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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInCrypto Kiosks, Licensing Are Targets for California Lawmakers
The cryptocurrency sector could be the subject of new regulation in California, and industry lobbyists are pushing back to ensure their businesses can still operate under new proposed scrutiny. The Golden State, home to nearly a quarter of the blockchain companies in North America, is trying to regulate the sector after last year’s collapse of […]
Record $279 Million Whistleblower Award Went to a Tipster on Ericsson – WSJ
The record $279 million whistleblower award issued by the Securities and Exchange Commission earlier this month stemmed from a bribery case against telecommunications company Ericsson. The award from the SEC’s cash-for-tips program was related to the $1.1 billion settlement the Swedish company reached with U.S. authorities in 2019 over allegations it conspired to make illegal […]
SEC Changes Introductory Disclaimer – Likely In Response to Discovery Dispute
If you regularly read speeches given by SEC Commissioners and staff, you may have noticed a change in the standard opening. For most of my career, the remarks always began with something to this effect: “Before I begin, I must give the customary disclaimer that the views I express today are my own and do […]
Key SPAC-Related Litigation Developments | The D&O Diary
As I have chronicled on this blog (most recently, here), a wave of litigation has followed in the wake of the SPAC boom in late 2020 and early 2021. Since January 1, 2021, over 60 SPAC-related securities class actions have been filed, and there has also been a number of Delaware state court breach of […]
At Bitcoin Conference, ‘No Bears Allowed’ – WSJ
Last year, crypto custody firm BitGo held a party where it served two sushi-grade tuna that chefs cut and carved up for guests, one of which clocked in at 200 pounds. This year, there was just one tuna, a 115-pounder, though the company made a joke of it, handing out stickers reading “#TunaWinter.” A satellite […]
SEC.gov | SEC Charges Internet Streaming Company for Overstating Paying Subscribers and Violating the Whistleblower Protection Provisions
The Securities and Exchange Commission today announced settled charges against Colorado-based Gaia, Inc. for overstating the number of the company’s paying subscribers, and Gaia’s CFO, Paul C. Tarell, Jr., for causing Gaia’s overstatement. The SEC also charged Gaia with retaliating against a whistleblower and impeding former employees from communicating with the Commission about potential securities […]
Why Goldman Sachs Is Wrong About Blockchain (A Blockchain Due Diligence Primer) | John Reed Stark
I can’t say it any plainer: blockchain is bunk. No doubt blockchain enthusiasts will insist that I just don’t get it. But like one famed technologist recently wrote, It really looks as if there never was an it to get. Despite its relentless hype and inexorable bluster, blockchain technology itself has extremely limited utility and is […]
Shaquille O’Neal Served FTX Suit at NBA Game, Plaintiff Firm Says
Shaquille O’Neal was served a lawsuit by FTX crypto-exchange users at the Miami Heat game Tuesday night after their multiple previous attempts failed, according to the plaintiffs’ law firm. Investors who bought crypto assets through FTX are accusing the former Los Angeles Lakers star, along with other celebrities like Tom Brady and Stephen Curry, of […]
SEC enforcement not ‘a game of gotcha,’ Grewal says | CFO Dive
Securities and Exchange Commission Enforcement Director Gurbir Grewal said Tuesday that enforcement “should not be a game of gotcha,” but a joint effort by SEC and companies under scrutiny to determine whether a violation has occurred. “This should be a collaborative process,” Grewal said in reply to a question at Securities Enforcement Forum West. “It […]
Crypto giant Binance commingled customer funds and company revenue, former insiders say
The world’s largest cryptocurrency exchange, Binance, commingled customer funds with company revenue in 2020 and 2021, in breach of U.S. financial rules that require customer money to be kept separate, three sources familiar with the matter told Reuters. One of the sources, a person with direct knowledge of Binance’s group finances, said the sums ran […]