SEC Issues Cease And Desist Against Bitcoin Investment Trust
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....
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The US Securities and Exchange Commission (SEC) has issued a cease-and-desist order against the Bitcoin Investment Trust (BIT) and its authorized participant SecondMarket, the latter of which has been ordered to disgorge roughly $50,000 in a settlement with the agency. Originally founded by investor and Digital Currency Group CEO Barry Silbert when he was CEO of SecondMarket, the BIT issues shares with a value tied to the value bitcoin, and unrestricted shares of the BIT are quoted on OTCQX. Newly issued shares are restricted and cannot be quoted on OTCQX. Specifically, the....
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....
Six days ago, the securities regulators from New Jersey and Texas cracked down on the cryptocurrency lending platform Celsius. Additionally, the Alabama Securities Commission joined in and filed a cease and desist order against Celsius. Now the state of Kentucky is following suit and has filed a cease and desist order against the crypto lending platform. Kentucky Sends Cease and Desist Order to Celsius Four states in the U.S. have an issue with the cryptocurrency lending platform Celsius and the company’s interest-earning accounts. The same issues have affected the crypto lender....
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 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....