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CyberRating Agency PayRate42 Downgrades FCA-Regulated Payment Processor To Orange Compliance

Alex PayRate42
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CyberRating Agency PayRate42 Downgrades FCA-Regulated Payment Processor To Orange Compliance

PayRate42, a leading authority in rating payment processors in the CyberFinance space, announces the downgrade of PayDo, the trading name of the FCA-regulated e-Money Institution Ecommerce Technologies Ltd and FinTRAC-registered PayDo Canada Ltd., due to compliance issues. Founded in 2016, PayDo offers IBAN accounts, e-wallets, and merchant services under regulatory oversight.

Offering a range of financial services, PayDo caters to both low-risk and high-risk merchants, with varying fee structures. Despite its FCA regulation, PayDo’s involvement with the offshore crypto casino Gamdom has raised red flags in terms of compliance.

PayDo, along with its counterpart PayOp, has been implicated in facilitating payments for Gamdom, which lacks proper regulatory approval in the European Economic Area (EEA). This partnership underscores serious compliance concerns, as it involves processing payments for gambling activities targeting players from jurisdictions without regulatory approval.

While this facilitation of crypto casinos may be strategic and perhaps secured by special structures, we have doubts as to whether this poses problems for players. On the one hand, we see significant problems with the enforcement of chargebacks from the players of the facilitated casinos. Officially, Gamdom players buy the Gamdom Coin via PayOp and PayDo, which they can then use to play on Gamdom.

In our experience, this multilateral relationship between the customer and the (crypto) casino and the supporting payment facilitators makes it difficult or impossible to enforce chargeback claims in the crypto environment. This is a potential problem that can be particularly serious in the sensitive casino and online sector.

Under the oversight of Ecommerce Technologies LTD and Paydo Canada LTD, PayDo’s involvement with Gamdom highlights potential regulatory risks associated with payment processors collaborating with unlicensed gambling operators.

The downgrade to ORANGE reflects our concerts about the fact that PayDo is involved with unauthorized activities of offshore crypto casinos. Regulators are urged to review such partnerships to ensure adherence to international regulations and prevent unauthorized gambling activities from exploiting regulatory loopholes.

About PayRate42

PayRate42 is a rating agency specializing in payment processors. Our main goal is to protect merchants and consumers by providing transparency through the evaluation and rating of financial service providers. High-Risk Payment Processors (HRPP) operating outside the established regulatory framework are our primary focus.

Wirecard Crown Witness Oliver Bellenhaus Released From Prison!

Alex PayRate42
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0
Wirecard Crown Witness Oliver Bellenhaus Released From Prison!

In a narrative reminiscent of a corporate thriller, Munich’s legal stage has unveiled a plot twist worthy of a standing ovation: Oliver Bellenhaus, Wirecard’s former Dubai manager turned star witness, has been released from jail. This unexpected development leaves Markus Braun, Wirecard’s former CEO, as the sole executive still behind bars, underscoring the strategic value of cooperation in the face of legal scrutiny.

Oliver Bellenhaus, a central figure in Wirecard’s dramatic downfall in 2020, seemingly embraced the adage “if you can’t beat them, join them.” Following Wirecard’s collapse, he voluntarily surrendered to Munich authorities, positioning himself as a pivotal witness for the prosecution. While Braun and others face allegations of fraud, Bellenhaus’s cooperation has evidently earned him favor with the Munich judiciary.

The court’s decision to release Bellenhaus serves as a dramatic twist, leaving observers stunned. It signals that in the theater of justice, collaborating with prosecutors can yield significant benefits. Meanwhile, Braun maintains his innocence, casting doubt on Bellenhaus’s testimony. Braun’s lawyer, Alfred Dierlamm, bluntly criticized the release as a “dirty deal done behind closed doors.”

Bellenhaus’s narrative portrays Wirecard’s Asian operations as a facade orchestrated by Braun to deceive auditors and stakeholders. In contrast, Braun contends that the operations were legitimate, accusing Bellenhaus of profiting from the scheme.

As this chapter of the Wirecard saga draws to a close, the once-prominent figure in the German tech scene stands exposed after €1.9 billion in corporate funds evaporated into thin air. The ongoing trial in Munich promises continued intrigue and suspense for audiences.

To prevent Bellenhaus from exiting the stage prematurely, the court has imposed strict measures, including confiscating his passports and prohibiting communication with other actors or potential witnesses.

