Connect with us

Regulation

Gary Gensler Started The ‘Treasury Secretary’ Rumor Himself

Published

on


Rumors swirling about SEC Chair Gary Gensler potentially becoming Treasury Secretary if Kamala Harris wins the 2024 presidential election have stirred significant debate within the crypto industry. However, Custodia Bank CEO Caitlin Long debunked these claims. Moreover, she believes that Gensler himself is the source of these rumors.

How ‘Gary Gensler As Treasury Secretary’ Rumors Started

The speculation originated from a Washington Reporter scoop by Matthew Foldi. In the reported, Foldi reiterated that Paradigm CLO Katie Biber had floated the notion of a “Gensler plan.” This plan would allegedly “ensure a Dem Commission majority in 2025 — forcing a newly-elected President Trump to oust him.”

It would position Gary Gensler to become an SEC commissioner once more. Moreover, it would enable President Biden to appoint a successor such as Caroline Crenshaw, known for her critical stance on the crypto industry. Hence, the SEC’s anti-crypto crusade would continue even if Gensler steps down.

The “Gensler plan” has generated a mix of intrigue and skepticism among industry figures and political commentators. The cause of the latest rumors is a Capitol Hill source familiar with SEC matters, as cited by Foldi. The source suggested that Gensler might agree to such a scenario if he were promised a role as Treasury Secretary by Kamala Harris if she wins.

Industry Leaders Debunk These Claims

These speculations didn’t sit well with the crypto industry that called for Harris to fire Gensler. Furthermore, Custodia Bank’s Long took to X and challenged the credibility of this rumor. She stated, “Multiple Dems contacted me to say the ‘Gensler as Treasury Secretary’ rumor is false.”

According to Long, a Democrat believes that Gensler himself is behind the rumor, either to create confusion or to manipulate perceptions. This assertion is supported by Sheila Warren, CEO of the Crypto Council, who echoed Long’s sentiments. Warren write on X, “I’ve heard this is false from multiple [Republicans] as well.” This bipartisan dismissal suggests that the rumor may lack substantive backing.

Rep. Tom Emmer had previously cautioned that Kamala Harris might choose Gensler as or Senator Elizabeth Warren for the Treasury Secretary position. Emmer criticized Gensler’s tenure at the SEC, stating:

“He’s been bringing lawsuits all over the place — and losing all over the place. That time’s past. Gary Gensler needs to move on. His career in government should be over.”

Bloomberg Senior ETF analyst Eric Balchunas spotlighted Emmer’s stance in a post on X. Moreover, Balchunas suggested, “It kinda sounds like he’s the source of the rumor.” This statement aligns with Custodia Bank CEO’s statement, solidifying the possibility of Gary Gensler starting the rumor himself.

Crypto Industry Reactions

Moreover, Ripple CTO David Schwartz took a more sarcastic tone in response to the rumors. On X, he wrote, “Good news, everyone! Sources say if Harris is elected, she will remove Gensler as chair of the SEC before his term is up!” Ripple recently reached the end of the legal tussle with the SEC with the former receiving a $125 million penalty.

Charles Hoskinson, founder of Cardano, weighed in with a critical perspective. He noted, “As I have repeatedly stated, team blue is not Crypto’s friend.” Hoskinson’s remark reflects broader skepticism within the crypto industry about the Democratic Party’s alignment with crypto interests.

Similarly, pro-XRP lawyer Bill Morgan condemned the idea, calling those who support Harris as a crypto ally “useful idiots.” He warned, “Imagine the damage he will do to crypto as Treasury Secretary. Where are the Democrats for Crypto crowd. Are they still having meetings with senior people from the Administration and being ‘listened’ to.”

✓ Share:

Kritika Mehta

Kritika boasts over 2 years of experience in the financial news sector. Currently working as a crypto journalist at Coingape, she has consistently shown a knack for blockchain technology and cryptocurrencies. Kritika combines insightful analysis with a deep understanding of market trends. With a keen interest in technical analysis, she brings a nuanced perspective to her reporting, exploring the intersection of finance, technology, and emerging trends in the crypto space.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Regulation

BitClave Investors Get $4.6M Back In US SEC Settlement Distribution

Published

on


BitClave investors have started receiving $4.6 million in repayments from the U.S. Securities and Exchange Commission (SEC), following a settlement reached in 2020. The SEC announced on Nov. 20 that payments from the BitClave Fair Fund had been disbursed to eligible investors harmed during the company’s 2017 initial coin offering (ICO).

