SEC alleges trader used BTC to hide fraud profit

The U.S. Securities and Exchange Commission alleges day trader from Philadelphia Joseph Willner in illegal taking over more than 100 brokerage accounts
01 November 2017   1356

The U.S. Securities and Exchange Commission (SEC) is suing a day trader from Phildelphia for alleged fraud, claiming he used bitcoin to hide their profits. This is reported by Coindesk.

On 30th of October, the Commission issued a suit against Joseph Willner. He is accused in illegal taking over more than 100 brokerage accounts and using the victims' funds to artificially inflate stock prices that he would then trade against advantageously.

According to SEC, Willner used an unnamed bitcoin exchange to hide the profits from illegal activities and convert funds from $ to BTC. After that, funds were transferred to another unnamed person.

To mask his payments to the other individual as part of a profit-sharing arrangement, Willner allegedly transferred proceeds of profitable trades to a digital currency company that converts U.S. dollars to Bitcoin and then transmitted the bitcoins as payment.

SEC press release

The Commission states that these two people made at least $700k in profit, using the account take-over scheme and investigation is still going.

Account takeovers are an increasingly significant threat to retail investors, and it is exactly the type of fraud our new Cyber Unit is focusing on.

Stephanie Avakian
Co-Director,  SEC’s Division of Enforcement

Bakkt to Launch Cash-Settled BTC Futures in Singapore

According to company's COO, the new product is being launched in response to consumer demand
13 November 2019   163

Bakkt regulated crypto platform intends to expand its offer by settlement futures for bitcoin by the end of the year.

Speaking at CoinDesk Invest: NYC, Bakkt COO Adam White said the Intercontinental Exchange (ICE) is already working on a new product.

We have the intention of offering a cash-settled contract as well.

Adam White

COO, Bakkt

According to White, the new product launches in response to consumer demand. The contracts will be based on data on monthly futures with the physical delivery of bitcoin already presented at Bakkt.

New instruments will be launched at the ICE Clear Singapore Clearing Center and will be traded at ICE Futures Singapore. At the same time, clients all over the world will have access to futures. Bakkt is currently actively negotiating with the Monetary Authority of Singapore to resolve regulatory issues.

Among regulated exchanges, currently settlement bitcoin futures are presented only at the CME Group, which at the beginning of next year will supplement its product line with options for the first cryptocurrency.