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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInCrypto’s biggest critics won’t back down
According to Diehl, the crypto industry is reinventing the financial catastrophes of the past. Crypto is like early days, he argues: specifically, the wildcat banking of the 19th century, when small banks outside of federal regulation in the US issued paper cash without enough gold or silver to back it. It made for an unstable […]
Goldman Sachs Leading Investor Group to Buy Celsius Assets: Sources
Goldman Sachs is looking to raise $2 billion from investors to buy up distressed assets from troubled crypto lender Celsius, according to two people familiar with the matter. The proposed deal would allow investors to buy up Celsius’ assets at potentially big discounts in the event of a bankruptcy filing, the people said. Goldman Sachs […]
Congress should put an end to in-house courts at the SEC | The Hill
Congress should give serious consideration to abolishing SEC administrative proceedings. They are not necessary to an effective securities enforcement program, and they fail to meet the standards of impartiality and fairness we expect from federal institutions. Contrary to some observers’ fears, this would not be the end of the administrative state. It would strengthen confidence […]
SEC chair urges ‘one rule book’ for crypto to avoid gaps in oversight | Financial Times
Gensler said he was working on a “memorandum of understanding” with the CFTC, which he headed from 2009 to 2013. The SEC has jurisdiction over platforms listing tokens that are deemed securities. If a token that represents a commodity is listed on a platform overseen by the SEC, the securities regulator would “send that information […]
SPAC Stock Prices Reflect the End of an Era – Bloomberg
The fad also attracted a range of Wall Street titans, athletes, and celebrities looking to get a piece of the pie by starting their own SPACs. But tumbling stock prices—especially those of more speculative, early-stage companies—have wiped out billions of dollars in value for shareholders who held SPACs after their acquisition deals. Some companies that […]
Balwani’s Atty Tells Jury Romance With Holmes Not A Crime – Law360
Former Theranos executive Ramesh “Sunny” Balwani’s attorney told a California federal jury during closing arguments in his criminal fraud trial Wednesday that Balwani’s romantic relationship with ex-CEO Elizabeth Holmes doesn’t prove he committed a crime, noting their text messages never say, “Let’s do crime, let’s cheat people, let’s deceive people.” Source: Balwani’s Atty Tells Jury […]
The crypto crime wave is real and it’s gotten worse. – Los Angeles Times
The growth in crypto fraud has turned exponential in recent years. The reported losses from crypto scams in 2021 were 60 times larger than in 2018, the Federal Trade Commission reported earlier this month, with crypto now accounting for 1 out of every 4 dollars lost to fraud in the reports monitored by the agency. […]
In the Shadow of Lucia: The Uncertain Future of SEC Administrative Proceedings | Arnold & Porter
Will the combination of Cochran and Jarkesy lead the SEC to enter into more settlements in pending investigations or administrative proceedings? If the SEC faces a large percentage of respondents in administrative proceedings asking for injunctions from federal district courts, this could create a logistical nuisance, if not a nightmare, for the Commission. Despite the […]
Small Businesses Plead With SEC to Show Restraint on Climate Rules – WSJ
Farms, independent manufacturers and other small businesses that don’t trade on stock exchanges normally don’t fall within the SEC’s purview; the agency regulates public companies and some other market participants. But small firms fear they will be forced to cough up heaps of information on their roles, however small, in emitting carbon because the SEC […]
The Fire Burning Beneath Crypto’s Meltdown – WSJ
The appeal of gold today is that it acts as a haven in bad times, and typically acts as a partial hedge against inflation. Bitcoin holders have discovered that not only is it not a hedge against inflation, it isn’t a haven either. Its price tends to move in line with risky assets, not safe […]