ireland is no exception. “The increase in money-laundering arrests is a result of more sophisticated crime networks and Garda’s intensified focus on financial crimes,” The Irish Times reports. With over 500 arrests already, 2024 is set to be a record-breaking year in Ireland’s fight against financial crime. Key Points: Record-breaking money-laundering arrests in Ireland, with up to 700 arrests expected by end of 2024. 10-fold increase in arrests since 2018. Garda shifts focus from drugs and guns to sophisticated money-laundering operations. International criminal networks, including Black Axe, heavily involved in Ireland’s money-laundering surge. Short Narrative: Ireland is seeing an unprecedented rise in money-laundering arrests, driven by a shift in criminal patterns and targeted Garda operations. With 508 arrests already made by September 2024, the total is set to surpass 650 by year-end—a staggering 10-fold increase since 2018. Cyber-enabled scams, international fraud rings like Nigeria’s Black Axe, and the recruitment of “mules” to launder funds have escalated the Garda’s crackdown. This marks a shift in Garda strategy, focusing on dismantling sophisticated financial structures supporting organized crime. Actionable Insight: The surge in arrests signals heightened enforcement under the Criminal Justice (Money Laundering and Terrorist Financing) Act. Compliance professionals should be vigilant for increasingly complex laundering schemes, especially those using digital platforms and cross-border transactions. Call for Information: FinTelegram seeks more insights into Ireland’s crackdown on money laundering networks. Are financial institutions equipped to identify and report these sophisticated laundering operations? Report Money Laundering Activities to FinTelegram CategoriesMoney Laundering ticker

The billion-dollar cyberfraud industry in Southeast Asia is booming, fueled by organized crime syndicates exploiting the latest in AI and cryptocurrency. The UNODC report notes that these criminal networks are outpacing government efforts to regulate and combat their operations. Urgent reforms and enforcement are needed to prevent further damage. Key Points: Southeast Asia’s cybercrime industry is rapidly expanding, with crime syndicates integrating advanced technologies like AI, deepfakes, and malware into their operations. The UNODC report highlights new underground markets and crypto-based money laundering methods, enabling billions of illicit proceeds to flow unregulated through virtual asset service providers (VASPs). Cyber-enabled fraud, human trafficking for forced criminality, and casino-related money laundering are key drivers of this growing threat. Short Narrative: Organized crime syndicates in Southeast Asia are evolving at an alarming rate, adopting cutting-edge technologies like AI, deepfakes, and malware to boost their cyber-enabled fraud operations. According to a new UNODC report, these criminals have also established a service-based economy that fuels everything from crypto-based money laundering to underground markets. The region is now a critical testing ground for transnational crime, with billions in illicit proceeds being laundered through underregulated virtual asset service providers and online gambling platforms. FinTelegram has been following the rising cybercrime activities in Southeast Asia, noting the severe lack of regulatory oversight in key sectors like online gambling and crypto. Actionable Insight: Expect cybercriminals to increasingly exploit AI-driven tools like deepfakes to enhance scams and fraud schemes. Stay alert to these emerging trends. Governments and regulators need to close the gaps in oversight of VASPs and online gambling platforms that have become hotbeds for money laundering and cyber-enabled fraud. Much like companies operating in the formal economy, the way in which transnational organized crime groups and cybercriminals alike have developed services and products that are sold to other criminal actors has represented one of the most significant developments to take within the regional threat landscape over past decades. This has led to a thriving criminal service economy and promoted specialization within it, in turn lowering the barrier to entry across a range of cyber and cyber-enabled crimes as well as other crime types. (UNODC report). Compliance Insight: The UNODC report exposes the weaknesses in Southeast Asia’s financial and regulatory systems, particularly concerning VASPs and online casinos. These platforms are being leveraged by organized crime to funnel billions in illicit funds into the financial system without scrutiny. Moreover, human trafficking for forced criminality compounds the problem, with victims coerced into participating in scam operations. This convergence of traditional organized crime with advanced technology presents a significant challenge for compliance teams and regulatory bodies alike, requiring immediate action. Call for Information: If you have any information on illicit crypto transactions or underground markets operating in Southeast Asia, contact FinTelegram to contribute to ongoing investigations. Share Information with FinTelegram CategoriesCybercrime Cybercrime Data Money Laundering ticker

