Connect with us

Regulation

US Court Postpones Sentencing for OneCoin Crypto Scam Co-Founder

Published

on



Sentencing for the co-founder of the major crypto scam OneCoin has been postponed for a further three months at the request of the United States government.

On April 7, the New York Southern District Court approved a motion to adjourn the sentencing control date for Konstantin Ignatov, brother and accomplice of OneCoin co-founder and current fugitive Ruja Ignatova, a.k.a the “Cryptoqueen.”

Originally set for April 8, Ignatov’s sentencing date will now take place on July 8, 2020.

Ignatov’s cooperation as a witness

As reported, OneCoin is among the industry’s most infamous exit scams. Founded in 2014, the Bulgaria-based firm remained fully operational until late November 2019, despite ongoing criminal proceedings in the wake of allegations that it had fraudulently raised at least 4 billion euro ($4.4 billion) in a Ponzi scheme.

Following his arrest at Los Angeles International Airport in March 2019, Ignatov pled guilty to participating in the multi-billion dollar fraud in fall 2019. He faces up to 90 years in jail.

With his sister still on the run, he has served as a cooperating witness in the trial against Mark Scott, the lawyer who allegedly helped launder nearly $400 million via the scam.

In its April 6 letter, the U.S. government claimed that Ignatov’s cooperation was “not yet complete.” As well as requesting adjournment, the government sought to unseal a series of documents and noted that the defense had consented to its application.

Persistent allegations

As reported, Ignatov has previously testified that after his sister had fled, the security personnel who accompanied her told him that she had met with Russian speakers. One investigative journalist has since alleged that Ignatova claims to have the support and protection of an unnamed “rich and powerful” Russian individual.

In November 2019, Mark Scott was found guilty of helping Ignatova to launder the ill-gotten OneCoin funds via a wide network of fake companies, offshore bank accounts and sham investment schemes.





Source link

Regulation

New York authorizes first Yen stablecoin operator in the US

Published

on

By



New York has given the first authorization to a stablecoin backed by the Japanese Yen to operate in the U.S.

Per a Dec. 29 announcement, the New York Department of Financial Services has granted Japanese firm GMO-Z.com a charter to handle U.S.D. and Yen-backed stablecoins in New York. 

Given New York’s status as a global center, the NYDFS is the most prominent state financial regulator in the U.S. It is also one of the most aggressive. A pass to operate in New York often opens up the rest of the country. 

GMO’s charter is as a limited liability trust company rather than a full bank, the principle difference being in authorization to handle deposits. While a stablecoin operator typically needs the ability to hold reserves of the pegged asset, GMO’s charter limits its rights to hold other kinds of deposits not central to its ability “to issue, administer, and redeem” its stablecoins. 

The right to issue such non-depository charters has been a bone of contention between state regulators like the NYDFS and national banking regulators in the U.S. 

GMO president and CEO Ken Nakamura said: “We’re breaking ground with our move to issue the first regulated JPY-pegged stablecoin, which many see as a safe haven asset.” 

The NYDFS recently made changes to its famous BitLicense, including a conditional format that buddies up newly licensed firms with existing licensees. The first conditional BitLicense went to PayPal, facilitating the launch of its new crypto services earlier this fall with the help of longstanding licensee Paxos.