In this issue:
- U.S. Companies Expand Digital Asset Networks, Seek OCC Trust Charters
- U.S. Crypto Exchanges Launch Tokenized Securities Products
- Digital Asset Trading, Infrastructure Firms Launch U.S. Broker-Dealer Affiliates
- OFAC Sanctions Two Crypto Exchanges for Facilitating Iran Sanctions Evasion
- Crypto Enforcement Actions Announced by DOJ, SEC, CFTC
U.S. Companies Expand Digital Asset Networks, Seek OCC Trust Charters
A major U.S. and international payments company recently announced that “Ramps,” its “global cash and digital network,” is now live on the Solana blockchain. According to a press release, “The expansion gives wallets, exchanges and developers across Solana direct access to trusted fiat on- and off-ramp infrastructure.” The press release further notes that “Rift is the first wallet on Solana to integrate Ramps, giving its users seamless access to move between crypto and local currency through [the Company’s] trusted global network.”
In related news, fintech startup Zaria Systems Inc. recently announced that it has submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) to establish Zaria National Trust Bank (ZNTB), “a special-purpose national bank that will limit its activities to the operations of a trust company and related activities.” According to a press release, ZNTB “plans to offer corporate trustee and agency services, loan servicing, collateral management, and backup servicing to banks, lenders, and asset managers operating across traditional and digital asset markets.”
For more information, please refer to the following links:
- [] Ramps Goes Multichain with Solana Launch
- Zaria Files Application with the OCC to Charter Zaria National Trust Bank
- Fintech Seeks OCC Trust Charter For Crypto Loan Servicing
U.S. Crypto Exchanges Launch Tokenized Securities Products
Two major U.S. cryptocurrency exchanges recently announced new tokenized securities offerings. One exchange launched its “Tokenized Stocks” product to “eligible users” in the European Economic Area. According to a press release, the Tokenized Stocks product is available 24/7 and provides “a new way for users to gain exposure to U.S. equities and ETFs directly” through the crypto exchange’s trading app. The press release also notes that the product offers exposure to “1,500 underlying stocks and funds,” including U.S. equities and exchange-traded funds (ETFs).
Another major U.S. crypto exchange announced that it is “bringing the S&P 500 to … our funded trading program, marking our second TradFi market after Nasdaq 100.” According to a press release, “[b]etween the two, we now carry the world’s largest and most-traded equity indexes, funded and available around the clock.” The press release also notes that “The S&P 500 is not a standardized futures contract. It’s a perpetual priced off an index oracle that tracks the same 500 large-cap US companies as the benchmark everyone already watches.”
For more information, please refer to the following links:
- [] Launches the Future of Trading with Tokenized Stocks
- Trade the S&P 500 with our money using [] Prop
Digital Asset Trading, Infrastructure Firms Launch U.S. Broker-Dealer Affiliates
A major digital assets algorithmic trading firm and over-the-counter desk, Wintermute, recently announced that its affiliate “has registered as a broker-dealer with the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA), marking a formal expansion into U.S. regulated markets.” According to a press release, among other things, the registration “establishes Wintermute USA LLC as a regulated proprietary trading firm, providing liquidity to national securities exchanges and over-the-counter (OTC) counterparties” and “marks a key milestone in Wintermute’s institutional expansion across regulated U.S. markets, strategically positioning the firm for the emerging tokenized securities landscape.”
In a related development, Copper, a digital asset infrastructure provider, recently announced that its U.S. affiliate, “Copper Markets (U.S.) Inc., a registered broker-dealer with the Securities and Exchange Commission (SEC), has been accepted as a member of FINRA.” According to a press release, “As an SEC-registered broker-dealer and FINRA member firm, Copper Markets (US) Inc. will offer qualified custody, staking, financing solutions, and OTC services as well as access to the ClearLoop Network, Copper’s custodian-agnostic platform for connecting derivative counterparties for pledging and moving crypto and tokenized assets as collateral.”
For more information, please refer to the following links:
- Wintermute launches U.S. broker-dealer, expanding its regulated institutional reach
- Copper Establishes Regulated U.S. Presence as a Qualified Custodian and FINRA Member
OFAC Sanctions Two Crypto Exchanges for Facilitating Iran Sanctions Evasion
On Aug. 7, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned two major cryptocurrency exchanges, Shelbit Exchange and Aban Tether, as well as an individual described as “the ringleader of a network of front companies operating across multiple jurisdictions, facilitating illicit cryptocurrency activity and sanctions evasion.” According to a Treasury press release, the Iranian regime relies on the two sanctioned exchanges “to launder billions of dollars, maintain covert access to international financial systems, and support the Islamic Revolutionary Guard Corps (IRGC), among other terrorist groups.” As part of the action, OFAC added multiple digital asset wallet addresses to its Specially Designated Nationals List.
For more information, please refer to the following links:
- Treasury Sanctions Crypto Exchanges Funding Iran’s IRGC and Enabling Illicit Finance
- Counter Terrorism and Iran-related Designations; Counter Narcotics Designations Removals; Issuance of Amended Iran-related Frequently Asked Question
Crypto Enforcement Actions Announced by DOJ, SEC, CFTC
The U.S. Department of Justice (DOJ) recently announced two crypto-related enforcement actions. In the first action, the founder of a non-fungible token (NFT) startup was indicted “for securities and wire fraud for defrauding investors of the crypto startup he founded by making false and misleading statements regarding the use of investor funds and subsequently misappropriating those funds.” According to a DOJ press release, the defendant “raised millions of dollars from investors by promising that their investments would be used to build a marketplace for non-fungible tokens, but he instead breached their trust by stealing those funds for his own personal benefit.”
In the second DOJ action, the founder and primary operator of MyTrade, an alleged crypto market maker, was sentenced in U.S. federal court “for his role in a wide-ranging conspiracy to manipulate cryptocurrency markets on behalf of client cryptocurrency companies.” According to a DOJ press release, MyTrade provided its clients with “wash trading” services across multiple cryptocurrency exchanges by using “bots” to generate the fraudulent trades.
In a third recent enforcement action, the U.S. Securities and Exchange Commission (SEC) and U.S. Commodity Futures Trading Commission (CFTC) announced parallel crypto-related actions against Goliath Ventures and its founder, Christopher Delgado. According to an SEC press release, Delgado used Goliath Ventures to raise “at least $425 million from over 1,300 investors through an alleged multi-year Ponzi scheme.” The SEC and CFTC enforcement actions follow a prior, related DOJ action.
For more information, please refer to the following links:
- NFT Startup Founder Charged With Fraud
- Founder of Cryptocurrency Financial Services Firm “MyTrade” Sentenced for Market Manipulation and Fraud Conspiracy
- Goliath Ventures, Inc.; Christopher A. Delgado
- CFTC Charges Goliath Ventures Inc. and CEO with $400 Million Fraud Scheme
