Institutional investors are reshaping the crypto landscape by driving new narratives, as banks and governments push for regulation and integration into traditional finance. Institutional investors dominate the current crypto market
CoinOtag 2025-08-09 23:48
The highlights of the week in terms of crypto in LATAM are that El Salvador is preparing to launch the world’s first Bitcoin banks, a significant step toward integrating BTC into its financial system. Meanwhile, Brazilian fintech Méliuz takes a significant step toward international expansion by filing for a Level I American Depositary Receipt (ADR) program, allowing US investors to trade its shares over the counter. These examples demonstrate the tremendous momentum for Bitcoin acceptance and innovation in Latin America. Bitcoin banks on the horizon in El Salvador El Salvador’s Bitcoin revolution is entering an exciting new phase, with the country preparing to welcome the world’s first “Bitcoin Banks.” The statement came from The Bitcoin Office, which teased the revelation on its X account while proudly referring to the country as “Bitcoin Country.” While official details are few, it is thought that the project will include the establishment of entirely BTC-denominated banking services, maybe backed by new legislation. This decision marks another step toward incorporating Bitcoin into El Salvador’s financial system, demonstrating the country’s commitment to digital currency innovation. Max Keiser, Senior Bitcoin Advisor to President Nayib Bukele, highlighted the project’s scope in an exclusive statement to BeInCrypto. Keiser, along with his wife Stacy Herbert, Director of The Bitcoin Office, has played a key role in developing El Salvador’s pro-Bitcoin laws since 2021, when BTC became legal tender. The establishment of Bitcoin Banks might be a watershed event in the country’s ambition to position itself as the worldwide hub of Bitcoin innovation, potentially attracting investors, entrepreneurs, and cryptocurrency aficionados from all over the world. Méliuz expands international reach with US ADR program Méliuz, a Brazilian fintech noted for its reward model and strategic usage of Bitcoin, has taken a big step towards internationalisation by filing an F-6 form with the United States Securities and Exchange Commission on August 5. The filing certifies the establishment of a Level I American Depositary Receipt (ADR) scheme, with JPMorgan as the depositary bank. This arrangement will enable Méliuz shares to be traded in the US over-the-counter market without a direct listing on major exchanges such as the NYSE or Nasdaq. By implementing ADRs, the company hopes to improve foreign investor access to its shares and strengthen its presence in global capital markets. The ADR program is designed to boost Méliuz’s visibility and liquidity, putting it on par with other Brazilian companies having a presence in US markets. According to the formal filing, JPMorgan will hold the underlying shares in Brazil, with each ADR reflecting a percentage of Méliuz’s common stock. Méliuz, founded in 2011, has been increasing its presence in the digital financial industry, with its latest projects focused on Bitcoin. The appointment of Mason Foard as Bitcoin Strategy Director emphasises this approach. While the ADR structure is already in place, the company has yet to set an official start date for trading. Brazil to hold first public hearing on Bitcoin as a reserve asset Brazil’s Industry, Commerce, and Services Committee has planned a public hearing on August 20 at 4 p.m. to discuss Bitcoin’s (BTC) potential as a national reserve asset. Congressman Gustavo Gayer (PL-GO) requested the session, which will be place in Plenary 5 in Brasília and aired live on the Chamber of Deputies’ YouTube channel. He contends that Bitcoin’s decentralised character, scarcity, and resistance to arbitrary issuance make it a possible inflation hedge and a secure store of value in Brazil. The session is anticipated to bring together crypto industry experts, economists, and public institution officials to examine the dangers, opportunities, and consequences of adding BTC to Brazil’s sovereign reserves. This is the first time the National Congress has formally considered Bitcoin for such a role, indicating a growing institutional interest in decentralised alternatives amid global financial upheavals. The post LATAM crypto news: El Salvador prepares Bitcoin banks, Méliuz debuts US ADR program appeared first on Invezz