In an unprecedented move, the FBI infiltrated the crypto world with its own token, NexFundAI, to crack down on market manipulation. This case marks a significant shift in crypto enforcement, signaling that law enforcement is evolving its tactics to keep pace with the complexities of the digital asset space. As more fraudsters are exposed, the crackdown on wash trades and pump-and-dump schemes is just beginning. Key Points: The FBI has successfully disrupted several cryptocurrency market fraud schemes, indicting 18 individuals and entities involved in wash trades and pump-and-dump scams. $25 million in crypto funds have been seized, with arrests made in the U.S., the UK, and Portugal. Several trading bots used for fraudulent activities have also been shut down. In a groundbreaking move, the FBI created its own cryptocurrency token and company, NexFundAI, to infiltrate and expose illegal schemes in the crypto space. Short Narrative: The FBI has taken aggressive action against cryptocurrency market manipulation schemes, targeting those behind wash trades and pump-and-dump tactics. In a first-of-its-kind operation, the FBI created a fake cryptocurrency token and company, NexFundAI, to gather intelligence and expose fraudsters from within. The ongoing investigation, led by the U.S. Attorney’s Office for the District of Massachusetts, has resulted in 18 indictments and the seizure of over $25 million in crypto assets. These schemes typically involve artificially inflating the trading volume of tokens to lure in unsuspecting investors before manipulators sell off their shares at a profit. Tokens like Saitama have been affected by these manipulative practices. Compliance Insight: The FBI’s innovative approach highlights a critical development in crypto enforcement: the use of undercover operations within the digital assets space. By creating NexFundAI and launching a decoy Ethereum-based token, the FBI was able to gain insights into how fraudsters operate, especially around illegal wash trades and pump-and-dump schemes. This strategy underscores the increasing regulatory focus on cleaning up the crypto market, ensuring more robust oversight, and protecting investors from manipulative practices. Call for Information: If you have been affected by NexFundAI or similar market manipulation schemes, report any insights to law enforcement or FinTelegram for further investigation. Share Information with FinTelegram CategoriesFBITagsNexFundAI

USI Tech was one of the first MLM schemes to use cryptocurrencies to defraud its investors. FinTelegram has issued several warnings against the scheme. Horst Jicha has now gone fugitive, leaving behind a trail of defrauded investors and evading justice in the $150 million USI Tech fraud case. With Jicha on the run, the case serves as a chilling reminder of the risks in the volatile crypto world. Key Points: The German national Horst Jicha, 64, co-founder of USI Tech, has become a fugitive after tampering with his ankle bracelet and skipping a $5 million bond in a $150 million crypto fraud case. Jicha faces charges of securities fraud and conspiracy related to USI Tech, a multi-level marketing crypto scheme, with a trial set for March 2025. USI Tech, which operated as a Bitcoin trading platform, defrauded investors through false promises of 140% returns, as reported by FinTelegram. A manhunt is underway as Jicha’s whereabouts remain unknown. Short Narrative: Horst Jicha, the German co-founder of the notorious USI Tech crypto scam, was arrested in December 2023 and later released on a $5 million bond secured by his family members in Germany. However, he has since skipped bail just months before his trial and is now on the run after tampering with his ankle monitor and disappearing while under house arrest in New York. The USI Tech scam, which promised investors astronomical returns through Bitcoin trading, left investors out of pocket when it abruptly shut down in 2018. FinTelegram had previously issued multiple warnings about USI Tech, highlighting its high-risk nature and fraudulent activities. Read USI Tech reports here. Compliance Insight: Jicha’s case is a clear example of how international crypto scams operate across borders, exploiting regulatory gaps. USI Tech‘s collapse resulted in massive losses, with much of the stolen crypto assets allegedly transferred to digital wallets controlled by Jicha. The FinTelegram reports from 2018 had already pointed to the dubious nature of USI Tech‘s operations, urging investors to stay cautious. This case highlights the persistent challenge of ensuring compliance in the unregulated crypto sector and the importance of cross-border cooperation in fighting financial crime. Call for Information: Anyone with knowledge of Jicha’s whereabouts is encouraged to come forward as authorities pursue the manhunt. If you have further details on USI Tech‘s international operations or insider knowledge about the scam, contact FinTelegram for whistleblower protection. Report Information to FinTelegram CategoriesCourt Cases MLM Schemes tickerTagsHorts JichaUSI Tech

