Daily Archives: December 20, 2022, 9:53 pm

Senator Warren Questions Tesla Board Chairman on Conflicts of Interest with Elon Musk’s Takeover of Twitter | U.S. Senator Elizabeth Warren of Massachusetts

United States Senator Elizabeth Warren (D-Mass.) sent a letter to Tesla Board Chairman Robyn Denholm raising concerns that its Board of Directors has failed to meet its legal responsibility to protect Tesla and uphold its fiduciary duty to shareholders from actions by Tesla Chief Executive Officer Elon Musk in the aftermath of his purchase of Twitter. “Your legal responsibility is…

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SEC Charges Former CEO of Biotech Company CytoDyn with Fraud, Insider Trading

The Securities and Exchange Commission today charged Nader Pourhassan, the former CEO of CytoDyn Inc., with fraud and insider trading in connection with providing misleading information to shareholders about the progress of a clinical research treatment for COVID-19 and HIV. According to the SEC’s complaint, Pourhassan repeatedly issued press releases exaggerating CytoDyn’s progress with regard to leronlimab, an antibody that…

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Crypto Is Money Without a Purpose – WSJ

When you have a hammer, everything looks like a nail. That’s why everyone in Washington seems to think that federal financial-services regulators are the natural overseers of crypto trading. This is wrong. Crypto trading should be regulated for what it is—a form of gambling that emulates finance—and not what its advocates tell you it is. That means the separated crypto-trading…

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Elsewhere in crypto auditing – Bloomberg

If you are a public accounting firm, you are in the business of signing your name to a piece of paper saying “this company’s financial statements are basically true,” and charging for it. Before signing your name, you will do your best to confirm that the financial statements are true, but there is always a risk that you’re wrong. If…

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Rise in Crypto Securities Filings Could Persist | Insights | Skadden, Arps, Slate, Meagher & Flom LLP

Increased regulatory oversight and recent turmoil in the digital asset market have led to a rising number of securities litigations focusing on cryptocurrencies. Sixteen cryptocurrency-related class actions have been filed this year — more than in any single year since the first such filing was recorded in 2016, according to Stanford Law School’s Securities Class Action Clearinghouse. Suits against cryptocurrency…

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With Binance, Everything Is Not Fine

This is a classic scenario for crypto exchanges, everything is fine … until it’s not. If the stablecoins in Binance’s reserves hold to their peg, everything will be fine. If it can provide true proof of reserves, everything will be fine. If there’s no run on the bank, everything will be fine. If it can deliver fully audited financials, everything…

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Corporate and White-Collar Enforcement in 2023–24 | Global Investigations & Compliance Review

As 2022 comes to a close, is it possible to predict a trend for corporate and white-collar enforcement by the U.S. Department of Justice in 2023? Yes: enforcement will increase in 2023, and it will increase yet more in 2024. Understanding the Department as a dispersed, human institution that responds to incentives explains why. *** Arguably more important than the…

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