Invezz 2025-08-09 16:27
A federal judge in California has cleared the way for investors to pursue state-level class actions against celebrities and other promoters of the EthereumMax (EMAX) token, while rejecting a broader nationwide claim. Key Takeaways: A judge allowed state-level EMAX class actions in NY, CA, FL, and NJ to proceed but rejected a nationwide class. Claims target Kim Kardashian, Floyd Mayweather, Paul Pierce, and others linked to EMAX’s creation. The token’s 2021 surge of 116,000% was followed by a 99% crash, sparking investor losses and lawsuits. In a Wednesday order , US District Judge Michael Fitzgerald granted a motion allowing class actions in New York, California, Florida, and New Jersey to proceed. The cases involve investors who bought EMAX between May and June 2021, a period when the token’s price spiked over 116,000% before collapsing more than 99%. Judge Says Proposed State Classes Meet Federal Procedural Standards “Plaintiffs have demonstrated that the proposed state classes comport with the requirements of Federal Rules of Civil Procedure,” the ruling stated. However, Fitzgerald found that a nationwide class would pose “too high” a risk of applying California and Florida law beyond their jurisdictions, and could lead to individualized questions not suited to collective resolution. The decision keeps alive investor claims against high-profile figures including Kim Kardashian, Floyd Mayweather, and former NBA star Paul Pierce, all of whom publicly promoted EMAX. It also targets individuals linked to the token’s creation, such as EMAX Holdings, co-founder Giovanni Perone, and alleged consultant Jona Rechnitz. Kardashian’s promotion, posted to her Instagram Story in 2021, is believed to have reached up to 200 million users. EthereumMax, described in its white paper as a “culture token,” became a viral name in crypto circles in mid-2021 due to celebrity endorsements. Critics accused it of being a “pump and dump” scheme after the rapid price surge was followed by an almost total collapse, leaving retail investors with heavy losses. 8. The Kardashians The Kardashians were fined by the SEC for failing to disclose payments from the EthereumMax crypto project. pic.twitter.com/2TQYNKk1Np — Evan Luthra (@EvanLuthra) June 1, 2024 Fitzgerald had previously dismissed the lawsuit in December 2022, reasoning that buyers were responsible for conducting due diligence before investing. However, he allowed plaintiffs to refile, which they did seven months later in the same court. Separately, Kardashian settled with the US Securities and Exchange Commission in October 2022 for $1.2 million over charges she failed to disclose a $250,000 payment to promote the token. Ex-NBA Star Paul Pierce Fined $1.4M in EthereumMax Promotion Case In 2023, the SEC also charged former NBA player Paul Pierce with violating anti-fraud and anti-touting rules by promoting the EthereumMax cryptocurrency. Pierce agreed to settle the charges and pay $1.409 million in penalties. The regulator charged the NFT star for touting EMAX tokens, cryptocurrencies sold by EthereumMax, on social media without disclosing the payment he received for the promotion and for making false and misleading statements regarding the token. The commission detailed that Pierce received more than $244,000 worth of EMAX tokens to promote the project on Twitter. On one special occasion, Pierce tweeted a screenshot of an account showing large holdings and profits without disclosing that it was not his own personal holdings. The NBA star agreed to settle the charges by paying $1.4 million in penalties, disgorgement and interest “without admitting or denying the SEC’s findings,” the commission said. The post Judge Allows State-Level Class Actions Against EthereumMax Promoters to Proceed appeared first on Cryptonews .
