US authorities on Thursday charged the founders of BitMEX, a major cryptocurrency exchange, with wilfully failing to prevent money laundering and operating an unregistered trading platform.

The charges are the latest in a years-long effort by the US to crackdown on a cryptocurrency market that was once largely unregulated but has moved more and more under the purview of governments.

BitMEX, which is owned by a parent entity in the Seychelles, was founded in 2014 by Arthur Hayes, Ben Delo and Samuel Reed. The exchange promises customers the opportunity to trade with up to 100 times leverage.

The Department of Justice brought criminal charges against the trio for violating rules under the Bank Secrecy Act that require financial institutions to maintain anti-money laundering controls. Prosecutors also charged Gregory Dwyer, who was BitMEX’s first employee.

Audrey Strauss, the acting Manhattan US attorney, said the four men “undertook to operate a purportedly ‘offshore’ crypto exchange while wilfully failing to implement and maintain even basic anti-money laundering policies”.

“In so doing, they allegedly allowed BitMEX to operate as a platform in the shadows of the financial markets,” she added.

The Commodity Futures Trading Commission also brought civil charges against Mr Hayes, Mr Delo and Mr Reed, as well as five entities behind BitMEX, for failing to register with the agency and not implementing AML procedures.

The CFTC said BitMEX had taken in $11bn worth of bitcoin in deposits and earned $1bn in fees since its founding. It alleged the exchange had operated in part from the US and solicited American customers.

“New and innovative financial products can flourish only if there is market integrity,” said Heath Tarbert, the CFTC chairman. “We can’t allow bad actors that break the law to gain an advantage over exchanges that are doing the right thing by complying

Storied materials-science company Dow Inc.  (DOW) – Get Report said that it would restructure, cutting “workforce costs” 6% and taking $500 million to $600 million of third-quarter charges for the effort.

It didn’t specify the amount of any layoffs.

The restructuring stems from the coronavirus pandemic, which has curbed demand for Dow products, the company said.

Besides the 6% cost cut, the revamp includes “[rationalizing] certain manufacturing assets,” the Midland, Mich., company said in a statement. 

“These actions are expected to result in total annualized [earnings before interest, taxes, depreciation and amortization] savings of more than $300 million by the end of 2021.”

The industrial intermediates-and-infrastructure segment will shut certain amines and solvents facilities in the U.S. and Europe, as well as select small-scale downstream polyurethanes manufacturing facilities. 

The performance-materials-and-coatings unit will shutter manufacturing assets, primarily small-scale coatings reactors.

“Given the expected gradual and uneven global economic recovery from covid-19, we announced in July that we are taking necessary actions to continue to optimize our asset footprint, reduce structural costs and enhance the competitiveness of our business over the long-term,” Dow Chief Executive Jim Fitterling said in the statement.

“We continue to stay focused on delivering strong cash flow, strengthening our financial profile and maximizing our operational advantages.”

The charges reflect severance and benefit costs; costs tied to exit and disposal activities; and asset write-downs and write-offs, Dow said.

Dow said it remained on track to achieve its target of $1.25 billion of capital expenditures in 2020, down from $2 billion in 2019.

The company also said on Wednesday that it would close the sale of its rail-infrastructure assets at six North American sites to Watco, three months earlier than planned. The sale proceeds exceed $310 million. Watco is the Pittsburg, Kan., transportation-services provider.

Earlier this month Dow

The complaint alleges that Viky Bohra and his father, Gotham Bohra, then traded on this confidential information, reaping illicit profits of approximately $1.4 million.

The SEC’s complaint, filed in federal court in Seattle, charges all three Bohras with violating anti-fraud provisions of the federal securities laws. They have agreed to pay total disgorgement of approximately $1.4 million, total prejudgment interest of $118,406, and total penalties of about $1.1 million.

In a parallel action, the U.S. attorney’s office for the Western District of Washington on Monday filed criminal charges against Viky Bohra.

Each of the Bohras did not respond to a Reuters request for comment.

Amazon declined to comment.