The court’s press release noted Bellenhaus’s extensive confession and financial contribution to Wirecard’s administrator, aimed at rectifying the financial damage caused by the fraud. However, Braun remains under scrutiny, perceived as a flight risk and potential interference in the legal proceedings.

In the unfolding drama of the Wirecard scandal, cooperation with authorities emerges as a pathway to liberty, leaving spectators eagerly anticipating the final act and the fate of the remaining players.

Tucker Carlson to Interview Putin: A Controversial Move Amidst Global Tensions

Alex PayRate42
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0
Tucker Carlson to Interview Putin: A Controversial Move Amidst Global Tensions

Former Fox News host Tucker Carlson has announced his upcoming interview with Russian President Vladimir Putin, marking the first time a member of the Western media will sit down with the Russian leader since Russia’s invasion of Ukraine nearly two years ago.

In a video posted on social media platform X from Moscow, Carlson expressed his belief that Americans deserve to understand the motivations behind Putin’s actions in Ukraine and their implications on global politics. He emphasized the importance of shedding light on the conflict, stating, “Most Americans have no idea why Putin invaded Ukraine or what his goals are now… we have the right to tell them about it.”

Carlson’s decision to conduct this interview comes amidst his departure from Fox News in 2023 following the network’s multi-million-dollar settlement with Dominion Voting Systems. Throughout his career, Carlson has been known for his controversial statements and unapologetic criticism of mainstream media narratives.

His previous comments regarding Putin and the conflict in Ukraine have stirred controversy, with Carlson questioning U.S. support for Ukraine and falsely characterizing Ukrainian President Volodymyr Zelenskyy as an authoritarian leader.

In 2017, Carlson drew criticism for downplaying Putin’s actions, stating, “Why is Vladimir Putin such a bad guy? He’s not Saddam Hussein, he’s not Adolf Hitler, he’s not a danger to the United States.”

Furthermore, Carlson’s assertions about President Zelenskyy have been refuted by numerous analysts and experts. Despite this, Carlson has persisted in his criticism of U.S. involvement in the region, framing it as unnecessary and potentially detrimental to American interests.

The upcoming interview with Putin is expected to generate significant attention and controversy. It will be released on both X and TuckerCarlson.com, a media startup founded by Carlson after his departure from Fox News.

While some may view Carlson’s interview as a bold attempt to provide alternative perspectives on geopolitical issues, others may criticize it as providing a platform for Putin’s propaganda. As tensions between Russia and the West continue to escalate, Carlson’s interview will undoubtedly spark debate and scrutiny from both supporters and detractors alike.

Top 5 Payment Stories You Missed in January 2024

Alex PayRate42
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0
Top 5 Payment Stories You Missed in January 2024

Fintech enthusiasts, brace yourselves for a recap of the most significant payment stories that unfolded in the dynamic world of financial technology throughout January 2024. From HSBC’s bold entry into the global currency conversion market to Apple’s response to antitrust charges, here’s a roundup of the top five stories you might have missed.

  1. HSBC Launches Zing to Challenge Wise

In a surprising move, HSBC kicked off the new year by introducing its global currency conversion app, Zing, positioning itself as a direct competitor to the popular Wise. Zing comes equipped with an accompanying card and commenced its rollout in the UK, with plans for further expansion worldwide. Notably, Zing gained an early advantage by boasting a fee-free model, a feature that Wise found itself unable to match when renewing its criticism of high street banks later in the month.

  1. Apple Opens Up NFC Payments Amid Antitrust Charges

Responding to antitrust charges from the European Commission dating back to 2022, Apple made a significant concession by opening up its NFC payments for third-party providers. This move aimed to fend off potential billion-dollar fines. However, Apple’s troubles are far from over, as they now face an antitrust class action lawsuit in the US from card issuers. The Consumer Financial Protection Bureau (CFPB) has also taken a stance against Apple’s NFC policy, adding another layer of complexity to the tech giant’s legal battles.

  1. Big Tech Firms Challenge CFPB’s Digital Wallets Regulation

The Computer & Communications Industry Association (CCIA), representing the interests of major Big Tech firms, pushed back against the Consumer Financial Protection Bureau’s (CFPB) proposed rule. The rule suggested subjecting non-bank financial companies, including Google, Apple, PayPal, and Block (operator of CashApp), to the same regulations as large banks and credit unions. CCIA argued that the proposal lacked clarity in identifying specific risks and merely hinted at potential issues arising from new product offerings.

