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Interactive Brokers to pay $38M penalty for violating federal laws

United States’ largest brokerage firm, Interactive Brokers, has been charged by the US SEC for failing to detect and report suspicious transactions. The United States Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Industry Regulatory Authority (FINRA) Commission have settled charges against the broker-dealer. In the settlement, the brokerage […]



United States’ largest brokerage firm, Interactive Brokers, has been charged by the US SEC for failing to detect and report suspicious transactions.

The United States Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Financial Industry Regulatory Authority (FINRA) Commission have settled charges against the broker-dealer. In the settlement, the brokerage firm has agreed to pay penalties to the three regulating bodies.

Interactive Brokers to pay $38 M penalty.

According to the SEC, Interactive Brokers failed to report more than 150 suspicious transactions across a 12-month period. These suspicious activity reports (SARs) could have been used to flag any potential manipulation of microcap securities.

The agency claims that the brokerage firm failed to red flag these transactions and did not properly investigate suspicious activity as required under federal anti-money laundering (AML) laws. 

The SEC stated that the FINRA and the CFTC have announced settlements with the brokerage firm in which the firm has agreed to pay penalties of $15 million and $11.5 million respectively. The firm will also pay $11.5 million in penalties to the SEC raising the total penalty sum to $38 million.

Failure to ensure AML implementation

The CFTC report stated that while Interactive Brokers maintained basic written policies, the company failed to ensure that its AML program was “reasonably equipped” to detect and report suspicious activity.

The brokerage firm had no means to combine and analyze the information generated by various reports to detect patterns of malpractice. As such the company kept overlooking red flags and failed to report them to the regulatory agencies.

The CTFC claimed that the agency uses these SARs to identify manipulation, fraud, and other illegal activities at the earliest stages.


Bitcoin Taps $11K As Altcoins See A Nightmare Week: The Crypto Weekly Market Update



This week was nothing short of exciting. Bitcoin started trading at around $10,300 but was on a positive note throughout the entire time. It increased gradually, without any sharp and somewhat surprising movements, and managed to add about 6.5% to its value.

The cryptocurrency tapped the important psychological and technical resistance at $11,000 but failed to conclusively close above it. Still, Bitcoin regained a serious portion of the total market capitalization as its dominance increased by 2% at one during the week.

This is mostly because most altcoins have been struggling substantially these past seven days. While the top 5 are scoring slight increases in the range between 2% and 5%, a lot of other altcoins are bleeding out heavily.

Chainlink is down about 17%, TRON’s TRX decreased by more than 15%, SNX dropped by more than 20%, and so forth.

More impressively, the popular food-based meme coins are also bleeding heavily. SUSHI is down 30% in a week, KIMCHI crashed 75%, CREAM is down 75%, and the list goes on.

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Elsewhere, the entire industry was taken by a storm yesterday when the largest decentralized exchange, Uniswap, announced its own governance token called UNI. Not only that, but it airdropped a tremendous amount to everyone who used the platform prior to September 1st. The token was immediately listed on Coinbase and Binance, and people managed to sell it for a quick profit and ‘free money.’

Today, however, the token’s price has taken for the skies as it’s currently trading at above $7, which marks an increase upwards of 130% in less than 24 hours.

Market Data

Market Cap: $350B | 24H Vol: $96B | BTC Dominance: 57.3%

BTC: $10,845 (-0.25%) | ETH: $377,49 (-0.95%) | XRP: $0.247(-1.04%)


Pompliano And The US Fed Changed Jim Cramer’s Mind On Bitcoin. The popular host of CNBC’s Mad Money, Jim Cramer, had a talk with Anthony Pompliano where he admitted that his views on Bitcoin have changed. He said that one of the main reasons for that is the US Federal Reserve printing trillions of dollars in a few months.

Uniswap Launches Its Dedicated UNI Token: ETH Gas Prices Soar Again. Uniswap has launched its own governance token called UNI. This had a massive impact on the entire market and especially on Ethereum, as the network fees soared again. In any case, the value for the token has skyrocketed as Binance and Coinbase listed it almost immediately.

NASDAQ-Listed MicroStrategy Buys $175 Million More Worth Of Bitcoin. MicroStrategy, a NASDAQ-listed company, has bought another $175 million worth of Bitcoin. This is the second time the company purchases BTC, and its total holdings now amount to almost half a billion US dollars.

