2025-02-26 22:54

SEC, Sun say putting case on hold benefits public Sun accused of illegal crypto sales, inflating volumes Sun paid $6.2 million for duct-taped banana artwork NEW YORK, Feb 26 (Reuters) - The U.S. Securities and Exchange Commission is exploring a resolution to its closely followed civil fraud case against Justin Sun, the Chinese cryptocurrency entrepreneur and adviser to a crypto project backed by U.S. President Donald Trump. In a Wednesday letter to U.S. District Judge Edgardo Ramos in Manhattan, lawyers for Sun and the SEC asked that the case be put on hold, citing the interests of both sides and the public. They proposed submitting a status report 60 days after a stay. Sun's lawyers did not immediately respond to requests for comment. The SEC declined to comment. It is unclear whether a resolution would involve a settlement or a dismissal. The SEC sued Sun and his companies Tron Foundation, BitTorrent Foundation and Rainberry in March 2023. It accused them of scheming to illegally distribute the crypto assets Tronix and BitTorrent, artificially inflate trading volume, and conceal payments to celebrity endorsers. Trump has pledged to make the United States a global hub for the cryptocurrency industry and nominated Paul Atkins, a Washington lawyer seen as supportive of digital assets, to become SEC chair. Gary Gensler, the SEC chair when Sun's case was brought, drew much industry opposition for favoring greater cryptocurrency regulation. The SEC said Sun's alleged scheme began in August 2017. According to court papers, Sun illegally generated $31 million of proceeds by ordering employees to conduct hundreds of thousands of Tronix trades between two accounts he controlled, creating a false and misleading sense of legitimate trading. Sun, 34, was also accused of retaining celebrities like actress Lindsay Lohan, singers Akon and Ne-Yo and social media personality Jake Paul to promote Tronix and BitTorrent on social media, while concealing they were paid for their efforts. SUN'S ENDEAVORS More recently, Sun has become perhaps the most prominent buyer of the World Liberty Financial token that Trump partially owns, spending at least $75 million according to posts on social media platform X. Sun is a World Liberty adviser. Those purchases, involving an entity where Trump benefits financially, have raised concerns about potential conflicts of interest. While the SEC's possibly backing off Sun's case "may be good for one of the president's crypto partners, it's bad for the industry's already questionable reputation," said Corey Frayer, a former policy adviser to Gensler. Sun also drew wide attention in the art world in November, when he paid $6.2 million at a Sotheby's auction for a work consisting of a banana attached to a wall by duct tape. Earlier this month, Sun sued media mogul David Geffen for the return of "Le Nez," a sculpture by the Swiss artist Alberto Giacometti, which Sun bought for $78.4 million in 2021. Sun said his own art adviser had stolen the work and later sold it. Geffen's lawyer has publicly called Sun's claims baseless. In 2019, Sun paid a then-record $4.57 million at a charity auction to have lunch with billionaire investor Warren Buffett. Sign up here. https://www.reuters.com/legal/us-sec-tron-founder-justin-sun-explore-resolution-civil-fraud-case-2025-02-26/

