🚨 TD Bank gets a $3.1B fine

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Happy Sunday!

Welcome back to Money Explored, the essential Sunday newsletter to stay ahead in fintech. This week, we’re unpacking some of the most impactful moves in finance—get ready for insights that will reshape how you think about regulatory risks, legal battles in crypto, and the future of stablecoins.

Here’s what we’re covering:

• TD Bank slapped with a historic $3.1B fine for AML failures. 💰

• Crypto.com takes on the SEC in a pivotal legal showdown. ⚖️

• PayPal shakes up corporate payments with PYUSD. 💸

And that’s just the start...

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🌎 3 Major Stories

Dive into this week’s top Fintech developments.

TD Bank Fined $3.1B for Major Fraud Failures 💰

The Big Story 📰: TD Bank has entered a guilty plea, accepting over $1.8 billion in fines due to serious violations of the Bank Secrecy Act (BSA) and shortcomings in its anti-money laundering (AML) processes. This historic settlement marks TD Bank as the largest bank in U.S. history to admit guilt for failures related to the BSA and the first to plead guilty to conspiracy to commit money laundering. From 2018 to 2024, the bank allowed approximately $18.3 trillion in transactions to go unmonitored, facilitating illicit activities including fentanyl trafficking and human trafficking, ultimately enabling criminals to move more than $670 million through its accounts.

Key Takeaway ⚡️: The massive penalties against TD Bank signal a seismic shift in regulatory expectations within the fintech space, urging financial institutions to bolster their compliance frameworks. The bank's failure to implement effective AML protocols raises urgent questions about operational integrity and risk management. As regulators tighten scrutiny, fintech companies must rethink their compliance strategies to avert similar sanctions. The case serves as a cautionary tale, emphasizing the importance of thorough monitoring processes, especially in today's increasingly complex financial landscape. Institutions that fail to prioritize compliance may face not just financial repercussions, but also significant reputational damage as the industry moves toward greater accountability.

Crypto.com Takes on the SEC: A Legal Showdown ⚖️

The Big Story 📰: In a bold move, Crypto.com has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) after receiving a Wells notice indicating potential enforcement action against the company. The lawsuit was initiated in a federal court in Tyler, Texas, arguing that the SEC has overstepped its jurisdiction by classifying virtually all cryptocurrency trades as securities transactions. Crypto.com claims that this regulatory stance would impose burdensome securities regulations on digital assets, further complicating the already murky waters of cryptocurrency regulation. This lawsuit aligns with ongoing tensions between the SEC and various crypto entities, manifesting industry-wide concerns over regulatory overreach.

Key Takeaway ⚡️: Crypto.com’s lawsuit is significant for the future of cryptocurrency regulation in the U.S. By challenging the SEC’s authority, Crypto.com joins other major players in asserting that the regulatory framework is improperly applied. The outcome of this case could set a critical precedent for how digital assets are classified and regulated going forward. As the crypto landscape continues to evolve, industry stakeholders must closely monitor the case's developments, as it may prompt adjustments in compliance strategies and influence future regulatory policies. This scenario emphasizes the importance of legal clarity in fostering innovation and guiding the growth of fintech in the crypto space.

PayPal Dives Into Corporate Payments with PYUSD 💸

The Big Story 📰: PayPal has taken a significant leap into corporate finance, completing its first business-to-business transaction using its stablecoin, PayPal USD (PYUSD). The payment was made to Ernst & Young LLP, showcasing the practical application of PYUSD in enterprise-level operations. This move, facilitated through SAP SE's digital currency hub, is aimed at addressing the inefficiencies in traditional cross-border transactions. Senior VP Jose Fernandez da Ponte emphasized the suitability of stablecoins for corporate settings, potentially reshaping how businesses manage payments. While PYUSD's market cap currently stands at around $700 million, it faces tough competition from established players like Tether and USD Coin.