Pro-XRP lawyer and online commentator “MetaLawMan” criticized the SEC’s stance on digital assets, stating on social media, “Here we go again with ‘digital asset securities.’ Unbelievable.” The lawyer’s statement reflects ongoing industry frustrations over the SEC’s regulatory approach to cryptocurrencies.

BitClave Investors Get $4.6M Back in US SEC Settlement

The US SEC assured the public that $4.6 million was returned to investors who filed the claims and were eligible for the refunds. These funds were agreed upon in 2020 after the SEC accused BitClave of conducting an unregistered ICO.

The company’s initial coin offering (ICO) in 2017 brought in $25.5 million in only 32 seconds and distributed its Consumer Activity Token (CAT) to thousands of buyers. The SEC therefore claimed that the ICO was an unregistered securities transaction because potential investors were induced to invest in the CAT token with an expectation of appreciation of its value. 

Under the settlement, BitClave will have to refund the money it raised and also pay $4 million in fines and interest. In between these settlements, John Deaton has accused the regulator of using laws that were set in 1933.

The Fair Fund was therefore created to ensure that the funds are returned to the affected investors. The claims submission period closed in August 2023, and the eligible investors received the information on the claims in March 2024. The Securities and Exchange Commission posted on its social media accounts that the payment has been made, and “the checks are in the mail.”

BitClave Settlement Included Penalties and Token Destruction

In the settlement, BitClave did not accept or reject the accusations made by the SEC but agreed to cough up $29 million. This total consisted of the $25.5 million that was generated in the ICO and the additional $4 million in fines.

Concurrently, the company also committed to burning 1 billion of the catalyst tokens that have not been distributed and to ask exchanges to delist the token.

The Securities and Exchange Commission therefore pointed out that by February 2023, BitClave had only remitted $12m to the Fair Fund, thus leaving questions on the balance of $7.4m. Neither the SEC nor the fund administrator gave further details on the matter, and it is still uncertain as to how the outstanding payment will be collected.

US SEC Maintains Strict Regulatory Stance on Crypto

The US SEC has continued to enforce regulations on crypto companies under the Biden administration, with over 100 enforcement actions taken against the industry. BitClave’s settlement, subsequently, is one of many cases where the regulator has targeted unregistered ICOs and other alleged securities violations.

BitClave’s case, handled under former SEC Chairman Jay Clayton, emphasized the agency’s view that many digital assets fall under securities laws. The CAT white paper described potential value increases, which the regulator argued encouraged speculative investment in an unregistered security.

As the US SEC faces criticism, President-elect Donald Trump has expressed plans to reshape crypto oversight. Trump has promised to remove current SEC Chair Gary Gensler and is reportedly considering creating a new White House position dedicated to cryptocurrency policy. 

✓ Share:

Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

Regulation

US SEC Pushes Timeline For Franklin Templeton Crypto Index ETF

Published

on


US SEC Extends Review Period for Franklin Templeton Crypto Index ETF

Therefore, the

The proposal was first published in the Federal Register on October 8, to kick start a thirty-five (35) days review period. As a result, the review was to end on November 22, 2024. Consequently, the review was to expire on November 22, 2024. However, the SEC’s decision to delay indicates a thorough approach to reviewing the fund’s compliance with crypto regulations.

Meanwhile, no public comments on the proposed rule change have been submitted, leaving the US SEC to focus on internal assessments. This delay concurs with the commission’s conservative approach to the products that are connected with cryptocurrencies. The extra time will allow more detailed research of fund’s organization and market risks.

Franklin Templeton Expands Push Into Cryptocurrency ETFs

Franklin Templeton is broadening its efforts in the cryptocurrency space with its proposed Bitcoin and Ethereum index ETF. The asset manager, which oversees $1.5 trillion in assets, has previously launched a spot Bitcoin ETF and a spot Ethereum ETF. 

If approved, the latest ETF would add to Franklin Templeton’s portfolio of crypto-focused investment products, further diversifying options for institutional.

In addition, Franklin Templeton has taken a major step in its tokenization efforts, announcing the expansion of its Benji tokenization platform to the Ethereum network. This marks the fifth blockchain integration for the platform this year, following launches on Aptos, Avalanche, Arbitrum, and Coinbase’s Base.