Price of Tomorrow Author Jeff Booth Calls Bitcoin A ‘Must’ And A ‘Lifeboat.’ The author of the popular Price of Tomorrow book said that Bitcoin is a lifeboat and a ‘must’ during economic uncertainties. He is among the latest popular individuals to publicly endorse the primary cryptocurrency for its inherent qualities.

First Official Ethereum 2.0 Proposal For Phase 0, Launch Just Submitted. While the DeFi boom continues to make headlines, the first official proposal for Phase 0 of Ethereum 2.0 was submitted. This marks the first official step to getting the Beacon Chain closer to its launch.

Bakkt ‘Physically Delivered’ Bitcoin Futures Post New All-Time High. Bakkt – the Intercontinental Exchange’s Bitcoin derivatives arm, posted a fresh all-time high this week. The company stated that it clocked almost $150 million in BTC futures volume, which is just shy of 16,000 contracts traded.


This week we have a chart analysis of Bitcoin, Ethereum, Ripple, Binance Coin, and Polkadot – click here for the full price analysis.

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Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.

Cryptocurrency charts by TradingView.


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European Union will introduce crypto-asset regulations by 2024 – a report by Saumil Kohli.



According to the Reuters report, the European Union will introduce new rules within four years to make cross-border payments quicker and cheaper using blockchain and crypto-assets like stablecoins. The European Commission is due to set out its strategy for encouraging greater use of digital finance at a time when 78% of payments in the eurozone are in cash. The commission also wants a rapid shift to “instant” payments, generally as pandemic lockdowns showed the growing role of cashless payments.  

The EU executives will set out new rules for cryptocurrencies. 

The European Union executives will present a draft law to clarify how existing regulations apply to crypto-assets and set out new regimes where there are gaps, the documents said. “By 2024, the EU should put in place a comprehensive framework enabling the uptake of distributed ledger technology (DLT) and crypto-assets in the financial sector,” the documents said. “It should also address the risks associated with these technologies.” Stablecoins came on the policymakers’ agendas last year when Facebook revealed plans for its Libra token. Central banks across countries are now studying whether to launch their own. 

Instant payment systems should become the “new normal” by the end of 2021.

Brussels wants to make it easier to share data within the financial sector to encourage competition and a wider range of services while upholding the principle of “same risk, same rules, same regulation,” the documents say. The bloc should also have rules in place within the next four years to allow new customers to start using financial services quickly once anti-money laundering (AML) and identity checks have been completed, it said. The report further states that the commission will assess the impact of charges levied on consumers for instant payments and make sure that they are no higher than those for regular credit transfers.  


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UNI Token Price Stable Above $5.50 As Negative Funding Rates Rise




The UNI token price remains stable above the $5.50 level after seeing a massive inflow of investments in the past day. The biggest buy-side order outweighed the relative small sell orders from the users that got the 400 tokens after the airdrop as we reported in the altcoin news previously.

The uptrend was further perpetuated by other exchange listings such as Coinbase listing the UNI token, and binance listing the token within a day of the launch. This also gave the retail investors unprecedented access to the token which seems to be helping to offset the instant sell-side pressure which came as a result of the airdrop. It’s also important to note that the funding for the UNI token is giving bulls more fuel to push it higher with the rates sitting at more than $280,000 per year. The huge negative funding rates are also incentivizing traders to open the long positions on the cryptocurrency. The nature of the short positions will reduce the selling pressure that comes from the people that are trading UNI perpetual swaps.

uni token chart
Image Courtesy of DegenSpartan.

At the time of writing, the  UNI token price is sitting at $5.80 which marks a new all-time high for the cryptocurrency that has been climbing slowly higher over the past few days. it’s also important to know that this marks a huge rise from the $1.00 lows that were set shortly after the listing. The lows came above because of the intensity of the initial selling pressure from the users that sold the tokens that were initially airdropped to them.

Source: Uniswap

After the launch, the token garnered listing on a few exchanges including Binance, Coinbase, and FTX. This led to a huge inflow of buying pressure from investors and helped fuel the upswing. The cryptocurrency is trading around the all-time high as the bears are having a hard time making an impact. another factor that could influence the uptrend of the token is the massive negative funding rates for the perpetual swaps of the token. One trader also spoke about this explaining that about 0.1% of the users are paying each other to short the token which is making a strong bull case for the asset:


 “At -0.75% every 8 hours, or -0.0994% every hour, you are being paid 2.2% – 2.4% a day to be long UNI via perps.”

Assuming that this trend will surround the perpetual futures, UNI could rally higher in the upcoming days and weeks.

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