Binance’s chief executive has shared his company’s future direction and areas of focus following its settlement with U.S. authorities, including the Department of Justice (DOJ). “We have moved past that as the company move into greater maturity,” he insisted, adding that the crypto firm is focusing on “sustainability.” ‘The Direction of Travel Is Very Clear’ […]
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The National Association of Realtors announced a $418 million settlement to end antitrust lawsuits.
The NAR agreed to a new set of rules, which will reset long-held standards on commissions.
Real estate stocks including Zillow and Redfin fell Friday after the announcement.
Shares of real estate companies plunged on Friday following an announcement from the National Association of Realtors that resolves a lawsuit with home-selling groups and effectively nixes the standard 6% commission for home purchases.
In a landmark case, the NAR — which represents over one million real estate agents in the US — said it would pay $418 million over four years to settle with home sellers and rewrite certain business rules for brokers and agents.
“NAR has worked hard for years to resolve this litigation in a manner that benefits our members and American consumers. It has always been our goal to preserve consumer choice and protect our members to the greatest extent possible. This settlement achieves both of those goals,” Nykia Wright, interim CEO of NAR, said in a statement.
Investors sold shares of public real estate listing sites and brokerages on Friday following the news:
In a case the NAR had said it would appeal, a jury found the group liable for $1.8 billion in damages for conspiring to keep commissions artificially high for agents. Other brokerages have since settled.
Critics of the commission model in home purchases have said it makes property prices more expensive.
As part of the settlement, the NAR has agreed to prevent sellers’ brokers from determining the compensation for buyers’ agents. The Realtor group also agreed to end requirements for brokers to use multiple listing services, and moving forward will require multiple listing services participants to enter written agreements with buyers.
Taken together the changes will rewrite the longstanding real estate business model which had sellers pay their broker and the buyer’s broker.
“While the settlement comes at a significant cost, we believe the benefits it will provide to our industry are worth that cost,” Kevin Sears, president of the NAR, said in a statement.
Read the original article on Business Insider
Core Blockchain development company ARAX and bond issuer Longevity Capital Company (LCC) have partnered to introduce a blockchain-based solution for the life insurance settlement investment sector.
Aiming to redefine the life settlement bond market, ARAX and LCC have unveiled a collaboration that has led to the creation of a tokenized fractional life settlement bond platform, aiming to enhance transparency and democratize access to what has traditionally been an investment avenue for large institutional investors.
Life settlements are financial arrangements where the owner of a life insurance policy sells it to a specialized buyer (often a company or investor) for a lump sum payment. This provides the seller with immediate cash, while the buyer assumes responsibility for future premiums and receives the death benefit when the insured person passes away.
The two companies will form VERAT, an equally owned platform designed to revolutionize the life settlement industry. It aims to provide solutions for banks, insurance companies, investment fund managers, and individuals seeking investment opportunities in life settlement bonds. It will use Core blockchain to turn life settlement bonds into smaller, tradeable tokens, making them more accessible to investors. The platform uses advanced analytics to provide up-to-the-minute valuations of life settlement assets, leading to better investment decisions.
VERAT will reportedly offer a fully transparent and compliant platform, integrating features like digital identity verification (CorePass) and regulatory technology (Core RegTech) to guarantee that users abide by rules and regulations.
CorePass will streamline digital identity verification, simplifying compliance with Know-Your-Customer (KYC) and Anti-Money Laundering (AML) regulations. Moreover, the Ping Exchange will efficiently trade tokenized bonds, while Core Digital Asset Management & Digital Attribute Platforms will enhance asset tracking and analytics.
According to a statement shared with CryptoSlate, the VERAT platform is its promise of democratized access to life settlement bond investments. By utilizing tokenization, the platform lowers investment thresholds, allowing individual and smaller-scale investors to participate in an asset class that was previously out of reach. This shift increases market liquidity and fosters a more inclusive investment landscape.
The VERAT initiative presents significant advantages for the life settlement industry. Tokenization lowers investment barriers and enhances liquidity by making it possible to purchase fractions of bonds. Real-time valuations empower data-driven decision-making, while streamlined compliance procedures and reduced overhead costs add further appeal for investors.
As ARAX and LCC continue to develop the platform, they stand poised to disrupt the life settlement investment landscape. By harnessing the potential of blockchain technology, VERAT seeks to establish a more transparent, accessible, and efficient financial ecosystem for all types of investors.
Disclaimer: Core Decentralized Technologies advertises on CryptoSlate coins pages.
In an agreement with the New York Department of Financial Services (NYDFS), the Winklevoss-led cryptocurrency exchange Gemini has committed to returning over $1 billion to its customers. The settlement, which also includes a $37 million fine, comes as a significant development for the exchange amidst several ongoing legal challenges with big-name crypto firms and heightened […]
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ENS Labs has shared a $300,000 settlement offer from Manifold Finance to resolve a contentious dispute over the eth.link domain name with the decentralized autonomous organization (DAO) governing the platform.
The settlement offer includes confidentiality and non-disparagement clauses, according to the Feb. 13 proposal.
