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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInWhy 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 […]
The Gap In SEC Individual FCPA Enforcement Actions Is Now 2.5 Years – FCPA Professor
The last individual FCPA enforcement action by the SEC occurred in October 2020 (a gap that is now approximately 2.5 years). This 2.5 gap is the most significant gap in individual FCPA enforcement by the SEC in nearly a decade and is approaching the longest gap in approximately 20 years. (See here). Since October 2020 there have […]
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 […]
April 26 Webcast: Regulators and Emerging Technologies — Key Risk and Regulatory Compliance Considerations on AI, Digital Assets, and What’s Next
Please join Justin Herring,
Erez Liebermann, Luke Tenery and
Daron Hartvigsenfor this webcast.
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 […]
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’ […]
Beware the ‘sensible’ crypto crowd — they’re worse than the fanatics | Financial Times
What I am talking about when I use this oxymoron is the men in suits — and it is most commonly men, though there are women too — who will tell you that sure, the vast majority of cryptoland is a gigantic grift, but that their crypto coin is going to change the way we […]
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. […]
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 […]
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 […]