Fraudulent activity

In the spotlight of this week: co-founders of Centra Tech are sentenced to jail, Brian Kelly has launced a new crypto ETF and JPMorgan is interested in digital assets.

The three co-founders of Centra Tech Sorhab Sharma, Raymond Trapani, and Robert Farkas were found guilty of fraud and sentenced to jail

The possibility of using cryptocurrency debit cards in the future is an enticing possibility, interesting many people both inside and outside the crypto community. The founders of the Centra Tech, a startup company, tried to create such cards. They promised to create a means by which crypto investors could pay by using digital assets in everyday marketplaces, however the founders weren’t able to finish what they started. The three co-founders of the company were accused of defrauding investors to the tune of $60 million and now face 65 years in prison each.

The prosecutor's office claims that during the ICO, the co-founders sold unregulated securities in the form of CTR tokens. Сentra Tech deceived investors, claiming that the company had already signed partner agreements with large corporations. The project’s whitepaper outlined a planned cooperation with Visa, Mastercard and Bancorp.

The total amount of investments into Centra Tech was estimated to be about $60 million, which is not a small sum of money. This project put a lot of effort into campaigning, even having Centra Tech’s croudsale publicly supported on Instagram by Floyd Mayweather and DJ Khaled. Now the conversation has moved on from the ICO to this trial. The prosecutor's office is calling for Sorab, Raimonda and Roberta to face 65 years of imprisonment and pay an undetermined penalty.

Brian Kelly, the founder of BKCM, an investment company specializing in cryptocurrencies, has launched a new crypto: ETF

The American finance company REX Shares plans to start an exchange investment fund (ETF) for companies using blockchain technology.

According to the head of REX Shares, Greg King, the U.S. Securities and Exchange Commission rejected the company’s application to start a bitcoin-ETF, so they have instead created a blockchain-ETF which is planned to start within a week.

Brian Kelly, a financial analyst and the founder of the cryptocurrency hedge fund, BKCM, will become the active managing director of the new blockchain-ETF.

Earlier in May, Brian Kelly said that when large players from Wall Street, such as the NYSE and Goldman Sachs, begin accepting Bitcoin, it could serve as a catalyst for rapid growth of the digital asset market in the short and medium term.

JP Morgan starts to look into crypto space despite its CEO's previous comments

According to Daniel Pinto, the co-president of JPMorgan Chase, the bank holding, whose top managers had earlier spoken quite negatively of digital currencies, is now interested in digital assets.

He stated that the technology is likely to play a role in the promotion of the financial system.

We are looking into that space. I have no doubt that in one way or another, the technology will play a role.

Denial Pinto, Co-President at JPMorgan Chase & Co.

He also noted that J. P. Morgan is considering the possibility of working with Bitcoin futures to meet their clients’ needs.

If we need to clear futures of bitcoin, can we do it? Yes. Have we done it? No.

Denial Pinto, Co-President at JPMorgan Chase & Co.

Earlier Jamie Dimon, the CEO of JPMorgan Chase, called all Bitcoin investors ‘stupid’ and promised to dismiss any employee engaged in Bitcoin operations.

One more time we see that big negative words in past could turn just the opposite in the future.

EthereumFog

ETF
Price
0.8306 USD -3.10%
0.00009500 BTC 1.06%
Volume, 24h
1,652,131 USD
0.00%
Marketcap
0 USD
0%
Emission

Related news

JPMORGAN: Investors are making a major error right now. Here are the trades that can help them right the ship and crush the 2nd half of 2019.

JPMorgan's John Normand says investors are making an critical mistake that could leave them misaligned as the US economy slows. Normand says investors are betting on strong economic growth that isn't likely to materialize, and their error has helped push stock indexes to all-time highs. He's telling investors to prepare for weaker growth with slowly rising inflation as well as slower profit gains for S&P 500 companies. Visit Business Insider's homepage for more stories. With US stocks near all-time highs, JPMorgan is warning that investors are misreading the situation. Thanks to this year's big rally, stocks are priced for a "near perfection" scenario where the economy growth at an above-average clip and inflation is stable, according to John Normand, head of cross asset fundamental strategy. But he says investors are only half right because there won't be much improvement in growth. That expected letdown in growth is encouraging a shift to a long-neglected strategy. JPMorgan says it expects growth stocks, which have dominated for most of the 10-year bull market, to take a backseat to more defensively-oriented value stocks. "We were cautious on value style over the past year, but look for a rotation in market internals in (the second half)," Normand wrote. Specifically, JPMorgan is calling for financials and energy stocks to lead the way in the coming months. Energy in particular has lagged the market badly this year: The S&P 500 energy sector is up 11% this year, an otherwise solid number that looks somewhat weak compared to the benchmark's 20% overall gain. According to Normand, that misplaced hope about economic growth has driven stocks to outperform bonds. He thinks the more cautious bond market has a better view of the likely trajectory of the economy as well as interest rates. That means bonds could fare better as investors react to weakening profit growth. "On average over the past 50 years, equities have stopped outperforming bonds about two months after earnings growth peaked," he says, adding that the peak in earnings growth was six months ago. The shift Normand is predicting could come into view this week, as it's the beginning of an earnings period where S&P 500 profits are expected to decline. He writes that if the drop in earnings is coupled with disappointing company guidance, it might push investors into a more defensive posture, sending bond prices up and stocks down. "Since equity and credit outperformance versus bonds tends to track earnings momentum and since these two corporate assets have been beating bonds for longer than they usually do, just a brief dip in EPS growth seems a pre-condition for sustained gains," he wrote. For JPMorgan and Normand, that defensive stance also includes long positions on gold, oil, and defensive currencies like the Swiss franc and Japanese yen compared to other major-economy currencies. But he's not adopting a completely bearish stance. With the US economy and corporate profits likely to keep growing and the Federal Reserve signalling that it will cut interest rates, he thinks there is more room for stocks to rise and says he is overweighting stocks compared to credit.SEE ALSO: 'This will turn nasty': A crisis is brewing as a global currency war approaches, and one expert says he's found the most vulnerable assets traders should avoid Join the conversation about this story » NOW WATCH: Most hurricanes that hit the US come from the same exact spot in the world
Business Insider

Hot news

By continuing to browse, you agree to the use of cookies. Read Privacy Policy to know more or withdraw your consent.