Monthly Archives: März 2023

SVB Collapse Sparks DOJ, SEC Investigations; Shareholders Sue

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• SVB Financial Group, the parent company of Silicon Valley Bank, and two senior executives have been sued by shareholders over the bank’s collapse last Friday.
• The proposed class action accuses SVB of hiding the fact that interest rate hikes could lead to its failure.
• Anonymous sources say the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) are both investigating SVB’s collapse, which includes stock sales by senior executives.

Silicon Valley Bank Collapse

The sudden collapse of Silicon Valley Bank on Friday has sparked an investigation by federal agencies, as well as a lawsuit from shareholders against SVB Financial Group—the parent company of Silicon Valley Bank—and two senior executives: CEO Greg Becker and CFO Daniel Beck.

Shareholders‘ Lawsuit

The proposed class action lawsuit accuses SVB of hiding the potential harm that rising interest rates could cause to the now-failed financial institution from its investors. Filed in federal court in San Jose, California, it seeks unspecified damages for shareholders and is led by Chandra Vanipenta.

Investigations By Federal Agencies

According to an anonymous source who spoke with the Wall Street Journal, both the U.S. Department of Justice (DOJ) and Securities and Exchange Commission (SEC) are conducting separate investigations into SVB’s collapse—including looking into stock sales made by senior executives prior to its failure. The DOJ’s investigation involves prosecutors in San Francisco and Washington D.C., according to the same source.

FDIC Receivership & Reimbursement

On Sunday, the U.S Federal Reserve, FDIC, and Treasury announced that all depositors would be reimbursed after FDIC placed SVB into receivership on Friday then converted it into a bridge bank under their control on Monday–opening it up for depositors again immediately afterwards.

Conclusion

While these investigations are still ongoing, all depositors have been granted reimbursement thanks to government intervention via FDIC receivership–allowing them access once more to their accounts just three days after Silicon Valley Bank failed suddenly last week

Putin Urged to Help Crypto Industry Grow in Russia

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• The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib) has asked the President of Russia Vladimir Putin to back the crypto community in shaping the country’s regulatory framework for cryptocurrencies and related technologies.
• Racib warned that if Russia continues its conservative approach towards new financial technologies, it risks lagging behind other nations.
• Racib suggested establishing a working group to prepare a pilot project for the introduction of digital financial technologies, including in cross-border payments relevant for Russia amid sanctions.

Russian Crypto Industry Asks Putin For Help

The Russian Association of Cryptoeconomics, Artificial Intelligence and Blockchain (Racib) has called on President of Russia Vladimir Putin to back the crypto community in shaping the country’s regulatory framework for cryptocurrencies and related technologies.

Regulatory Efforts Needed To Avoid Falling Behind Other Nations

In a letter to the Russian head of state, its members warn that the government’s attitude towards digital asset regulation poses „serious risks of the economy lagging behind in the introduction of new financial technologies,“ according to reports from Bits.media and RBC Crypto. The organization believes that this „extremely conservative and prohibitive approach“ may cause Russia to lose pace in the development of the digital economy.

Pilot Project Suggested To Introduce Digital Financial Technologies

Racib suggested establishing a working group to prepare a pilot project for the introduction of digital financial technologies, including in cross-border payments relevant for Russia amid sanctions. They also suggest calling a meeting with IT associations regarding new legislation and experimental legal regimes for fintechs which are not currently used in reality.

Sanctions Are A Concern For Cross-Border Payments

The proposed amendments to existing law make it difficult to implement digital technologies due to current sanctions against Russia by other nations. This could deprive both businesses based within Russia as well as those who exchange goods with them from taking advantage of potential opportunities presented by new financial instruments such as cryptocurrencies or blockchain technology since they would need access outside sanctioned countries.

Crypto Community Hoping For Help From Putin

The letter was co-authored by non-profit partnership Russoft and asks President Putin directly for help as he had previously met with IT associations about similar matters back in 2019 during discussions about new legislation.. With their plea, Racib hopes that their request will be taken seriously by Putin so that businesses within their industry can remain competitive compared to other nations which have adopted more lenient regulations regarding cryptocurrency technology or blockchain applications .

Zim Blockchain Startups Move Funds Across Borders Efficiently

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• Two Zimbabwean startups, Flexid and Uhuru Wallet, have launched a platform offering digital identity and remittance services to migrants living and working in South Africa.
• The platform harnesses the benefits of blockchain technology to provide a streamlined and secure remittance experience for immigrants.
• By leveraging blockchain, the platform hopes to overcome challenges such as high sending fees, limited access to formal financial services, and identity verification issues.

Zimbabwean Blockchain Startups Launch Remittance Platform

Two Zimbabwean blockchain startups – FlexID and Uhuru Wallet – recently announced they have launched a combined digital identity and remittance service platform for Zimbabwean immigrants in South Africa. The two companies hailed this as the “first cross-chain collaboration between the two companies”.

Harnessing Benefits of Blockchain Technology

The FlexID platform is built on Algorand blockchain while Uhuru Wallet is built on Stellar blockchain. This joint solution will enable users to benefit from a more streamlined and secure remittance experience compared with other traditional money transfer options. According Trust Jakarasi, CEO & founder of Uhuru Wallet: “We are excited to partner with FlexID to offer our customers a more streamlined and secure remittance experience”.

Challenges Faced by Migrants

Currently, it costs anywhere between 5% – 20% for Zimbabweans living in South Africa to send money back home using registered money transfer agencies such as Western Union or MoneyGram. This has forced many Zimbabweans into using unregistered platforms or couriers which often lack security features or are unreliable.

Overcoming Challenges with Blockchain

By leveraging blockchain technology, Flex ID aims to provide users with an efficient way to verify their identity so that they can access financial services no matter where they are located. This will enable them to bypass high sending fees associated with traditional methods of sending money back home whilst also having access to formal financial services regardless of their geographical location or current economic standing.

Conclusion

The new partnership between FlexID & Uhuru Wallet hopes to bring much needed relief to Zimbabwean immigrants who struggle with financial challenges when trying send money back home efficiently & securely at minimal cost possible. By leveraging the advantages of distributed ledger technology (DLT), this joint venture seeks revolutionize how African migrant workers interact with global finance networks across borders through its innovative tech-driven solutions powered by blockchain technology