ARTICLE
7 November 2024

FINRA Report Addresses Metaverse, Settlement Approved In NFT Class Action

B
BakerHostetler

Contributor

Recognized as one of the top firms for client service, BakerHostetler is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Labor and Employment, Intellectual Property, Litigation, and Tax — the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. Visit bakerlaw.com
The U.S. Department of Justice (DOJ) recently announced that the founder and primary operator of MyTrade, "a financial services firm known in the cryptocurrency industry as a ‘market maker...
United States Technology

The U.S. Department of Justice (DOJ) recently announced that the founder and primary operator of MyTrade, "a financial services firm known in the cryptocurrency industry as a 'market maker,'" has pleaded guilty "for his role in a wide-ranging conspiracy to manipulate cryptocurrency markets on behalf of client cryptocurrency companies." According to a press release, MyTrade allegedly provided "wash trading" services by, among other things, providing its clients with access to a dashboard available through its website that allowed clients to specify the desired amount of daily wash trades (described as "Volume Support") on identified cryptocurrency exchanges. The press release further notes that MyTrade "used computer programs known as 'bots' to generate ... fraudulent wash trades for clients" and used such "wash trading bots ... for millions of dollars' worth of daily wash trades for approximately 60 different cryptocurrencies."

In another press release, DOJ announced money laundering charges against an individual related to the defendant's alleged "years-long operation of AurumXchange, an unlicensed virtual currency exchange." According to the press release, "AurumXchange was used to conduct over 100,000 transactions, resulting in the transfer of over $30 million in funds," and a portion of the funds flowing through AurumXchange allegedly came from accounts held on the dark web marketplace Silk Road. If convicted, the defendant faces up to 10 years in federal prison and a fine of up to $250,000.

For more information, please refer to the following links:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More