Think twice before starting to work for the world’s largest crypto exchange! As Binance’s financial crime compliance officer faces money laundering charges in Nigeria, questions mount over the company’s compliance safeguards and the risks involved in its global operations. The denial of bail for Tigran Gambaryan and the ongoing legal battle could have far-reaching implications for the company’s future. Key Points: Binance‘s head of financial crime compliance, Tigran Gambaryan, remains in detention in Nigeria as his money laundering trial proceeds. A Federal High Court judge in Abuja denied bail for the second time, citing the adequacy of prison healthcare services. Tigran Gambaryan and Binance deny all charges, including tax evasion and money laundering. His legal team argued for his release on medical grounds, but the court ruled it an abuse of process due to an ongoing appeal from a previous bail ruling. Short Narrative: Tigran Gambaryan, Binance’s head of financial crime compliance, continues to face serious money laundering charges and tax evasion in Nigeria. Despite his legal team’s request for bail on medical grounds, the Federal High Court in Abuja denied the plea, emphasizing that the Nigerian Correctional Service is capable of addressing his health concerns. Gambaryan, detained since February, has maintained his innocence, while Binance is also fighting parallel tax evasion charges. His trial has been adjourned until October 18 as his defense team continues to challenge the allegations. Compliance Insight: This case highlights Binance’s ongoing struggles with regulatory and legal scrutiny across various jurisdictions. Gambaryan, who served as the head of financial crime compliance, is accused of facilitating money laundering, raising questions about Binance’s internal controls and adherence to international compliance standards. The refusal of bail by the Nigerian courts, coupled with the ongoing tax evasion charges against the company, further intensifies concerns about the platform’s global compliance posture. Binance’s defense strategy and its handling of these allegations will be critical for its reputation and regulatory relationships moving forward. Call for Information: If you have any information about compliance violations by crypto companies, please share it with us via our whistleblower system, Whistle42. Report Compliance Violations to FinTelegram CategoriesBinance Case Court Cases Crypto Compliance Money LaunderingTagsBinanceTigran Gambaryan

Solaris, a German fintech and neobank, has a long history of compliance troubles. Moreover, its ongoing financial losses and regulatory woes doubt its long-term profitability, even as it sheds jobs and restructures for survival. A potential IPO, as rumored by the German platform Gründerszene, seems speculative at best in light of its deep-rooted issues with compliance and financial stability. Key Points: Solaris, a Berlin-based fintech, is cutting 240 jobs, about a third of its workforce, due to significant financial losses. Major layoffs are concentrated in the UK subsidiary, Contis, with plans to reduce 15% of Solaris‘ remaining workforce. The fintech’s 2023 losses total €178 million, primarily due to write-downs of Contis and BaFin-imposed financial requirements. Speculation arises regarding a potential IPO despite ongoing profitability challenges. Short Narrative: Solaris is facing a major internal restructuring, with over 240 job cuts aimed at stemming financial losses and positioning the company for future profitability. The majority of these layoffs affect the UK-based subsidiary Contis, acquired in 2021. Despite the heavy reductions, Solaris continues to struggle with profitability, reporting a €178 million loss in 2023, largely due to Contis-related write-downs. CEO Carsten Höltkemeyer remains optimistic about a profitable turnaround by next year, yet questions linger about whether this will be sufficient to stabilize the company. In the past, Solaris has been labeled a high-risk payment processor in scams, raising doubts over the seriousness of its IPO plans, especially considering its ongoing structural and compliance problems. Actionable Insight: Closely