VanEck Fined $1.75 Million by SEC for Spot Bitcoin ETF
The Securities and Exchange Commission (SEC) has imposed a $1.75 million fine on VanEck, the issuer of the Spot Bitcoin ETF. The SEC found that VanEck failed to disclose the role of social media influencer Dave Portnoy in the launch of the ETF. The order revealed that VanEck associates hired Portnoy and structured a licensing fee without disclosing it to the ETF board.
The SEC also highlighted the lack of effective surveillance and oversight mechanisms in the spot Bitcoin market. This lack of safeguards exposes investors to risks and uncertainties, threatening the integrity of financial markets. The SEC’s decision to fine VanEck emphasizes its commitment to enforcing compliance standards in the cryptocurrency space.
Increased Regulatory Attention on Crypto
Regulatory bodies continue to focus on crypto-based financial products. TradeStation Crypto recently settled with the SEC and state regulators, paying $3 million for unlawfully selling unregistered crypto-lending products. In addition, the U.S. Justice Department proposed a $4 billion penalty in the Binance crypto investigation for non-compliance with anti-money laundering regulations.
These actions highlight regulators’ efforts to address compliance issues in the cryptocurrency sector, serving as a cautionary measure for investors and platforms alike.
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