"Fraud" Posts
Crypto-pumps: the widespread pump-and-dumps schemes in cryptocurrencies

Crypto-pumps: the widespread pump-and-dumps schemes in cryptocurrencies

Pump-and-dump are ubiquitous in crypto currencies. The schemes are well organized online groups, acting for the explicit purpose of manipulating currencies.
Organizers are front-running their groups and make great returns for themselves, so why would other participate? For hubris and gambling fever, say academics.
Regulators are absent, and the situation will deteriorate. This is the long-form review of this Far West of modern ages.

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usinesspeople grabbing money

Cum/Ex is officially a money grab

The German Supreme Court has made it official; the Cum/Ex was not a loophole but a blatant money grab.
The two Warburg executives can expect jail time, and their firm a bankruptcy.
Many others will follow.

tunnel-in-space

SOFR has a term structure now.

The ARRC has recommended the CME’s methodology to calculate a term structure for SOFR. This is big news.
This article explains SOFR’s weaknesses, what a term structure is, why we need one and how the CME calculates its own.

Transfer pricing, hedge fund edition

In a new version of the transfer pricing strategy, Tom Sandell virtually relocated his hedge fund from New York to Florida to avoid NY tax liabilities on his deferred comp.
The story didn’t finish well. A whistleblower and the NY AG forced him to cough up $105m.

Libor-going-down

LIBOR: the most important number in the world is going away

LIBOR, the most important number in the world, had a good run for the last 50 years, but it is going away.
SOFR, its replacement, is not subject to manipulations but has a host of problems.
The transition is difficult.

Pop-the-balloon

Bye-bye, bitcoin: It’s time to ban cryptocurrencies

Not all central bankers and diplomats have a good opinion of cryptocurrencies.
They are assessing their costs & benefits through articles in prime newspapers.
One diplomat/economist just called for their outright ban.

biggest-ponzi-schemes-in-modern-history-Title

Visualized: The Biggest Ponzi Schemes in Modern History

A summary of the largest Ponzi schemes in history, with a visualization that is a pleasure to the eyes.

Jules-Verne-Rocket-To-The-Moon

The SEC’s specious space SPAC

The Momentus / Stable Road merger is the epitome of what can go wrong with SPACs. It is a story of dreams, greed, and lies.
The SEC made an example out of it. The plaintiff law firms are jumping on the bandwagon too.

Muzzled dog

SEC: Don’t even think of muzzling whistleblowers

Guggenheim had restrictive language against whistleblowing in its compliance manual. The SEC reviewed the manual and fined the firm $209,000 – before any whistleblower was silenced.
The message is clear; the SEC will not tolerate any whistleblower muzzle.

Amateur drummer

And the largest FINRA penalty ever goes to… drum roll please… Robinhood!

FINRA slapped its largest penalty eve, $70m, to Robinhood for numerous and shocking failings.
That fine will raise the firm’s IPO price.

Paradise-beach

The 2-and-20 model is broken. Hedge funds are great.

The 2-and-20 are decried as enormous and one-sided fees. Investors are angry at the poor net performances. The press is pointing at large redemptions in a failing industry.
In other news, the weather is beautiful in hedge fund land.

Defund the IRS? Done

The Biden administration is planning a significant IRS budget increase so that the agency can effectively collect what it is owed. The investment will pay for itself multiple times. The “Tax Gap” now stands at an enormous $1 trillion per year. “Defund the IRS” has been the policy of the decade.

Jim Simons - Renaissance

Renaissance underperformance and redemptions – not for everyone

Medallion is Renaissance’s flagship fund. It was up 75% in 2020. Unfortunately, it manages only the employees’ money.
All the other investors were down ~30% during the same period. Not as great.
Redemptions ensued. $11 bn of redemptions now.

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