The legal contention began in August 2022 after the domain, crucial for Ethereum network users to access ENS names via web browsers, was unexpectedly sold and subsequently auctioned.
The heart of the dispute traces back to the unexpected transfer and auction of the eth.link domain, a vital resource for the Ethereum community’s access to Ethereum Name Service (ENS) names via web browsers.
Originally under the stewardship of ENS Labs, the domain was inadvertently sold, leading to a complex legal challenge spearheaded by ENS Labs to reclaim control.
A preliminary injunction by a federal district court in Phoenix, Arizona, temporarily resolved the issue by ordering the return of the domain to ENS Labs. However, the broader legal battle has continued, with substantial financial and operational implications for all parties involved.
ENS Labs, which has shouldered legal expenses amounting to approximately $750,000, is now seeking guidance from its DAO — which fully took control two months ago — on how to proceed.
The options laid before the DAO include accepting the settlement offer, negotiating a compromise, continuing with the litigation, or dismissing the case altogether.
The DAO is considering whether to accept the settlement offer, engage in further negotiations for a potentially different outcome, continue the litigation, or dismiss the case, which would risk losing the eth.link domain.
The settlement proposal has sparked a discussion within the ENS community, with members expressing various viewpoints on the best course of action.
Some advocate accepting the settlement to avoid further legal expenses and secure the domain’s future. Meanwhile, others propose continued litigation, emphasizing the importance of the domain to the Ethereum community and seeking to set a precedent for similar disputes in the future.
Aside from deciding on the course of action regarding the settlement, the ENS community is also considering a vote to reimburse ENS Labs for the legal fees incurred during this dispute.
This aspect of the case illustrates the significant financial toll that legal battles can have on entities operating in the blockchain space, underscoring the importance of effective dispute resolution mechanisms and community support in navigating these challenges.
BarnBridge DAO, a decentralized finance (DeFi) platform and its founders have agreed to a $1.7 million settlement with the Securities and Exchange Commission (SEC) for the unregistered offer and sale of their structured crypto asset securities, known as SMART Yield bonds.
The SEC announced the settlement, which includes a cease and desist clause preventing further sales of the crypto bonds, on Dec. 22.
The case reflects the watchdog’s ongoing scrutiny of DAOs in the evolving crypto market, emphasizing legal compliance irrespective of decentralized or autonomous structures.
Founded in 2019, BarnBridge DAO emerged as a novel player in the DeFi space, aiming to mitigate risks associated with yield sensitivity and asset price volatility in cryptocurrency.
BarnBridge operates as a decentralized organization, meaning it lacks a central authority, and makes decisions through a voting system on the Ethereum blockchain using the BOND governance token.
The SEC started an investigation into BarnBridge DAO’s practices in July. This probe was triggered by the extensive marketing of SMART Yield bonds, which, upon examination, were found to be in non-compliance with securities registration requirements.
The bonds, likened to asset-backed securities, were broadly marketed to the public, including through social media platforms. Founders Tyler Ward and Troy Murray had actively promoted the investment potential of these bonds on various YouTube channels.
The DAO’s attorney Douglas Park disclosed the watchdog’s probe into BarnBridge’s activities to members the same month and advised them to halt product development and compensation.
Subsequently, a critical voting process was initiated within the DAO to decide on compliance with the SEC’s orders, including disgorgement payments and token distribution.
The BarnBridge case is a part of the SEC’s broader regulatory focus on the crypto sector, especially DAOs, highlighting the importance of legal compliance in the rapidly evolving market.
SEC Director of Enforcement Gurbir S. Grewal emphasized that blockchain technology does not exempt organizations from securities laws. The settlement serves as a crucial reminder to entities in the crypto market of their obligations under these laws, regardless of their structure or technological foundations.
The BarnBridge case serves as a pivotal moment in regulatory oversight in the world of cryptocurrency, particularly for Decentralized Finance (DeFi) projects. It emphasizes the importance of compliance with regulatory laws and maintaining transparency in this complex and rapidly evolving sector.
30As negotiations between Binance and U.S. authorities over legal violations came to a head in September, select high-value traders got an inside look at what was to come, according to new reporting from Bloomberg.
According to unnamed attendees of a Binance-hosted dinner in Singapore, company representatives suggested to VIP traders that Binance would likely pay around $4 billion to settle and survive its legal troubles with the Department of Justice. These personnel allegedly suggested the firm could afford to pay the penalty.
Binance has disputed these characterizations of the event but declined to clarify further.
In November, just two months later, Binance CEO Changpeng Zhao entered a guilty plea in a U.S. federal court for charges related to money laundering. Zhao stepped down as CEO as part of his plea agreement, while the company was fined $4.3 billion.
According to the U.S. Department of Justice (DOJ), Binance committed numerous financial crimes over the years, including failing to register as a money transmitter despite significant U.S. operations. It further alleged that Binance violated sanctions requirements, anti-money laundering rules, and know-your-customer protocols. Though Binance claimed to block U.S. users in 2019, the DOJ said it secretly kept providing services to critical high-net-worth traders.
