Regulatory

Julius Baer International Ltd. et al: £18M Fine & Industry Bans

Public Notice by the United Kingdom's Financial Conduct Authority that it has imposed a fine of £18 million on Julius Baer International Limited "for failing to conduct its business with integrity, failing to take reasonable care to organise and control its affairs and failing to be open and cooperative with the FCA" and banned "Gustavo Raitzin, former Regional Head for Bank Julius Baer, Thomas Seiler, former BJB Sub-Regional (Market) Head for Russia and Eastern Europe and JBI non-executive director, and Louise Whitestone,former relationship manager on JBI’s Russian and Eastern European Desk".

‘New FTX CEO misrepresented our FTX crypto transfer actions,’ claims Bahamas regulator

Media Release by the Securities Commission of the Bahamas claiming that, in Chapter 11 bankruptcy filings in the U.S., "the new CEO of FTX Trading Ltd. misrepresented" the Bahamas regulator's decision "to transfer all digital assets of FTX into digital wallets under the exclusive control of the Commission for the benefit of clients and creditors of FDM [FTX Digital Markets Ltd.]".

Lorraine Falzon: Disqualification

Public Notice by the Malta Financial Services Authority that it has imposed a corporate disqualification on Lorraine Falzon for not being "fit and proper".

Matthew Pace: Disqualification

Public Notice by the Malta Financial Services Authority that it has imposed a corporate disqualification on Matthew Pace for not being "fit and proper".

Corinth Fund Management Ltd.: License Revocation

Public Notice by the Cyprus Securities and Exchange Commission that it has revoked the Alternative Investment Fund Manager license of Corinth Fund Management Ltd. for regulatory breaches

FTX EU Ltd.: License Suspension

Public Notice by the Cyprus Securities and Exchange Commission that it has suspended the investment license of FTX EU Ltd., which is part of Sam Bankman-Fried's FTX Group of crypto companies.

SEC v. Adrian Kawuba: TRO Motion

Ex Parte Motion for a Temporary Restraining Order in U.S. Securities and Exchange Commission v. Adrian J. Kawuba, described as a citizen of Uganda residing in Massachusetts, at the U.S. District Court for the District of Massachusetts.

SEC v. Adrian Kawuba: Complaint

Complaint alleging the defendant "deceived multiple investors into giving him hundreds of thousands of dollars, promising to invest their money in opportunities related to supposed athletic and entertainment ventures" in U.S. Securities and Exchange Commission v. Adrian J. Kawuba, described as a citizen of Uganda residing in Massachusetts, at the U.S. District Court for the District of Massachusetts.

Christopher Byrne: Disqualification

Public Statement by the Jersey Financial Services Commission that it has imposed a corporate disqualification on Christopher Paul Byrne, who was sentenced to "a seven year custodial sentence" in 2018 after being "convicted of several offences relating to his conduct as a financial adviser".

SEC v. Jeremy Rounsville: Complaint (‘Arbitraging.co Crypto Fraud’)

Complaint alleging an investment fraud based around "a crypto asset trading program" called Arbitraging.co that, inter alia, involved "a forged British Virgin Islands business license" in U.S. Securities and Exchange Commission v. Jeremy K. Rounsville at the U.S. District Court for the Northern District of Texas.

Gaz Capital SA: €10K Fine

Public Notice by the Luxembourg CSSF announcing that it has imposed a fine of €10,000 on Gaz Capital SA for a regulatory breach.

General Professional Indemnity Ltd.: Winding Up Notice

Public Notice by the Bermuda Monetary Authority that it "has successfully petitioned the Supreme Court of Bermuda to wind up General Professional Indemnity Ltd."., with Joel Edwards of EY Bermuda, and Eleanor Fisher of EY Cayman, appointed as Joint Provisional Liquidators.

Bittrex Inc.: $24M Fine (OFAC)

Public Notice by the U.S. Department of the Treasury's Office of Foreign Assets Control that Bittrex Inc., which operates a crypto exchange, has agreed to pay $24.2 million to settle an investigation into "violations of multiple sanctions programs".

Bittrex Inc.: $5M Fine (FinCEN)

Consent Order imposing a penalty of $29 million, of which $5 million will be paid after a $24 million credit to OFAC is taken into account, for violations of the Bank Secrecy Act in Financial Crimes Enforcement Network v. Bittrex Inc., a crypto exchange.

Dai Inzu (IV) Fund: License Revocation & Liquidation

Public Notice by the Cyprus Securities and Exchange Commission that it has revoked the investment license of the Dai Inzu (IV) Fund compartment of Dai Inzu V.C.I.C. (RAIF) Ltd. "since the minimum assets were not raised".

Bacho II Fund: License Revocation & Liquidation

Public Notice by the Cyprus Securities and Exchange Commission that it has revoked the investment license of the Bacho II Fund compartment of Bacho Investment V.C.I.C. (RAIF) Ltd. and put it into liquidation "since the minimum assets were not raised".

Leroy King: Order Instituting Administrative Proceedings

Order Instituting Administrative Proceedings in U.S. Securities and Exchange Commission v. Leroy King, described as "a dual citizen of both the United States and Antigua and Barbuda" who "served as the Administrator and Chief Executive Officer of the Financial Services Regulatory Commission, an agency of the Antiguan government, from approximately 2002 to 2009" and is currently serving a 10-year prison sentence after pleaded guilty to criminal charges regarding a fraud committed by former banker Allen Stanford

Louis Plc: €10K Settlement

Public Notice by the Cyprus Securities and Exchange Commission that Louis Plc has paid €10,000 to settle a regulatory investigation into "possible ... market abuse".