2025-02-26 22:46

Trump says Venezuela not taking migrants back fast enough Trump also cites Venezuela's 'electoral conditions' Oil agreement was concession granted to Chevron U.S. oil licenses boosted Venezuela's economy WASHINGTON, Feb 26 (Reuters) - U.S. President Donald Trump on Wednesday said he was reversing a license given to Chevron (CVX.N) , opens new tab to operate in Venezuela by his predecessor Joe Biden more than two years ago, accusing President Nicolas Maduro of not making progress on electoral reforms and migrant returns. In a post on Truth Social, Trump said he was "reversing the concessions" of the "oil transaction agreement, dated November 26, 2022." Trump did not name Chevron in his comments, but Washington granted Chevron a license to operate in Venezuela's oil sector on November 26, 2022. It was the only license the administration issued for Venezuela that day. "The U.S. government has made a damaging and inexplicable decision by announcing sanctions against the U.S. company Chevron," Venezuelan Vice President Delcy Rodriguez said in a statement posted on Telegram. She said "these kinds of failed decisions" had prompted migration out of Venezuela. The White House did not immediately respond to requests for further detail on Trump's comments. U.S. Secretary of State Marco Rubio later said on X he will provide foreign policy guidance to terminate all Biden-era oil and gas licenses "that have shamefully bankrolled the illegitimate Maduro regime." It was not immediately clear which, if any, other companies that would affect, but the U.S. State and Treasury Departments have granted a number of licenses and authoritizations in recent years, including to foreign firms. Chevron said it was aware of Trump's post and was considering its implications. Chevron exports about 240,000 barrels per day of crude from its Venezuela operations, over a quarter of the country's entire oil output. Ending the license means Chevron will no longer be able to export Venezuelan crude. And if Venezuela's state oil company PDVSA exports oil previously exported by Chevron, U.S. refineries will be unable to buy it due to U.S. sanctions. Since his return to office in January, Trump has repeatedly said the U.S. does not need Venezuelan oil and left open the possibility of revoking Chevron's operating license. During his first term, Trump pursued a "maximum pressure" sanctions policy against Maduro's government, especially targeting Venezuela's energy business. After initially easing sanctions to encourage fair and democratic elections, Biden in April reinstated broad oil sanctions, saying Maduro failed to keep his electoral promises. But Biden had left the Chevron license intact, along with U.S. authorizations granted to several other foreign oil companies. Tax and royalty payments resulting from Chevron's license have provided a steady source of revenue to Maduro's administration since early 2023, a source familiar with Venezuela's oil industry said. The money has lifted Venezuela's economy, especially its oil-and-banking sectors, which expanded last year. The government take from oil activities covered by all U.S. licenses, to Chevron and a handful of European companies, is estimated between $2.1 billion and $3.2 billion annually, only considering royalties and taxes, said Jose Ignacio Hernandez from consultancy Aurora Macro Strategies. U.S. Energy Secretary Chris Wright said on Wednesday after Trump's comments that the U.S. is the world's largest oil producer and "small interruptions from other nations" will not affect global supply. ELECTORAL CONDITIONS 'NOT BEEN MET' In early February, Trump said Caracas had agreed to receive all Venezuelan migrants in the United States illegally and provide for their transportation back. That came a day after U.S. envoy Richard Grenell met with Maduro in Caracas and brought six U.S. detainees back. Trump said in Wednesday's post Maduro had not met "electoral conditions" and that he was not transporting Venezuelans back to the United States at a pace that had been agreed to. Trump did not detail what he meant by "electoral conditions." Maduro's last two election wins were both disputed by Washington, with Venezuela's opposition saying it won the July 2024 presidential election by a landslide, an assertion backed by the U.S. and other Western countries. The cancellation of the license proves Trump is on the side of Venezuelans, opposition leader Maria Corina Machado told Trump's son Donald Trump Jr. during an interview on the latter's video and podcast interview show. "What you just mentioned is proof for me that President Trump is on the side of the Venezuelan people, of democracy, and prosperity of the U.S. and for Venezuela as well," Machado said, adding the question from Trump Jr. was the first she had heard of his father's decision. "This is exactly the path ahead." The oil concession agreement would be terminated as of the March 1 option to renew, Trump said. It was not immediately clear what would happen with cargoes of Venezuelan crude currently navigating to U.S. ports or about to depart from Venezuela through the end of the month. Maduro and his government have always rejected sanctions by the United States and others, saying they are illegitimate measures that amount to an "economic war" designed to cripple Venezuela. Maduro and his allies have cheered what they say is the country's resilience despite the measures, though they have historically blamed some economic hardships and shortages on sanctions. When the license was first issued, Chevron was owed about $3 billion by Venezuela. According to the company's debt recovery plan, explained by sources, by the end of 2024 it should have recouped some $1.7 billion as oil output approached an average of 200,000 barrels per day as expected. Chevron's automatically renewing license allowed it to expand crude output at joint ventures with PDVSA and send some 240,000 bpd to its own refineries and other customers. Chevron said earlier in February it will lay off up to 20% of its global staff by the end of 2026 as part of an effort to cut costs and simplify the business. Chevron told its employees the company was falling behind competitors and struggled to quickly make decisions. Sign up here. https://www.reuters.com/world/americas/trump-orders-termination-oil-deal-with-venezuela-2025-02-26/

2025-02-26 22:42

RABAT, Feb 26 (Reuters) - King Mohammed VI of Morocco asked Moroccans on Wednesday to abstain from performing the rite of slaughtering sheep on Eid al-Adha this year due to a drop in the country's herd following years of drought. Eid al-Adha, to take place in June, commemorates the willingness of Ibrahim, or Abraham, to sacrifice his son on God's command. Muslims mark the event by slaughtering sheep or goats. The meat is shared among family and donated to the poor. Morocco's cattle and sheep herds have decreased by 38% in 2025 since the last census nine years ago due to consecutive droughts, according to official figures. "Our commitment to enabling you to fulfill this religious rite under the best conditions is accompanied by the duty to consider the climatic and economic challenges facing our country, which have led to a significant decline in livestock numbers," the King said in a letter read on his behalf by religious affairs minister Ahmed Taoufiq on state TV Al Oula. Performing the rite "under these difficult circumstances will cause significant harm to large segments of our people, especially those with limited income," said the King, Morocco's supreme religious leader. Rainfall was 53% lower this year than the average of the last 30 years, causing a lack of pasture for livestock to feed on. Meat production has dropped, leading to higher prices in the local market and higher imports of live cattle, sheep and red meat. The country has recently signed a deal to import up to 100,000 sheep from Australia. In its 2025 budget, Morocco suspended import duties and a value-added tax on cattle, sheep, camels and red meat to keep prices stable in the domestic market. Sign up here. https://www.reuters.com/world/africa/drought-hit-morocco-asks-citizens-not-slaughter-sheep-eid-al-adha-2025-02-26/