The $4.3 billion settlement with the DOJ closes just one chapter of Binance’s ongoing legal saga. The Securities and Exchange Commission has filed separate charges against Binance, its U.S. affiliate BAM Trading, and founder Changpeng Zhao. The SEC alleges that Binance and its U.S. affiliate, BAM Trading, operated unregistered exchanges, broker-dealers, and clearing agencies while selling unregistered securities, including the BNB token and stablecoin BUSD, among other violations.
Zhao was succeeded as CEO by Richard Teng, who has held a number of leadership roles in the Binance organization since 2021. In a letter to VIP clients, incoming Teng expressed plans to deepen relationships as Binance enters its “best days” ahead. However, with some lawsuits still pending, storm clouds remain on the horizon.
Genesis Global and its parent company, Digital Currency Group (DCG), are closing in on a settlement agreement, according to a Nov. 28 court filing.
The filing includes an amended settlement plan that both companies have agreed on and urged other stakeholders to vote in favor.
In a complex bankruptcy case, Genesis Global had previously filed a lawsuit against DCG, seeking redress for allegedly wrongful control over loans amounting to more than $600 million. The new settlement plan, if finalized, would mark a pivotal turn in the case, potentially averting a protracted legal battle.
According to the latest bankruptcy filing, DCG has already settled a portion of its debt to Genesis Global, amounting to roughly $227.3 million.
The proposed settlement outlines further payments from DCG, totaling an additional $275 million, to be paid in a combination of U.S. dollars and Bitcoin. These payments are scheduled to be completed by April 2024 in several installments.
An intriguing aspect of the deal includes a $35 million initial payment alongside a $10 million reserve from the recent divestiture of CoinDesk. Additionally, shares from Grayscale Bitcoin Trust are being earmarked as collateral, adding another layer of security to the agreement.
While the proposed settlement falls short of covering the total debt DCG owes to Genesis Global — roughly $324.5 million — it signifies a strategic move to circumvent the costs and uncertainties of extended legal proceedings. Both parties seem poised to benefit from this arrangement, as it offers a more immediate resolution and minimizes potential legal expenses.
Alongside this litigation, the companies are also facing legal action from the New York District Attorney General over allegations of fraud. If finalized, a swift settlement would allow the companies to focus on defending the government’s lawsuit.
As part of the agreement, Voyager will be “permanently restrained and enjoined” from marketing or providing products or services related to digital assets.
On Tuesday, November 28, the federal judge approved an order requiring crypto lending firm Voyager Digital and its affiliates to pay $1.65 billion in monetary relief to the United States Federal Trade Commission (FTC).
In a November 28 filing in US District Court for the Southern District of New York, Judge Gregory Woods ordered Voyager to pay $1.65 billion following a settlement between the lending firm and the FTC announced in October.
As part of the agreement, Voyager will be “permanently restrained and enjoined” from marketing or providing products or services related to digital assets.
Judge Woods stated that the recently approved order is unlikely to significantly impact proceedings in the bankruptcy court. Voyager sought Chapter 11 protection in July 2022, revealing liabilities ranging from $1 billion to $10 billion. In May, the court greenlit a plan enabling Voyager users to receive an initial 35.72% of their claims from the lending firm.
As part of the settlement, entities linked to Voyager need to collaborate with FTC officials, participating in hearings, trials, and discovery processes. Voyager must also provide compliance reports after a year, subject to monitoring by the commission.
In October, both the US Commodity Futures Trading Commission (CFTC) and the FTC filed simultaneous lawsuits against former Voyager CEO Stephen Ehrlich, alleging misleading statements about the use and safety of customer funds. Ehrlich, at the time, also contended that Voyager’s team had consistently communicated and collaborated closely with regulators, largely refuting the allegations.
Furthermore, in a separate case in July, the FTC ordered crypto lending company Celsius to pay $4.7 billion in fees, accusing the co-founders of misappropriating user assets and providing misleading information to investors about the platform’s services. Former Celsius CEO Alex Mashinsky, arrested by US officials, remains free on bail until his trial, scheduled to commence in September 2024.
In another development, Digital Currency Group (DCG) has reached a new repayment agreement with its bankrupt subsidiary, Genesis Global Holdco LLC, as part of a resolution to a lawsuit seeking approximately $620 million from DCG.
During a Tuesday hearing, Genesis lawyer Sean O’Neal stated that the deal is expected to provide the bankrupt cryptocurrency lender with around $200 million in value over the next few weeks. The agreement stipulates that DCG must fulfill outstanding payments by April 2024, and in the event of a default, Genesis retains the right to pursue the collection of any unpaid amount, according to court documents.
The proposed agreement aims to settle a lawsuit initiated by Genesis in September, seeking to recover outstanding loans from its parent company. Despite DCG making payments to Genesis since the lawsuit’s filing, court documents indicate that, as of Nov. 28, DCG still owes its subsidiary $324.5 million.
Genesis has expressed that the agreement will prevent lengthy and costly litigation with its parent company, ensuring that the bankrupt crypto lender receives partial repayment of its owed amount. However, O’Neal clarified that the deal does not address other disputes between Genesis and DCG related to the resolution of Genesis’s bankruptcy.
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