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Telegram Decided: Bank Records Will Be Provided To The US SEC

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Telegram decided to provide the records to the United States Securities Exchange Commission which they believe will prove the misconduct in the $1.7 billion offerings of the gram tokens as we are about to read further in the crypto news.

According to a January 13 filing with the court of the Southern District of New York, Telegram decided to provide the court with the bank records after they initially denied to do so in an earlier ruling that was based on the privacy concerns. Today’s ruling, however, will allow telegram to redact the information provided to the court in accordance with the foreign privacy regulations. The letter by the court from the attorneys in defense, Telegram is founded in Russia by Pavel and Nikolai Durov and Is now based in Berlin, so Telegram decided to provide the SEC with the bank records only by redacting them before submitting them to the public.

The fact that the attorneys of Telegram agreed to provide the SEC with full bank records and the public will also have access to redacted versions, means that all eyes will be on the SEC’s next move and we are about to see what they will do or find in the documents. Philip Moustakis who is an attorney with the Seward and Kissel group, and a former counsel at the SEC, explained that the SEC will be on alert for further evidence of Telegram’s ‘’failing to exercise reasonable care to ensure that the purchasers were not acting as underwriters.’’

The SDNY denier the SEC’s original request at first for information earlier in January but did so ‘’without prejudice’’ leaving the subject open to further discussion. The SEC produced invoices from the alleged underwriters to the sale of the Gram tokens of Telegram that the SEC believes demonstrates offering of the tokens outside of their approved level. The saga with the US regulator continues and the messenger services started in earnest back in 2019 when the SEC filed an emergency action demanding a cease and desist order for Telegram. The SEC called the sale of the gram tokens unregistered security offering while Telegram argued that it qualified under the Regulation ID exemptions for the requirement to register such an offering.

The SEC has been examining opportunities to adapt its exemptions which are heavily dependent on making offerings to accredited investors for who the law does not require the same degree of regulatory protection.

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New Fraudulent ICO Charged For $30 Million Raise By US SEC

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The US Securities and Exchange Commission has recently charged a group of criminals raising over $30 million through a new fraudulent initial coin offering (ICO). According to a January 12 press release which is in the Bitcoin scams news now, the SEC charged and convicted Boaz Manor, his business associate and two companies including CG Blockchain Inc. and BCT Inc. SEZC with violating the antifraud and securities registration provisions of the federal laws.Meanwhile, Manor is a dual citizen of Canada and Israel. Along with his other partners, he managed to raise more than $30 million in a new fraudulent ICO, conducted with the objective to launch hedge funds testing technology to record transactions on blockchain.The full complaint by the SEC reads that between August 2017 and September 2018, the defendants promoted and sold digital asset securities in an attempt to develop technologies for hedge funds. Manor misrepresented himself as "Shaun MacDonald" and talked about himself as an employee of his New Jersey-based associate Edith Pardo, an Israeli citizen who allegedly ran the company.At the time, the defendants said that they possessed 20 hedge funds testing technology to record transactions on blockchain. However, the cryptonews show that they only sent a prototype to a number of funds which did not use it.The chief of the SEC's Market Abuse Unit commented on the new fraudulent ICO case and said:
“As alleged in our complaint, Manor’s brazen scheme to conceal his identity and criminal history deprived investors of essential information and allowed defendants to take over $30 million from investors’ pockets.”
Also, today we saw that the US Attorney's Office for the District of New Jersey announced criminal charges against Manor and Pardo in a parallel action. The SEC now seeks disgorgement of illegally obtained profits plus interest, penalties and injunctive relief as well as barring Manor and Pardo from acting as officers or directors of public companies and from participating in future securities offerings.Meanwhile, history shows that Manor received a four-year prison sentence in Canada in 2012 for siphoning $106 million from a Toronto-based hedge fund that he co-founded. The Canadian fund had $800 million in assets under management at its peak from 26,000 different investors.
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Canadian Regulator Issues New Guidance For Crypto Exchanges

