Ponzi & Scams
By Sydney TheCMO
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FINRA, the FBI, and $11 Billion in Losses. The figures they present are hard to ignore. FINRA has already warned that cryptocurrencies have…
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The Trump Family and Its $5 Billion in Crypto. Trump's sons manage the family's crypto ventures. Since launching their digital currency, they…
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Bernie Sanders and Elizabeth Warren have stepped in. The two Democratic senators are urging the Department of Labor to scrap a rule that would open 401(k) retirement accounts to…
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The rule in question was proposed in March. It would allow 401(k) plan managers to offer volatile assets — with cryptocurrencies at the forefront — provided they can demonstrate…
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Sanders, Warren, and Bobby Scott — a member of the House Education and Labor Committee — have laid all this out in a 14-page letter addressed to Keith Sonderling, acting…
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The figures they present are hard to ignore. FINRA has already warned that cryptocurrencies have experienced volatility levels far exceeding traditional assets.
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Americans for Financial Reform, a consumer advocacy group, shares these concerns. Oscar Valdés Viera, the organization's lead analyst, warned against the risk of turning workers'…
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And the alleged conflict of interest is the real sticking point.
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Related reading: Bitcoin Falls Below $72,000 as Trump's 'Relax' Fails to Calm Markets
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The Trump administration, however, is defending the rule tooth and nail. Sonderling states that the rule requires managers to follow a prudent evaluation process before offering…
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It's unclear if that will be enough to appease everyone.
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The rule would allow managers to presume they meet prudence standards as long as they follow the described process. For Democrats, this goes against decades of legal precedents.
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See also: WTW Buys Redefind to Cover Crypto Asset Tracing and Legal Recovery Costs
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Consumer groups remain mobilized. So do Democratic lawmakers. Meanwhile, the $14.2 trillion in American 401(k) accounts await to see which direction the Department of Labor will…
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