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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInHow the SEC Widens Net Over Ethereum
The fundamental problem with the SEC’s theory is its assumption that the relevant ETH transactions necessarily “took place in” the US just because blockchain nodes “are clustered more densely in the United States than in any other country.” Although the Ethereum network nodes are primarily hosted using commercial hosting services, the network itself is not […]
Bittrex Fined $24 Million for Breaking U.S. Sanctions – The New York Times
The cryptocurrency exchange Bittrex was fined $24 million for breaking U.S. sanctions, the Treasury Department announced on Tuesday, the largest penalty the government has imposed on a crypto business for violating sanctions. Between 2014 and 2017, Bittrex allowed customers in Cuba, Iran, Sudan, Syria and the Crimea region of Ukraine to make virtual currency transactions […]
SEC scrutiny into Wall Street communications shifts to investment funds – sources | Reuters
The SEC’s enforcement unit has sent inquiries to a number of funds and advisers asking for information about their protocols for so-called “off-channel” business communications as recently as last week, the four sources told Reuters. The agency has asked firms to preserve and produce documents and share information on policies related to the use of […]
The Auditor’s Responsibility for Fraud Detection
Auditors serve an important gatekeeping and investor protection function by helping to verify that issues are promptly identified and addressed so that the auditor has obtained reasonable assurance about whether financial statements are free of material misstatement, whether due to error or fraud. The value of the audit and the related benefits to investors, including […]
Crypto Mixers Haven’t ‘Slowed’ DOJ Investigations, Director Says
While mixers and other automated tools cause challenges for the DOJ, they are not slowing investigators down, Choi added, responding to a question by moderator and conference organizer Chris Brummer. The DOJ’s strategy around crypto in particular is focused on how tools might make facilitating crimes easier. “We’re really looking at the multiplier effect, so […]
In SEC Lawsuit, Grayscale Calls Spot ETF Rejection ‘Arbitrary, Capricious, and Discriminatory’
Grayscale Investments called the the U S. Securities and Exchange Commission’s (SEC) June decision to reject its application to convert its flagship Grayscale Bitcoin Trust (GBTC) into a spot bitcoin exchange traded fund (ETF) “arbitrary, capricious, and discriminatory” in an opening legal brief filed as part of its lawsuit against the regulator. Grayscale filed suit […]
Nevada Business Court Makes Lawyer Who “happened to wander into the courtroom today” Co-CEO of Public Company
How did Mr. Miller get picked for this role? A transcript of the relatively brief hearing reveals that the idea was pitched to the Court by one of Farnsworth’s attorneys. As the attorney explained it “my proposal is going to be that Mr. Colucci, Lisa King, and then, a third-party, who just happened to wander […]