Daily Archives: March 9, 2023, 8:48 pm

SEC Charges Software Company Blackbaud Inc. for Misleading Disclosures About Ransomware Attack That Impacted Charitable Donors

The Securities and Exchange Commission today announced that Blackbaud Inc., a South Carolina-based public company that provides donor data management software to non-profit organizations, agreed to pay $3 million to settle charges for making misleading disclosures about a 2020 ransomware attack that impacted more than 13,000 customers. The SEC’s order finds that, on July 16, 2020, Blackbaud announced that the…

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CFTC Chair Says Ethereum Is a Commodity—Despite Gensler’s ‘Bitcoin Only’ Position – Decrypt

Rostin Behnam told the Senate Agriculture Committee on Wednesday that Ethereum, the second-largest cryptocurrency next to Bitcoin, is a commodity. “It’s been listed on CFTC exchanges for quite some time, and for that reason,” said Behnam, who argued that it creates a “direct jurisdictional hook” for the agency to police both ETH’s derivatives market and underlying market. His opinion appears…

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Silvergate Bet Everything on Crypto, Then Watched It Evaporate – Bloomberg

Silvergate Capital Corp. spent its final days under siege. Bombarded by shortsellers, deserted by depositors and shunned by business partners, executives at the crypto-focused bank were face-to-face with US regulators at its La Jolla, California headquarters. Officials from the Federal Deposit Insurance Corp. had arrived at the firm’s offices, intent on averting the US banking system’s first casualty from the…

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Nothing Redeems Crypto – WSJ

Yet letting crypto burn would allow the most shameless actors to gamble on a quest for resurrection. The ease of spinning out new tokens makes an attempt to return to the tables irresistible. The disgraced author of the Terra/Luna debacle, which vaporized billions of dollars overnight in May 2022, immediately returned to the market with Terra 2.0. The disgraced founders…

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Ex-SEC commissioner joins D.C. whistleblower law firm | Reuters

A former commissioner of the U.S. Securities and Exchange Commission is joining whistleblower law firm Kohn, Kohn & Colapinto as the U.S. regulator increasingly turns to tipsters for information in many of its largest cases. Allison Herren Lee, who is joining the Washington, D.C.-based firm as of counsel, said she would represent whistleblowers “to bring accountability to Wall Street” and…

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U.S. Justice Dept, SEC are no-shows in Slack direct listing case at Supreme Court | Reuters

The stakes, after all, are high for both investors and companies that want to tap the capital markets. Slack and its supporters contend that the 9th Circuit upended market expectations by ditching the longstanding “tracing requirement” that Securities Act plaintiffs must show that their shares were sold under the auspices of the misleading registration statement. Investors, meanwhile, argue that courts…

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Cornerstone Research: Securities Suit Settlements at High Levels in 2022 | The D&O Diary

In looking ahead, the authors note that given the reduced numbers of securities class action lawsuit filings during 2021 and 2022, settlement activity may slowdown or flatten out in the upcoming years, absent an increase in the dismissal rate. In addition, given the more active SEC enforcement approach under the current administration, the number of settled cases involving parallel SEC…

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Crypto Sector’s Reserve Reports Can’t Be Trusted, Says U.S. Audit Watchdog

Proof-of-reserve reports routinely touted by crypto firms to assure customers that their financial transactions are in secure hands shouldn’t be trusted, according to the U.S. organization that oversees auditing standards. The Public Company Accounting Oversight Board (PCAOB) – an industry-funded watchdog working under the authority of the Securities and Exchange Commission – said the reports that tally reserve holdings as…

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Crypto.com Struggles to Maintain Fiat On-Ramps in the Face of Crypto Banking Crisis

The digital assets industry is in the middle of a banking crisis with the collapse of crypto-friendly Silvergate Bank, and Crypto.com hasn’t been spared. The Singapore-headquartered exchange is only now able to provide Euro-denominated banking services to users in the European Economic Area (EEA), having previously lost the ability to accept USD deposits because of issues with its banking partners.…

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