Here at Dealbreaker, we like to think of ourselves above all as teachers. Advisers. Guides. Purveyors of public service announcements. And so, in the spirit of previous tips such as, “don’t admit to a crime on a potentially recorded phone line” and “make sure you get at least something out of allegedly illegal collusion other than a subpoena” and “be consistent with your addresses if you’re going to try to commit tax fraud” and “don’t fire anyone who knows about your alleged Ponzi scheme” and “don’t buy cryptocurrencies because a rapper told you to,” we offer the following humble suggestion: If you are resident abroad and know that a Securities and Exchange Commission enforcement action is imminent, maybe join any conferences on U.S. soil via Zoom or hologram, and if you must attend in the flesh, certainly try not to publicize it.
The subpoenas were hand-delivered to [Do] Kwon as he stepped off an escalator in a New York hotel where he was scheduled to speak at a crypto conference, according to his lawsuit…. Taking formal action was complicated because the U.S. agency lacks clear jurisdiction over Mr. Kwon and his company, Terraform Labs Pte Ltd., which is based in Singapore, according to the lawsuit. Handing the subpoenas to Mr. Kwon in person was “intended to impermissibly secure personal jurisdiction over Mr. Kwon” and Terraform, the filing says….
“The [conference] context is unusual, but I wouldn’t necessarily read anything into this beyond the certain time and certain date and knowing the person is going to be there,” [lawyer Ashely Ebersole] said.
At issue in the Kwon case is his Terraform’s software allowing users to create digital assets tracking the price of things like stocks. Now, Gary Gensler may or may not be allowed to regulate cryptos directly (he tends to fall on the “may” side of the equation), but that sounds an awful lot like a derivative, and that’s something he definitely can do something about.
Of course, you needn’t play in such indirect markets as that or those offered by the new bitcoin futures exchange-traded funds. You can just do everything with the fake currencies themselves on your credit card. Or just ride the ride in a hedge fund.
Mastercard Inc. and crypto firm Bakkt Holdings Inc. on Monday said they have partnered to enable cryptocurrency card payments…. Bakkt would convert that cryptocurrency into currency that the merchant accepts before sending the transaction over the Mastercard network. That will happen when the consumer makes the purchase. The company says the conversion would be done instantaneously so that the merchant isn’t affected by the volatility of cryptocurrencies.
The $2.6 billion quant hedge fund is joining the likes of Steve Cohen and Alan Howard looking to profit from the famous volatility and inefficiencies across the now-$2.6 trillion market. That’s as long as Taylor and his fast-money peers can avoid getting crushed in the next crash.
“Our approach has always been: Let’s try to launch quickly -- try to capture as much upside as we can now -- because we know that at some point crypto hype will die down,” the hedge fund manager says in an interview at GSA Capital Partners LLP’s London office in Mayfair.
Cryptocurrency Company Snared in SEC Dragnet Sues Regulator [WSJ]
Mastercard Partners With Bakkt to Bring Cryptocurrency Payments to the Masses [WSJ]
$2.6 Billion Quant Hedge Fund Joins the Rush to Crypto [Bloomberg]
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