Investment Education

According to PANews, the Seychelles National Assembly has approved a draft bill aimed at regulating Virtual Asset Service Providers (VASPs). The legislation mandates that VASPs seeking licenses must establish substantial operations within Seychelles, including having resident directors and offices staffed with competent employees. This law aims to balance innovation with anti-money laundering efforts and comply with the recommendations of the Financial Action Task Force (FATF).

According to Odaily, the U.S. Department of Justice has announced that a former CEO of a Kansas bank has been sentenced to 293 months (approximately 24 years and 5 months) in prison for embezzling substantial funds to participate in a cryptocurrency scam, leading to the bank's collapse. Court documents reveal that 53-year-old Shan Hanes admitted to one count of embezzlement by a bank executive. During his tenure as CEO of Heartland Tri-State Bank (HTSB), Hanes conducted 11 wire transfers totaling $47.1 million between May and July 2023, funneling the money into a cryptocurrency wallet to engage in a crypto scam. These funds eventually ended up in multiple cryptocurrency accounts controlled by unidentified third parties. The Federal Deposit Insurance Corporation (FDIC) covered the $47.1 million loss due to the bank's federal insurance protection. Hanes' fraudulent actions led to the collapse of Heartland Tri-State Bank, resulting in a $9 million loss for investors. A federal judge has ordered a separate hearing within the next 90 days to finalize the restitution. The Department of Justice stated that Hanes' actions not only betrayed the bank and its investors but also undermined public confidence in financial institutions. The case was investigated by multiple agencies, including the Federal Bureau of Investigation (FBI) and the FDIC Office of Inspector General.

According to Cointelegraph: Mango Markets DAO is currently deliberating a settlement offer with the United States Securities and Exchange Commission (SEC) in response to accusations that it violated U.S. securities laws. The decentralized autonomous organization (DAO), which oversees the Solana-based decentralized exchange (DEX), initiated a vote on an “SEC Settlement Offer Proposal” on August 19.The proposed settlement entails Mango DAO neither admitting nor denying any wrongdoing while agreeing to pay a $223,228 fine. Additionally, the DAO would cease all offers, sales, and resales of its MNGO tokens within the U.S., destroy any remaining tokens in its possession, and request that the tokens be delisted from all exchanges.At the time of writing, the proposal has garnered significant support, with over 106 million votes in favour and more than two days left in the voting period. The DAO’s Treasury, which holds nearly $2 million in USD Coin (USDC) and other assets, would be used to pay the fine if the settlement is accepted.Mango Markets has been under scrutiny since October 2022, following a manipulation scheme by trader Avraham Eisenberg, who exploited the protocol and drained $110 million from the platform. Eisenberg was later found guilty of fraud and manipulation in an April trial. The incident led to investigations by the SEC, Department of Justice, and Commodity Futures Trading Commission, all of which accused Mango DAO, Mango Labs, and Blockworks Foundation of violating securities regulations.The settlement proposal is seen as an attempt to avoid litigation and resolve the SEC’s allegations without admitting guilt. However, the settlement has yet to be accepted by the SEC. If approved, Mango DAO would close this chapter and refocus on its operations, though the DEX has been struggling to recover since the October heist.In related developments, MNGO token prices rose by 5.3% on the day of the proposal's release, reaching $0.015, though they remain 97% below their all-time high of $0.50 in September 2021.This proposed settlement marks a crucial moment for Mango Markets DAO as it navigates the complex regulatory landscape surrounding decentralized finance (DeFi) and seeks to move forward from a tumultuous period in its history.

According to CoinDesk, a federal judge has rejected a request from the U.S. Securities and Exchange Commission (SEC) in its ongoing securities fraud lawsuit against the Tron Foundation and its founder, Justin Sun. The case is being heard in the U.S. District Court for the Southern District of New York.The SEC had sought to force a pre-trial conference or require the filing of an additional response, accusing the Tron defendants of improperly advancing a new argument in their defense. The SEC claimed that the defence argued the sales of TRX and BTT did not meet the 'common enterprise' prong of the Howey Test, which is used to determine whether a transaction qualifies as an investment contract. This argument was allegedly introduced after the Tron defendants had already filed their motion to dismiss on May 30.Signed order denying SEC motion letter. Source: Courtlistener In response, Tron’s lawyers accused the SEC of attempting to create a controversy and urged the court to deny the SEC’s request. They reiterated that their defence is based on the belief that the sales of BTT and TRX fail the Howey test’s third prong, which involves the expectation of profits from the efforts of others. Tron’s attorneys argued that the SEC’s request for an additional reply document mischaracterized their argument.U.S. District Court Judge Edgardo Ramos sided with Tron’s lawyers, ruling to deny the SEC’s request. Ramos stated that since the defendants were not challenging the 'common enterprise' element of the Howey test, the SEC’s motion to strike the argument or for leave to file a sur-reply was denied.A representative for Tron declined to comment on the pending legal matters.

