Eagle Crest Asset Management

August 10, 2024

A&A Company Fraudulent Scheme Exposed, CTO Sentenced to Five Years

According to Odaily, A&A Company falsely claimed to have acquired a cryptocurrency mining company in Yunnan, China, defrauding over 700 investors in Singapore of 6.7 million SGD. Wang Xinghong, the CTO from China, was involved in this Ponzi scheme and earned over 130,000 SGD in rewards. He has been sentenced to five years in prison. The case revealed that Wang's accomplice, a man named Yang Bin, played a significant role in the scheme. Yang Bin established A&A Blockchain Innovation Pte Ltd (A&A) on April 20, 2021, and served as the company's chairman and leader. From May 20, 2021, to February 15, 2022, A&A promoted a cryptocurrency mining plan to local investors. The company falsely claimed to have purchased 70% of a cryptocurrency mining company in Yunnan, which allegedly owned 300,000 mining machines. A&A assured investors that these machines could mine cryptocurrencies like Bitcoin and Ethereum, promising a daily return of 0.5% on their investments. However, the entire investment plan was a Ponzi scheme, with A&A using funds from new investors to pay 'profits' to earlier investors.

August 10, 2024

IRS Releases Updated Draft Of Tax Form 1099-DA For Crypto Transactions

According to Foresight News, the U.S. Internal Revenue Service (IRS) has released an updated draft version of tax form 1099-DA, which is intended for cryptocurrency brokers and investors to report certain transaction gains. The public has 30 days to provide feedback on this version to the IRS.IRS officials stated that the newly released 1099-DA update is more streamlined compared to the initial draft proposed by the IRS in April. Notably, the requirement for investors to fill in wallet addresses and transaction IDs has been removed, addressing privacy concerns that arose when the form was first introduced. Additionally, the updated form no longer requires the specific time of transactions, only the date.

August 9, 2024

SEC Investigates Crypto Venture Capital Firms

According to PANews, the U.S. Securities and Exchange Commission (SEC) has issued subpoenas to at least three cryptocurrency venture capital firms this year. Sources familiar with the investigation revealed that the subpoenas are titled 'In the Matter of Certain Crypto Asset Intermediaries.' The SEC is investigating whether there have been violations of federal securities laws. DL News reviewed the subpoenas but could not disclose the specific targets of the SEC's investigation.The SEC's focus on crypto venture capital indicates that the agency is scrutinizing the initial funding channels for most crypto startups. An anonymous source stated that at least two other crypto venture capital firms received similar document requests. The subpoenas demand information on any token transaction contracts involving investors. A lawyer from a crypto venture capital firm not affected by the subpoenas described the investigation as an overly broad and costly search. This lawyer, who had heard about the investigation before speaking with DL News, requested anonymity to avoid public mention of the SEC.Elisha Kobre, a lawyer specializing in securities and commodities fraud at Bradley Arant Boult Cummings, commented that the SEC's scrutiny of venture capital is reasonable. He suggested that the SEC might consider this an additional enforcement area. Sources familiar with the investigation indicated that financial regulators might be interested in whether crypto venture capital firms act as 'statutory underwriters.' Statutory underwriters are broker-dealers who purchase securities intending to distribute them to the public.Many crypto startups file token financing records with the SEC but often seek exemptions from registering their securities, as they only offer future token rights to qualified investors. The SEC is reportedly interested in whether these qualified investors are distributing unregistered securities to a broader retail market. The source added that such actions could 'poison the initial issuance,' referring to the potential impact when investors sell tokens on the public market.

August 9, 2024

Fed Officials Discuss Economic Normalization and Inflation Concerns

According to Odaily, Richmond Federal Reserve President and 2024 FOMC voting member, Thomas Barkin, stated that the Federal Reserve has time to assess whether the U.S. economy is normalizing or weakening. If the latter occurs, it would necessitate stronger actions from officials. Barkin emphasized the importance of evaluating the economic situation carefully before making any decisions.Kansas City Federal Reserve President, Esther George, noted that despite inflation exceeding targets, the labor market remains healthy. However, she is not yet ready to support a rate cut. Known for her hawkish stance, George highlighted the need for cautious assessment of progress, given that inflation surged to multi-decade highs two years ago. She stressed the importance of focusing on the worst-case scenarios in the data rather than the best-case scenarios.