  1. X (Formerly Twitter) Plans Peer-to-Peer Payments

In an ambitious move, X (formerly Twitter) announced its intention to launch peer-to-peer (P2P) payments in 2024. Elon Musk, owner of the company, had previously expressed his vision for X to manage users’ entire financial lives to the extent that traditional bank accounts would become unnecessary. This announcement signifies X’s strategic expansion into the financial services sector, further diversifying its offerings.

  1. Revolut Introduces Mobile Wallets for Cross-Border Payments

Revolut, known for its innovative fintech solutions, launched its Mobile Wallets service, simplifying cross-border payments. Initially limited to UK and European customers sending money to Bangladesh (via bKash) and Kenya (through M-Pesa), the service is expected to expand further. Mobile Wallets users can send remittances efficiently, using recipient IDs such as names along with phone numbers or email addresses.

In the ever-evolving landscape of fintech, these stories highlight the ongoing competition, regulatory challenges, and strategic innovations shaping the industry as we dive into 2024. Stay tuned for more developments in the fast-paced world of digital payments.

Amazon Plans Movie About Bitfinex Money Launderers

Alex PayRate42
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0
Amazon Plans Movie About Bitfinex Money Launderers


Amazon MGM Studios has reportedly initiated the development of a film unraveling the story of a couple allegedly involved in laundering several billion dollars worth of Bitcoin (BTC) following the hack of the cryptocurrency exchange Bitfinex in 2016.

According to a Deadline report on January 26, the Amazon production studio is planning a film titled “Razzlekhan,” centered around Ilya Lichtenstein and Heather Morgan and their role in money laundering on Bitfinex. The screenplay is said to be inspired by a 2022 New York Times article referring to the duo as “Bitcoins Bonnie and Clyde.”

After the hack on Bitfinex in August 2016, which saw approximately 119,754 BTC stolen, Lichtenstein and Morgan allegedly laundered over 94,643 BTC, as stated by the prosecution. This was accomplished through “a series of small, complex transactions across multiple accounts and platforms.” The couple was arrested by U.S. authorities in February 2022, and the seized Bitcoins, valued at around $54 million at the time of confiscation, had already surged to over $3 billion.

In August 2023, as part of a plea deal with the prosecution, Lichtenstein admitted guilt to money laundering conspiracy, while Morgan confessed to money laundering conspiracy and conspiracy to defraud the United States. The planned title of the film, “Razzlekhan,” was Morgan’s nickname as an “irreverent comedic rapper.”

The film portrays the lives of Lichtenstein and Morgan in a dramatized manner, deviating from the trend where characters from the crypto realm are often depicted through documentaries. Following the collapse of FTX and the arrest of former CEO Sam “SBF” Bankman-Fried in 2022, rumors circulated about a documentary exploring the relationship between SBF and former Binance CEO Changpeng Zhao. In 2022, Netflix also released a documentary on the life and death of QuadrigaCX founder Gerald Cotten, whose users were left unable to access millions of dollars worth of cryptocurrencies.

As this captivating narrative unfolds on the big screen, it joins the ranks of crypto-related stories being explored through various cinematic lenses, adding another layer to the dynamic and evolving narrative of the cryptocurrency world.

Celsius to Exit Bankruptcy with $3 Billion Payout

Alex PayRate42
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0
Celsius to Exit Bankruptcy with $3 Billion Payout

Celsius Network, a prominent cryptocurrency company, has embarked on a groundbreaking $3 billion payout as part of its approved strategy to exit bankruptcy. The move follows a New York Judge’s nod in November 2023 for Celsius to implement a comprehensive restructuring plan aimed at repaying customer assets. This ambitious reorganization has received the green light from both the Securities and Exchange Commission (SEC) and the Official Committee of Unsecured Creditors (UCC), ushering in a unique approach involving a new bitcoin mining firm, Ionic Digital.

The Restructuring Plan:

Under the restructuring plan, Celsius creditors are set to receive a diverse mix of crypto, fiat, and common stocks through the newly established Ionic Digital. To oversee operations for the next four years, Celsius has enlisted the expertise of Hut 8, a reputable mining company, through a management agreement.

