All articles tagged with #enforcement action
The Federal Reserve announced that Wells Fargo is no longer subject to the asset growth restriction from its 2018 enforcement action after meeting all conditions, including improvements in governance and risk management, reflecting significant progress in addressing previous deficiencies.
The Federal Reserve Board has fined JPMorgan Chase & Co. approximately $98.2 million for an inadequate program to monitor firm and client trading activities for market misconduct between 2014 and 2023. The Board's action requires JPMorgan Chase to review and address the firm's inadequate monitoring practices. This enforcement action was taken in coordination with the Office of the Comptroller of the Currency, and the total penalties amount to approximately $348.2 million.
The NCAA Committee on Infractions is considering penalizing non-coaching staff members, including university presidents and athletic directors, who are involved in infractions cases, and may reveal their identities in public reports. The committee aims to hold responsible individuals at universities beyond just coaching staff members and head coaches, expanding upon a penalty enacted last January. However, there are complications in determining the scope of suspension for non-coaching members, and these changes could invite more litigation aimed at the NCAA, which enforces rules adopted by its member schools.
Call of Duty's new AI-powered voice chat moderation tool has taken enforcement action against over 2 million players for toxic voice chat, resulting in global muting and restrictions for repeat offenders. The system has led to an 8% reduction in repeat offenders and a 50% reduction in severe instances of disruptive voice chat since its launch. Activision is encouraging more user reports and is committed to evolving the moderation technology to combat toxic behavior in both voice and text chat within the game.
The US Department of the Treasury's Office of Foreign Assets Control (OFAC) has taken its first oil price cap enforcement action of 2024 against UAE-based shipping company Hennesea Holdings Limited for violating the price cap by carrying Russian crude oil purchased above the $60 threshold. OFAC has designated all property and interests in property of Hennesea in the US as blocked, and prohibited transactions involving any blocked property. The US, G7, EU, and Australia have agreed to prohibit the importation of crude oil and products from Russia unless purchased and sold below the designated price cap.
The Justice Department has announced the results of a nationwide enforcement action against COVID-19 fraud, revealing 718 enforcement actions, including federal criminal charges against 371 defendants, for offenses related to over $836 million in alleged COVID-19 fraud. The department has seized over $1.4 billion in COVID-19 relief funds and charged over 3,000 defendants with crimes. Two additional COVID-19 Fraud Enforcement Strike Forces have been launched in Colorado and New Jersey. The cases involve various types of fraud, including pandemic unemployment insurance benefit fraud and fraud against relief programs like the Paycheck Protection Program.
Farmington State Bank, linked to FTX, has been ordered by the Federal Reserve Board to wind down its operations after engaging in digital assets-related activities without notifying or obtaining approval from its supervisors. The bank had promised to avoid digital bank operations and modify its business plan, but allegedly worked with a third party to facilitate the issuance of stablecoins. The enforcement action prohibits the bank from making dividends or capital distributions without permission. Earlier this year, federal prosecutors seized $50 million from Farmington, alleging it was part of a scheme to defraud crypto investors.
The Federal Reserve Board has issued an enforcement action against Farmington State Bank and its holding company, FBH Corporation, for improperly changing its business plan without notifying supervisors and obtaining prior approval. Farmington will sell its loans and deposits to the Bank of Eastern Oregon, and the action ensures a controlled wind-down of the bank's operations while protecting depositors and the Deposit Insurance Fund. The action also prohibits Farmington and FBH from making dividends or capital distributions without approval and engaging in certain activities without supervisor consent.
Berenberg has initiated coverage of Coinbase with a hold rating and a price target of $55, stating that the Securities and Exchange Commission (SEC) will soon bring enforcement action against the crypto exchange. The action is likely to mirror those brought against rival exchanges Bittrex and Kraken. Berenberg estimates that at least 37% of Coinbase's Q1 net revenue came from transaction fees and spreads from trading crypto tokens other than bitcoin, which may be targeted by the SEC. Shorting Coinbase shares is too risky, Berenberg said, as around 23% of its free float is already sold short.
The US Securities and Exchange Commission (SEC) has awarded a record $279m to a whistleblower who provided information that led to successful enforcement actions. The award is more than double the previous record of $114m, issued in October 2020. Whistleblowers may receive an award if they provide timely and credible information that leads to successful enforcement actions. The SEC has ordered bad actors to surrender over $4bn in ill-gotten gains and interest as a result of tips from whistleblowers.
The US Securities and Exchange Commission (SEC) has awarded its largest ever whistleblower award of nearly $279m to an informant whose information helped the regulator's enforcement action. The SEC did not disclose the case concerned in its statement. Payments to whistleblowers are made out of an investor protection fund that was established by Congress and financed entirely through monetary sanctions paid to the SEC by securities law violators.
Coinbase is attempting a unique defense against an upcoming enforcement action by the SEC, claiming that regulators bear some responsibility for allowing the company to go public in the first place. The SEC had previously reviewed Coinbase's financial reporting and disclosures, as well as its belief that its cryptocurrencies should not be treated as securities. Coinbase's lawyers argue that by clearing the review, regulators signaled that they did not believe the company's core business was unlawful.
Coinbase Global received a Wells notice from the Securities and Exchange Commission (SEC) stating that SEC staff had made a "preliminary determination" to recommend an enforcement action against the largest U.S. crypto exchange for violations of federal securities laws. Coinbase stock was down 12% in premarket trading on Thursday morning after falling just as much through Wednesday. Coinbase said in its filing that it "believes" any action relates to specific crypto assets listed on the platform will include aspects of the exchange's spot market, staking service, Prime and wallet services.
Coinbase received a Wells notice from the SEC, which has made a "preliminary determination" to recommend an enforcement action against the company for alleged violations of federal securities law. Coinbase CEO Brian Armstrong is confident in the company's compliance with the law and welcomes the opportunity to go before a court. The SEC's action against Tron founder Justin Sun for possible securities violations and its previous action against Kraken for staking-as-a-service indicate that regulatory clarity on staking and securities law may be forthcoming. Shares of Coinbase dropped 13.8% in after-hours trading.