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The authorities in Canada are in the crypto news today for issuing a new guidance which will determine which digital currency trading platforms fall under derivatives law. As we can see, the Canadian regulator which is the Canadian Securities Administration (CSA) explained the new provisions in the “Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets” document which was published on January 16.In general, this new regulatory effort draws a line between trading platforms that make an immediate delivery of crypto assets to its users and the ones that hold the transaction of crypto assets until the user makes a later request.All of this comes after an analysis of trading techniques on different platforms. In it, the CSA concluded that some of them only provide their users with a contractual right or claim to a crypto asset. They do not immediately transfer it to a user. The Canadian regulator clarified this and said that such crypto trading platforms are subject to securities legislation and thus fall under derivatives laws.
“Potentially, there will be ongoing reliance and dependence of the user on the Platform until the transfer to a user-controlled wallet is made. Until then, the user would not have ownership, possession and control of the crypto assets without reliance on the Platform. The user would be subject to ongoing exposure to insolvency risk (credit risk), fraud risk, performance risk and proficiency risk on the part of Platform," the guidance reads.
As it stands, the CSA will not apply securities laws to crypto exchanges on which the underlying crypto asset is not a security or derivative. Crypto assets are also delivered to a user immediately.Before this, we could see that state and provincial securities regulators in the United States and Canada launched probes into potentially fraudulent crypto investment programs as part of the North American Securities Administrators Association (NASAA) named "Operation Cryptosweep." This initiative resulted in hundreds of investigations of initial coin offerings (ICOs) and crypto related investment products.In late December 2019, the NASAA also said that crypto investment is among the top five investor threats for 2020. The Canadian regulator does not clearly think about this in the same way. Still, the NASAA said that "it is important for investors to understand what they are investing in and who they are investing with."
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Bill For Small Crypto Transactions And Taxes Returns To US Congress

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A new bill for small crypto transactions and taxes returns to US Congress. The bill seeks to exempt personal cryptocurrency transactions from taxation for capital gains has been reintroduced in the Congress of the United States.The crypto news today show that the bill for small crypto transactions is called "The Virtual Currency Tax Fairness Act of 2020" and aims to establish an exemption for virtual currency expenditures that qualify as personal transactions. Users would then not have to report the instances when they spent crypto whose value had changed relative to the US dollar on day-to-day expenses.The representatives including Suzan DelBene (D-WA) and David Schweikert (R-AZ) introduced the bill today - even though the bill was introduced in a version earlier in 2017 which featured a substantially lager exemption.Now, existing law struggles to cope with cryptocurrencies as they sometimes act as investments, sometimes are commodities and sometimes - just like other currencies. This is why the new bill for small crypto transactions looks to simplify the action for crypto traders and users.Currently, the IRS could hold crypto users responsible for paying taxes on the gains earned and realized unknowingly, based solely on the value of their crypto at a time of purchase. This system would make use of crypto as currency incredibly cumbersome within the US.The newly reintroduced bill would also exempt taxpayers from a reporting duty - only if their gains are under $200. This would only apply with major purchases or wild bull markets. The earlier version of this bill put the number at $600.In addition to this, the bill would insert a new category within existing IRS exclusions from classification as gross income. Meanwhile, taxing cryptocurrencies has proved a major sticking point in the US. In December last year, eight members of the Congress sent a letter to the IRS asking the tax agency to clarify rules for reporting income due to the hard forks or air drops.Last year, representatives sent a similar letter to the IRS and were dissatisfied with the current clarity. Still, what is important now is the fact that the market is in a good momentum and the climate is good for new changes coming ahead.
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Nano Lawsuit Continues: Investor Demands Judge To Strike All Points

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The main plaintiff in the Nano lawsuit class-action lawsuit, James Fabian asked the judge to strike against all points of dismissal that Nano supplied in the fall of 2019 as per the reports in the altcoin news today.Fabian faced losses when the hack and closing of the BitGrail exchange, believes that the nano platform did not have the excuses to claim a lack of responsibility for the loss of the coins. The Nano Company filed a list of 10 dismissals and Fabian believes they are insufficient according to the Nano lawsuit text. He stated:

‘’Such boilerplate purported defenses are not proper affirmative defenses, are not pleaded with sufficient particularity to give plaintiff notice of their bases, and are not supported by any facts or explanations as to how they apply to this case.’’

The team was aware of the chances of double-spending which could have caused withdrawals from other exchanges which will end up depleting the wallets. Fabian added that the team didn’t warn its supporters of the risks. The BitGrail exchange was one of the few that listed NANO during its early days and became the adopter who required buying coins on the exchange exposing the traders to risks. The exchange and the founder Francesco Firano were found guilty of not disclosing the double-spending but the team of the platform is now facing a class-action lawsuit as well because it was partial to the loss of the coins. In the end, it turned out that the funds were taken away because of a glitch that served a lot of withdrawals because of the increased activity and requests from the Nano nodes.The Nano project which distributed coins through a faucet and moved into the next stage with exchange listings and the prevalence of BitGrail deposits was not unusual for the coin in its early stages. The platform took its time to bring out a working wallet and caused the users to store funds on the exchange and there was a lot more practice of keeping the coins on exchanges to avoid supporting too many wallets but it had the opportunity to trade in the same time.
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