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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInElizabeth Holmes’ former partner ‘Sunny’ Balwani headed to prison after losing appeal – New York Daily News
In December, U.S. District Judge Edward Davila sentenced Balwani to a prison term of 12 years and nine months. Last month, Davila rejected Balwain’s request to remain free while he appeals his conviction. He was scheduled to begin serving his sentence on March 16. However, just hours before he was supposed to surrender, Balwani’s lawyers […]
FTX Failure Rooted in ‘Hubris,’ ‘Greed,’ Debtors Report Says – Bloomberg
At the root of FTX’s spectacular collapse was “hubris, incompetence, and greed” on the part of Bankman-Fried and top executives, including former engineering director Nishad Singh and former chief technology officer Gary Wang, the report said. “Despite the public image it sought to create of a responsible business, the FTX Group was tightly controlled by […]
Binance.US Struggles to Find Bank to Take Its Customers’ Cash – WSJ
The U.S. affiliate of global crypto exchange Binance has struggled to find a bank for its customers’ cash after the failure of Signature Bank left it without a key banking partner, people familiar with the matter said. Users’ dollar deposits were previously sent to either Signature Bank or Silvergate Capital Corp., according to Binance.US’s website. The […]
KPMG, Goldman Sachs, Morgan Stanley and Bank of America Sued Over SVB Failure – Bloomberg
KPMG LLP was sued as Silicon Valley Bank’s auditor, along with underwriters including Goldman Sachs Group Inc., Bank of America Corp. and Morgan Stanley & Co. in an investor lawsuit based on alleged misstatements leading to the bank’s collapse. Similar to previous suits, a complaint filed Friday in the federal court in San Francisco names […]
Auditors Didn’t Flag Risks Building Up in Banks – WSJ
When KPMG LLP gave Silicon Valley Bank a clean bill of health just 14 days before the lender collapsed, the Big Four audit firm flagged potential losses on loans as a so-called critical audit matter. But the audit opinion was silent on what actually brought down the bank—its unrealized bond losses and ability to hold […]
Coinbase Asks for $470,000 To Cover Fees, Costs From Insider Trading Case – Blockworks
In a letter dated April 3, a lawyer representing Coinbase asked for restitution to cover the costs it said occurred during the investigations by the Department of Justice and the SEC. The total amount would fall under the Mandatory Victim Restitution Act which states that victims are entitled to both expenses and lost income from […]
U.S. Lawmaker Says SEC Chair Gary Gensler Is A Bad Faith Regulator — CoinEdition
During an episode of Unchained Podcast with Laura Shin, Congressman Emmer described SEC Chair Gary Gensler as a “Warren Disciple”, a subtle hint at his pro-fiat and anti-crypto stance. The lawmaker added that under Gensler’s leadership, the Commission was more focused on enforcing regulation outside their jurisdiction rather than cracking down on bad actors in […]
Thanks Sam! How FTX Led to World’s Worst Crypto Policy
Among a string of “Thanks Sam” moments these past five months, this one takes the cake. You can argue that the crackdown against Kraken, Coinbase, Paxos, Binance and others was driven significantly by a desire to punish Sam Bankman-Fried, the erstwhile founder of FTX, whose mind-blowingly rapid collapse in November sent shockwaves through the crypto […]
The Real-World Costs of the Digital Race for Bitcoin – The New York Times
Texas was gasping for electricity. Winter Storm Uri had knocked out power plants across the state, leaving tens of thousands of homes in icy darkness. By the end of Feb. 14, 2021, nearly 40 people had died, some from the freezing cold. Meanwhile, in the husk of a onetime aluminum smelting plant an hour outside […]