Fintech
F|T: The FinTech Times – Is Canada an easy target for international money laundering?
Also: ZayZoon returns its services to Canada after years in the United States.
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TD fines show Canada becoming the ‘soft underbelly’ of international money laundering – here’s why
Canada’s TD Bank is facing unprecedented scrutiny for its involvement in at least two money laundering investigations by the U.S. Department of Justice, one of which alleges that TD was the primary financial institution used by drug traffickers Chinese authorities to launder $653 million (US) in fentanyl proceeds. sales.
The scandal is shedding light on Canada’s ongoing money laundering problem, nicknamed “snowwashing” to reflect the use of its pristine reputation and stable economy by criminals who want to make suspicious transactions appear legitimate.
“Canada is the soft underbelly of Western democracies. Our entire system is very tolerant of foreign threats and is becoming well known not only to threat actors, but also to our allies,” said Calvin Chrustie, senior partner at Critical Risk Team, a risk management consultancy risk and anti-money laundering.
Earned Wage Startup ZayZoon Returns Its Services to Canada
ZayZoon, the Calgary-based FinTech startup, is bringing its services back to Canada after only serving the United States for an extended period.
ZayZoon first introduced EWA to the Canadian market in 2016, but was “fighting tooth and nail to get partnerships,” the startup’s co-founder and president, Tate Hackert, told BetaKit in an interview of 2022. The experience has led ZayZoon to focus on expansion in the United States until its return to Canada this week.
ZayZoon’s general manager for Canada, Shubh Sidhu, told BetaKit in an emailed statement that many things have changed since ZayZoon left Canada, including awareness of its offering, its growth and increased pressure on consumer finances.
(BetaKit)
Bolt founder Ryan Breslow wants to settle investor lawsuit by returning $37 million worth of shares
Bolt founder Ryan Breslow proposed a settlement this week with investor Activant Capital, which could put an end to a lawsuit brought by Activant. The investor accused Breslow of adding $30 million to Bolt’s balance sheet in the form of personal debt and removing board members when they urged Breslow to pay him back.
Breslow’s $30 million loan was guaranteed by Bolt, however, Breslow defaulted on the loan, the lawsuit claims.
Now, according to the liquidation plan seen by TechCrunch, Bolt will cancel 13,397,270 shares of common stock previously owned by Breslow, representing $37,378,383. Breslow is essentially returning those shares to Bolt to resolve the principal loan, expenses and interest.
The baseline closes C$2.2 million to help private lenders run their businesses
Baseline, a Toronto-based FinTech startup, began as a private real estate lending company with unmet needs. Over time, it has replaced nearly its entire technology stack with proprietary software built specifically to run its operations more efficiently.
Every time Baseline founder and CEO Shaye Wali shared this technology with peers in the private lending industry, others asked if they could use it.
Now, the startup has secured about C$2.2 million ($1.6 million) in funding led by Toronto-based N49P Ventures to fuel the growth of its platform and capture a larger share of the growing private lending market.
(BetaKit)
Ontario’s “Crypto King” and his partner arrested on fraud charges
Ontario’s self-proclaimed Crypto King and one of his associates have been arrested and charged with fraud.
Aiden Pleterski, 25, is charged with fraud over $5,000 and laundering the proceeds of crime, according to Oshawa court.
In a news release Wednesday, police said the two men had been charged following a 16-month investigation, dubbed Project Swan, into Pleterski.
(CBC)
Takeaways: Hear from four founders on the state of Canadian tech
What happens when you bring old and new generations of technology into the same room?
BetaKit has compiled a series of questions and answers from an early-stage founder, a scaling founder, an experienced repeat founder, and a newcomer to the ecosystem who spoke at last week’s BetaKit town hall.
MedExist Joella Almeida talked about why being “Shopify for pharmacies” isn’t enough.
Cofounder of Cohere Ivan Zhang explained why Canadian tech is great at creating winners, but terrible at keeping them here.
Serial entrepreneur Ali Asaria warned tech about getting lost in its own “bubble” and how the ecosystem can beat the US.
He has been learning for 22 years Jocelyn Murphywho spoke about the lack of meaningful mentorship for young entrepreneurs, frustrating hiring practices, and how the cost of living hinders innovation.
(BetaKit)
Stablecoin Issuers Circle will become registered office in the United States prior to listing
Circle Internet Financial Ltd., issuer of the second-largest cryptocurrency stablecoin, plans to move its legal base from the Republic of Ireland to the United States.
A company spokesperson confirmed Tuesday that court documents had recently been filed for the new domicile, but declined to explain why. In January, Circle confidentially filed plans for an initial public offering with the U.S. securities regulator.
Canadian VC funding sees mixed results in Q1 as PE market recovers, CVCA reports
The first quarter of 2024 saw mixed results in terms of venture capital funding and a significant pickup in private equity activity, according to a new report.
Nearly C$1.3 billion in total venture capital funding was distributed to Canadian tech startups across 128 deals during the first quarter, according to data compiled by the Canadian Venture Capital and Private Equity Association. Both were down from the fourth quarter of 2023.
In terms of total dollars invested, this represented an 8% increase over the first quarter of 2023, fueled by funding from AI startups such as Ideogram, Spellbook and Borderless AI, health tech companies including PocketHealth and Flosonics Medical, FinTech company Helcim and last mile delivery provider UniUni.
(BetaKit)
French fintech Lydia will invest €100 million in banking services and aims to achieve profitability in 2025
French unicorn Lydia, a popular payments app for Generation Z and French millennials, will invest 100 million euros over the next three years to double its banking services.
Despite that expense, co-founder Cyril Chiche said at a press event today that he expects his company to reach profitability next year.
Lydia will hire 400 recruits in France over the next three years to work on Sumeria, more than double its current team of 250. In that time, the company also hopes to obtain a banking license so that the new organization can begin providing credit services.
(Sieved)
The best place to aim AI? The mirror
Zoho Canada recently hosted a webinar on the topic of generative AI in business intelligence and how the tool can be implemented to make organizations more data-driven.
The discussion offered four key insights for startups thinking about applying generative AI in their operations and featured Matt Aslett, director of research, data and analytics at Information Services Group’s Ventana Research, and Chandrashekar Lalapet Srinivas Prasanna from Zoho Canada.
(BetaKit)
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Courtesy of the featured image TD.