Softek’s Post

SEC charges Silvergate with fraudulently misleading investors about the strength of its AML compliance program and apparent lack of transaction monitoring. The fallout of the FTX collapse highlighting what appears to be lip service to AML compliance in this instance as Silvergate tried cover up the dire financial state of the company. It has cost Silvergate $50m in civil penalties, let alone charges to the individuals involved. #fraud #financialcrime #crypto Thistle Initiatives https://lnkd.in/evY9YMSe

Blast off with ACFCS and explore the newest fincrime compliance trends and illicit finance risks accompanying crypto’s latest resurgence. Learn what it all means for your organization and career at the 2024 Crypto and Web3 Compliance Symposium. Register: https://bit.ly/49S8bFI #FinCrime #Crypto #AML #Fraud

Corporate fraud encompasses a range of illegal activities aimed at gaining an unfair advantage, from payroll and tax fraud to bribery and accounting manipulation. The consequences are severe with potential for heavy fines, asset seizures, and lengthy prison sentences. Businesses must be proactive by implementing robust internal controls, conducting regular audits, and fostering transparency to protect themselves. 💼💰 In a recent case, the downfall of crypto platform FTX, led by founder Sam Bankman-Fried, resulted in his conviction on seven counts of fraud and conspiracy, highlighting how billions of investor funds were misused for luxury purchases and political contributions. Discover more about corporate fraud and how to protect your business: https://bit.ly/4e5hPHA #Business #Law #Corporate #Fraud #Compliance #LegalTips #RLLit

Blast off with ACFCS and explore the newest fincrime compliance trends and illicit finance risks accompanying crypto’s latest resurgence. Learn what it all means for your organization and career at the 2024 Crypto and Web3 Compliance Symposium. Register: https://bit.ly/49S8bFI #FinCrime #Crypto #AML #Fraud

Blast off with ACFCS and explore the newest fincrime compliance trends and illicit finance risks accompanying crypto’s latest resurgence. Learn what it all means for your organization and career at the 2024 Crypto and Web3 Compliance Symposium. Register: https://bit.ly/49S8bFI #FinCrime #Crypto #AML #Fraud

This week the FCA have released an update on their focus of reducing and preventing financial crime. (https://lnkd.in/eB9-rqKX). What the FCA report is silent on is the typologies of FinCrime, and some of the structural issues which can enable activities such as fraud to take place.   When SBF perpetrated fraud at FTX, he did so on multiple fronts as the correct guardrails were not in place. As the caretaker CEO, John J. Ray III stated: “Never in my career have I seen such a complete failure of corporate controls…”.   SBF, based on current convictions, committed multiple forms of fraud - Wire Fraud (Alameda transfers), Securities Fraud (Investors) and some Money Laundering too (KYC).   FTX was a vertically integrated service offering: Asset Manager, Broker, Exchange, Custodian etc. This vertically integrated typology, with a lack of appropriate governance arrangements, facilitated the flourishing of conflicts of interest. This culminated in a circa US$9 billion default.   To mitigate against the risk that this vertical typology presents, in traditional finance we decouple the transaction value chain into its constituent elements of: Trading, Clearing and Settlement.   Not only does this allow us to have a more rigorous approach around any potential conflicts of interest, it also allows us to test the resilience of each of the constituent elements of the value chain.   I found this paper from Optiver insightful on key lessons from testing financial market infrastructures. (https://lnkd.in/e9Xa4t5x)   And that is what working in a regulated, as opposed to an unregulated, environment gives you: 🎞 Transparency: who is doing what 💪 Resilience: how do we preserve the integrity of the system ⛑ Recourse: Where does the buck stop? The FCA makes this abundantly clear with the threshold CONDitions and SM&CR. (No room for virtual offices here!)   Financial crime does enormous damage to society. Each of us, as individuals have a role to play.   So stick with your trusted, and regulated, parties. #BTC #derivatives #futures #options

📈 As the digital assets market continues its rapid expansion, the complexities and regulatory challenges also grow. Our latest article highlights pivotal enforcement actions that have reshaped the compliance landscape, from Binance’s landmark settlements to the significant collapse of FTX. https://lnkd.in/d_uT5fZ2 Learn from these crucial case studies how robust compliance systems, effective risk management, and adaptive frameworks are not just necessary but essential for navigating the digital assets terrain. 📣  𝗨𝗽𝗰𝗼𝗺𝗶𝗻𝗴 𝗪𝗲𝗯𝗶𝗻𝗮𝗿: Mastering Compliance in Digital Assets Through Multi-Tiered Defense Strategies ⏰ 𝗝𝘂𝗹𝘆 𝟮𝟱 𝟭𝟮:𝟬𝟬 – 𝟭:𝟬𝟬 𝗣𝗠 𝗘𝗧: Dive deeper into these topics and learn how to implement practical strategies to elevate your compliance strategy and prepare for future challenges in the digital assets space! ➡ 𝗘𝘅𝗽𝗹𝗼𝗿𝗲 𝘁𝗵𝗲 𝗔𝗴𝗲𝗻𝗱𝗮 𝗮𝗻𝗱 𝗥𝗲𝗴𝗶𝘀𝘁𝗲𝗿: https://lnkd.in/e6kz6bDB #DigitalAssets #Crypto #Compliance #FinancialServices #Regulation 

Kiting Checks In Crypto: CertiK exploited a flaw in the way Kraken Digital Asset Exchange handled user deposits and was able to take $3mm out of the Kraken treasury. The bug gave users access to funds in their accounts for deposits that had not yet completed, meaning they could withdraw the funds and cancel the deposit for free money. The scale of the attack and response from Certik have created a bit of drama as they delayed the return of funds, appear to have used an OFAC sanctioned protocol to wash the funds, and exploited the flaw for an amount much more significant than what was required to prove the flaw existed. #kraken #certik

The parent company of crypto-focused bank Silvergate has agreed to pay $63 million to settle US regulatory charges about its anti-money laundering programme and the losses sustained during the collapse of FTX. Silvergate Capital Corp., former CEO Alan Lane and former chief risk officer Kathleen Fraher, were charged by the Securities and Exchange Commission with misleading investors about the strength of its bank secrecy act and AML compliance programme and the monitoring of crypto customers. In addition, the company and former executives were charged with misleading investors about the company’s losses from expected securities sales following the collapse of FTX. Silvergate and Martino misrepresented the company’s bleak financial condition during a liquidity crisis and bank run following FTX’s collapse, alleges the SEC. Last year, the firm announced it would wind down its banking operations, and its stock eventually plummeted to near $0. Note: Not all cyber-related compliance but the enforcement of compliance in general still rings true. We can all learn from what happens in the market for better preparedness in both role and program functions to ensure regulation are met with ease. #SEC #regulations #regulatorycharges #CRO #CEO #compliance #regulatorycompliance #misrepresented #complianceprogram #compliance #cyberprogram #cybersecurityprogram #cyberpolicies #compliancepolicies #policymanagement #Buckler https://lnkd.in/eTshF46S