Members of the Special Committee of the Board of Celsius, David Barse, and Alan Carr, expressed their optimism about the company’s journey from potential demise to its current position. They highlighted various achievements, including securing cryptocurrency assets, settling with preferred shareholders, and successfully auctioning off a reorganizable operating business to transition into a new Bitcoin mining company. Additionally, a litigation trust was established to pursue legal actions against parties that exploited Celsius. Notably, settlements were reached with the Department of Justice (DOJ), SEC, and CFTC.

Ongoing Regulatory Oversight:

Celsius is operating under the vigilant scrutiny of federal and state regulators to ensure secure and timely distributions during the restructuring period. The company has initiated the closure of its mobile and web applications, demonstrating its commitment to a thorough and transparent process.

Key Leadership Changes:

As part of the restructuring, Matt Prusak, Chief Commercial Officer of Hut 8, has been appointed as the CEO of Ionic Digital and will join the majority UCC-appointed Board of Directors. This strategic leadership change is expected to bring valuable insights and expertise to the newly formed entity.

Background and Legal Challenges:

Celsius filed for bankruptcy in July 2022, shortly after revelations that a former executive had cashed out $21 million. The company faced additional setbacks as its CEO, Alex Mashinsky, was sued by the New York Attorney General and arrested for fraud. Mashinsky has pleaded not guilty, and his trial is scheduled for September of this year.

Celsius Network’s bold move to initiate a $3 billion payout as part of its approved bankruptcy exit plan signifies a remarkable turnaround for the company. With regulatory approval secured and strategic partnerships in place, Celsius is navigating complex legal, regulatory, and business challenges to ensure the preservation and distribution of cryptocurrency assets, ultimately benefiting its customers and claim holders. The unfolding developments will be closely monitored, especially as the crypto industry continues to evolve and adapt to changing circumstances.

Trump Fails in Lawsuit Over Sex Party Dossier

Alex PayRate42
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0
Trump Fails in Lawsuit Over Sex Party Dossier


Former US President Donald Trump has faced a setback in a civil lawsuit at the London High Court regarding a dossier alleging his participation in sex parties.

The lawsuit was dismissed today even before the commencement of a full trial, as the judge deemed it had no prospects of success, according to the British news agency PA.

The legal action revolved around a dossier that surfaced in 2017, created by former British intelligence operative Christopher Steele. The dossier cited reports claiming that the Russian intelligence had footage of Trump allegedly participating in orgies in Russia, intending to use it as leverage.

Trump Seeks Damages

Trump consistently denied participating in sex parties in Russia and filed a lawsuit in London against Orbis Business Intelligence, the consulting firm founded by Steele. The 77-year-old former president and potential candidate for the US Republican nomination in the presidential election accused the company of unlawfully using private data and sought damages for the damage to his reputation.

Contention Over Dossier’s Intentions

Trump‘s legal opponents argued that the dossier was never intended for public consumption. They contended that Trump‘s lawsuit should be directed at the website BuzzFeed, which first published the document.

The judge criticized Trump for “letting many years pass” without legally contesting the allegations. The decision marks a blow to Trump‘s attempts to address the reputational damage he claims to have suffered.

The legal battle underscores the intersection of politics, privacy, and media, raising questions about the responsibility of platforms publishing controversial documents and the recourse available to individuals targeted by such materials.

Universal Music Group Artists’ Songs Disappear from TikTok Amid Licensing Dispute

Alex PayRate42
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0
Universal Music Group Artists’ Songs Disappear from TikTok Amid Licensing Dispute

Songs by artists signed to Universal Music Group (UMG) are vanishing from TikTok as the two entities fail to reach a new deal on content licensing. High-profile artists like Taylor Swift and Drake had their music unavailable on TikTok as of Thursday morning, following the expiration of the licensing agreement between UMG and the Chinese tech giant ByteDance-owned platform.

UMG accused TikTok of engaging in bullying and intimidation during contract negotiations, alleging that TikTok proposed compensating artists and songwriters at a significantly lower rate compared to other major social platforms. Furthermore, UMG claimed that TikTok is allowing its platform to be flooded with AI-generated recordings.

In response, TikTok accused UMG of prioritizing its “own greed above the interests of their artists and songwriters.” A UMG spokesperson mentioned to CNBC that, since the licensing agreement expired, “TikTok is now removing the audio.”

TikTok, a platform known for propelling songs, even older ones, to viral status through user-generated videos, has become a significant player in the music industry. However, the debate over the adequacy of payments to artists by TikTok has been ongoing.