Despite the US SEC overall crypto ETF delays, other market players are moving further with their strategies . Last week, Bitwise submitted a registration statement to transform the Bitwise 10 Crypto Index Fund which now manages $1.3 billion into an ETP. It investments in Bitcoin represent 75% of the fund and Ethereum is 16% of the fund; these two assets sum up to 91%.

✓ Share:

Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

Regulation

US DOJ Charges Five Hackers In $6.3M Crypto Hack & Corporate Data Breaches

Published

on


The United States Department of Justice (DOJ) has charged five individuals in connection with a crypto hacking scheme that allegedly stole $6.3 million in cryptocurrency and breached sensitive corporate data.

The charges, announced on Wednesday, stem from a multi-year phishing and hacking operation that targeted employees of major tech firms, telecommunication companies, and cryptocurrency platforms.

US DOJ Charges Five Hackers In $6.3M Crypto Hack

The US DOJ identified the defendants as Ahmed Hossam Eldin Elbadawy, 23, of Texas; Noah Michael Urban, 20, of Florida; Evans Onyeaka Osiebo, 20, of Texas; Joel Martin Evans, 25, of North Carolina; and Tyler Robert Buchanan, 22, a UK citizen arrested in Spain earlier this year. All five have been charged with conspiracy to commit wire fraud, aggravated identity theft, and related offenses.

According to prosecutors, the group used phishing text messages to steal employees’ credentials, enabling unauthorized access to corporate systems and cryptocurrency accounts. Buchanan faces additional charges of wire fraud, which carries a potential 20-year prison sentence.

The defendants are accused of targeting at least 45 companies in the U.S., Canada, the UK, and other nations between September 2021 and April 2023. The alleged crypto hack scheme involved spoofing legitimate portals of companies such as Okta and compromising two-factor authentication to obtain sensitive information.

Phishing Attacks and Cryptocurrency Thefts

The hacking operation reportedly involved sending fraudulent SMS messages to employees of victim companies, warning them that their accounts were at risk of deactivation. These messages contained links to phishing websites designed to mimic the companies’ legitimate login portals. Employees who entered their credentials unwittingly gave the hackers access to their accounts and corporate systems.

Once inside the systems, the hackers stole intellectual property, proprietary data, and sensitive personal information. They also used SIM-swapping techniques to bypass additional account protections and reset passwords. The US DOJ stated that one victim alone lost $6.3 million in cryptocurrency due to these attacks.

Akil Davis, Assistant Director of the FBI’s Los Angeles Field Office, emphasized the dangers of phishing scams, saying, “These types of fraudulent solicitations are ubiquitous and rob American victims of their hard-earned money with the click of a mouse.”

US DOJ Links to Notorious Hacking Groups

Security researchers have linked the accused individuals to cybercrime groups known as “0ktapus” and “Scattered Spider,” which are believed to be responsible for previous high-profile attacks. 

These groups reportedly breached hundreds of companies, including Twilio, Coinbase, and Doordash, during a hacking campaign in 2022. They later expanded their operations to target gaming companies such as Riot Games in 2023.

The court documents describe the group as a loosely organized, financially motivated cybercriminal network. Law enforcement officials believe other individuals involved in the operation remain unidentified, with the indictment mentioning unnamed co-conspirators.

Potential Sentences and Ongoing Investigations

If convicted, the defendants face severe penalties. Each could receive a maximum of 20 years in prison for conspiracy to commit wire fraud, up to five years for conspiracy, and an additional mandatory two-year sentence for aggravated identity theft. Prosecutors also revealed that Urban faces fraud charges in a separate federal case in Florida.

Concurrently, former FTX executive Gary Wang recently avoided prison time despite his role in the collapse of the cryptocurrency exchange. Wang admitted to helping write the code that enabled FTX founder Sam Bankman-Fried to misappropriate $8 billion in customer funds. Judge Lewis Kaplan ruled that Wang’s cooperation with authorities and lack of personal financial gain justified leniency.

The US DOJ continues to investigate the matter, warning companies to remain vigilant against phishing attempts. U.S. Attorney Martin Estrada stated, “If something about the text or email you receive or the website you’re viewing seems off, it probably is.”

✓ Share:

Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.





Source link

Continue Reading

Trending

Copyright © 2024 coin2049.io