VanEck to Inform SEC About Bitcoin ETF

Earlier the SEC rejected all applications for the launch of Bitcoin-ETF
25 July 2018   277

New York investment fund VanEck Associates has made a new attempt to inform SEC of its position on bitcoin-ETF and potentially push it to issue a permit to launch such a financial instrument.

As Bitcoinist writes, on July 20 VanEck sent a letter to the SEC, in which it again expressed its belief that the industry is ready to accept and support the ETF.

As you may know, earlier the SEC rejected all applications for the launch of Bitcoin-ETF. In addition, in January the Commission informed VanEck representatives that it was necessary to give "satisfactory" answers to a number of questions, before it would consider it possible "appropriate for fund sponsors to initiate registration of funds that intend to invest substantially in cryptocurrency and related products."

Apparently, VanEck believes that the company has those "most satisfactory" answers.

In the Staff Letter, you raise a number of concerns for cryptocurrency and cryptocurrency-related investment funds concerning valuation, liquidity, custody, arbitrage, potential manipulation, and other risks. We believe these concerns have appropriate answers […] moreover, by offering investors exposure to bitcoin through a regulated investment product, we believe the proposed ETF will be consistent with the Securities and Exchange Commission’s […] mission to protect investors, maintain fair, orderly, and efficient markets, and facilitate capital formation.

VanEck Letter

VanEck also analyzes each of the risks outlined by the Commission in detail and explains why they do not consider them an obstacle for launching Bitcoin-ETF.

Given the proposed ETF’s regulation under the Securities Act of 1933 and 1940 Act and the fact that it offers exposure via regulated and surveilled bitcoin futures, we reasonably expect the proposed ETF to reduce potential manipulation and operational risk associated with a bitcoin investment product. 

VanEck Letter

In June VanEck and SolidX filed a joint application for the opening of VanEck SolidX Bitcoin Trust - bitcoin-ETF, which will be immune from theft and loss of access to funds. The proposed product will be tied to a new index from Van Eck, which instead of exchanges will collect the price of bitcoin from US-based over-the-counter platforms. 

Crypto Billionaire to Lost 5.5k BTC Due to Fraud

Thai scammers convinced 22 yo Finnish crypto billionaire to invest in their 'investment' scheme
13 August 2018   272

The 22-year-old cryptocurrency millionaire lost more than 5,500 bitcoins after taking part in the investment scheme in Thailand. The case attracted public attention because of the possible participation of a Thai actor. This is reported by Bangkok Post.

A group of scammers in June 2017 persuaded Finnish businessman Aarni Otawa Saarimaa to invest in several Thai securities, a casino in Macau and a crypto currency called Dragon Coin.

Scammers claimed that Dragon Coin could be used in Macau casinos. In addition, they brought Saarimaa to this casino to demonstrate the legitimacy of their project. Saarimaa transferred 5 564 BTC to fraudsters.

In January, without receiving any income for his investments, Saarimaa filed a complaint with the Crime Suppression Division's (CSD), along with his local business partner, who believed that this investment scheme was fraudulent.

CSD began to investigate the case and stated that the group made no investment for Saarimaa, instead transferring all the bitcoins to Thai baht and placing these funds on seven bank accounts.

Although it is not clear when exactly the scammers sold the bitcoins, CSD announced that they raised about 800 million baht or about 24 million dollars.

Then followed a months-long investigation, according to which CSD began to suspect that the Thai film actor Jiratkisit "Boom" Jaravijit also took part in the fraudulent scheme - he was arrested last Wednesday.

In addition, the CSD stated that it suspects the actor's brother, Princess Jaravijit, as the "instigator" of this entire scheme. He left Thailand, traveling to South Korea, and then to the United States. According to the Bangkok Post, CSD is currently working with the US to track him down.