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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC Charges Former SPAC CFO for Orchestrating $5 Million Fraud Scheme
The SEC’s complaint alleges that, from June 2021 through July 2022, Morgenthau embezzled money from African Gold and stole funds from another SPAC series called Strategic Metals Acquisition Corp. I and II to pay for his personal expenses and to trade in crypto assets and other securities. According to the SEC’s complaint, Morgenthau concealed unauthorized […]
Boondoggle of the Year: Cryptocurrency | The New Republic
When I was a teenager, I started playing a popular computer game called EverQuest. It was a multiplayer fantasy game where players could create dwarvish knights, elvish wizards, and other genre-appropriate characters and go on adventures. After completing a quest or slaying a monster, you would be rewarded with armor, weapons, or other goods. Most […]
How Sam Bankman-Fried Negotiated His Bail – The New York Times
Mr. Bankman-Fried had another point of leverage: U.S. prosecutors had wanted to extradite him from the Bahamas quickly, to avoid both the perception of slow-moving justice and his getting hurt in a Bahamian jail before being moved to the U.S. If he had fought extradition, he would most likely have lost that fight, but it […]
Bitcoin Turns 14 But After Being Declared ‘Dead’ 467 Times — Here’s Tracking Its Journey – Benzinga
Today marks the 14th anniversary of Bitcoin – the world’s largest and most popular cryptocurrency. Since its mysterious creator Satoshi Nakamoto released a whitepaper outlining its potential back in 2009, there has been much debate and skepticism about its potential. Bitcoin has been declared “dead” a staggering 467 times since then. Bitcoin’s “death” can be […]
Bernstein Says Crypto Exchange Binance Is Not Likely to Fail
Binance is solvent, liquid and stable and this is evident in the exchange’s more than $55 billion in verifiable cold wallet addresses, Bernstein said in a research report Monday. The crypto exchange can also “pass the test of withdrawals” as it did when some $6 billion of customer funds were withdrawn on Dec. 13, the […]
Auditors Spurn Crypto After FTX, Misleading Reserve Estimates
In the rush to reassure customers and the markets, crypto exchanges like Kraken and Binance Holdings Ltd. in 2022 touted auditor-provided tests of their reserves testing to show customer deposits were safe. But those reports—point-in time snapshots of reserves that don’t reflect fund volatility or outstanding obligations—failed to reassure jittery customers and regulators, including Securities […]
Crypto Hack Lawsuits Rise as Theft Victims Try Untested Claims
Lawsuits against cryptocurrency exchanges, digital wallet providers, and mobile service companies following cyberattacks reached a new high in 2022, as hacking victims increasingly test unproven legal claims to recoup their crypto losses. At least 50 individual lawsuits and proposed class actions have been brought since 2017 by victims—and occasionally companies—against entities they blame for failing […]
Who is Caroline Ellison, the trader at the center of FTX’s collapse? – The Washington Post
Alameda borrowed huge amounts of money from other crypto lenders to fund Bankman-Fried’s investments and donations, but as the price of crypto assets plummeted through 2022, those lenders demanded their money back. Ellison and her colleagues paid it back with customer money, she said, something the platform’s users weren’t aware was happening. And when investors […]
Rule 10b5-1 Amendments: The Clock is Running! : TheCorporateCounsel.net Blog
The adopting release for the SEC’s recent Rule 10b5-1 amendments provides that the new rules will go into effect 60 days after the release’s publication in the Federal Register. Well, the clock is officially running, because the release was published in the Federal Register on Thursday, December 29, 2022. That means the changes to Rule […]
Bankman-Fried set to enter not guilty plea in FTX fraud case | Reuters
Sam Bankman-Fried is expected on Tuesday to enter a plea of not guilty to criminal charges that he cheated investors and looted billions of dollars at his now-bankrupt FTX cryptocurrency exchange, according to a source familiar with the matter. *** He is scheduled to appear at 2 p.m. EST on Tuesday before U.S. District Judge […]