Key Takeaway ⚡️: PayPal's foray into corporate transactions highlights a crucial shift in how stablecoins could revolutionize the financial landscape, particularly in streamlining payment processes. The ability to conduct near-instant settlements may drastically improve efficiency, making PYUSD an attractive option for businesses. However, as the adoption of stablecoins in B2B payments grows, it invites regulatory scrutiny, which could shape the future of digital currencies. Other fintech companies, such as Robinhood and Revolut, are also eyeing stablecoin solutions, indicating a trend that could further legitimize digital currencies in formal financial practices. For investors and industry professionals, this move signifies an important moment to re-evaluate the potential of stablecoins within the fintech ecosystem.

🔍 What Else We’re Watching

Keep an eye on these evolving Fintech Narratives.

• Mastercard Levels Up with Minna Acquisition 🚀: Mastercard has announced its acquisition of Minna Technologies, a subscription management software startup from Sweden. This strategic move is designed to help consumers tackle the challenges of managing subscriptions like Netflix and Amazon Prime, a need amplified by the projected growth from 6.8 billion subscriptions globally to 9.3 billion by 2028. By integrating Minna’s tech into its ecosystem, Mastercard aims to create a centralized hub for users, making subscription management simpler and enhancing their broader range of services amidst stiff fintech competition.

• India Introduces RuPay Card in Maldives! 🇮🇳🌊: The Indian government has launched the RuPay card in the Maldives to enhance financial cooperation and simplify transactions for both tourists and residents. This initiative stems from a recent meeting between Prime Minister Narendra Modi and Maldivian President Mohamed Muizzu, aiming to revive bilateral ties. RuPay, developed by the National Payments Corporation of India (NPCI), is now accepted in 185 countries, marking a significant step in India’s mission to boost its digital payment systems globally, alongside its ongoing UPI expansions in various countries.

• Meta Teams Up with UK Banks to Fight Fraud 🚨: Meta is teaming up with UK banks, including NatWest and Metro Bank, in an innovative initiative called the Fraud Intelligence Reciprocal Exchange (FIRE). This groundbreaking program enables financial institutions to share scam-related data with Meta, enhancing efforts to dismantle fraud networks. The pilot has already led to the removal of around 20,000 scam accounts, demonstrating the power of cross-industry collaboration. Industry experts believe FIRE can revolutionize fraud prevention and create a safer online environment for consumers across the UK.

💸 Major Money Moves

Tracking the big market shifts in Fintech this week.

• Trump’s WLF Seeks $300M Launch 🚀: World Liberty Financial (WLF), the controversial DeFi project linked to former President Donald Trump, is gearing up for its inaugural token sale next week. The project aims to sell 20% of its tokens, raising an ambitious $300 million at a valuation of $1.5 billion. However, the tokens come with a catch: they will be locked for 12 months post-launch to deter speculative trading. The project has generated mixed reactions in the crypto community, with skepticism surrounding its backers. Nonetheless, if successful, WLF intends to evolve into a comprehensive on-chain financial platform to boost DeFi adoption.

• Human Security Raises $50M+ for Cyber Defense 💪: Cybersecurity stalwart Human Security Inc. has secured over $50 million in growth funding, propelling its mission to safeguard the digital realm. Founded in 2012, the firm tackles sophisticated bot attacks, verifying over 20 trillion digital interactions weekly across various platforms. With this new funding, Human will enhance its Human Defense Platform, integrating advanced AI to bolster account protections and fight click fraud. Investors like Goldman Sachs and NightDragon are backing these efforts, having raised nearly $300 million to date. Expect more robust security solutions as they target public sector engagements!

• Surfin Secures $12.5M for Middle Class! 🌍: Surfin, a fintech aiming to uplift the underserved middle class, has raised $12.5 million from Insignia Ventures Partners. Serving around 60 million users across eight countries, Surfin is capitalizing on AI and analytics to provide a range of financial services, including consumer lending, payments, and wealth management. Founded in 2017 in Singapore, the company has made significant strides in markets like Indonesia and Mexico. With this funding marking its first external capital, Surfin is poised to broaden its reach and impact in the financial inclusion landscape.

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Thanks for reading and have a relaxing Sunday,

— The Money Explored team