Crowd Tech Ltd.: €230K Settlement

Public Notice by the Cyprus Securities and Exchange Commission that Crowd Tech Ltd. has agreed to pay €230,000 to settle a regulatory investigation.

Kim Kardashian: $1.26M Penalties (‘Crypto Promotion-Undisclosed Compensation’)

Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $1.26 million on Kimberly Kardashian, described as "a well-known media personality and businesswoman" for promoting "a crypto asset security" known as EthereumMax (EMAX) without disclosing that she received compensation of "approximately $250,000".

Coral Reef Technologies Ltd.: $55K Fine

Public Notice by the British Virgin Islands Financial Services Commission imposing a fine of $55,000 on Coral Reef Technologies Limited for "Carrying on unauthorized investment business services without the appropriate licence".

Quijano & Associates (BVI) Ltd.: $30K Fine

Public Notice by the British Virgin Islands Financial Services Commission that it has imposed a fine of $30,000 on Quijano & Associates (BVI) Limited for regulatory breaches.

CFTC v. Adam Todd et al: Complaint (‘Crypto Fraud’)

Complaint alleging fraud involving "an illegal digital asset derivatives trading platform" in Commodity Futures Trading Commission v. Adam Todd, Digitex LLC, of Saint Vincent and the Grenadines; Digitex Limited, of the Seychelles; Digitex Software Limited, of Ireland, and Blockster Holdings Limited, of Gibraltar, at the U.S. District Court for the Southern District of Florida.

SEC v. Arbitrade Ltd. et al: Complaint (‘$37M Crypto Fraud’)

Complaint alleging "a crypto asset pump-and-dump scheme" in U.S. Securities and Exchange Commission v. Arbitrade Ltd., of Bermuda; Cryptobontix Inc., of Canada; Troy R.J. Hogg, of Canada; James L. Goldberg, Stephen L. Braverman, and Max W. Barber, as Defendants, and SION Trading FZE, of the United Arab Emirates, as Relief Defendant, at the U.S. District Court for the Southern District of Florida.

SEC v. RBF Trust LLC et al: Complaint (‘$40M Fraud’)

Complaint alleging "an international web of unregistered, fraudulent securities offerings that have raised at least $40 million from more than 250 investors" in U.S. Securities and Exchange Commission v. RBF Trust LLC, of Florida; Paulo Fernando de Bastos, described as Florida-licensed real estate agent who is a citizen of France"; João Pedro Fonseca, a.k.a. João Pedro Fonseca de Bastos, described as a resident of France; RBF Trust LLC, of Michigan; D3 Gestion Immobilière LLC, of Florida, and D3 Gestion Immobilière LLC, of Michigan, at the U.S. District Court for the Southern District of Florida.

SEC v. The Hydrogen Technology Corporation et al: Complaint (‘$2.2M Crypto Fraud’)

Complaint alleging a scheme "to fraudulently manipulate the price and volume of Hydro tokens traded on crypto asset trading platforms so that Hydrogen could sell its own Hydro tokens at a greater profit" involving, inter alia, Moonwalkers Trading Limited, of South Africa, in U.S. Securities and Exchange Commission v. The Hydrogen Technology Corporation, Michael Ross Kane, and Tyler Ostern at the U.S. District Court for the Southern District of New York.

SEC v. Matthew Nicosia et al: Complaint (‘Penny Stock Fraud’)

Complaint alleging "fraudulent schemes to sell publicly traded stock to retail investors" involving "penny stocks" issued by Odyssey Group International, Inc., Scepter Holdings, Inc., and CannaPharmaRx, Inc. in U.S. Securities and Exchange Commission v. Matthew Nicosia, William 'Rocky' Reininger, Fabrizio Di Carlo, described as a citizen and resident of Canada, and Ronald Touchard at the U.S. District Court for the Eastern District of New York.

Nexo Inc. et al: Cease and Desist Order (Oklahoma)

Cease and Desist Order by the Oklahoma Department of Securities against Nexo Financial LLC, of Delaware; Nexo Inc., of the Cayman Islands, and Nexo Capital Inc., of the Cayman Islands, which collectively operate a crypto lending platform.

Nexo Inc. et al: Cease and Refrain Oder (California)

Cease and Refrain Order by the California Department of Financial Protection and Innovation against Nexo Group, which "comprises business entities organized primarily in European countries and territories"; Nexo Inc., of the Cayman Islands, and Nexo Capital Inc., of the Cayman Islands, which collectively "a crypto platform that offers crypto interest accounts, self-directed and over-the-counter trade execution, and lending, borrowing, and exchange services".

SEC v. James Patten et al: Complaint

Complaint alleging securities fraud involving Makamer Holdings, Inc., formerly Hometown International, Inc., and EZRaider Co., formerly E-Waste Corporation, in U.S. Securities and Exchange Commission v. James T. Patten, Peter L. Coker, Sr., and Peter L. Coker, Jr., described as a resident of Hong Kong, at the U.S. District Court for the District of New Jersey.

SEC v. Jason Sugarman: Judicial Assistance (David Ezekiel, Mark Waddington & Valor Group Ltd.)

Order "issuing letters rogatory for International Judicial Assistance to the Supreme Court of Bermuda, requesting assistance to compel the production of documents and oral examinations for use at trial of David Ezekiel and Mark Waddington, and the production of documents from Valor Group, Ltd." for an enforcement action regarding Jason Sugarman's "fraudulent scheme to steal $43 million from unwitting pension funds to finance the acquisition of a global financial conglomerate of European and Bermuda insurers, and investment advisers based in Virginia and Connecticut" in U.S. Securities and Exchange Commission v. Jason Sugarman at the U.S. District Court for the Southern District of New York.