Subscribe
‘Enforcement 40’ for 2020
Our Sponsors
Join Us On LinkedIn
Join the Securities Litigation and Enforcement Group on LinkedInFTX Friends Flip on SBF – Bloomberg
Of course there will be several FTX movies, and maybe the most cinematic scene in the whole story is the meeting that Caroline Ellison, the chief executive officer of Alameda Research, FTX’s affiliated trading firm, held to tell her employees that they’d been stealing FTX customer money. Imagine! Imagine coming into the company all-hands meeting […]
FTX Investors’ Loss Is Wall Street Lawyers’ Gain
With founder Sam Bankman-Fried in FBI custody, his senior lieutenants cutting deals with prosecutors, and as many as 1 million creditors still waiting to get their money back, there seem to be few winners from the collapse of the FTX crypto exchange. However, one group is definitely set to gain – the many law firms […]
Keeping US CPI Inflation Data Secret Involves NDAs and Plain Facial Expressions – Bloomberg
The data are so important, staff were once instructed to have no facial expressions when walking the reports into the West Wing of the White House. And yet, a surge in trading last week in the minutes before the release of the consumer price index — a closely watched US inflation measure — spurred concerns […]
SEC’s Crypto Crackdown Is Just Getting Started After FTX Blowup
Gensler chided platforms for not walling off the different parts of their business, such as custody and market-making functions. He also said client funds often aren’t being properly segregated — a problem that’s gained a lot of attention following the failure of FTX. *** On Thursday, Gensler also took issue with so-called proof-of-reserves reports, which […]
FTX Collapse: Thanks to SBF, Regulating Crypto Should Be Easy – Bloomberg
Regulators might be tempted to sit back and hope the crypto market will simply burn out, putting an end to the whole bizarre episode. That would be wishful thinking. All cryptocurrencies outstanding still have a notional value of about $850 billion, and daily trading remains in the tens of billions of dollars. Officials need to […]
Sam Bankman-Fried Bail: $250M Package Doesn’t Mean He Has That Much Money – Bloomberg
FTX co-founder Sam Bankman-Fried’s $250 million bail package is one of the largest in US history, but it doesn’t mean he actually has to put up that kind of money. At Bankman-Fried’s bail hearing on Thursday in federal court in Manhattan, both the prosecution and defense agreed that the former billionaire’s assets have “diminished significantly.” […]
FTX US auditor Armanino defends work for failed crypto exchange | Financial Times
The auditor of FTX’s bankrupt US exchange business said it stood by its work for Sam Bankman-Fried and was proud of having provided services for a cryptocurrency industry that needed to improve trust and transparency, but it would ditch its digital assets practice by the end of next month. In the first interview by a […]
FTX Customer Committee Taps Paul Hastings for Chapter 11 Case – WSJ
A committee representing bankrupt crypto exchange FTX’s unsecured creditors, including millions of its customers, has hired a legal adviser to look out for their interest in bankruptcy. The nine-member committee has hired Paul Hastings LLP after taking pitches from various law firms for the role, according to people with knowledge of the matter. A process […]
Even After FTX, S.E.C. Chair Sees No Need for New Crypto Laws – The New York Times
The swift collapse of the cryptocurrency empire FTX is prompting urgent calls in Washington for legislation to rein in the digital asset industry. But after two top executives tied to FTX pleaded guilty to fraud charges on Wednesday, Gary Gensler, the chair of the Securities and Exchange Commission, is pushing back on calls for new […]