Daily Archives: March 23, 2023, 4:35 pm

Why Coinbase Will Lose Its Battle With the SEC (Wells Notice Edition) | LinkedIn

Rather than respond to the Wells Notice privately, as most companies would do, Coinbase, as per usual, instead immediately went into full offensive mode and laid out their defenses on Twitter and elsewhere in an attempt to rally the mob, and publicly shame the SEC into backing off. For whatever reason, Coinbase believes a Twitter rant against the SEC (who…

Read More

Short Seller Accuses Jack Dorsey’s Block of Facilitating Fraud – The New York Times

Hindenburg Research, the small investment firm whose critical investigative reports pummeled shares in an Indian industrial conglomerate and an electric-vehicle start-up, has found its newest target: Jack Dorsey’s financial technology company, Block. Hindenburg published a 17,600-word report on Thursday accusing Block of overstating its user base and failing to stamp out fraud and illegal activity on its platforms — particularly…

Read More

SEC Charges Three Sales Agents at StraightPath Venture Partners With Fraud and Unregistered Broker Activity

The Securities and Exchange Commission today charged Scott Hollender, Gabriel Migliano, Jr., and Frank Vecchio for selling interests in shares of pre-IPO companies on behalf of StraightPath Venture Partners LLC, despite not being registered broker-dealers, and for misleading investors about the fees associated with those investments. The Commission previously charged StraightPath Venture Partners, StraightPath Management LLC, and its four principals…

Read More

Block shares plunge after Hindenburg says Jack Dorsey’s company facilitates fraud

Shares of Jack Dorsey’s Block plunged over 18% after short-seller Hindenburg Research announced the payment company was its latest short position, alleging that the company allowed criminal activity to operate with lax controls and “highly” inflates Cash App’s transacting userbase, a key metric of performance. The short-seller described Block’s know-your-customer efforts as a ”‘Wild West’ approach to compliance.” Hindenburg’s extensive…

Read More

Experienced Prosecutor Robert E. Rice Named Director of the PCAOB’s Division of Enforcement and Investigations | PCAOB

The Public Company Accounting Oversight Board (PCAOB) today announced the appointment of Robert E. Rice as Director of the organization’s Division of Enforcement and Investigations (DEI), effective March 31, 2023. In this role, he will oversee and direct the PCAOB’s investigations and enforcement of violations of its rules, professional standards, and other applicable securities regulations. Mr. Rice has more than…

Read More

SEC proposes sweeping new package of cybersecurity requirements for regulated market participants | Davis Polk

On their face, the proposals would seem to impose substantial new costs across the industry, especially considering the nearly 1,200 total pages of new guidance and explanation. The SEC concluded otherwise, estimating, for example, that the average internal costs per Covered Entity for the new policy and procedure and annual review requirements of Rule 10 would be only $14,531.54 per…

Read More

We asked the SEC for reasonable crypto rules for Americans. We got legal threats instead.

Tl:dr: Today, the SEC gave Coinbase a “Wells notice” regarding an undefined portion of our listed digital assets, our staking service Coinbase Earn, Coinbase Prime, and Coinbase Wallet after a cursory investigation. We are prepared for this disappointing development. We are confident in the legality of our assets and services, and if needed, we welcome a legal process to provide…

Read More