Daily Archives: May 17, 2023, 8:38 am

SEC Charges Microcap Company and Its Executives with Fraud

The Securities and Exchange Commission today announced that Quanta, Inc., a Burbank, California-based biopharmaceutical company that develops and sells a scorpion venom product called Escozine, its CEO, Arthur Mikaelian, and his son and Quanta’s executive vice president in charge of operations, Grant Mikaelian, have agreed to settle fraud charges without admitting or denying the allegations in the SEC’s complaint. As…

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Crypto, Bitcoin Should Face Same Rules As Gambling, UK MPs Say – Bloomberg

Retail investing in unbacked cryptoassets like Bitcoin should be regulated like gambling because they are highly volatile and have “no intrinsic value,” an influential panel of UK lawmakers said. The Treasury Select Committee, a cross-party group of members of Parliament, “strongly recommended” such treatment for trading of digital tokens in a report published Wednesday. Source: Crypto, Bitcoin Should Face Same…

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Where’s Shaq? Lawyers for FTX Investors Struggle to Serve Him Papers – WSJ

Shaquille O’Neal, the 7-foot-1-inch NBA Hall of Famer turned actor, sports analyst and entertainer, is all over TV and has millions of social-media followers. He is one of the most recognizable people on the planet.  There’s one group of people who’s had trouble finding Shaq, and that is the process servers hired to formally notify him he’s being sued. O’Neal…

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Thus Far From The SEC – FCPA Professor

Thus far in 2023, the SEC has brought four FCPA enforcement actions. All of the enforcement actions have been against foreign issuers. All of the enforcement actions have been resolved through an administrative order (meaning there was no judicial scrutiny whatsoever). All of the enforcement actions have lacked related enforcement actions against individuals. Source: Thus Far From The SEC –…

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SEC Can’t Seal Docs Tied to Hinman’s Ether Speech, Judge in Ripple Suit Rules

A federal judge ruled that the U.S. Securities and Exchange Commission cannot seal documents tied to former official William Hinman’s 2018 speech on crypto and securities to Ripple in the regulator’s ongoing lawsuit against the company closely associated with the XRP cryptocurrency. District Judge Analisa Torres, of the U.S. District Court for the Southern District of New York, ruled that…

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Traders Do Less Crime at Home – Bloomberg

I suppose two theories of work-from-home and financial crime would be: If you work at the office, you are less likely to do crimes, because you are around your co-workers and they can see you doing the crimes and you don’t want that. If you work at the office, you are more likely to do crimes, because you are around your…

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Have the SEC’s Delay Tactics Made Its Petition for Rulemaking Process Vulnerable to Challenge? A Look at In re Coinbase Inc. and SEC’s Nullification of 5 U.S.C. § 553(e) by Inaction – Yale Journal on Regulation

Last week, Coinbase launched its first counteroffensive against the Securities Exchange Commission’s (“SEC”) aggressive enforcement posturing in the cryptoeconomy. The cryptocurrency trading platform filed a petition for writ of mandamus asking the Third Circuit to make the SEC act on its petition for rulemaking. The filing raises important questions about administrative power in several respects including agency nullification of the Administrative Procedure Act…

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