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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInBroke and down to one credit card: Former FTX CEO Sam Bankman-Fried claims he committed no fraud
Striking a contrite tone, former FTX CEO Sam Bankman-Fried said he “didn’t do a good job” at upholding his responsibilities to regulators, customers, and investors in a hotly anticipated conversation with CNBC’s Andrew Ross Sorkin at the Dealbook Summit. Bankman-Fried’s FTX imploded in mid-November after Coindesk reported irregularities in the company’s balance sheets. The company […]
Welcome to the SEC’s Hotel California | Russ Ryan
And what about the remaining in-house cases that were forced to reboot after the Supreme Court’s Lucia decision? Most are at least six years old by now. Nearly all were fully relitigated and briefed on appeal to the SEC commissioners well over a year ago—some of them two or three years ago. But the last time the commissioners […]
FTX’s Collapse Validates Gary Gensler’s Crypto Skepticism – Businessweek
You might think that Armstrong would be sending a thank-you note to Gensler for keeping him and his customers out of an incredibly risky business. Instead, Armstrong is leading a brigade that’s seeking, against all logic, to pin the blame for FTX on Gensler. The reasoning, which Armstrong laid out in a tweetstorm and a […]
FTX Collapse Puts Auditors in Crosshairs of Clients, Regulators
A lawsuit against FTX’s auditors highlights potential legal risks the audit firms face for vetting the failed cryptocurrency exchange’s books. Prager Metis CPAs LLC and Armanino LLP were “willfully blind” to a pattern of “racketeering” at FTX, a customer who allegedly lost $20,000 said in a Nov. 23 lawsuit in San Francisco federal court. The […]
Further FTX Flailing – Bloomberg
Perhaps no one in the history of finance has been more predisposed to gamble on redemption than Sam Bankman-Fried, but his lawyers disagreed. The New York Times reports: “As the crisis unfolded, a group of FTX lawyers and executives moved to strip authority from Mr. Bankman-Fried and urged the company’s top leaders to prepare for bankruptcy. […]
SEC Obtains Final Judgment Against Former Owner of California Film Distribution Company Charged with Defrauding Publicly Traded Fund
On November 25, 2022, the United States District Court for the Southern District of New York entered a final consent judgment against William Sadleir, the former Beverly Hills owner of a defunct film distribution company accused of defrauding a publicly traded fund out of at least $13.8 million. The SEC’s complaint, filed on May 22, […]
BlockFi Most Likely to Pay SEC First, Crypto Lawyer Says
The Securities and Exchange Commission will most likely to be the first to get paid in the lineup of creditors crypto exchange BlockFi owes money to, Sasha Hodder, founder of Hodder Law, a firm that specializes in crypto law, said Tuesday. Hodder told CoinDesk TV’s “First Mover” the regulator is “in line, in front of […]
Prosecutors Seeking Arrest Warrant for Terraform Labs’ Daniel Shin: Yonhap
South Korean newswire service Yonhap is reporting that prosecutors are seeking an arrest warrant for Daniel Shin, co-founder of Terraform Labs. Yonhap says prosecutors are charging Shin with taking illegal profits as he sold $105 million of LUNA at a market high without informing investors. He’s also being charged with violating the Electronic Financial Transaction […]