monitor Solaris‘ upcoming financial statements and regulatory interactions, particularly regarding its partnership with Bitpanda and the ADAC credit card program. Be wary of investing or entering partnerships until clearer financial stability is demonstrated. Compliance Insight: Solaris has faced significant regulatory pressure from BaFin since 2020, when deficiencies in money laundering prevention and customer reviews were identified. In response, BaFin increased the fintech’s equity requirements and imposed a costly special audit, contributing to its financial strain. Despite opposition to certain restrictions, such as reducing customer deposits, Solaris remains under strict regulatory supervision. Recent indications from BaFin suggest some leeway for new business, but the ongoing compliance issues remain a serious obstacle to Solaris‘ growth strategy. Call for Information: Any insider information on Solaris‘ future regulatory audits or its rumored IPO would provide valuable insights into its financial viability. Share Information with FinTelegram CategoriesFintechTagsSolarisSolaris Bank

TD Bank, one of North America’s largest financial institutions, has been hit with a historic $3.1 billion settlement for egregious failures in its anti-money laundering (AML) program. This case represents one of the most significant AML enforcement actions in U.S. history, both in terms of the financial penalties imposed and the severity of the admitted misconduct. Only Binance, with its $4.1 billion settlement, was even larger. Key Details of the Settlement TD Bank has pleaded guilty to criminal charges, including conspiracy to violate the Bank Secrecy Act and commit money laundering. The penalties include: $1.8 billion fine to the U.S. Department of Justice (DOJ) $1.3 billion penalty to the Financial Crimes Enforcement Network (FinCEN) $450 million to the Office of the Comptroller of the Currency Additional payments to other regulators Beyond the financial penalties, TD Bank faces significant operational restrictions: An asset cap limiting its growth in the U.S. market Required approval from regulators before opening new branches or launching new products/services Imposition of independent monitors for 3-4 years Nature and Scope of Violations The investigation revealed systemic and long-standing deficiencies in TD Bank‘s AML program from 2014 to 2023. Key failings include: Failure to monitor $18.3 trillion in customer activity Enabling three money laundering networks to transfer over $670 million through TD accounts Inadequate transaction monitoring and suspicious activity reporting Insufficient due diligence on high-risk customers and transactions Specific Illicit Activities Facilitated The bank’s failures allowed various criminal enterprises to exploit its services: Processing over $400 million in transactions for a convicted money launderer linked to narcotics trafficking Facilitating transactions indicative of human trafficking through peer-to-peer payment platforms Enabling fentanyl trafficking proceeds to flow back to drug syndicates in Mexico and China Systemic Issues and Cultural Failures The investigation uncovered a pervasive culture of non-compliance within TD Bank: Senior executives enforced a “flat cost paradigm” that starved AML programs of necessary resources despite increasing risks Employees openly joked about the bank’s lack of compliance measures The bank ignored warnings from regulators and internal auditors about AML deficiencies Significance and Implications This settlement is groundbreaking in several ways: It represents the largest penalty ever imposed under the Bank Secrecy Act6. TD Bank is the largest bank in U.S. history to plead guilty to Bank Secrecy Act violations2. The imposition of an asset cap is a rare and severe regulatory measure, typically reserved for the most egregious cases7. The case underscores the critical importance of robust AML programs in the financial sector and demonstrates regulators’ willingness to impose severe penalties for systemic compliance failures. It also highlights the potential reputational and financial risks associated with inadequate investment in compliance infrastructure. As the investigation continues, there may be further individual prosecutions of bank employees involved in these schemes. Report Money Laundering Acitivities to FinTelegram CategoriesFinCEN Money Laundering ticker US DOJTagsBinanceTD Bank

