Current Events in June 2018

BMW of North America is recalling 846 model year 2018 BMW M5s.

In certain driving conditions, the engine control unit software may cause the fuel pump to stop, causing the vehicle to stall which increasing the risk of a crash.

What to do

BMW will notify owners, and dealers will update the engine control unit software, free of charge.

The recall is expected to begin July 6, 2018.

Owners may contact BMW customer service at 1-800-525-7417.

Volkswagen Group of America is recalling 360 model year 2018 Volkswagen Tiguan long wheel base (LWB) vehicles.

The nut that holds the lower ball joint of the front wheel on each side of the vehicle may be loose or improperly tightened.

A loose or improperly tightened ball joint nut can result in the separation of the lower ball joint causing steering, traction or other stability issues, increasing the risk of a crash.

What to do

Volkswagen has notified owners, and dealers will replace the nut on the lower ball joint, free of charge.

Owners are advised not to drive their vehicle until the recall repair has been performed.

The recall began May 30, 2018.

Owners may contact Volkswagen customer service at 1-800-893-5298. Volkswagen's number for this recall is 40N4.

The student debt crisis has reached epic proportions, with an estimated 44 million borrowers in the country now owing over $1.3 trillion in student loans. But like other financial issues in the United States, the burden of student debt isn’t shared equally.

Women hold nearly two-thirds of student debt in the United States, according to a new report by advocacy group the American Association of University Women (AAUW).

Women overburdened by student loan debt

Analyzing data from the Department of Education, AAUW determined that the hurdles that women borrowers face are three-fold. From the outset, women make up slightly more of the college student population than men, or around 56 percent of those enrolled.  

Once in school, women then tend to take out larger student loans than men who do so.

“On average women take on more debt than men at almost every degree level and type, from associate degrees to doctoral degrees and across institution types,” AAUW says.

Upon earning her bachelor’s degree, the average woman owes $2,740 more than the average man, the report says. Then, those same women enter the workforce, where they face the ever-persistent gender pay gap. That means that women have less disposable income to pay back their loans.

Racial inequalities also persist

The AAUW report shows that racial pay disparities have also bled into the student loan crisis. When analyzed by race, the AAUW found that black women take out more in student loans than any other group.

And, as previous research has shown, black women earn just 63 cents on the dollar compared to the average white man. For Latina women, that figure is 54 percent. That means that black and Latina women, already taking out student loans at higher rates than any other group, then struggle much more to pay the loans back and are more likely to default.

According to federal data, 34 percent of all women repaying loans and 57 percent of black women repaying them reported “that they had been unable to meet essential expenses within the past year.”

While the AAUW generally advocates for ending gender and racial pay disparities, their latest report specifically calls for universities and student aid offices to be more proactive in informing and helping students avoid unnecessary loans.

“The objective is not to dissuade students from borrowing if loans are needed but to keep them informed about their debt and how to manage it after they leave college,” AAUW says.

What administration officials have insisted is only a “trade dispute” appears closer to becoming a trade war.

After Washington slapped 25 percent tariffs on steel and aluminum from Mexico and Canada, Mexico has retaliated with tariffs on a diverse range of American exports. Canada is said to be considering a similar response.

The Mexican tariffs target U.S. pork, produce, bourbon, and steel – products chosen with a political objective in mind. With midterm elections looming, the tariffs are crafted to affect states and regions of the country where Republican politicians appear most vulnerable.

The tariffs will make those U.S. products more expensive for Mexican consumers. But in an odd twist, American consumers could eventually pay less, especially for pork products.

Could affect pork prices

Mexico is a huge importer of American pork. With tariffs raising the price by 20 percent, Mexican consumers may purchase less of it, meaning the country may end up buying a smaller quantity of U.S. pork products.

American producers would either have to reduce production, find another market, or sell more domestically, which would increase the supply and lower prices in the U.S. In an immediate response, hog futures prices dropped by 2 percent on the Chicago Mercantile Exchange.

