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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInFTX customers file class action to lay claim to dwindling assets | Reuters
FTX customers filed a class action lawsuit against the failed crypto exchange and its former top executives including Sam Bankman-Fried on Tuesday, seeking a declaration that the company’s holdings of digital assets belong to customers. *** FTX pledged to segregate customer accounts and instead allowed them to be misappropriated and therefore customers should be repaid […]
Divided appeals court rejects 4 insider trading convictions | The Seattle Times
A divided appeals court on Tuesday rejected the insider trading convictions of four men, including an ex-government employee turned consultant, prompting a sharp dissent from a judge who says the ruling may prompt insiders to sell confidential government information to the highest bidders. The decision of the 2nd U.S. Circuit Court of Appeals came in […]
U.S. SEC Enforcement 2022 Year in Review | Cleary Gottlieb
The U.S. Securities and Exchange Commission recently announced the Division of Enforcement’s results for fiscal year 2022, the first full year for the Division under the leadership of both Chair Gary Gensler and Director of Enforcement Gurbir Grewal. Results were up from the year before, with a record $4.2 billion in civil penalties reflecting the […]
Sam Bankman-Fried’s Power Was Contingent on Belief – The New York Times
Theranos, WeWork, countless early dot-coms and pre-2008 financial instruments: Almost all began as exciting business stories about people and companies that seemed poised to remake their industries in innovative ways and had the capital, growth or returns to suggest they might be on to something. Those articles continued right until the businesses imploded amid revelations […]
Crypto Exchange Kraken to End Japan Operations
Cryptocurrency exchange Kraken said it will exit Japan and de-register from the Financial Services Agency (JFSA) as of Jan. 31. The decision was prompted by “current market conditions in Japan in combination with a weak crypto market globally,” the company said in a blog post. Kraken users in the country have until the end of […]
Sam Bankman-Fried met with ‘Big Short’ author Michael Lewis
Currently holed up at his parents’ home at Stanford University after being released on $250 million bail last week following being slapped with federal charges of financial fraud and money laundering, Bankman-Fried was visited by bestselling author Michael Lewis. Sources exclusively told The Post Tuesday “Moneyball” writer Lewis spent several hours inside the residence just […]
FTX Bankruptcy: US DOJ Probes How $372 Million Vanished in Hack After Filing – Bloomberg
Federal prosecutors are investigating an alleged cybercrime that drained more than $370 million out of FTX just hours after the cryptocurrency exchange filed for bankruptcy last month. The Department of Justice has launched a criminal probe into the stolen assets that is separate from the fraud case against FTX co-founder Sam Bankman-Fried, according to a […]
Antonia Apps Named Director of New York Regional Office
The Securities and Exchange Commission today announced that former federal prosecutor Antonia M. Apps will become Regional Director of the New York Regional Office next month. Thomas Smith and Maurya Keating, who have served as Acting Co-Directors, remain as Associate Regional Directors of the Enforcement and Examinations programs, respectively. Ms. Apps previously served as an […]
This little-known firm with a weird website was central to the misappropriation of FTX customers’ money, regulators say
Among the 130 or so companies in Sam Bankman-Fried’s sprawling crypto empire, North Dimension Inc. assumed a low profile. Unlike FTX, its name wasn’t splashed on billboards or sporting arenas, and its business wasn’t promoted by celebrities. Still, North Dimension had a crucial role in the FTX mess, regulators now say. In fact, they contend, […]
Crypto-Land –- The Accountants Discover That It’s Terra Incognita – Re:Balance — Jim Peterson
With the spectacular flame-out of Sam Bankman-Fried’s crypto exchange FTX, the Armanino and Prager Metis firms have been sued over their audits of its US and international operations; Mazars pulled its “proof of reserve” report on Binance and cut ties with other crypto clients; BDO displayed its anxiety over its crypto client work; the Big […]