Bitcoin Foundation issues response to cease and desist warning
The Bitcoin Foundation has issued an incredibly detailed response to the cease and desist letter it was sent by the Department of Financial Institutions (DFI) in California. According to the DFI's letter, which was sent on May 30, the Bitcoin Foundation requires licensure as a money transmitter under California law. "The California state DFI said this was an invitation to talk. I've received nicer invitations, but we took it then as an opportunity to engage in a discussion about what we think the issues are and how we think the law agrees," Patrick Murck of the Bitcoin Foundation told....
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The Bitcoin Foundation has published a reply to the cease and desist order that the organization received on May 30 from California's Department of Financial Institutions. The cease and desist order was a vague one, telling the foundation to "cease and desist from the business of conducting money transmission in this state" without specifying what the foundation was actually doing that qualified as money transmission. There was little to go on; the Bitcoin Foundation is simply an advocacy organization that "standardizes, protects and promotes the use of Bitcoin cryptographic money for the....
The bitcoin community was reeling over the weekend, after it was revealed that California's state financial regulator had issued a cease and desist order against the Bitcoin Foundation. The cease and desist order was dated May 30, one and a half weeks after the Bitcoin 2013 conference in San Jose. The letter said that the Bitcoin Foundation may be a money transmission business (MTB), and threatened it with fines and jail time. Jon Matonis, who is a board member at the Foundation, revealed the letter in his Forbes column over the weekend. The letter threatens the Foundation with penalties....
An article on Forbes.com by Bitcoin Foundation Board Member and Secretary Jon Matonis announced today that the Bitcoin Foundation had been the recipient of of a "cease and desist" letter from the State of California's Department of Financial Instututions(DFI). The letter alleges that the "BitCoin Foundation" is operating as a money transmitting business without "proper authorization." It proceeds to threaten "APPROPRIATE ACTION" if the Foundation fails to "CEASE AND DESIST FROM CONDUCTING THE BUSINESS OF MONEY TRANSMISSION" in the State of California, and requires a response in writing....
The Federal Deposit Insurance Corporation (FDIC) has sent a cease and desist letter to five companies, including crypto exchange FTX US. CEO Sam Bankman-Fried explained that FTX does not have FDIC insurance, stating: “We never meant otherwise, and apologize if anyone misinterpreted it … to be clear FTX US isn’t FDIC insured.”
FDIC Orders 5 Firms to Cease and Desist
The Federal Deposit Insurance Corporation (FDIC) issued crypto-related cease and desist orders to five companies Friday. The agency regulates and insures the deposits of FDIC-insured....
The Securities and Exchange Commission (SEC) has ordered Bitcoin Investment Trust (BIT) and an authorized participant, SecondMarket, to cease and desist violating securities law. The commission has levied a fine against SecondMarket. The companies have agreed to the cease and desist order, according to an SEC administrative proceeding. The SEC has required SecondMarket to pay disgorgement of $51,650.11 and prejudgment interest of $2,105.68 (a total $53,755.79). The proceeding noted that securities regulation prohibits any “affiliated purchasers” and “distribution participant” from....