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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInFTX Scandal: Crypto Accountants and Lawyers Failed to Sound Alarm – Bloomberg
“Where were the lawyers and accountants?” That was the withering assessment of one US judge after years of fraud and deception went undetected during the 1980s savings and loan crisis, despite a well-stocked entourage of audit, legal and compliance professionals who might have been expected to raise the alarm. It’s a relevant question once more […]
Winklevoss twins sued by Gemini investors over crypto crisis
The Winklevoss twins and their embattled cryptocurrency site Gemini were slapped with a potential class action lawsuit this week from a pair of disgruntled investors who accused them of fraud and other violations. The complaint filed by investors Brendan Picha and Max J. Hastings alleges that Cameron and Tyler Winklevoss sold interest-bearing accounts on Gemini […]
Bahamian regulator holding $3.5 billion of FTX customer assets
The Securities Commission of the Bahamas has been holding on to more than $3.5 billion worth of FTX customer assets since Nov. 12, according to a statement from the regulator released late on Thursday. The decision to take custody of the funds, specifically from the crypto exchange’s FTX Digital Markets Ltd, followed security concerns. Hours […]
Crypto Customers Sell Claims at a Loss to Avoid Bankruptcy Wait – WSJ
At least hundreds of customers burned by the collapses of FTX, Celsius Network LLC and Voyager Digital Ltd. are seeking to sell their cryptocurrency claims at deep discounts so they don’t have to wait months or even years to see what they might recover as the platforms move through chapter 11. Customers and other creditors holding […]
The Republican senator on a crusade against crypto | Semafor
Sen. Roger Marshall, R-Kan., isn’t graded yet on the cryptocurrency industry’s big scorecard. But at this point, he’d be happy to flunk it. “Even when you talk to the crypto people, people who support it readily admit that more than half of the cryptocurrencies out there are bad actors that take advantage of people,” Marshall […]
By the Numbers: 17 Top DC Attorney Hires by Big Law Firms
Here are the top DC lateral moves from government in 2022, in reverse chronological order. From SEC to Quinn C. Dabney O’Riordan in November joined Quinn Emanuel Urquhart & Sullivan after nearly two decades at the SEC, the last six years of which she spent as the head of the Asset Management Division. *** Cravath […]
Crypto Trader’s Fraud Charges in Mango Exploit Show DeFi Not Above Law – Bloomberg
Criminal charges against a crypto trader who claimed to have walked away with about $50 million worth of digital assets after exploiting a decentralized finance platform show that even as DeFi remains mostly unregulated, it offers no shield against the legal consequences of alleged fraud. “There’s a difference between what’s regulated and what’s legal,” Neal […]
Crypto Crackdown Will Help Shape 2023 Securities Law Storylines
US securities regulators’ expected crackdown on crypto firms and potential shakeups in insider trading cases are among the closely watched investor issues for the coming year. Securities litigation involving companies’ environmental, social and governance (ESG) disclosures and practices will also keep court dockets busy. A slowdown in dealmaking likely means fewer lawsuits related to mergers […]
Second Circuit Questions Use of Criminal Insider-Trading Statute Without Proof of Receipt of Personal Benefit | Corporate Defense and Disputes
The Second Circuit held yesterday that a government agency’s nonpublic, pre-decisional regulatory information does not constitute “property” for purposes of the federal insider-trading and wire-fraud statutes. The decision in United States v. Blaszczak (2d Cir. Dec. 27, 2022) (“Blaszczak II”) effectively vacated convictions under those statutes for defendants who had traded on nonpublic, market-moving information that had […]
12 Crypto-Predictions for 2023 | LinkedIn
Prediction #11: Gary Gensler Will Remain at the SEC and Begin to Receive the Respect and Admiration That He Rightfully Deserves *** So just to review: First, in March, 2022, Emmer leads the war on Gensler, scolding him for the SEC’s aggressive investigations of crypto firms and alleging that the SEC was violating the Paperwork Reduction […]