'Gut punch'

“This is a gut punch to Virginia farmers, who exported more than $68 million in pork to Mexico last year,” Sen. Mark Warner (D-Va.), wrote in a tweet. “The President’s trade war is going to cost Virginia ag jobs.”

Virginia farmers' pain, however, could make it harder for Republicans to capture a U.S. Senate seat from Warner's colleague, Sen. Tim Kaine (D-Va.), who is seeking reelection.

Canadian Prime Minister Justin Trudeau has stepped up his criticism of the Trump administration in recent days, taking special offense to the “national security” rationale Washington used to justify steel and aluminum tariffs on its close ally and trading partner.

The U.S. announced tariffs on Canadian and Mexican steel and aluminum after talks stalled on a renegotiation of the North American Free Trade Agreement (NAFTA). The Trump administration has held out the possibility of scrapping the treaty entirely and negotiating bilateral trade agreements, something both Canada and Mexico oppose.

Facebook was once again called on the carpet on Tuesday -- this time for providing access to users' data with several Chinese device makers, including Huawei, the third largest smartphone company in the world.

Huawei has been flagged by CIA, FBI, and NSA officials as a national security threat. Earlier this year, those U.S. intelligence agencies recommended that consumers not use Huawei products for fear of the Chinese government using the devices as a tool for spying.

Why did Facebook cut deals with Chinese tech companies?

Even though Facebook has been blocked by Chinese censors since 2009, the company is still on the prowl to find ways into China.

Cutting deals for its APIs (application programming interface) to be integrated in Chinese products is as close as Facebook has been able to get. The company claims that its partnerships with the Chinese device makers were focused on making it possible for those tech firms to merely recreate Facebook-like experiences for their users.

Facebook doesn’t want to be the only tech firm catching heat about its relationship with China. Addressing the concern on CNN, Francisco Varela, Facebook's vice president of mobile partnerships, wanted the world to know that there were many other U.S. tech companies that have done business with Chinese companies in hopes of integrating their technology and getting their company’s foot a little further in China’s door.

Hasn’t Facebook learned its lesson?

First there was Cambridge Analytica, then an admission that Facebook had previously struck data-sharing deals with more than 60 phone and tablet makers like Apple, Microsoft, and Samsung. The Chinese tech news raises even more concern about how Facebook deals with and protects its users’ personal info.

Understandably, Facebook is somewhat defiant about having to defend another accusation.

“All these partnerships were built on a common interest — the desire for people to be able to use Facebook whatever their device or operating system,” claimed Ime Archibong, Facebook’s VP of Product Partnerships.

Archibong says Facebook controlled the APIs it shared with other companies tightly and everyone involved signed an agreement preventing Facebook info from being leveraged for anything other than recreating a Facebook-like experience. An example would be giving Blackberry users the ability to phone their Facebook friends.

Nonetheless, Facebook seems to have learned its lesson. It said on Tuesday that its deal with Huawei would end next week.

Alexander Nix, the former CEO of Cambridge Analytica, allegedly embezzled $8 million from the company before it shut down and filed for bankruptcy last month.

Nix is accused of stealing the money after British journalists began reporting on the company’s involvement in the Facebook data sharing scandal, but before the company collapsed, according to the Financial Times.

Investors who want to rebrand and relaunch the political ad consulting firm are currently trying to get the money back, and Nix has said he intends to repay part of the money.

Sources say the money was supposedly intended to help get potential successor data firm, Emerdata, off the ground, with one person adding that Nix said the withdrawal was made in exchange for “unbooked services.” 

Nix appeared before British lawmakers for a second time on Wednesday to testify about his role in the data sharing scandal that exposed the information of millions of Facebook users without their consent. At the session, Nix denied that he had withdrawn the money.

"The allegation made in that article is false, the facts in that article are not correct," he said.

