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Ikigai Fined $150,000 by U.S. Regulator Over Alleged Illicit Bitcoin Loan

99bitcoins99bitcoins2024/08/21 13:21
By:Ruholamin HaqshanasSam Cooling

Crypto fund Ikigai Strategic Partners has been fined $150,000 by the National Futures Association (NFA) in the United States for allegedly engaging in an illicit Bitcoin loan.

According to a decision released by an NFA hearing panel , the allegations center on Ikigai Strategic’s decision to allow one of its operated pools to make a prohibited loan of pool assets to an affiliate owned by the fund’s principal, Anthony Robert Emtman, and another principal.

The loan, reportedly in 2022, involved approximately $2.5 million worth of Bitcoin (BTC) being lent to a cryptocurrency exchange. The exchange remains unnamed in the NFA complaint.

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Ikigai Loan Was Intended to Benefit Another Fund

The loan was allegedly intended to benefit another fund managed by the same individuals who ran Ikigai. At the time of the loan, the fund held about $65 million, or 80% of its assets, on the exchange.

The NFA claims that this loan violated Ikigai’s regulatory obligations and left the firm unable to meet its investors’ redemption requests.

Ikigai Strategic reportedly used Bitcoin as collateral for a $1.3 million line of credit in US Dollar Coin (USDC) extended to a related entity, Ikigai Capital Partners GP LLC. Ikigai and its principal operator agreed to the $150,000 fine without admitting or denying the accusations.

Ikigai Strategic Partners LLC, a commodity pool operator located in Rio Grande, Puerto Rico, has been fined $150,000 by the National Futures Association (NFA) due to various violations related to their management of Bitcoin operations. Here's a breakdown of the situation: The NFA… pic.twitter.com/1GFPH8iSpB

— Vanquish Adept (@VanquishAdept) August 20, 2024

It is worth noting that the fine is part of the broader fallout from the liquidity crisis that swept the cryptocurrency industry following the collapse of the crypto exchange FTX in 2022.

The NFA, which plays a crucial role in regulating the U.S. derivatives market, has also increasingly been involved in overseeing activities in the spot cryptocurrency markets.

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US Crypto Legislation Could Come By Year-End

Last week, Senate Majority Leader Chuck Schumer expressed optimism about the possibility of passing a bipartisan crypto regulation bill by the end of the year.

His remarks came on 14 August 2024 during a virtual town hall event aimed at fundraising for Vice President Kamala Harris’s presidential campaign.

“Passing legislation this year is absolutely possible, even in these divided times,” Schumer  said during the event . The remarks come as the cryptocurrency industry has long been caught in a state of legislative uncertainty in the US.

The event, dubbed “Crypto4Harris,” saw participation from notable figures, including billionaire Mark Cuban, New York Senator Kirsten Gillibrand, and Michigan Senator Debbie Stabenow, who chairs the Senate Agriculture Committee.

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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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