cryptonews 2025-08-09 13:03
Chinese regulators have instructed major domestic brokerages to halt the publication of research and public commentary related to stablecoins. The move comes as China sees a rising wave of domestic interest in stable digital assets, which is reportedly causing concern among mainland authorities who remain opposed to most cryptocurrency activity. Sources with knowledge of the situation said that regulatory bodies began quietly guiding major financial firms in late July and early August to step back from content or events that might endorse stablecoins or drive further curiosity. Some influential think tanks were also reportedly asked to cancel seminars or planned events related to stablecoins. This coordinated pressure appears to be part of Beijing’s broader attempt to suppress the growing narrative around dollar-pegged crypto assets, which have become an increasingly popular way for Chinese investors to gain exposure to digital finance through cross-border channels. Mainland China crackdown contrasts with Hong Kong crypto progress In May, Hong Kong approved a stablecoin regulation framework that effectively opened the door for licensed entities to issue fiat-backed stablecoins and provide related services under supervision. Since then, financial firms in mainland China have seen a spike in client interest, particularly in how stablecoins might offer alternatives to traditional fiat assets. That interest appears to have alarmed regulators in Beijing, who remain cautious about any financial instrument not controlled by the state, especially those tied to foreign currencies like the U.S. dollar. Although the Chinese government has largely embraced blockchain infrastructure as a technological innovation, it has kept a firm ban on most decentralized cryptocurrencies since 2021, with the exception of select blockchain pilots under state supervision. Officials have occasionally acknowledged the challenges posed by stablecoins. In June, PBOC Governor Pan Gongsheng publicly remarked that the rise of stablecoins and other digital currencies posed “huge challenges to financial regulation.” Behind the scenes, local governments are also assessing the implications, per reports . Last month, regulators in Shanghai reportedly held a strategy meeting with local officials to evaluate stablecoin-related risks and responses. However, a post on the Shanghai State-owned Assets Supervision and Administration Commission’s official WeChat page summarizing the meeting was later deleted, suggesting central authorities may be clamping down on even high-level public discourse around the topic. Information control amid rising demand Despite mainland bans, stablecoins remain widely used by Chinese investors, particularly via offshore platforms or through over-the-counter (OTC) intermediaries. The crackdown on brokerages appears aimed at cutting off institutional endorsement that could validate or accelerate public adoption of these assets. While Hong Kong continues to position itself as a regulated crypto hub for Asia, China’s approach underscores its attempt to firewall domestic financial behavior from external crypto-related influence. This latest move raises questions about the long-term prospects for digital asset education and engagement in mainland China, even as the global conversation around stablecoins becomes increasingly mainstream. By contrast, China’s actions suggest it views such assets not just as financial tools, but as a potential sovereignty issue, especially in a monetary environment where capital control remains a key pillar of economic strategy. Get seen where it counts. Advertise in Cryptopolitan Research and reach crypto’s sharpest investors and builders.
Cryptopolitan 2025-08-08 23:10
BitcoinWorld Crucial Win: EthereumMax Investors Secure Partial Class-Action Approval The cryptocurrency world often moves at lightning speed, but sometimes, justice takes its time. In a significant development for the crypto community, a California judge has granted partial class-action approval to EthereumMax investors . This decision allows four state-level lawsuits to proceed against the token’s promoters, bringing a renewed focus on accountability in celebrity crypto promotion . What Does This Mean for EthereumMax Investors? This ruling is a pivotal moment for those who invested in EthereumMax (EMAX) during its highly publicized 2021 promotion. While a nationwide class-action was not approved, the judge’s decision to allow state-level cases in New York, California, Florida, and New Jersey is a substantial step forward. These lawsuits specifically target high-profile figures such as Kim Kardashian, Floyd Mayweather, and Paul Pierce, alongside the EMAX founders and their associates. The core allegation in these cases is that the 2021 promotion of EthereumMax was not a legitimate investment opportunity but rather a classic “pump and dump” scheme. This legal progress offers a glimmer of hope for investors seeking redress. Understanding the Alleged Pump and Dump Scheme For those unfamiliar, a pump and dump scheme involves artificially inflating the price of an asset, typically through misleading statements or aggressive promotion, and then selling off the cheaply purchased assets once the price peaks. In the context of the EthereumMax lawsuit , plaintiffs allege that the celebrity endorsements played a crucial role in this artificial inflation. Pump: Celebrities