Three news to start your week: August 26
Binance Hiring 1,000 People as Compliance Costs Hit $200M
(The Crypto Times)
The leading cryptocurrency exchange, Binance, plans to recruit 1,000 new employees this year, focusing strongly on compliance. This strategic move comes in response to the company's annual expenditure on addressing US regulations and supervisory agencies, which has now reached $200 million. During an interview, Binance CEO Richard Teng emphasized the importance of government regulations and announced the company's plan to increase its compliance staff from 500 to 700 by 2024. Teng, a former regulator, underscored the significance of government agencies in the industry.
Binance's significant increase in spending is a direct result of a $4.3 billion fine imposed as part of a plea bargain with the US Department of Justice and other regulatory bodies. This development follows allegations that Binance was involved in facilitating criminal and terrorist activities. In 2023, Binance received 58,000 requests from law enforcement agencies globally, which rose to 63,000 in the current year. This upward trend underscores the mounting regulatory challenges faced by Binance.
Carl Icahn to Pay $2 Million to Settle SEC Charges
(The New York Times)
The Securities and Exchange Commission has charged activist investor Carl C. Icahn with failing to disclose that he had personally pledged his stock as collateral for multibillion-dollar margin loans. In conjunction with these charges, the regulator has announced a settlement in which Icahn will pay $2 million in fines.
While investors are permitted to pledge stock holdings as collateral for loans, this practice can increase risks for other shareholders in a company. For instance, if the investor cannot repay the loan, the lender may sell the shares, negatively impacting the stock's value.
According to the SEC, Icahn had pledged more than half of all shares in his company, Icahn Enterprises, as collateral but failed to disclose these pledges for several years. He finally revealed them in February 2022. However, the regulator maintains that Icahn had been pledging his stock to various lenders since at least late 2018.
Nigerian data agency fines Fidelity Bank for breaches
(Reuters)
Nigeria's data privacy agency has issued a substantial fine of $358,580 to Fidelity Bank, amounting to 0.1% of the bank's 2023 revenue, for violating data laws when opening a customer account. This significant penalty marks the largest fine imposed by the Nigeria Data Protection Commission (NDPC) for data breaches.
Despite Fidelity Bank's challenge to the decision, the NDPC remains firm in its directive for the mid-tier lender to pay the equivalent of 555,800,000 naira within fourteen days. Following an investigation that commenced in April 2023, it was found that the bank unlawfully collected personal data to open an account for a customer.
