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Home | BakerHostetler

Technology from the Top: AI, Data and the Future of Business with Today’s CIOs

Technology from the Top: AI, Data and the Future of Business with Today’s CIOs – Shannon Johnston

Ronald Baumgarten Expects Upcoming Trade Policies to be Similar to Last Republican Administration

Patrick Campbell, Jonathan New Author Law360 Article on Whistleblower Programs

DOJ Antitrust Division Adds to Guidance on the Evaluation of Corporate Compliance Programs in Criminal Antitrust Investigations

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<a href="#integrations">Integrations Connect Crypto and Fiat Financial Products</a>

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<a href="#finra">FINRA Report Addresses Metaverse, Settlement Approved in NFT Class Action</a>

<a href="#doj">DOJ Announces Crypto Market Maker Guilty Plea, Charges Unlicensed Exchange</a>

<a href="#crypto">Crypto Hacking Threats Continue</a>

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Integrations Connect Crypto and Fiat Financial Products

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This week saw the announcement of three cryptocurrency payments partnerships. In a recent press release, a major U.S. financial services company announced a partnership with a major U.S. cryptocurrency exchange. The release indicates the partnership will allow the exchange’s customers to use eligible debit cards issued by the financial services company to transfer funds into their exchange account in real time, directly purchase cryptocurrency on the exchange, and cash out funds from the exchange to a bank account.

B2C2 and OpenPayd also announced a partnership this week, with B2C2 adding OpenPayd’s embedded finance capabilities to B2C2’s global instant settlement network. A press release states the partnership will benefit B2C2’s clients by allowing them to seamlessly send and receive fiat currency for trade settlement, access multi-currency accounts, instantly send or receive third-party payments, and receive an easier onboarding experience onto OpenPayd. 

Finally, a joint press release from a major international bank and a London-based financial services firm announced a partnership to connect their digital asset exchange and custody offerings. According to the press release, the partnership will allow the bank’s customers to access competitive digital asset pricing and liquidity while also providing access to digital asset custody.

In related news, BlockFills announced a new service aimed at helping enterprise payments companies and financial technology firms securely and efficiently process transactions between crypto and fiat currencies. According to a press release, the services are available via BlockFills’ APIs through its proprietary web-based trading platform and over the counter.

For more information, please refer to the following links:

<a href="https://investor.visa.com/news/news-details/2024/Coinbase-to-Integrate-Visa-Direct-to-Deliver-Real-Time-Account-Funding-for-Customers/default.aspx" target="_blank" rel="noreferrer noopener">[] to Integrate [] Direct to Deliver Real-Time Account Funding for Customers</a>

<a href="https://www.blockfills.com/2024/10/28/17392/" target="_blank" rel="noreferrer noopener">BlockFills Announces Further Push into Software with Expansion into Payments Market</a>

<a href="https://www.sc.com/en/press-release/standard-chartered-and-tp-icap-announce-pioneering-digital-asset-collaboration/" target="_blank" rel="noreferrer noopener">[] and [] announce pioneering digital asset collaboration</a>

<a href="https://www.b2c2.com/newspost/b2c2-partners-with-openpayd-to-expand-its-global-instant-settlement-network" target="_blank" rel="noreferrer noopener">B2C2 Partners with OpenPayd to Expand its Global Instant Settlement Network</a>

FINRA Report Addresses Metaverse, Settlement Approved in NFT Class Action

By <a href="https://www.bakerlaw.com/RobertAMusiala">Robert A. Musiala Jr.</a>

The U.S. Financial Industry Regulatory Authority (FINRA) recently published the report The Metaverse and the Implications for the Securities Industry. The report provides the results of a FINRA research initiative focusing on the opportunities and risks that the metaverse may present for the industry. In a section on metaverse payments, the report notes that “[c]onsumers in the metaverse reportedly hold a total of $163 billion in value in total digital payments, with a median value of $500 per user, and an average of over $7,300, including crypto assets across various metaverse platforms.” According to the report, metaverse users have a stronger desire to use crypto assets than do most e-commerce shoppers, and the most commonly held digital payments in the metaverse are Bitcoin, Ethereum, Robux, V-bucks, MANA, and SAND.