Gotbit Consulting LLC, along with its Russian executives, has been charged by the U.S. DOJ and SEC for its role in a widespread market manipulation scheme. By using wash trades, Gotbit inflated crypto asset prices and volumes, deceiving investors and raising millions in illicit profits. The company’s fraudulent activities were executed across multiple jurisdictions, with key figures now facing extradition and prosecution. Key Points: Gotbit Consulting LLC d/b/a Gotbit (website), a Russian-controlled crypto market maker, faces charges of market manipulation and wire fraud by the U.S. DOJ and SEC. Founder Aleksei Andriunin and executives Fedor Kedrov and Qawi Jalili are at the center of the investigation. Gotbit allegedly provided wash trading services to artificially inflate cryptocurrency prices and trading volumes between 2018 and 2024. The scheme misled investors into believing in a false demand for various crypto assets. Short Narrative: U.S. authorities have intensified their crackdown on cryptocurrency market manipulation, with Gotbit Consulting LLC, a well-known market maker in the crypto industry, facing serious charges from both the U.S. DOJ and SEC. FinTelegram previously reported on Gotbit’s involvement in systematic market manipulation, and new details have emerged. According to the DOJ, Gotbit Founder Aleksei Andriunin, COO Fedor Kedrov, and Sales Director Qawi Jalili allegedly orchestrated wash trades to artificially inflate the price and trading volume of cryptocurrencies on behalf of clients. These fraudulent tactics created a misleading image of robust market activity for crypto tokens like Saitama and Robo Inu. Gotbit, registered in Belize but operating globally, charged clients monthly fees to execute these illicit trades. The SEC further alleges that the company used its manipulative trading practices to mislead investors into believing there was strong demand for these tokens. The manipulation extended across several jurisdictions, with fake volumes reported on major crypto platforms. Andriunin, arrested in Portugal on October 8, 2024, now awaits extradition, while Kedrov and Jalili face wire fraud and conspiracy charges. Actionable Insight: Regulators and financial institutions must remain vigilant as crypto market manipulation schemes like Gotbit’s continue to exploit loopholes in the global crypto regulatory framework. The ongoing charges serve as a reminder of the risks posed by unregulated market makers in the crypto industry. Call for Information: FinTelegram seeks further information on other market makers involved in similar manipulation schemes. How pervasive is market manipulation across the broader crypto landscape? Share Information with FinTelegram CategoriesCrypto Schemes SEC US DOJTagsAleksei AndriuninFedor KedrovGotbitQawi Jalili

The U.S. SEC has charged three market makers and nine individuals for manipulating the crypto asset market, generating artificial trading volumes and misleading retail investors. The fraudulent schemes created the illusion of active markets, prompting unsuspecting investors to pour money into manipulated crypto assets. The DOJ filed criminal charges against the scheme operators in a parallel transaction. Key Points: The SEC charges three companies and nine individuals for market manipulation schemes targeting crypto assets sold as securities. These companies created false trading volumes and manipulated prices to lure retail investors. The manipulation involved self-trading and using bots to generate artificial volume, deceiving investors into believing in active markets. Parallel criminal actions have been announced by the FBI and the U.S. Attorney’s Office for the District of Massachusetts. Short Narrative: The U.S. Securities and Exchange Commission (SEC) has filed fraud charges against three companies and nine individuals involved in a massive market manipulation scheme targeting crypto assets. The SEC alleges that market makers ZM Quant, Gotbit, and CLS Global, along with promoters Russell Armand, Maxwell Hernandez, Manpreet Singh Kohli, Nam Tran, and Vy Pham, conspired to create a false appearance of active trading in crypto assets. By using artificial trading volume and price manipulation, they misled retail investors into purchasing these assets in unregistered transactions. These fraudulent activities, often involving self-trading or “wash trading,” generated billions of dollars in fake trading volume daily through algorithms and bots. The SEC’s actions aim to put a stop to these deceptive practices, which have caused significant financial harm to investors. The agency has filed five complaints in the U.S. District Court for the District of Massachusetts, seeking injunctions, penalties, and disgorgement of profits from the defendants. Actionable Insight: Crypto traders and investors should exercise caution when participating in markets with unusually high trading volumes. Market manipulation schemes like these can result in significant financial losses, especially for retail investors who are often the primary targets. Call for Information: FinTelegram is looking for insights into other companies or individuals involved in similar market manipulation schemes. Are there other platforms using fake trading volumes to mislead investors? 4o CategoriesCourt Cases SECTagsGLS GlobalGotbitManpreet Singh KohliMaxwell HernandezNam TranRussell ArmandVy PhamZM Quant

