{"id":248774,"date":"2024-02-16T23:40:21","date_gmt":"2024-02-16T18:10:21","guid":{"rendered":"https:\/\/dripp.zone\/news\/?p=248774"},"modified":"2024-02-16T23:40:21","modified_gmt":"2024-02-16T18:10:21","slug":"spot-bitcoin-etf-issuer-vaneck-slammed-1-75m-fine-by-sec-crypto-news","status":"publish","type":"post","link":"https:\/\/dripp.zone\/news\/spot-bitcoin-etf-issuer-vaneck-slammed-1-75m-fine-by-sec-crypto-news\/","title":{"rendered":"Spot Bitcoin ETF issuer VanEck Slammed $1.75M Fine by SEC – Crypto News"},"content":{"rendered":"

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VanEck, a key player in the financial sector, recently found itself at the center of a regulatory storm as the Securities and Exchange Commission (SEC) imposed a fine of $1.75 million on the <\/span>Spot Bitcoin ETF<\/span><\/a> issuer. As per a post on X, this move by the SEC has triggered significant discussions in both the financial and cryptocurrency communities.<\/span><\/p>\n

Spot Bitcoin ETF: VanEck\u2019s Offence<\/strong><\/h2>\n

Per the regulator, VanEck refused to disclose its social media influencer\u2019s (Dave Portnoy) role in the launch of its new ETF.<\/p>\n

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According to the SEC\u2019s order, VanEck associates launched the VanEck Social Sentiment ETF in 2021, to track an index based on positive insights. Following the launch, a social media influencer was employed and a proposed licensing fee was structured.<\/span><\/p>\n

However, the SEC\u2019s order discovered that VanEck associates failed to disclose the influencer\u2019s plans and the fee structure to the ETF board, with the approval of the fund launched and the management fee. Another issue raised by the SEC was the lack of effective surveillance and oversight mechanisms in the spot Bitcoin market.<\/span><\/p>\n

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SEC is making VanEck pay a $1.75m fine bc they didn\u2019t disclose to fund board that \u201cwell-known and controversial\u201d social media influencer Dave Portnoy was getting paid by the index co on sliding scale in order to help incentivize promotion of their ETF $BUZZ<\/a> pic.twitter.com\/C9Ke2bgbWM<\/a><\/p>\n

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\u2014 Eric Balchunas (@EricBalchunas) February 16, 2024<\/a><\/p>\n<\/blockquote>\n

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Without adequate safeguards in place, the SEC argued that investors could be exposed to undue risks and uncertainties, undermining the integrity of the financial markets. VanEck\u2019s failure to address these concerns adequately led to the SEC\u2019s decision to levy a significant fine. Notably, the SEC\u2019s decision signals its commitment to enforcing strict compliance standards in the burgeoning cryptocurrency space.<\/span><\/p>\n

Fines for Crimes in Crypto<\/strong><\/h2>\n

Undoubtedly, regulatory bodies\u2019 growing attention to crypto-based financial products has not stopped. Early this month, Florida-based financial services provider TradeStation Crypto, Inc. announced its <\/span>settlement with the SEC<\/span><\/a> and state regulator by paying $3 million for the unlawful sale of unregistered crypto-lending products.<\/span><\/p>\n

Likewise, in November 2023, the U.S. Justice Department <\/span>proposed a $4 billion penalty<\/span><\/a> in the Binance crypto investigation. Binance has been under investigation since 2018.\u00a0<\/span><\/p>\n

<\/p>\n

Significantly, the focus has been on its compliance with anti-money laundering regulations. The resolution of this case, particularly with a penalty as substantial as $4 billion set a precedent in the cryptocurrency sector that now serves as a major caution to investors.\u00a0<\/span><\/p>\n

As of late, the financial regulator has been making a concentrated effort to address what it sees as a lack of compliance on the side of cryptocurrency platforms and the intermediaries that work with them.<\/span><\/p>\n

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter<\/a>, Linkedin<\/a> <\/p><\/div>\n<\/p><\/div>\n

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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.<\/p>\n<\/div><\/div>\n<\/p><\/div>\n

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–><\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

VanEck, a key player in the financial sector, recently found itself at the center of a regulatory storm as the Securities and Exchange Commission (SEC) imposed a fine of $1.75 million on the Spot Bitcoin ETF issuer. As per a post on X, this move by the SEC has triggered significant discussions in both the […]<\/p>\n","protected":false},"author":2,"featured_media":183300,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[173],"tags":[201,248,251,246,257,255,250,252,247,253,249,256,254],"class_list":["post-248774","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-others","tag-blockchain","tag-bsc","tag-chainlink","tag-coin","tag-cryptocurrency","tag-gta","tag-looks-rare","tag-oracle","tag-polygon","tag-quickswap","tag-safe-moon","tag-wallet","tag-wordpress"],"_links":{"self":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/248774","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/comments?post=248774"}],"version-history":[{"count":2,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/248774\/revisions"}],"predecessor-version":[{"id":248776,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/posts\/248774\/revisions\/248776"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media\/183300"}],"wp:attachment":[{"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/media?parent=248774"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/categories?post=248774"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dripp.zone\/news\/wp-json\/wp\/v2\/tags?post=248774"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}