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SEC and FINRA crack down on shady cryptocurrency companies, sets the record straight

Akash Anand

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SEC and FINRA crack down on shady cryptocurrency companies, sets the record straight
Source: Unsplash

The American financial regulatory bodies are not playing it down with Financial Industry Regulatory Authority [FINRA] and the Securities and Exchange Commission [SEC] both on Tuesday cracking down on three separate cryptocurrency scams.

12th September saw the FINRA cracking down on Timothy Ayer, the owner of ‘Rocky Mountain Ayre’, who was involved in various nefarious activities related to the trade of Hempcoin, a cryptocurrency. Ayre was involved in conning a lot of people by stating that Hempcoin was “the first minable coin backed by market securities”.

The owner of Rocky Mountain Ayre was also traversing rocky waters for not revealing the whereabouts of his asset storage and for cooking up numbers on the accounts sheet. Reports state that:

“Between 2016 and 2017, investors mined more than 81 million HempCoin, which they traded on the cryptocurrency exchanges C-Cex and Yobit.”

The FINRA has also stated that Timothy Ayre could be banned from being involved in any industry even remotely related to securities and digital asset exchanges.

The SEC, which has been in the news for the ETF rejections and other cryptocurrency reviews, has filed a case against Crypto Asset Management LP, a hedge fund. The securities organization revealed that the hedge fund has agreed to pay a fine of $200,000 on the infringement that they had sold funds to customers falsely claiming they were approved by the SEC.

Tim Enneking, Crypto Assets manager has stated that the company has fully cooperated with SEC investigations and has neither confirmed nor denied any allegations. He stated:

“There is nothing in the order about financial impropriety, no investors were harmed, and this has not impacted the funds’ operation or performance at all.”

Following the actions on the two cryptocurrency firms, the SEC also announced that TokenLot, an “ICO Superstore” had agreed to pay fines amounting to $471,000 for third-party infringements. The company’s founders, Lenny Kugel, and Eli Lewitt were involved in sales that saw them act as “an unregistered broker-dealer for the sale of digital tokens.”



All the decisions taken by the regulatory authorities point to the fact that scams and fraudulent activities will not be taken lightly after several people had complained about losing their savings.

Nightcoin, a Reddit user commented:

“ Atleast this will show people that crypto is not the wild wild west!”





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Analysis

Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market

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Bitcoin [BTC]: King coin’s Golden Cross confirmed; Greenspan hints at bullish market
Source: Pixabay

Bitcoin’s much-awaited Golden Cross, which many analysts claimed will lead to a resurgence of a bullish market, has been confirmed. The intersection of the 200-day moving average and 50-day moving average, which indicates the Golden Cross, was achieved over the past few hours.

Earlier today, the top cryptocurrency saw a massive rise after days of sideways movement. Bitcoin’s ascendance saw it break the $5,350 resistance level, which eToro’s Mati Greenspan had previously suggested will consolidate “buying pressure.”

Source: TradingView

Additionally, a major psychological level of $5,500 was also surpassed less than three weeks after Bitcoin broke the $5,000 mark.

The Golden Cross theory holds credibility among analysts in the cryptocurrency realm as it infers that the coin’s average price is above its 200-day equivalent. For the first time in over a year, the cryptocurrency market has seen its 50-day MA move above the 200-day MA, which according to many is a sign of a bullish market.

On the opposing side of the Golden Cross indicator is the Death Cross, where two indicators cross over into a bearish market i.e. the 200-day MA moves above the 50-day MA. The Death Cross manifested in April 2018, after the prices went into a free fall following the December 2017 high.

In April 2018, BTC was priced at just over $7,000, following which it lost more than 50 percent of its price by the end of the year. The price of the king coin has recovered exceedingly well in 2019 however, winning back almost 50 percent of its lost value.

Many analysts, including Greenspan, agree that the crossing of the two moving averages is a clear testament to the return of the bull market. Although he didn’t quite use those words, Greenspan tweeted,

“Ladies & Gents… The Golden Cross!
Bitcoin’s 50-day moving average (gold) crossing above her 200-day moving average (blue). 📈
This is yet another sign that we’re back in a🐂market. 🚀🌛”

However, in an exclusive interview with AMBCrypto last week, Greenspan had stated that the Golden Cross theory is a “lagging indicator,” as the Death Cross was last seen in April 2018, months after the market took a bearish turn.



In his view, the 200-day moving average is the key indicator. On April 2, Bitcoin broke this mark for the first time since March 2018, by recording a massive 17 percent daily gain and rising above $5,000.

Based on historic price changes with reference to the Golden Cross, the last time the 50-day MA soared above the 200-day MA, price of Bitcoin rose by over 8000 percent from $246 in October 2015 to almost $20,000 in December 2017. Given past market movements, the current market scenario, and the optimism in the air, the Golden Cross may just have initiated the Bitcoin bull market.





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