The U.S. DOJ has charged 18 individuals and entities in an international operation targeting market manipulation and fraud in the crypto industry. The defendants, including market makers and token promoters, are accused of using wash trading and false trading activity to deceive retail investors and artificially inflate crypto prices. This is the first major criminal case of its kind in the crypto market. The SEC also filed charges against the scheme operators. Key Points: 18 individuals and entities charged for widespread fraud and market manipulation in the cryptocurrency markets. First-ever criminal charges for market manipulation and wash trading in the crypto industry. Over $25 million in crypto seized, and multiple trading bots used for wash trading deactivated. Four cryptocurrency companies and four financial services firms (“market makers”) involved in fraudulent schemes. Short Narrative: The U.S. Department of Justice (DOJ) has unsealed charges against 18 individuals and entities involved in a large-scale fraud and market manipulation scheme in the cryptocurrency markets. These include leaders from four cryptocurrency companies and financial services firms who provided market manipulation services, such as wash trading, to inflate the trading volume of various crypto assets. The largest of these companies, Saitama, once had a multi-billion-dollar market value, which was artificially inflated through pump-and-dump schemes. The fraudulent activities, which spanned from 2018 to 2024, involved creating false trading activity to deceive retail investors into buying tokens that were manipulated to appear as lucrative investments. Market makers ZM Quant, CLS Global, Gotbit, and MyTrade allegedly played key roles in executing these wash trades. In some cases, these market makers used bots to generate millions of fake transactions to inflate prices. So far, four defendants have pleaded guilty, with more arrests made in Texas, the UK, and Portugal. Actionable Insight: This case highlights the growing scrutiny on crypto market manipulation and serves as a warning to both crypto firms and investors. Firms involved in wash trading or price manipulation face severe legal consequences, while investors are urged to perform thorough due diligence before investing in crypto assets. Call for Information: FinTelegram invites insights into other crypto companies or financial services firms that may be involved in similar market manipulation schemes. How widespread is this fraudulent activity within the industry? Report Suspicious Crypto Activities to FinTelegram Categoriesticker United States US DOJTagsCLS GlobalGotbitMyTradeZM Quant

Crypto.com, the Singapore-based crypto exchange with more than 100 million users, has filed a lawsuit against the SEC, challenging the regulator’s authority over crypto assets and accusing it of overstepping its jurisdiction. The lawsuit comes after a Wells notice was issued to the platform, signaling the SEC’s intent to take enforcement action. Key Points: Crypto.com files a lawsuit against the SEC, accusing the agency of overstepping its jurisdiction. The lawsuit follows a Wells notice, indicating potential enforcement action by the SEC. Crypto.com argues that the SEC is unlawfully treating nearly all crypto assets as securities. The case names SEC Chair Gary Gensler and four other commissioners as defendants. The lawsuit could impact other crypto platforms, including Robinhood, Coinbase, and OpenSea. Short Narrative: Crypto.com, a major player in the cryptocurrency space, has taken legal action against the U.S. Securities and Exchange Commission (SEC) after receiving a Wells notice, a formal warning of impending enforcement. The lawsuit, filed in federal court, challenges the SEC’s claim that tokens traded on its platform qualify as securities, accusing the regulator of overreach. The exchange asserts that the SEC has unilaterally expanded its jurisdiction and has unlawfully categorized most crypto transactions as securities trades. This legal battle reflects the broader tension between the crypto industry and U.S. regulators, with firms like Coinbase and Robinhood facing similar challenges. Crypto.com’s lawsuit could set a precedent, potentially reshaping how the SEC approaches crypto regulation. Meanwhile, the company is also seeking clarity from the Commodity Futures Trading Commission (CFTC) on derivative products in the crypto space. Actionable Insight: Compliance officers and legal teams in the crypto industry should stay alert as this lawsuit could redefine regulatory boundaries. This case may influence ongoing disputes and the SEC’s jurisdiction over crypto assets. Call for Information: FinTelegram seeks input from legal experts and industry insiders on how this lawsuit could impact regulatory oversight in the crypto market. Will this case lead to a clearer separation between SEC and CFTC authority? CategoriesSEC