Mercedes-Benz is launching a pilot car subscription service in two U.S. cities, joining BMW, Porsche, and other manufacturers in what may be a trend among luxury nameplates.

Subscribers in Nashville and Philadelphia will have access to 30 different Mercedes-Benz models, which can be summoned through an app. The monthly cost begins at $1,095 and goes up to nearly $3,000.

If that sounds steep to use a car you don't own, it's relatively cheap compared by BMW's recently announced plan. During its pilot phase, BMW is offering two membership tiers, ranging from $2,000 to $7,000 per month. The tiers determine the models a subscriber may access.

Why would a consumer choose to subscribe to a car instead of purchase or lease one? After all, the lease payment on a luxury car runs in the hundreds, not the thousands of dollars each month.

Includes a lot of costs

With many car subscriptions, the consumer doesn't keep possession of any one vehicle for a long period of time. They drive it and turn it in. Consumers don't pay for insurance or maintenance – costs that have to be added to the monthly car payment under a purchase or lease.

There's also the element of flexibility. When you lease a vehicle, you pretty much have to keep it for the term of the lease. Under most subscription plans, you can cancel at any time. You pay for that flexibility.

But primarily, you are paying for the privilege of driving a very expensive, high-performance luxury car whenever you want, without the hassles of ownership.

Affordability issues

Automakers have turned to subscriptions as an alternative to purchase and lease, in part because they worry that prices have gotten so high consumers can't afford them.

“If the cost of a new car continues to rise at rates it has been, it will stop sales,” Wes Lutz, chairman of the National Automobile Dealers Association, recently told The Wall Street Journal. “It’s just more than the consumer can handle.”

But who can afford $2,000 a month for limited use of a car? High income consumers who have a passion for driving and enough disposable income to support it. But for the model to become mainstream, it would seem costs would have to come down. And there's evidence they'll do that.

Volvo's Care program will offer the Volvo XC40 SUV on a subscription basis, starting at $600 a month. That includes insurance and maintenance and gives the subscriber up to 15,000 miles a year.

At Tesla’s annual meeting on Tuesday, CEO Elon Musk shared that his company will be producing 500 Model 3 sedans per day as it works to achieve its target of producing 5,000 vehicles per week by  the end of this month. Musk noted that it is “extremely likely” the car maker will reach this goal.

Following the announcement, Tesla shares rose nearly four percent this morning.

The company has experienced issues producing Model 3s recently because of production bottlenecks, despite Musk telling investors on Tuesday that the capability is there to crank out 3,500 Model 3s per week.

“The Model 3 ramp is understandably the central focus for investors as the company works to increase production,” Baird Equity Research Analyst Ben Kallo said in a research note.

Out of 27 analysts covering the stock today, the average price target was $289, and it was trading for $301.50 this morning. Additionally, nine of the 27 analysts have a “buy” or higher rating for the company, 10 give a “hold” rating, and eight have a “sell” or lower rating.

Setbacks for the Model 3

Along with the aforementioned production bottlenecks, Tesla has recently experienced financial troubles and a myriad of other issues with its Model 3 production.

The company has failed to meet its own production goals consistently through the first six months of 2018, slowly pushing back Musk’s projected numbers for the company. Last July, the CEO claimed Tesla would be pushing out 20,000 Model 3s per month by December. Musk decreased that projection to 2,500 per week by the beginning of this year; however, by the end of the first quarter, the company reported a peak of 2,270 cars per week.

According to Musk, delays were due to a supplier that “really dropped the ball” at the Nevada Gigafactory, as well as faulty parts that had to come off the line and several fires at Tesla’s California paint factory.

Recent troubles

Tesla’s Model 3 also made news recently after the company refunded nearly a quarter of prospective customers who had put down a deposit on the car.

