542:China Remains Anti-Crypto::Crypto Fraudsters Sentenced::NYDFS Wants More Power

Overnighters,

Episode 542:
China Remains Anti-Crypto
Crypto Fraudsters Sentenced
NYDFS Wants More Power
and More

The TL;DL -

New York Attorney General Letitia James proposed a bill that would give the state's Department of Financial Services stronger authority to regulate digital assets and protect investors-The bill would require exchanges to reimburse customers who are victims of fraud, ban marketplaces from keeping custody of customer funds, and prohibit crypto companies from engaging in certain conflicts of interest. It would also give the Attorney General more enforcement powers.

Binance is under investigation by the US Department of Justice for allegedly allowing Russian customers to access its platform in violation of US sanctions-This is the latest in a series of high-profile actions against Binance, which has also been investigated by the IRS, the SEC, and the CFTC. Binance has denied any wrongdoing.

A US judge has found "prima facie evidence" of contemptuous conduct by Craig Wright in court proceedings for failing to provide correct information linked to $143 million in cryptocurrency. The judge has ordered Wright to show why he should not face sanctions.

Voyager Digital, a crypto lender, has announced that it will be self-liquidating its assets and winding down operations-This comes after the company was unable to secure a deal to sell itself to either FTX US or Binance.US. Customers will receive an initial recovery of only 36% of their crypto holdings. The recovery rate could rise if Alameda Research's attempt to claw back $446 million from Voyager's estate fails.

China's government maintains its anti-crypto stance despite Hong Kong's progress in crypto adoption-Some state-affiliated banks in China have opened bank accounts to serve crypto clients in Hong Kong, but this does not imply any change in the Chinese government's attitude towards crypto regulation. China government-backed firm CPIC Investment Management launched two cryptocurrency funds in April, but its CEO expects the government to keep its policies the same in the foreseeable future.

The United Kingdom's Financial Conduct Authority (FCA) has cracked down on illegal crypto ATMs. The FCA inspected facilities in three UK cities suspected of operating unregistered cryptocurrency ATMs. The FCA cited their powers under the UK's Money Laundering Regulations from 2017 in conducting the inspections. The FCA will review evidence gathered and "consider taking further action where necessary."

Coinbase filed a complaint with the SEC asking for regulatory clarity. The SEC has been aggressively targeting crypto platforms and several individual actors accused of manipulating crypto assets. As a result, many firms are now looking to move their operations to friendlier jurisdictions.

Crypto fraudsters are increasingly being sentenced to jail time. In recent months, several high-profile figures have been convicted, including Thomas Clausi, Gilbert Armenta, and Do Kwon. These cases demonstrate the severity of crypto fraud and the consequences that await those who engage in such activities.

(5/6/2023)-Welcome back to the Crypto Overnighter. My name is Nikodemus, I’ll be your host as we take a nightly look at the crypto, NFT, and metaverse space and the industry surrounding it. And keep in mind, nothing in this show should ever be considered financial advice.

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