In August 2024, Judge Amit Mehta ruled that Google had illegally maintained a monopoly in the online search market. Following this landmark decision, the U.S. Department of Justice (DOJ) is considering asking the court to force Google to sell off parts of its business. This could potentially lead to the first major corporate breakup in four decades. Google, however, warns of significant consequences for businesses and consumers. Key Points: The US Department of Justice (DoJ) is considering breaking up Google to prevent its search monopoly. Google is accused of maintaining its dominance through illegal practices, including deals with Apple and Samsung. Google warns that the proposed measures could harm US businesses and consumers. The DoJ’s final proposals are expected by 20 November, with Google’s response due by 20 December. Short Narrative: The US government is escalating its legal battle against Google, considering drastic measures that could reshape the tech giant’s business structure. Following a landmark court ruling in August, which found Google maintained its dominance in online search through illegal practices, the U.S. Department of Justice (DoJ) has hinted at possible “structural requirements” to break up the company’s monopoly. Prosecutors accuse Google of paying billions to ensure it remains the default search engine on major platforms like Apple and Samsung. In its defense, Google argues that users choose its search engine because of its usefulness, and the company continues to innovate for consumers. However, the DoJ is expected to propose remedies that could limit Google‘s use of other products, such as Chrome and Android, to advantage its search business. Google’s response will be submitted after the DoJ’s proposals are finalized in November. Actionable Insight: Legal analysts and compliance teams should closely monitor the developments of this case, as it could set a precedent for other pending lawsuits against major tech firms, including Meta, Amazon, and Apple, over anti-competitive practices. Call for Information: FinTelegram invites insights into how a potential Google breakup could impact the broader tech industry and market competition. Share Information with FinTelegram CategoriesRegulatory Cases United States US DOJTagsAhmet MehtaGoogle

The wealthy UK socialite James Stunt, along with four other men, faces accusations of laundering over £200 million in criminal cash through UK-based gold dealers. The prosecution claims that Stunt’s company received 70% of the proceeds, with connections to international money launderers in Dubai, pointing to a massive, organized operation between 2014 and 2016. Key Points: James Stunt and four others are on trial for laundering over £200 million. Alleged laundering through Bradford gold dealer Fowler Oldfield and Hatton Garden’s Pure Nines. Prosecutors claim Stunt received 70% of profits from the money laundering operation. Connections to Dubai-based international money launderer Shahid Qadar are under scrutiny. The money likely originated from drug dealing, fraud, tax evasion, or human trafficking. Short Narrative: In one of the largest money laundering cases ever seen in the UK, wealthy socialite James Stunt and four co-defendants are standing trial at Leeds Crown Court. The prosecution alleges that between 2014 and 2016, Stunt and his associates laundered over £200 million in criminal cash through two businesses: Bradford-based Fowler Oldfield and Hatton Garden’s Pure Nines. The dirty money, possibly from drug trafficking and other serious crimes, was paid into Fowler Oldfield’s NatWest account, then used to purchase gold, giving the funds the appearance of legitimacy. James Stunt’s company, Stunt & Co, based in Mayfair, reportedly took in tens of millions from the scheme, with Stunt himself allegedly pocketing 70% of the profits. The prosecution claims that the operation escalated with the involvement of Shahid Qadar, a Dubai-based money laundering kingpin, which resulted in a massive surge in laundered cash. Actionable Insight: This case highlights the role of high-profile individuals and businesses in facilitating large-scale money laundering operations. Regulators and financial institutions should remain vigilant, particularly concerning luxury goods dealers and high-net-worth clients. Call for Information: FinTelegram seeks insights into further details about the laundering networks connected to Dubai and whether other European jurisdictions may have been involved in similar schemes. Share Information with FinTelegram CategoriesBinary Options Dubai Money Laundering ticker United KingdomTagsJames Stunt