Is this individual a brilliant founder or a deceptive fraudster at 32 years old?
Welcome to TechCrunch’s regular fintech newsletter. While we are taking a brief hiatus, you can still access our essential fintech coverage, including columns, daily analysis, and breaking news stories on TechCrunch.com. For those who want to receive these stories and more directly in their inbox every day, you can sign up for our daily newsletters. Thank you for your ongoing readership!
One significant narrative in the fintech world is the ongoing criminal trial of 32-year-old fintech startup founder, Charlie Javice, which began on February 21. Javice is facing allegations from JPMorgan Chase regarding her involvement in “faking millions of customers” to persuade the bank to acquire her student financial planning aid startup, Frank, for $175 million. Javice, on the other hand, argues that JPMorgan Chase experienced “buyer’s remorse” due to government changes in financial aid form submissions, and that the accusation of fraud was a strategy to void the deal. The outcome of this trial and the jury’s decision will be closely monitored.
In financial news, Fintech company Varo aimed to secure a $55 million Series G funding round but has only closed on $29 million according to an SEC filing. This development follows the announcement by Varo’s founder, Colin Walsh, of stepping down as CEO, with Gavin Michael taking over the role.
On February 21, crypto exchange Bybit disclosed that a sophisticated attack resulted in the theft of Ethereum (ETH) from one of the company’s offline wallets, amounting to approximately 401,346 ETH, valued at $1.4 billion at the time of the heist.
Coinbase announced on February 21 that the SEC has agreed to dismiss the lawsuit against the company with prejudice, indicating that it cannot be reinstated. This move suggests a shift towards a more cryptocurrency-friendly stance from the SEC under the Trump administration. Similarly, the SEC has concluded its investigation into Robinhood’s crypto unit and decided not to pursue further action.
Venture capitalists continue to show strong interest in the fintech sector, with various investors maintaining their optimism in the space. Additionally, Dubai-based Mansa recently secured $10 million in seed funding from Tether, with a focus on enabling payments companies in Africa and elsewhere to settle transactions and fund customer accounts instantly.
Overall, the fintech landscape remains dynamic and filled with significant developments, trials, funding announcements, and regulatory shifts. Stay tuned for more updates as the industry continues to evolve.