allegedly promoted EMAX to their vast audiences without disclosing their financial ties. This created significant hype and drove up demand. Dump: Once the price reached a desired level, the promoters and insiders allegedly sold their holdings, causing the token’s value to plummet and leaving regular investors with substantial losses. This pattern is a serious concern in the unregulated corners of the crypto market. It highlights the need for investors to exercise extreme caution, especially when dealing with projects heavily reliant on celebrity endorsements. The Role of Celebrity Crypto Promotion and Regulatory Scrutiny The involvement of celebrities like Kim Kardashian in the EMAX investors saga brought significant attention to the potential pitfalls of undisclosed paid promotions. Kardashian previously faced action from the U.S. Securities and Exchange Commission (SEC) for her role. She settled with the SEC for $1.2 million, agreeing to pay back the $250,000 she received for the promotion, plus penalties, and to not promote any crypto asset securities for three years. Cointelegraph reported on this settlement, emphasizing the regulatory body’s stance on transparency. This SEC action, coupled with the ongoing crypto legal action , sends a clear message: celebrity influencers must disclose their financial relationships when promoting investment opportunities, especially in the volatile crypto space. Investors should always question the motivations behind such endorsements. What Can Investors Learn from the EthereumMax Lawsuit? The ongoing legal battle serves as a stark reminder of the risks involved in cryptocurrency investments, particularly those pushed by high-profile figures. Here are some actionable insights for current and prospective crypto investors: Do Your Own Research (DYOR): Never rely solely on celebrity endorsements. Thoroughly investigate the project’s whitepaper, team, technology, and community. Understand the Risks: Cryptocurrencies are highly volatile. Invest only what you can afford to lose. Beware of Hype: Excessive hype, especially without clear utility or innovation, can be a red flag for a potential pump and dump scheme . Check for Disclosures: If a celebrity promotes a crypto asset, look for clear disclosures of their compensation. Regulatory bodies like the SEC require this transparency. Consider Legal Recourse: If you believe you have been a victim of fraud, consult with legal professionals about your options, as demonstrated by the EthereumMax lawsuit . This partial class-action approval is a significant step towards holding individuals accountable for their roles in potentially misleading crypto promotions. It reinforces the growing scrutiny from both regulators and the judiciary on the crypto market. The journey for the EMAX investors is far from over, but this ruling provides a strong foundation for their pursuit of justice. It underscores the evolving landscape of crypto legal action and the increasing pressure on promoters to act responsibly. This case will undoubtedly set precedents for future celebrity endorsements in the digital asset space. Frequently Asked Questions (FAQs) Q1: What is EthereumMax (EMAX)? A1: EthereumMax (EMAX) is a cryptocurrency token launched in 2021 that gained significant attention due to celebrity promotions, but later saw its value decline sharply amidst allegations of a pump and dump scheme. Q2: Who are the celebrities involved in the EthereumMax lawsuit? A2: The lawsuits name celebrities such as Kim Kardashian, Floyd Mayweather, and Paul Pierce, among others, for their alleged roles in promoting the EMAX token. Q3: What is a “pump and dump” scheme in crypto? A3: A pump and dump scheme is a fraudulent practice where the price of an asset is artificially inflated through misleading promotions (the “pump”), after which the perpetrators sell their holdings at the inflated price (the “dump”), causing the price to crash and leaving other investors with losses. Q4: Has Kim Kardashian faced any prior action regarding EthereumMax? A4: Yes, Kim Kardashian settled with the U.S. Securities and Exchange Commission (SEC) for $1.2 million in 2022 over her undisclosed promotion of EthereumMax. Q5: What is the significance of the partial class-action approval for EthereumMax investors? A5: The partial class-action approval means that four state-level lawsuits can proceed, allowing a group of investors in specific states to collectively pursue claims against the promoters, potentially leading to financial recovery and setting a precedent for future crypto legal action. Q6: How can investors protect themselves from similar schemes? A6: Investors should always conduct thorough due diligence (DYOR), be skeptical of projects heavily reliant on celebrity endorsements, understand the inherent risks of crypto, and look for transparent disclosures from promoters. If you found this article insightful, consider sharing it with your network! Help us spread awareness about important developments in the crypto space and empower more investors to make informed decisions. Share on X (formerly Twitter), Facebook, or LinkedIn. To learn more about the latest crypto market trends, explore our article on key developments shaping Ethereum institutional adoption . This post Crucial Win: EthereumMax Investors Secure Partial Class-Action Approval first appeared on BitcoinWorld and is written by Editorial Team
Bitcoin World 2025-08-08 22:25
