OLA

Jack Dorsey's Block reaches a $40 million settlement with New York regulators over anti-money laundering violations

ChainCatcher news, according to The Block, Jack Dorsey's payment company Block, Inc. has reached a $40 million settlement with New York state financial regulators due to anti-money laundering violations.The consent order released by the New York State Department of Financial Services on Thursday stated that the investigation found that the fintech company, formerly known as Square, "failed to adequately consider the significant risks posed by the scale and complexity of its business" in its anti-money laundering program when providing Bitcoin services through Cash App.Regulators specifically pointed out three major vulnerabilities at Block: a lack of risk-based anti-money laundering controls, insufficient customer due diligence, and lax handling of high-risk Bitcoin transactions that led to a large number of anonymous transactions going unchecked. This is the second time this year that Block has paid a settlement due to anti-money laundering issues. In January, the company paid $80 million to financial regulators in 48 states.A Block spokesperson stated that this settlement marks the resolution of all state-level remittance license matters and emphasized that while the company did not admit to the findings of the investigation, it has invested significant resources to improve the compliance framework of Cash App. Under the agreement, Block must hire an independent monitor to implement corrective actions.

Sun Yuchen: TRON and Huobi HTX will always adhere to industry development, providing a safe haven for the volatile cryptocurrency market

ChainCatcher news, TRON founder, Huobi HTX global advisor, and core supporter of HTX DAO, Sun Yuchen, appeared at the "TRON x HTX DAO 2025 Hong Kong Night." At the event, Sun Yuchen elaborated on his commitment to the development of TRON and Huobi HTX around three keywords: "inheritance, perseverance, and construction." He stated that in the current complex and ever-changing geopolitical and financial environment, regardless of market fluctuations, TRON and Huobi HTX will always adhere to and continue to build, providing a safe haven for the volatile crypto market and leading blockchain towards a more brilliant future.Additionally, combining personal experiences and reflections after appearing on the cover of Forbes, Sun Yuchen shared his views on the industry, emphasizing that practitioners should maintain an attitude of "fear, awe, and respect." He mentioned that since entering the crypto market in 2012, he has always felt like walking on thin ice, deeply aware of the significant responsibility faced with each industry security incident. In the future, great efforts are still needed to maintain awe and respect for the industry to gain acceptance and recognition from the mainstream world.He added that for the past 13 years, including TRON and Huobi HTX, he and his team have always held these three attitudes, tirelessly working to prove the positive significance of cryptocurrency to the world, which has not only sparked countless innovations but also driven numerous builders to create a future far more advanced than traditional finance.Finally, Sun Yuchen pointed out that as the industry scale may expand to $20 trillion or even $200 trillion, its core task is to "keep the accounts clear and ensure security," ensuring the safety of user assets and account clarity.

Sun Yuchen released the "Seven Deadly Sins" of FDT, including violation of fiduciary duty, abuse of client funds, and more

ChainCatcher message, Sun Yuchen published the "Seven Deadly Sins" of First Digital Trust (FDT) on social media, including: violation of fiduciary duty, misuse of client funds, unlicensed investment activities, fraud or theft, false reporting or concealment of information, violation of anti-money laundering (AML) regulations, violation of Hong Kong POBO regulations. The details are as follows:Crime 1: Violation of Fiduciary DutyAccording to the Hong Kong Trust Ordinance (Chapter 29), trustees must act with care, diligence, and loyalty. Misappropriation of client funds violates Section 4 (reasonable care obligation) and the principles of trust. Clearly, FDT will bear liability for compensation and damages in civil litigation.Crime 2: Misuse of Client FundsThe Securities and Futures (Client Money) Rules (Chapter 571) stipulate that custodial funds must not be used for the custodian's own purposes. Client assets must be held in segregated accounts, and unauthorized withdrawals are strictly prohibited. By transferring TUSD funds to ARIA DMCC without proper authorization, FDT faces enforcement actions, including fines, revocation of licenses, or criminal prosecution.Crime 3: Unlicensed Investment ActivitiesAlthough FDT is registered as a Trust or Company Service Provider (TCSP), it has no SFC license to conduct regulated activities on behalf of clients. Its so-called investment activities involving TUSD assets at ARIA directly violate the provisions of the Securities and Futures Ordinance, which prohibits engaging in regulated activities without a license.Crime 4: Fraud or TheftMisappropriation of funds with the intent to deceive clients constitutes fraud or theft. FDT conspired with accomplices (such as Aria CFF, Truecoin (Alex De Lorraine), Crossbridge/Finaport (Yai Sukonthabhund)) to cover up the misappropriation by falsifying records and claiming to have made false investments.Crime 5: False Reporting or Concealment of InformationTo cover up misappropriation or unauthorized transactions, FDT provided false statements and fraudulent documents, claiming that TUSD funds were intact and invested as instructed. This violates Section 300 of the Securities and Futures Ordinance (using fraudulent or deceptive means in securities transactions).Crime 6: Violation of Anti-Money Laundering (AML) RegulationsBy transferring misappropriated funds through complex transactions or offshore accounts to conceal their source, FDT facilitated and/or constituted a violation of anti-money laundering regulations.Crime 7: Prevention of Bribery Ordinance (POBO)The Prevention of Bribery Ordinance is the primary legislation in Hong Kong governing secret commissions. It criminalizes corrupt transactions, including agents receiving undisclosed benefits or commissions without the principal's consent. FDT/Legacy, under the direction of Vincent Chok, received secret kickbacks from DMCC in exchange for the illegal transfer of TUSD custodial funds.
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