Tesla had been marketing the Model 3 as a car for the masses, with its starting price at $35,000 -- a mere fraction of the nearly $100,000 consumers pay for the Model X or S. However, when the company began collecting $1,000 deposits from customers interested in the Model 3, production had yet to start. Now, with over half a million customers that have left deposits, Tesla workers can’t meet the rigorous demands for the vehicle.

As of April, Tesla had delivered just over 8,000 Model 3s, and none were sold for the initial price of $35,000. Instead, the cars were in the $50,000 range due to the company prioritizing orders for more expensive upgrades.

Looking to the future

Despite recent issues, Musk was confident on Tuesday that the Model 3 vehicles -- and Tesla as a company -- are heading into the rest of 2018 on better footing.

In addition to pushing the Model 3 back towards its production goals, Musk shared that the car will be available for test drives in “almost all stores in North America by the end of next month.”

Musk also promised that Tesla will be making the base model of the Model 3, which will be available to consumers by the first quarter of 2019.

Walmart, Target, and Amazon have pulled CloudPets’ connected teddy bears from their online stores over security concerns.

The decision comes a year after researchers first uncovered security flaws in the toys, which allow children to send and receive audio messages with the help of the cloud and an iOS or Android app.

In a blog post published last February, Troy Hunt said that the toys had leaked the voice recordings of more than 2 million children and parents, as well as email addresses and password information associated with more than 800,000 accounts.

Researchers recently discovered that the security issues in CloudPets still have not been fixed, prompting the Electronic Frontier Foundation (EFF) to pen a letter to Walmart, Target, and Amazon voicing concern that the smart toys were still available for purchase.

Insecure online database

In 2017, CloudPets’ database was accessed multiple times by hackers; the information stored in CloudPets’ database was held for ransom by cybercriminals at least twice.

"What we see with CloudPets is a breach of trust with its users. We understand that connected devices can be complex and that sometimes, mistakes happen. However the issues with the CloudPets toy demonstrate a track record of failing to protect consumers,” the EFF wrote in their letter.

“Despite the fact that security risks have been known publicly for over a year and that technical solutions are available, Spiral Toys has not rectified these problems. Security audits, instituting a vulnerability policy and also ensuring that their Bluetooth uses authentication are some of the key steps we’d like to see Spiral Toys take to help rectify this breach of trust,” the group said.

Removed from online marketplaces

Last week, Walmart and Target stopped selling the internet-connected toys. Amazon followed suit on Tuesday morning after being contacted by Mozilla, which offered research highlighting the vulnerabilities of CloudPets.

“In a world where data leaks are becoming more routine and products like CloudPets still sit on store shelves, I’m increasingly worried about my kids’ privacy and security,” Ashley Boyd, Mozilla’s vice president of advocacy, said in a statement.

Working with cybersecurity research firm Cure53, Mozilla found that the Bluetooth vulnerabilities found in CloudPets toys back in 2017 are still present.

"The company clearly does not care about their users' security and privacy being violated and makes no effort to respond to well-meaning attack reports, further facilitating and inviting malicious actions against their users," the researchers said.

With a majority of college students entering the workforce carrying some level of student loan debt, employers are finding that setting up a benefit program to help pay down that debt is becoming as popular as retirement savings plans.

At the beginning of 2018, Fidelity Investments established an HR plan for businesses that makes it easier for employers to contribute to an employee's student loan repayment. Since its launch, the company says nearly 30 firms have implemented it.

According to Fidelity, it not only helps employers attract talent, it helps keep them on the job. It cites data from American Student Assistance that shows 86 percent of employees with student debt would stay with an employer at least five years if they were getting help paying off student loans.

Early adopter

The City of Memphis was an early adopter of a student loan assistance plan for its employees. Last year, it became the first municipality to offer employees with student loans some help in paying them off.

The city contributes $50 a month to the student loan account of any employee who’s worked for the city for at least a year. Since that began, there has been a significant increase in employers who have adopted some sort of student loan assistance program.