August 8, 2024

Philippines Central Bank Lifts Ban On Digital Banks

According to BlockBeats, on August 8, market sources reported that the Central Bank of the Philippines has lifted the ban on establishing digital banks. The bank will now permit up to 10 digital banks to operate.

August 8, 2024

Kakao Founder Arrested for Alleged Stock Manipulation

According to BlockBeats, on August 8, South Korean IT giant Kakao's founder and Chairman of the Management Reform Committee, Kim Beom-su, was arrested and indicted by prosecutors on charges of stock manipulation. The Seoul Southern District Prosecutors' Office arrested and charged Kim for allegedly violating the Capital Markets Act.Prosecutors suspect that Kim Beom-su manipulated stock prices during Kakao's acquisition of SM Entertainment in February last year. It is alleged that he artificially inflated SM Entertainment's stock price to over 120,000 KRW per share (approximately 625 RMB) to hinder a competing bid from HYBE.Additionally, former Kakao CEO Hong Eun-taek and former Kakao Entertainment CEO Kim Sung-soo were indicted without detention.

August 8, 2024

Australian Central Bank Chief Warns Of Potential Rate Hikes Amid Inflation Concerns

According to Odaily, Reserve Bank of Australia (RBA) Governor Michele Bullock has expressed vigilance regarding inflation risks, stating that the central bank will not hesitate to raise interest rates if necessary. Bullock anticipates that inflation will not return to the target range of 2-3% until the end of 2025. The RBA committee believes that the current interest rates are still aligned with its inflation objectives. Despite this, the growth in demand remains excessively strong.

August 8, 2024

Federal Reserve's September Rate Cut Probabilities Revealed

According to BlockBeats, data from CME's 'FedWatch' tool on August 8 indicates that the probability of the Federal Reserve cutting interest rates by 25 basis points in September is 31.5%, while the likelihood of a 50 basis point cut stands at 68.5%.Looking ahead to November, the cumulative probability of a 50 basis point rate cut by the Federal Reserve is 15.7%. The chances of a cumulative 75 basis point cut are 55.6%, and the probability of a cumulative 100 basis point cut is 28.7%.

August 8, 2024

Ripple CEO Comments On Court Ruling Reducing SEC's $2 Billion Demand

According to BlockBeats, on August 8, Ripple CEO Brad Garlinghouse commented on a recent court ruling regarding the sale of XRP to retail customers. The ruling determined that Ripple's actions did not violate federal securities laws. Garlinghouse stated on X that the SEC had initially demanded $2 billion, but the court recognized the excessive nature of this demand and reduced it by approximately 94%. He expressed respect for the court's decision and emphasized Ripple's commitment to continuing its business development. Garlinghouse described the ruling as a victory for XRP, the industry, and the rule of law, noting that the SEC's resistance against the entire XRP community has now been eliminated.

August 8, 2024

Ripple Fined $125 Million For Institutional Sales Of XRP

According to CoinDesk, a federal judge has imposed a $125 million fine on Ripple after determining that its institutional sales of XRP violated federal securities laws. District Judge Analisa Torres of the Southern District of New York issued the penalty following her finding that 1,278 institutional sale transactions by Ripple breached securities regulations. This fine is significantly lower than the $1 billion in disgorgement and prejudgment interest and $900 million in civil penalties initially sought by the SEC.The judge reiterated her stance that Ripple's programmatic sales of XRP to retail clients through exchanges did not violate federal securities laws. The SEC's attempt to appeal this part of the ruling was unsuccessful during the case proceedings. In addition to the fine, Judge Torres imposed an injunction against future securities law violations by Ripple. She noted that while she is not making a judgment that Ripple has violated any laws since the SEC filed its lawsuit, the company's actions suggest a likelihood of future violations.The injunction requires Ripple to file a registration statement if it plans to sell any securities in the future. The SEC is expected to appeal the July 2023 ruling now that the judge has imposed a sentence, following the denial of the SEC's motion for an interlocutory appeal last year. The SEC and Ripple had previously settled charges related to CEO Brad Garlinghouse and other executives after the interlocutory appeal was denied. Following the judgment, the price of XRP saw a slight increase, rising by 3 cents or approximately 2%.