United, pilots agree to deal to avoid furloughs

United Airlines and its pilots have reached an agreement that both sides say will avoid about 2,850 furloughs that were set to take effect later this week and another 1,000 early next year.

The Air Line Pilots Association said Monday that the deal will allow United to spread a reduced amount of flying across the airline’s 13,000 pilots to save jobs at least until next June.

The agreement was ratified by about 58 percent of the pilots who voted on it.

United is still poised to furlough nearly 12,000 flight attendants, mechanics and other union employees starting later this week.

GM to repay Ohio tax incentives post-closure

General   Motors   will   repay $28 million in state tax incentives to Ohio after the largest U.S. automaker came under heavy criticism for closing its Lordstown Assembly plant in March 2019.

GM’s agreement with the Ohio Tax Credit Authority also requires the Detroit automaker to pay $12 million for “community support programs” in the Mahoning Valley.

Ohio Attorney General Dave Yost had demanded that GM repay $60 million in state tax credits after it closed its Lordstown Assembly

A former senior manager in Amazon’s tax department has been charged with insider trading by the Securities and Exchange Commission.

Laksha Bohra allegedly acquired confidential information while she prepared and reviewed calculations used to formulate Amazon’s quarterly and annual earnings filed with the SEC between January 2016 and July 2018, according to a news release from the agency on Monday.

Bohra is accused of tipping information about Amazon’s financial performance to her husband, Viky Bohra. The complaint alleges that Viky Bohra and his father, Gotham Bohra, traded on the information in 11 separate accounts maintained by different members of the Bohra family.

Laksha Bohra is also said to have “disregarded quarterly reminders prohibiting her from passing material nonpublic information or recommending the purchase or sale of Amazon securities.” The family allegedly made $1.4 million in profits from the unlawful trading.

“We allege that the Bohras repeatedly and systematically used Amazon’s confidential information for their own gain,” Erin Schneider, director of the SEC’s San Francisco Regional Office, said in a statement. “Employees with access to confidential, potentially market-moving corporate information may not use that information to enrich themselves, their friends, or their families.”

The complaint filed in federal court in Seattle charges all three Bohras with violating antifraud provisions of the federal securities laws. The three have consented to the entry of final judgments permanently enjoining them from further violations of the charged provisions, and ordering them to pay total disgorgement of $1,428,094, total prejudgment interest of $118,406, and total penalties of $1,106,399.

Amazon told GeekWire that it does not comment on active litigation.

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Delta Air Lines Inc DAL plans to retire some of its aircraft earlier than scheduled as part of its fleet-simplification strategy, aimed at modernizing the carrier’s fleet, enhancing customer experience as well as generating cost savings. To this end, the airline has decided to retire its Boeing 717-200 aircraft and the remainder of its 767-300ER aircraft by December 2025. It also plans to retire its CRJ-200 aircraft by December 2023.

Consequently, Delta expects to record non-cash impairment charges between $2 billion and $2.5 billion, before tax in the third quarter of 2020, associated with the retirement of these aircraft. The carrier may continue to consider such early aircraft-retirement opportunities to streamline its fleet.

Apart from the charges associated with retirement of aircraft, the carrier expects to record a charge of $2.7-$3.3 billion, before tax, in the third quarter, in connection with its voluntary early retirement and separation programs. Amid coronavirus-induced weak air-travel demand, the carrier has warned of several pilot furloughs post Sep 30, 2020, i.e, when the federal aid to cover airlines’ payroll expenses expires. However, to reduce the number of furloughs, the airline offered its employees voluntary early retirement and separation options. In fact, Delta expects to be able to avoid involuntary furloughs for its frontline employees, except for pilots, on Oct 1, thanks to a large number of employees opting for voluntary-separation programs.

Delta Air Lines, Inc. Price

Delta Air Lines, Inc. Price

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Zacks Rank & Key Picks

Delta carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader Transportation sector are JB Hunt Transport Services Inc JBHT, Knight-Swift Transportation Holdings Inc KNX and Expeditors International of Washington Inc EXPD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong