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Cleo AI Settles FTC Deception Charges for $17 Million

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Cleo AI has agreed to pay $17 million to settle U.S. Federal Trade Commission (FTC) charges that it misled consumers about cash advance amounts and processing times, the agency announced Thursday.

FTC Allegations

  • Cleo falsely advertised cash advances of $250 to $500, but most users received as little as $20.

  • The company promised “instant” or “same-day” cash transfers but often delayed payments until the next day—while charging extra fees for expedited service.

  • Cleo made subscription cancellations difficult, continuing to charge $5.99 or $14.99 monthly fees even after repeated cancellation requests.

Settlement Terms

  • Cleo must improve transparency, obtain informed consent before charging for services, and make subscription cancellations easier.

  • The $17 million settlement will be used to refund affected consumers.

Company Response

While denying any wrongdoing, Cleo’s general counsel, Colin Jones, said the FTC’s claims were inaccurate and reflected a misunderstanding of the company’s operations. He stated that settling was the best course of action to allow Cleo to focus on helping Americans improve their financial lives.

Trump Media Partners with Crypto.com to Launch ETFs Through Truth.Fi

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Trump Media & Technology Group, the company behind the Truth Social platform, announced on Monday that it has partnered with Crypto.com to launch exchange-traded funds (ETFs) and related products under its Truth.Fi brand. This collaboration is aimed at offering financial products that include both digital assets and traditional securities with a “Made in America” focus.

Following the announcement, Trump Media’s shares rose 10.5% in after-hours trading, though the company’s stock has fallen 38% over the past three months.

The ETFs, which will be available through Crypto.com’s broker-dealer Foris Capital, are expected to include cryptocurrencies like bitcoin and cronos, alongside securities from various industries. These funds are slated for launch later this year and will be offered in the U.S., Europe, and Asia.

Crypto.com will provide key infrastructure, including backend technology, custody services, and cryptocurrency support for the ETFs.

The partnership follows the January launch of Trump Media’s Truth.Fi brand, signaling the company’s expansion into financial services and fintech, particularly in the cryptocurrency space. Trump Media had previously announced plans to invest up to $250 million through Charles Schwab to diversify its cash holdings, which stood at over $700 million at the end of 2024. This new venture includes investments in ETFs, separately managed accounts, and cryptocurrencies.

Trump Media also revealed in February that it has applied for trademarks for several investment products, including the Truth.Fi Bitcoin Plus ETF, Truth.Fi Made in America ETF, and Truth.Fi U.S. Energy Independence ETF, which focus on sectors like bitcoin, U.S. manufacturing, and energy.

SoFi Secures Up to $5 Billion Loan Agreement as Fintech Lending Grows

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SoFi (SOFI.O) has finalized a significant agreement with Blue Owl Capital, a leading asset management firm, to secure a loan facility of up to $5 billion. This deal marks a key milestone in SoFi’s expansion into the fintech lending space, as more consumers shift away from traditional banks and embrace digital-first financial services.

WHY IT’S IMPORTANT
The rising trend of high interest rates, stricter bank lending standards, and the growing preference for digital, user-friendly financial platforms have led consumers to gravitate toward fintech lenders. These platforms, like SoFi, are known for faster approval times, flexible credit options, and simplified application processes, making them increasingly popular among borrowers. At the same time, institutional investors are drawn to fintech loans due to their higher yield potential compared to other fixed-income investments.

CONTEXT
SoFi’s two-year agreement with Blue Owl Capital is the company’s largest loan deal to date and highlights the growing demand for personal loans from both consumers and debt investors. Under the terms of the agreement, SoFi will serve as an intermediary by referring pre-qualified borrowers to lending partners or originating loans on behalf of third parties. This approach enhances accessibility to borrowing while continuing to diversify SoFi’s revenue streams. The deal also supports SoFi’s long-term strategy of shifting towards more fee-based income sources, which are less capital-intensive.

In October 2024, SoFi also announced a $2 billion agreement for personal loans with affiliates of Fortress Investment Group.

BY THE NUMBERS
In 2024, SoFi’s loan platform originated $2.1 billion in loans, reinforcing the fintech’s ability to attract capital for personal loans. SoFi’s fee-based revenue surged 74% to $969.9 million, driven by strong performances in origination fees, its loan platform business, and income from interchange, brokerage, and referrals.