[co-author: Lauren Bass]

Traditional financial firms pursue crypto and blockchain market offerings

Through Lauren Bass

Earlier this week, a large Dutch financial institution reportedly became the sixth broker to partner with the first blockchain-based securities settlement service. According to press releases, the private and licensed blockchain network hopes this new partnership will help increase the efficiency and reach of its pilot program, which is currently operating in a no-action phase while it requests with the SEC the full registration of the clearing agency.

According to information released this week, a major US financial services company has minted its first non-fungible token (NFT) in conjunction with a famous European football coach. According to reports, the one-of-a-kind collector’s item will take the form of an animated digital soccer ball, signed by the coach, and will be awarded to one lucky winner of the raffle.

In other financial news, to prepare for its expansion into the United States, a UK-based digital bank reportedly became the first business client of a large shared workspace provider to lease office space using crypto. cash. Reportedly, the British bank has signed a long-term lease on a Dallas office and plans to pay rent in bitcoin.

For more information, please see the following links:

States Target Crypto Lending Platform, Alleging Violations of Securities Laws

Through Veronique reynolds

Late last week and this week, financial regulators in Texas, New Jersey, Alabama and Kentucky each took action against a crypto trading, lending, and borrowing platform. well-known currency. The state’s actions are all tied to the platform’s “Earn Rewards” program, which state regulators say is an interest-bearing account that violates state securities laws.

In one example, the Alabama regulator alleges that the lending platform has engaged in the “sale of unregistered securities in the form of cryptocurrency interest-bearing accounts” and alleges that these accounts expose investors at unjustified risk because they are not protected by certain federal programs. designed to protect consumers who invest in regulated securities. In another example, the Texas regulator alleges that the platform “does not disclose important information necessary for investors to make an informed decision, including material information about the risks associated with purchasing its unregistered securities.” .

Regulators in New Jersey and Kentucky have issued cease and desist orders against the company. Regulators in Texas and Alabama will give the company an opportunity to respond before cease and desist orders are issued.

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US Treasury Sanctions Russian Crypto OTC Bureau, Ransomware Advisory

Through Joanna F. Wasick

On Monday, the US Department of the Treasury (the Department) issued a press release announcing a series of actions focused on combating ransomware. As part of the announcement, the ministry said the Office of Foreign Assets Control (OFAC) had “sanctioned” the Russian-based cryptocurrency exchange SUEX OTC, SRO (SUEX), identifying it as having facilitated transactions involving the product of at least eight ransomware variants. OFAC has added SUEX and over 20 associated cryptocurrency public keys to OFAC’s list of specially designated nationals.

As a result of the designation, all of SUEX’s assets and interests in assets that are subject or become subject to US jurisdiction are blocked, and US persons are prohibited from engaging in transactions with SUEX and any owned entity. at fifty percent or more by SUEX. , and in transactions involving any of the designated cryptocurrency public keys.

On the same day, OFAC issued an updated notice to highlight the risks of sanctions associated with ransomware payments and provided that companies can take steps to mitigate those risks, including actions that OFAC would consider to be. “mitigating factors” in any related enforcement action. Among other things, “mitigating factors” include implementing a risk-based compliance program to mitigate exposure to sanctions violations.

For more information, please see the following links:

Cryptocurrency hackers continue to infect DeFi platforms

Through Kayley B. Sullivan

According to reports, at the end of last week, a non-fungible token (NFT) auction on SushiSwap’s MISO cryptocurrency platform was hacked following a chain attack. software procurement. The hacker reportedly got away with around $ 3 million in ether. According to a report of the incident published by SushiSwap, the hack could be due to faulty GitHub procedures.

In another reported incident this week, pNetwork, a decentralized cross-chain financial protocol that allows different blockchains to communicate with each other, also announced that it had been hacked. The hack reportedly resulted in a loss of 277 pBTC, a packaged version of bitcoin, worth over $ 12 million. The attacker reportedly found a bug in the platform code, which has since been fixed.

In a third hack reported this week, decentralized financial platform Vee Finance was hit, losing 8,804.7 ETH and 213.93 BTC, for a total loss of around $ 35 million. According to reports, this is the second major attack on an Avalanche platform – the first being the decentralized financial protocol Zabu Finance earlier this month.

For more information, please see the following links:

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