In 2017, an estimated 4 percent of employers offered some sort of student loan debt repayment benefit. There are no updated figures for 2018, but that number was projected to rise to 20 percent this year.

'Going to grow rapidly'

"This is going to grow rapidly over time," Asha Srikantiah, vice president of workplace emerging products at Fidelity, recently told CNBC. "We're seeing so many more people who have debt and who are overwhelmed by that debt."

Nearly 70 percent of college graduates have an average of $30,000 in student loan debt, and 20 percent owe more than $100,000. The debt has prevented many from purchasing homes, since their student loan payments are about the same as a small mortgage.

The plan that Fidelity is offering other U.S. businesses actually began within its own organization. According to The Atlantic, Fidelity Investments contributes $167 per month toward paying off student loans for 9,000 of its employees.

The company started the program in 2016 after surveys of both employees and clients found student loan debt was preventing employees from saving for retirement.

ZTE has agreed in principle to a settlement that would lift a U.S. Commerce Department ban preventing it from receiving crucial parts and components from American suppliers.

The ban was put in place after ZTE was found to have broken a 2017 agreement by illegally shipping goods to Iran and North Korea.

The Chinese telecom company halted major operations in May as a result of the seven-year ban imposed in April, which the company called a “death sentence.” Later in the month, however, President Donald Trump tweeted that he was pushing the Commerce Department to work with ZTE to lift the ban.

On Tuesday, the Commerce Department said that although “no definitive agreement has been signed by both parties,” the tentative deal includes a $1 billion fine against ZTE plus $400 million in escrow in case of future violations.  

"The Commerce Department plans to amend its 2017 settlement agreement and count the $361 million ZTE paid as a part of that, allowing the United States to claim a total penalty of as much as $1.7 billion, the sources said,” according to Reuters.

The deal would also require that the company replace its board and executive team within 30 days. The amended settlement agreement has not yet been signed, the sources added.

Met with concern  

Chuck Schumer (D - New York) said on Tuesday that the preliminary agreement shows Trump put China first -- a dramatic shift from his “America first” stance.

“If these reports are true, @realDonaldTrump has put China, not the United States, first. By letting ZTE off the hook, the president who roared like a lion is governing like a lamb when it comes to China. Congress should move in a bipartisan fashion to block this deal right away,” Schumer tweeted.

Mark Warner (D - Virginia) echoed the concerns previously expressed by lawmakers on both sides when he said that the move would pose a security threat.  

"If these reports are accurate, this is a huge mistake," he said in a statement. "ZTE poses a threat to our national security. That's not just my opinion – it's the unanimous conclusion of our intelligence community."

President Trump has said that reviving the embattled company is "reflective of the larger trade deal we are negotiating with China and my personal relationship with President Xi."

BMW of North America is recalling 6,591 model year 2010-2011 BMW 335d vehicles with diesel engines.

The connection of the positive battery cable at the fuse box terminal may degrade over time, possibly resulting in an intermittent loss of electrical power.

A loss of electrical power to the vehicle can cause the vehicle to unexpectedly stall, increasing the risk of a crash.

What to do

BMW will notify owners, and dealers will replace the positive battery cable connector and secure it with an improved method, free of charge.

The recall is expected to begin July 6, 2018. Owners may contact BMW customer service at 1-800-525-7417.

Eddy Packing of Yoakum, Texas, is recalling approximately 18,390 pounds of smoked sausage.

The product may be contaminated with extraneous materials -- specifically soft plastic.

There have been no confirmed reports of adverse reactions due to consumption of these products.

The following ready-to-eat smoked sausage item, produced on March 14, 2018, is being recalled:

• 10-lb. case of “CARL’S PORK AND BEEF SMOKED SAUSAGE WITH A STICK” with lot code 8073, case code PS9319 and sell by date of March 14, 2019.

The recalled product, bearing establishment number “EST 4800” inside the USDA mark of inspection, was shipped to food service businesses in Texas.