In other news, a New York federal judge recently granted final approval to a $4 million agreement settling a class action that alleged a company’s NBA Top Shot Moments nonfungible tokens (NFTs) were securities. According to reports, in the settlement, the defendant did not admit any wrongdoing but agreed to undertake or continue certain business practices to address aspects of the NFT sales that purchasers alleged made them more like investment contracts.

<a href="https://www.finra.org/sites/default/files/2024-10/2024-the-metaverse-and-the-implications-for-the-securities-industry.pdf" target="_blank" rel="noreferrer noopener">The Metaverse and the Implicationsfor the Securities Industry</a>

<a href="https://www.law360.com/fintech/articles/2252989?nl_pk=443df714-8612-4cc7-92bb-12102189ef09&utm_source=newsletter&utm_medium=email&utm_campaign=fintech&utm_content=2024-10-29&read_main=1&nlsidx=0&nlaidx=2" target="_blank" rel="noreferrer noopener">$4M Settlement Over NBA-Themed NFTs Gets Final OK</a>

DOJ Announces Crypto Market Maker Guilty Plea, Charges Unlicensed Exchange

By <a href="https://www.bakerlaw.com/RobertAMusiala">Robert A. Musiala Jr.</a><a href="https://www.bakerlaw.com/VeronicaReynolds"></a>

The U.S. Department of Justice (DOJ) recently announced that the founder and primary operator of MyTrade, “a financial services firm known in the cryptocurrency industry as a ‘market maker,’” has pleaded guilty “for his role in a wide-ranging conspiracy to manipulate cryptocurrency markets on behalf of client cryptocurrency companies.” According to a press release, MyTrade allegedly provided “wash trading” services by, among other things, providing its clients with access to a dashboard available through its website that allowed clients to specify the desired amount of daily wash trades (described as “Volume Support”) on identified cryptocurrency exchanges. The press release further notes that MyTrade “used computer programs known as ‘bots’ to generate … fraudulent wash trades for clients” and used such “wash trading bots … for millions of dollars’ worth of daily wash trades for approximately 60 different cryptocurrencies.”

In another press release, DOJ announced money laundering charges against an individual related to the defendant’s alleged “years-long operation of AurumXchange, an unlicensed virtual currency exchange.” According to the press release, “AurumXchange was used to conduct over 100,000 transactions, resulting in the transfer of over $30 million in funds,” and a portion of the funds flowing through AurumXchange allegedly came from accounts held on the dark web marketplace Silk Road. If convicted, the defendant faces up to 10 years in federal prison and a fine of up to $250,000.

<a href="https://www.justice.gov/usao-sdin/pr/operator-unlicensed-virtual-currency-exchange-aurumxchange-charged-federal-money" target="_blank" rel="noreferrer noopener">Operator of Unlicensed Virtual Currency Exchange AurumXchange Charged with Federal Money Laundering and Tax Crimes</a>

<a href="https://www.justice.gov/usao-ma/pr/founder-cryptocurrency-financial-services-firm-mytrade-pleads-guilty-market-manipulation" target="_blank" rel="noreferrer noopener">Founder of Cryptocurrency Financial Services Firm “MyTrade” Pleads Guilty to Market Manipulation and Fraud Conspiracy</a>

Crypto Hacking Threats Continue

According to recent reports, a wallet containing funds seized by the U.S. government recently transferred over $20 million in stablecoins and ETH in activity that some analysts suspect was a hack. The funds were reportedly transferred to a five-day-old address and then moved to various so-called instant exchanges. The government-controlled wallet was reportedly almost entirely emptied in the incident. In a separate incident, approximately $1 million in cryptocurrency was recently stolen in a hack that exploited vulnerabilities in certain lending smart contracts on the Base blockchain.

<a href="https://decrypt.co/288151/us-government-crypto-wallet-drained-20-million" target="_blank" rel="noreferrer noopener">US Government Crypto Wallet Drained of $20 Million in Suspicious Transfers</a>

<a href="https://cointelegraph.com/news/base-blockchain-exploit-leads-to-1m-theft" target="_blank" rel="noreferrer noopener">Base blockchain exploit leads to $1M theft — [] Alerts</a>

Weekly Blockchain Blog – November 4, 2024

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