SEC to Accuse 2 Men of Illegal UBI Blockchain Shares Sell

T.J. Jesky and Mark Destefano, allegedly earned $ 1.4 million in 10 days, selling shares of the Hong Kong company UBI Blockchain Internet
03 July 2018   857

The US Securities and Exchange Commission (SEC) accused two residents of the state of Nevada of illegally obtaining profits from the sale of securities of a company calling itself a "blockchain start-up".

According to the SEC statement released on Monday, lawyer T.J. Jesky and commercial affairs manager Mark Destefano, allegedly earned $ 1.4 million in 10 days, selling shares of the Hong Kong company UBI Blockchain Internet. Both accused in October 2017 received 72 thousand limited shares of this company and had to sell them at a strictly determined price - $ 3.7 per piece.

Jesky and Destefano sold the shares at a rate of 21 to almost 50 dollars - until the SEC in early January, according to a press release, did not freeze the sale of all shares of the company. The reason for the freeze was the unusual behavior of the stock price and questions to the reporting.

This case is a prime example of why the SEC has warned retail investors to be cautious before buying stock in companies that suddenly claim to have a blockchain business. This case involved both a trading suspension and people holding restricted shares who attempted to profit from the dramatic price increase with illegal stock sales that violated the registration statement.
 

Robert A. Cohen

Chief, SEC Enforcement Division’s Cyber Unit

According to the SEC, both defendants agreed to return 1.4 million dollars and pay a fine of $ 188,682, as well as follow court restrictions. However, none of them acknowledged and rejected the accusations of the department.

The SEC reported that assistance in investigating the incident was provided by the US Financial Services Authority (FINRA), the Mexican National Commission for Banks and Securities and the Panamanian Office for Stock Market Issues.

Binance Singapore Unit to Apply For License

Under the new law, aimed at regulating crypto paymetns and trading, firms must register with the Monetary Authority to receive a license
17 February 2020   230

Binance, a Singapore-based cryptocurrency exchange unit, has applied for a license under the new Payment Services Act, which entered into force on January 28.

We have already applied. We submitted the application pretty fast. Binance’s Singapore entity has been in close touch with the local regulators, and they have always been open-minded.

 

Changpeng Zhao

Founder and CEO, Binance

Under the new law, crypto companies in Singapore must register with the Monetary Authority and receive one of three licenses: an exchange of money, a standard or large payment institution. The measure is aimed at regulating payments and crypto trading using requirements for participants in the traditional finance industry. Zhao did not specify which of the licenses Binance Singapore chose.

Binance has been offering crypto-fiat trading services in Singapore since April 2019 and works with eight coins, including Bitcoin, Ethereum and XRP. The trading platform is supported by Vertex Venture Holdings, a venture division of Singapore's Temasek Holdings.