According to Odaily, market expectations for a Federal Reserve rate cut next month are growing stronger, with the Fed likely to meet these expectations. Wall Street veteran Peter Schiff has indicated that a rate cut in September is anticipated, primarily because the market is now counting on it. This expectation is cited as the reason for the rebound in U.S. stocks after a sell-off on Monday. Given that the possibility of a September rate cut has already been factored in by the market, Federal Reserve Chairman Jerome Powell has little reason not to deliver, as he consistently aims to meet market expectations and avoid surprises.

According to Odaily, Swiss bank analyst Ipek Ozkardeskaya has stated that the current decline of the US dollar is likely to be limited. This is because the Federal Reserve is not expected to cut interest rates as significantly as the market anticipates. Currently, the US dollar index has fallen to a seven-and-a-half-month low. Ozkardeskaya noted that market expectations for the Federal Reserve's September meeting and potential rate cuts for the remainder of the year are still too high. As a result, there is a possibility for the US dollar to rebound. She also mentioned that the potential for the euro and the British pound to rise against the US dollar should be limited.

According to PANews, the U.S. Department of the Treasury (DOT) released its semi-annual regulatory agenda on August 16, outlining upcoming federal efforts to create a fair regulatory environment for both cryptocurrencies and traditional fiat currencies. The Federal Reserve Board (FRS) and the Financial Crimes Enforcement Network (FinCEN) are planning to amend the definition of 'currency' under the Bank Secrecy Act (BSA) to enhance reporting requirements for financial institutions handling domestic and cross-border cryptocurrency transactions.The agenda states that these agencies aim to ensure that the revised proposal will apply to transactions involving convertible virtual currencies, which are mediums of exchange like cryptocurrencies that hold equivalent value to money or can substitute for money but lack legal tender status. Additionally, the proposal will extend reporting requirements to digital assets with legal tender status, including central bank digital currencies (CBDCs). The final notice for the proposed rulemaking is currently scheduled for release in September 2025, pending approval.

According to Odaily, the Australian Securities and Investments Commission (ASIC) revealed last Sunday that it coordinated the removal of over 600 cryptocurrency scams last year as part of a broader effort to combat online investment fraud. ASIC stated that it has helped dismantle 5,530 fake investment platform scams, 1,065 phishing scam hyperlinks, and 615 crypto investment scams. These scams, which were often spread through fake news articles and deepfake videos of local public figures, resulted in an estimated $1.3 billion in losses last year.The regulatory body emphasized the importance of consumer vigilance regarding social media hyperlinks promoting online trading and cryptocurrency investments. ASIC noted that approximately 20 websites are shut down daily, as scammers continue to adapt and find new ways to lure victims. While there was a surge in crypto-related scams around the Bitcoin halving event in April, ASIC's data indicates that the number of such scams is decreasing month by month.

According to BlockBeats, market data on August 19 indicates that Wall Street is betting on Federal Reserve Chair Jerome Powell confirming an imminent rate cut at the Jackson Hole annual meeting. However, as the focus shifts from 'whether there will be a rate cut' to 'how much the rate cut will be,' stock traders might face disappointment.Steward Partners Global Advisory's Managing Director Eric Beiley stated, 'If traders hear about an imminent rate cut, the stock market will react positively. If they don't hear the desired information, it could trigger a massive sell-off.' The market fully expects the Federal Reserve to begin rate cuts at the September meeting. However, Powell's speech on Friday could easily keep the timing of the rate cuts under wraps. Given his cautious nature, he might reveal the extent of rate cuts in a vague manner after the Fed completes its easing measures. 'The market is confident that rate cuts are imminent,' Beiley added. If Powell does not emphasize this as the future path, it will be a significant surprise.

According to Odaily, U.S. Vice President Kamala Harris recently outlined proposals aimed at reducing taxes for most Americans, banning grocery price gouging, and constructing more affordable housing. These measures are part of her 'Opportunity Economy' plan, which she intends to implement if elected to the White House. In her first major economic speech as the Democratic presidential nominee, Harris pledged to introduce a new child tax credit of up to $6,000 for families with young children, reduce taxes for families with children, and lower prescription drug costs. Harris also called for the construction of 3 million new homes over four years and proposed tax incentives for builders who construct homes for first-time buyers. Speaking to supporters at a rally in North Carolina, Harris stated that while the U.S. economy is strong, prices remain too high. She emphasized that, if elected president, her primary focus would be on the middle class. 'I firmly believe that when the middle class is strong, America is strong,' she said.