Tagged: enforcement action

Crypto Exchange KuCoin Pleads Guilty to Running Unlicensed Operations, Will Pay $300M Penalty

Danielle Sassoon, the United States Attorney for the Southern District of New York, announced that PEKEN GLOBAL LIMITED, a Seychelles-based entity that, since at least September 2019, has operated KuCoin, one of the largest cryptocurrency exchanges, pled guilty to “one count of operating an unlicensed… Read More

NYDFS Superintendent Harris Secures $2 Million Cybersecurity Settlement with PayPal

New York State Department of Financial Services Superintendent Adrienne A. Harris announced that PayPal, Inc. (NASDAQ: PYPL) will pay a $2 million penalty to New York State for violations of DFS’s Cybersecurity Regulation. An investigation determined PayPal failed to use qualified personnel to manage key… Read More

Crypto Market Maker CLS Global FZC Agrees to Resolve Criminal Charges Relating to Fraudulent Manipulation of Trading Volumes

CLS Global FZC LLC, a financial services firm known in the cryptocurrency industry as a “market maker,” has agreed to resolve criminal charges relating to its fraudulent manipulation of cryptocurrency trading volume. As part of the criminal resolution, CLS Global will plead guilty to the… Read More

CFPB Sues Walmart and Branch Messenger for “Illegally” Opening Deposit Accounts for Delivery Drivers

The Consumer Financial Protection Bureau (CFPB) sued Walmart (NYSE: WMT) and Branch Messenger for forcing delivery drivers to use costly deposit accounts to get paid and for deceiving workers— “last mile” drivers in Walmart’s Spark Driver program—about how they could access their earnings. The CFPB’s… Read More

SEC Orders Tai Mo Shan to Pay $123 Million for “Negligently Misleading” Investors About Stability of Terra USD

The US Securities and Exchange Commission (SEC) recently charged Tai Mo Shan Limited with misleading investors about the stability of Terra USD (UST), a purported “algorithmic stablecoin” issued by Terraform Labs PTE Ltd. (Terraform), when UST dropped from its “purportedly fixed exchange rate of 1… Read More

FTC Reportedly Sends Over $2.5M to Consumers Allegedly “Deceived” by Credit Karma’s “False” Pre-Approved Credit Offers

The Federal Trade Commission revealed recently that it is sending more than $2.5 million to consumers who were said to be “misled” by “deceptive claims” from credit services company Credit Karma. The FTC reportedly took action against Credit Karma back in 2022, alleging that the… Read More

UK’s Starling Bank Shares Response After FCA Fines Company for “Lax” AML Screening Processes

Starling Bank confirms that it fully accepts the findings set out in the Final Notice published today by the Financial Conduct Authority (FCA). This reportedly resolves the investigation referred to in Starling Bank’s annual report in June 2024. Starling notes in a release that it… Read More

California Attorney General Secures $3.9M Settlement with Robinhood Crypto

California Attorney General Rob Bonta announced a $3.9 million settlement with crypto trading platform Robinhood Crypto, LLC for failing to allow customers to withdraw their cryptocurrency from their Robinhood accounts from 2018 to 2022, and for “failing to fully disclose aspects of its trading and… Read More

CFTC Orders Nasdaq Futures to Pay $22M for Core Principle Violations, Allegedly Failing to Fully Disclose Incentives

The Commodity Futures Trading Commission issued an order filing and settling charges against Nasdaq Futures, Inc., formerly a designated contract market (DCM). The order finds Nasdaq Futures, Inc. reportedly failed “to properly establish, monitor, or enforce rules related to an incentive program Nasdaq Futures, Inc. offered… Read More

OCC Amends Enforcement Action Against Citibank, Assesses $75M Civil Money Penalty

The Office of the Comptroller of the Currency (OCC) has recently issued an amendment to its October 7, 2020, Cease and Desist Order against Citibank, N.A, Sioux Falls, South Dakota, related “to deficiencies in enterprise-wide risk management, compliance risk management, data governance, and internal controls… Read More