What to do

Customers who purchased the recalled product should not consume it, but discard it or return it to the place of purchase.

Consumers with questions about the recall may contact Francisco Montejano at 361-293-2361, Ext. 771.

Volkswagen Group of America is recalling 548 Audi S5 Cabriolets equipped with Super Sport seats.

The seat-mounted head/thorax air bag in the front passenger seat may have been folded incorrectly during installation.

If the air bag was not folded correctly during installation, the seat-mounted air bag may deploy improperly in the event of a crash, increasing the risk of injury.

What to do

Audi will notify owners, and dealers will replace the front passenger seat-mounted head/thorax air bag, free of charge.

The recall is expected to begin July 13, 2018.

Owners may contact Audi customer service at 1-800-253-2834. Volkswagen's number for this recall is 69W6.

To celebrate the end of another school year, Red Robin is giving teachers and school staff a free meal.

On Tuesday, June 5, any teacher, school staff member, bus driver, or educational professional with a valid school ID can get a free Tavern Double Burger with bottomless steak fries at participating Red Robin restaurants.

“Teachers are the best. That’s why we’re giving you a FREE Tavern Double Burger & Bottomless Fries. Stop in June 5 with your faculty ID to cash in on this delicious gift,” the company tweeted.

No purchase necessary

The offer is good for dine-in and to-go orders, and no purchase is necessary to claim the offer. Red Robin offers five different Tavern Double Burger with fries options on its menu (a $6.99 value).

"Red Robin knows that remarkable people make us better and we look forward to welcoming all educators to our restaurants on June 5 to show our appreciation for all the hard work they put in throughout the school year," said Dana Benfield, the company's senior vice president and chief marketing officer in a statement.

Red Robin is also running a gift card promotion through June 30. Customers who buy a $25 gift card at participating locations and online get $5 in bonus bucks to redeem July 1 through Aug. 31.

A protest movement is building among Toys “R” Us employees, who are angry that the retailer is shutting down but providing no severance pay.

Beginning last weekend, some of the 31,000 employees who will soon be without jobs began picketing stores in New Jersey, where the company's corporate headquarters is located. Protesters said that when stores closed in the past, employees received severance based on their tenure.

For its part, Toys “R” Us blames the nation's bankruptcy laws. As it turns out, if a corporation is liquidating -- selling off everything and no longer staying in business -- it is not allowed to pay severance to its workers. That's because creditors are supposed to be first in line.

"Because we were forced to liquidate the U.S. business, we were not able to follow the normal severance process," Toys “R” Us spokesperson Amy von Walter told CNN.

Private equity executives get paid

But the employees who are losing their jobs are angry because the laws do not prevent the private equity firms from paying top executives big retention bonuses, so they'll stay on the job long enough to complete the transition.

Creating more confusion and resentment, Toys “R” Us paid severance to employees who were let go immediately after the liquidation announcement. Those staying through the required 60 days notice will receive nothing.

The Toys “R” Us protest movement actually began a month ago, when word spread through the stores that employees who faced losing their jobs would not receive any severance pay. The workers and their supporters say companies backed by private equity firms, as Toys “R” Us is, have access to plenty of cash.

“Retail workers are sick and tired of having to pay for Wall Street greed,” Carrie Gleason, director of the Fair Workweek Initiative at the Center for Popular Democracy, said last month. “Private equity companies like KKR and Bain Capital have created massive job losses across the country for a quick profit while the workers walk away with nothing. We need to treat retail workers with dignity and respect, and that’s why we’re here.”

Appealing to Congress

The protesters are turning to Congress for relief. Late last week, a group of protesters met with members of the New Jersey Congressional delegation and asked lawmakers to push for changes in the law.

Toys “R” Us announced in May that it would close all of its U.S. stores after it was unable to restructure its massive and growing debt.

The company that became Toys "R" Us was founded soon after World War II and enjoyed explosive growth in the 1970s and '80s, when the huge baby boom generation began having children. Trips to the huge warehouse-sized stores on the weekend were a rite of passage for a generation of children.

