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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInElizabeth Holmes gives birth to second child while seeking to extend freedom
Theranos founder Elizabeth Holmes has given birth to a second child as she seeks to delay her impending imprisonment for felony fraud, according to a court filing this week. Holmes, 39, had a first child — a son — in July 2021, as she awaited trial on charges of defrauding investors and patients in connection […]
Wall Street Banks Are Cracking Down on AI-Powered ChatGPT – Bloomberg
Bank of America Corp., Citigroup Inc., Deutsche Bank AG, Goldman Sachs Group Inc. and Wells Fargo & Co. are among lenders that have recently banned usage of the new tool, with Bank of America telling employees that ChatGPT and openAI are prohibited from business use, according to people with knowledge of the matter. In a […]
Kraken Settles SEC Charge That Its SAAS Model Was an Illegal Securities Offering | Foley & Lardner LLP
In addition to recent settlements involving crypto asset lenders, the Kraken settlement is an example of the SEC pursuing enforcement actions against “centralized crypto companies” and claiming that existing securities laws apply to crypto-related financial products. Following the Kraken settlement, SEC Chair Gary Gensler gave an interview on CNBC in which he asserted that the […]
Sam Bankman-Fried Cosplayed as a Genius. The Facts Reveal His Incredible Stupidity
All of this implies two ways Bankman-Fried may have been thinking about his long-term game plan. He may have simply thought he could do nothing but win, and that all the money he was stealing would magically regenerate somehow through his deranged financial and influence-peddling machinations. This species of stupidity would have flowed from Bankman-Fried’s […]
Blackstone and BlackRock Are Among Managers in SEC Texting Sweep
Blackstone Inc. and BlackRock Inc. are among the money managers facing scrutiny in a US regulatory crackdown on Wall Streeters’ once-prolific use of unauthorized messaging platforms. Blackstone was contacted by the Securities and Exchange Commission in October for information on retention of electronic business communications and text messages, the firm said in a filing on […]
SEC’s ‘Hammer’ Approach to Custody Revamp Worries Money Managers
Were the rule adopted as proposed, money managers would have to re-evaluate many custodial agreements. Investment firms would also have to wrestle with additional complexities around whether their arrangements comply with the expanded rule—something that can already be a sensitive judgment call. “It’s not a simple matter of more paperwork,” Avellaneda said. As proposed, the […]
Kodak – Bloomberg
In general, it is the position of this newsletter (though it is not legal advice) that: You should not do insider trading. If you must do insider trading, you should not text your accomplice about it. If you must do crimes and text your accomplices about them, you should not use cutesy codenames for your […]
SEC’s Coinbase Insider Trading Case Is ‘Backdoor Rulemaking,’ Trade Association’s CEO Says
The Chamber of Digital Commerce is trying to stop a case brought by the U.S. Securities and Exchange Commission (SEC) against a former Coinbase (COIN) employee accused of insider trading. The organization’s founder, Perianne Boring, said if the SEC succeeds, many digital assets could be defined as securities. “We see this action as seriously concerning […]
Gensler Is Getting SEC Staff Back to The Office — But Not That Often
Many Wall Street workers have been back in the office for at least a year. Now, the industry’s main regulator is (finally) following suit. The SEC’s rank and file workers are due back on March 27. But don’t expect a full house at the Washington headquarters, or any of the agency’s 11 regional offices either…. […]
Slam Dunks Might Be Securities – Bloomberg
This is not a definitive ruling that these NFTs are securities — it is just a preliminary stage of the case — and it is certainly not a ruling that all NFTs are securities; the control that Dapper has over the investment here seems important. Also this is a case brought by private plaintiffs who bought Top […]