“OneCoin Lawyer On Trial”
The trial of a US lawyer accused of laundering some of the proceeds from the OneCoin cryptocurrency “scam” has begun in New York. Mark Scott is accused of routing approximately $400m (£310m) out of the US while trying to conceal the true ownership and source of the funds. Some is alleged to have ended up in Bank of Ireland accounts. Prosecutors claim he also spent some of the fraud’s proceeds on a yacht, three homes and a Ferrari car. They add that while the accused had earned hundreds of thousands of dollars a year in his role as a partner at a top-ranked law firm, this was “a fraction of the money he was paid to launder OneCoin fraud scheme proceeds”.
“Canadian Crypto Exchange Shuts Down”
Financial regulators in British Columbia, Canada are taking action against a cryptocurrency exchange that reportedly misappropriated user funds and has shut down. It has gone dark owing customers more than CAD$16 million (USD$12.1 million). Cryptocurrency trading site Einstein Exchange, based in Vancouver seemingly shut up shop at the end of last month, despite telling the British Columbia Securities Commission (BCSC) that it would be shutting down within two months, The Province reports. The exchange had tried to sell itself to a US-based investor, but the deal failed to come to fruition, and Einstein decided to close down. On October 31, a lawyer representing Einstein Exchange told the BCSC that it would shut down within 30 to 60 days due to “lack of profit.”
“Indian Govt Mulling Over Crypto Regulation”
State Bank of India’s (SBI) Chairman, Rajnish Kumar, has reportedly favoured the regulation of cryptocurrency in the country—a long debated issue. This was during a recent interview to a newswire agency, while attending International Monetary Fund (IMF) and the World Bank meetings in Washington, D.C., along with Finance Minister Nirmala Sitharaman. This statement comes in the backdrop of a draft bill ‘Banning of Cryptocurrency and Regulation of Official Digital Currency Bill 2019’, which was submitted to the Finance Ministry in February. The Supreme Court is scheduled to hear writ petitions relating to this bill in January 2020 and is also addressing the Reserve Bank of India’s (RBI) banking restriction on the crypto industry.
“Congressman Introduces A New Bill To Protect Token Sales From SEC”
Following last week’s Congressional hearing with Mark Zuckerberg over Facebook’s Libra intentions, one lawmaker, Tom Emmer, has outlined his intention to introduce a new U.S. crypto bill that could provide token sales legal protection from SEC enforcement actions. The Republican Congressman for Minnesota said U.S. authorities should only apply securities regulations to cryptocurrencies that meet the traditional criteria of securities. Although most blockchain companies, particularly in the U.S., try their best to follow the rules, authorities are adept at moving the goalposts, he said. That created uncertainty that made it difficult for the blockchain sector to operate legitimately in the country.