In the last decade, the retailer fell victim not just to online competitors, but also Walmart and Target -- retailers that were able to cut into Toys "R" Us sales. The retailer filed for Chapter 11 bankruptcy last September.

The U.S. Securities and Exchange Commission (SEC) has raised the bar on cryptocurrency scrutiny by creating a czar-like position to watch over the new digital currency’s progress.  

Valerie A. Szczepanik, a 21-year SEC vet, has been named Associate Director of the Division of Corporation Finance and Senior Advisor for Digital Assets and Innovation for Division. Ms. Szczepanik will quarterback all of the SEC’s efforts concerning securities laws related to all digital asset technologies, including cryptocurrencies and Initial Coin Offerings.  

“Valerie recognized early on the securities law implications of developments like blockchain and distributed ledger technologies, and of cryptocurrencies, Initial Coin Offerings, tokenized securities, and other digital instruments,” said SEC Division Director Bill Hinman.

Ms. Szczepanik’s to-do list is rather long. In a statement, she said she wanted to address digital assets and innovation, promote fair, orderly, and efficient markets, and protect investors -- particularly those on Main Street.

The SEC’s czar announcement was met with open arms on social media by crypto cheerleaders. Cryptocurrency enthusiast Jonathan Williams‏ tweeted that the move was a “step in the right direction! Regulation is sorely needed and will provide the crypto world with much legitimacy. We should all embrace and work with regulators such as the SEC.”

Crypto is still the wild west

Industry experts say that the move by the SEC will take some time before it affects the cryptocurrency space. Until then, many investors will need to be careful about what deals they make on digital platforms.

“In terms of when we’ll see regulation around cryptocurrencies and the blockchain, it will be years,” said Kathryn Haun, a professor at the Stanford Graduate School of Business and board member at Coinbase and HackerOne, at the recent Code Conference.

“In the early days of the internet, for example, people called for a single regulator. That didn’t happen, but now we’re seeing that happen with cryptocurrencies and blockchain. We don’t want regulation to outpace understanding. It’s important to wait and see how the technology develops,” she said.

The SEC continues to turn up the heat

The SEC has watched cryptocurrency’s meteoric rise attentively and responded swiftly.

In March, the agency declared that all cryptocurrency exchanges must be registered. Just last month, officials decided to show consumers the dangers of a cryptocurrency scam by launching a website advertising a fake initial coin offering (ICO).

The agency isn’t shy about shutting down rogue crypto actors, either. On May 30, the SEC froze the assets of a fraudulent ICO dubbed Titanium Blockchain Infrastructure Services, which had raised $21 million.

Amazon is investing more money in growing its presence in India, a market of 1.3 billion people expected to be worth $200 billion within a decade.

After having lost out to rival Walmart in the bid to gain a majority stake in Indian e-commerce platform Flipkart, Amazon is increasing its investment in the country from $5 billion to $7 billion.

“Amazon is betting big on the India market. It is evident that after Walmart’s acquisition of Flipkart, Flipkart’s ability to increase market share and India presence will increase,” a source with knowledge of the development told CNBC affiliate CNBC TV-18.

Fighting for supremacy in India

Last month, Walmart agreed to buy nearly 77 percent of Flipkart for $16 billion -- the largest deal in e-commerce to date, according to data compiled by Bloomberg. The deal also marked Walmart’s most significant effort to compete with rival Amazon.

Amazon founder Jeff Bezos reportedly put in a competing offer to take control of Flipkart, but Walmart ultimately beat out the e-commerce giant.

Sources say Amazon is focusing on the end result of growing its presence in India by first looking at growth instead of thinking in terms of profitability.

“Amazon has had its eyes and ears firmly on the ground and has been carefully planning its strategy. India is one of its fastest growing geographies and Amazon will not be left behind,” the source said.