Consumer Financial Protection Bureau (CFPB) Sues Fintech SoLo Funds for “Deceiving” Borrowers

The Consumer Financial Protection Bureau (CFPB) has sued the online lending platform SoLo Funds for claims the Fintech deceived borrowers about the total cost of loans. The CFPB notes that SoLo markets itself “as a consumer-friendly alternative to high-cost, short-term loans.” Solo is a Fintech… Read More

FINRA Fines M1 Finance for Alleged Violations Regarding Use of Influencer Program

FINRA announced that it has fined M1 Finance LLC $850,000 for social media posts made by influencers on the firm’s behalf that were not fair or balanced, or contained exaggerated, unwarranted, promissory or misleading claims. This case arises from FINRA’s targeted exam of firm practices… Read More

OCC Announces $250M Civil Money Penalty Against JPMorgan Chase

The Office of the Comptroller of the Currency (OCC) recently announced a $250 million civil money penalty against JPMorgan Chase Bank, N.A. (JPMC) (NYSE: JPM) related to deficiencies in its trade surveillance program. The OCC found that JPMC allegedly operated “with gaps in trading venue… Read More

Monetary Authority of Singapore Imposes Civil Penalty of $3.9M on Credit Suisse AG for Alleged Misconduct by Relationship Managers

The Monetary Authority of Singapore (MAS) has imposed a civil penalty of $3.9 million on Credit Suisse AG, for its alleged failure “to prevent or detect misconduct by its relationship managers (RMs) in the Singapore branch.” The RMs had allegedly provided clients “with inaccurate or… Read More

Chinese Authorities Conclude Ant Group’s Regulatory Restructuring Process with $984M Penatly

China’s regulatory authorities revealed on Friday (July 7, 2023) a 7.12 billion yuan (approximately $984 million) fine for Ant Group, a decision that effectively ends a lengthy regulatory revamp of the Fintech firm while marking an important step to concluding a massive crackdown on the… Read More

Danish Financial Supervisory Authority Orders Saxo Bank to Liquidate its Cryptocurrency Holdings

On 4 July 2023, the Danish Financial Supervisory Authority made a decision that Saxo Bank A/S’ trading in crypto assets for its own account is found “to lie outside the legal business area of ​​financial institutions, including section 24 of the Financial Business Act.” On… Read More

Securities Commission Malaysia Takes Action Against Huobi Global for Operating Crypto Exchange without Registration

The Securities Commission Malaysia (SC) has taken action against Huobi Global Limited, and its Chief Executive Officer Leon Li for “operating a digital asset exchange (DAX) in Malaysia without registration.” Accordingly, the SC has “issued a public reprimand against Huobi Global Limited, and Leon Li… Read More

SEC and DOJ Charge Frank Founder Charlie Javice with Fraud in Connection with $175M Sale of Student Loan Assistance Fintech to JP Morgan Chase

The Securities and Exchange Commission has charged Charlie Javice, the founder of the defunct student loan assistance company previously known as Frank, “with fraud in connection with the $175 million sale of the company to JP Morgan Chase Bank, N.A. (JPMC) in 2021.” The SEC’s… Read More

CFTC Charges Binance, Founder Changpeng Zhao, Others with “Numerous Violations” in Civil Enforcement Act

Zhao Changpeng

The Commodity Futures Trading Commission (CFTC) has filed charges against Binance, founder and CEO Changpeng Zhao (known as CZ), and former Chief Compliance Officer Samuel Lim with “numerous violations” of the Commodity Exchange Act (CEA) and other regulations. Filed in the U.S. District Court for… Read More

Federal Trade Commission Fines Credit Karma $3M Over Allegedly False “Pre-Approved” Offers

The Federal Trade Commission (FTC) has taken action against credit services company Credit Karma for “deploying dark patterns to misrepresent that consumers were ‘pre-approved’ for credit card offers.” The FTC alleges that the company “used claims that consumers were ‘pre-approved’ and had ‘90% odds’ to… Read More

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