2025-02-26 22:16

Feb 26 (Reuters) - Bitcoin, the world's largest cryptocurrency by market value, dropped 5% to $84,201 at 21:56 GMT on Wednesday. Number two cryptocurrency Ether, gained 1.58% as of 22:06 GMT. Sign up here. https://www.reuters.com/technology/bitcoin-falls-by-5-84201-2025-02-26/

2025-02-26 21:59

Feb 27 (Reuters) - A look at the day ahead in Asian markets. The Asia-Pacific economic and corporate calendar is virtually empty on Thursday, allowing investors to take their cue from global drivers, two of which stand out above all others - Nvidia's earnings and U.S. President Donald Trump's latest musings on tariffs. Nvidia (NVDA.O) , opens new tab reported fourth-quarter earnings after the market close on Wednesday. Revenue grew 78% to $39.3 billion, beating estimates of $38.04 billion, and the firm's forecast for first-quarter revenue was also above market estimates. Shares in the artificial intelligence poster child were little changed in choppy, after-hours trading. Shares in Wall Street's 'Magnificent Seven' and Big Tech more broadly - the runaway market winners over the last two years - have been under heavy pressure this year as investors rotate into unloved sectors at home and cheaper markets abroad. Indeed, the 'Mag 7' this week entered correction territory having fallen more than 10% from their recent peak, so recovery hopes rested almost exclusively on Nvidia. Tech bulls may be disappointed. Also in U.S. tech, Tesla (TSLA.O) , opens new tab shares have shed nearly 20% in less than a week, slammed on the news that the electric car maker's sales in Europe nearly halved last month. Some analysts suggest the slump was due to frustration in Europe about CEO Elon Musk's close ties to Trump and political involvement in European countries' domestic affairs. Investors were on the defensive before Nvidia's results, after Trump said earlier that he will soon announce a 25% tariff on imports - "on cars, and all of the things" - from the European Union. Trump also said that steep new tariffs on imports from Mexico and Canada will go ahead on April 2, a month later than he had initially indicated. But a White House official later clarified that the March 4 deadline remained in place "as of this moment". 'Tariff Man' is not for turning. Not yet anyway. It was interesting to note that although Wall Street opened firmer on Wednesday and was recouping some of its losses from earlier this week, Treasuries didn't budge. This suggests the fleeting equity rebound was more short-covering than anything else, and that the bond market wasn't changing its view. But bond investors did react to Trump's tariff remarks. The renewed decline in yields suggests they believe escalating trade tensions will hit growth more than they will stoke inflation. At least in the near term. Most equity markets in Asia, except Japan, posted solid gains on Wednesday. But the region is set to slide into the red at the open on Thursday as investors play safe. Treasuries up, dollar up - the big macro moves in U.S. regular trading hours on Wednesday don't get much safer. Here are key developments that could provide more direction to Asian markets on Thursday: - Fallout from Trump's latest tariff threats - G20 finance ministers, central bank governors meeting - U.S. GDP (Q4, second estimate) Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-2025-02-26/

2025-02-26 21:58

MEXICO CITY, Feb 26 (Reuters) - Mexico's Senate approved on Wednesday the laws of an energy reform that strengthens the dominant role of state companies Pemex and CFE while opening new doors for private investment to reach the country's self-sufficiency goals. The new laws- which had 85 votes in favor, 39 against and one abstention- will now be sent to the lower house of Congress where it is expected to get final approval. If passed, highly indebted Pemex would get more freedom and preferable conditions to work with private companies in a range of investment schemes while retaining control of projects. In addition to service contracts, Pemex will be able to migrate to what it has referred to as mixed schemes and exploration and extraction. As part of these, it will retain the right to the area and not provide capital. It can work with private companies in a framework similar to that of the so-called farmouts set out in the energy reform of 2013. Former President Andres Manuel Lopez Obrador had harshly criticized the farmout structure. Pemex will no longer have to go through a bidding process overseen by an independent regulator to migrate existing agreements to mixed participation contracts. Reuters reported in August that President Claudia Sheinbaum would once again seek associations with private companies. In electricity, the reform also establishes a priority dispatch into the grid by CFE and mandates that it produces at least 54% of the electricity that is generated in Mexico. The remainder would be generated with the help of private companies in partnerships with CFE where the state company holds a majority; in Mexico, private companies generate electricity from renewable sources. The reform also establishes that the electrical system must operate under conditions of reliability and continuity, and must promote the energy transition to renewable energy sources. It contrasts the approach of Lopez Obrador, who promoted the use of fossil fuels. Sign up here. https://www.reuters.com/business/energy/mexico-moves-forward-with-energy-reform-strengthen-dominant-roles-state-2025-02-26/