On Friday, the Federal Reserve Board announced that it had denied the application by Custodia Bank to become a member of the Federal Reserve System. Custodia is a Wyoming state-chartered bank without FDIC insurance. The goal of the special purpose bank is to become a bridge between the digital assets sector and the U.S. dollar payments system. [Read more]
Richard G. Maike was sentenced this week to 10 years in prison for running a pyramid scheme in 2013 and 2014. Doyce G. Barnes was sentenced today to 4 years in prison for his role in the pyramid scheme. The defendants were convicted after a federal jury trial that started in Owensboro, Kentucky on July 12, 2022, and concluded with the jury’s verdict on September 7, 2022, after four hours of deliberation. [Read more]
Fintech firms and other non-bank companies have “augmented consumer finance markets” and “accelerat[ed] an evolution in consumer financial products and services.” Evidence also suggests that these firms have expanded consumer access to credit, payment solutions, and low-cost bank and transaction accounts. That’s the overall assessment of a recent report put out by the US Dept. Treasury on the state of competition in the fintech marketplace. While cautioning that it can be hard to get good data on this fast-changing marketplace. Whatsmore noting that some new entrants might be “sidestepping” comprehensive regulatory supervision, the Treasury Report concludes that these new entrants could increase competition in consumer financial services. Also, there is potential for this competition to benefit consumers by lowering prices, improving convenience, and leveraging more advanced technology. The Treasury Report also offers several suggestions to enhance and streamline supervision of the fintech sector. [Read more]
Effective regulations are one of the key gateways to cryptocurrency’s mainstream adoption. Due to greater compliance, crypto businesses saw broader acceptance from regulators worldwide. While the ecosystem was awarded countless operational licenses and exposure to new markets, the fall of Terraform Labs, FTX and Celsius, among others, had a negative impact on the industry’s reputation with investors and regulators alike. [Read more]
A federal jury convicted an Owensboro man, a North Carolina man, and a Florida woman this week for conspiracies to commit mail fraud and securities fraud. The Owensboro man was also convicted of money laundering and attempted tax evasion for tax years 2013 and 2014. [Read more]
United States Attorney Russell M. Coleman today announced the sentencing of the former Ballard County Judge Executive and Ballard County Treasurer, in United States District Court, by Senior U.S. District Judge Thomas B. Russell, for their individual roles in bank fraud. [Read more]
The charges were unsealed as part of “Operation Crypto Runner,” which was established by U.S. Attorney Brit Featherston of the Eastern District of Texas, the Secret Service and the U.S. Postal Inspection Service. [Read more]
Cyber Defence Index, created by MIT Technology Review Insights and sponsored by Code42, gave Canada an average score of 6.94, behind the United States (7.13) and ahead of Poland (6.91). [Read more]
Partnerships between banks and financial technology (Bank-fintech) companies are a net-positive for consumers when done responsibly, the Treasury Department will say in a report due on Wednesday. [Read more]
On May 24, 2022, a former Louisville, Kentucky resident was convicted and sentenced for conspiring to commit money laundering by assisting in the unlawful purchase of automobiles with criminal proceeds. On May 26, 2022, a Prospect, Kentucky resident was convicted and sentenced for a financial crime involving money laundering. Also, the use of a nominee to purchase automobiles in order to conceal the source of the funds used. These convictions follow financial crime convictions of two additional men, one earlier this year, and the other last year. [Read more]