UMG highlighted that despite TikTok‘s massive user base and increasing advertising revenue, only 1% of its total revenue comes from the platform. The dispute underscores the broader challenges and negotiations between social media platforms and music labels as they grapple with compensating artists for their content.

As the public spat unfolds, it remains to be seen how the dispute will impact both TikTok‘s content offerings and the relationship between major music labels and social media platforms. TikTok, at the forefront of music discovery and promotion, plays a crucial role in shaping the music industry’s landscape.

India Freezes Paytm Bank Operations Amid Regulatory Concerns

Alex PayRate42
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0
India Freezes Paytm Bank Operations Amid Regulatory Concerns

India’s banking regulator, the Reserve Bank of India (RBI), has suspended significant parts of digital payment giant Paytm‘s business, citing persistent non-compliance and supervisory concerns.

The decision followed warnings to Paytm about questionable dealings between its popular payments app and its less-known banking arm. A technical audit revealed problematic money and data flows between Paytm Payments Bank Ltd. and the broader Paytm universe, causing accounting and supervisory challenges. The regulator expressed worry about management overlap, with the same set of officers overseeing both the bank and the fintech company, raising potential conflicts of interest. Paytm‘s shares plunged 20%, and the RBI ordered the bank arm to halt operations after February 29.

The move poses a significant setback for Paytm and its charismatic founder, Vijay Shekhar Sharma, as they seek sustained profitability and attempt to address regulatory concerns. The company plans to appeal the decision but faces a challenging road ahead to restore regulatory trust.

Cybercriminals Prefer to use Tether than Bitcoin

Alex PayRate42
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0
Cybercriminals Prefer to use Tether than Bitcoin


In recent years, the association of crypto-assets with fraud, terrorism financing, and money laundering has been a prevailing concern. However, recent findings challenge these perceptions. According to a report by Chainalysis, crypto-related criminal activities are on the decline, with illegal transactions accounting for only 0.34% of the total transaction volume in 2023, down from 0.42% the previous year. This indicates a positive trend as the crypto industry continues to mature and establish itself as a legitimate financial ecosystem.

Decrease in Illegal Transactions:

The Chainalysis report highlights a noteworthy reduction in illegal transactions involving cryptocurrencies. In 2023, a total of $24.2 billion was sent to illegal cryptocurrency addresses, marking a significant decrease from the all-time high of $39.6 billion in 2022. Notably, 61.5% of this illegal transaction volume, totaling $14.9 billion, was associated with sanctioned entities, indicating a shift in the nature of crypto-related illicit activities.

Bitcoin’s Changing Landscape:

One of the most intriguing revelations is the diminishing attractiveness of Bitcoin for criminal activities. The report emphasizes a continuous decline in Bitcoin’s status as the preferred cryptocurrency among cybercriminals. While certain illicit activities such as darknet market sales and ransomware payments still predominantly occur in Bitcoin, other activities, including fraud and transactions involving sanctioned entities and jurisdictions, have shifted towards stablecoins.

Stablecoins Emerging as Preferred Vehicles:

The report indicates that only around 25% of all illegal transactions are now conducted using Bitcoin, whereas the majority of illegal activities are facilitated through stablecoins. Stablecoins, with their pegged value to traditional currencies, provide a more stable environment for transactions, reducing the volatility associated with other cryptocurrencies.

Identifying the Popular Stablecoin:

While the Chainalysis report does not specify which stablecoin is favored by cybercriminals, a United Nations (UN) report sheds light on the matter. The controversial stablecoin Tether (USDT) emerges as the preferred vehicle for cybercriminals. Tether, currently circulating approximately $95 billion worldwide and tied to the US dollar, stands out despite challenges faced by other stablecoins like TerraUSD and BinanceUSD.

UN’s Insight on Tether:

According to the UN report, Tether, when transmitted through the TRON blockchain-based payment network, is the “preferred choice for regional cyber fraud operations and money launderers alike due to its stability and the ease, anonymity, and low fees associated with its transactions.” This sheds light on why Tether continues to thrive while other stablecoins face difficulties or regulatory scrutiny.

The evolving landscape of crypto-related criminal activities paints a positive picture for the industry as a whole. The decline in overall illegal transactions and the diminishing appeal of Bitcoin for illicit activities demonstrate the maturation and increased scrutiny of the crypto space. As stablecoins, particularly Tether, gain prominence in facilitating illicit transactions, regulatory efforts and industry stakeholders must work together to ensure the continued integrity and security of the cryptocurrency ecosystem.

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