Daily Archives: July 17, 2023, 8:31 am

The Irony of Coinbase’s “Regulatory Estoppel” Defense | John Reed Stark

In its lawsuit with the SEC, Coinbase argues that when Coinbase’s IPO registration went effective, the SEC also approved the bonafides of Coinbase’s business. This week, in a scheduling conference, Judge Katherine Failla, expressed some sympathy for Coinbase’s position, stating: “It’s not crazy in the Failla parlance for Coinbase’s to think that what they were doing was OK because it…

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Law firm Winston & Strawn adds Sidley, Kirkland partners in D.C. | Reuters

U.S. law firm Winston & Strawn on Monday said it has hired three Washington, D.C.-based litigators from Sidley Austin and Kirkland & Ellis. Scott Border, Daniel Chaudoin and Caitlin Mandel have joined Winston as partners, the firm said. Border is an intellectual property litigator from Sidley, while Chaudoin and Mandel are joining Winston’s government investigations, enforcement and compliance practice from…

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‘Ripple’ effect from ruling in SEC crypto case could be game-changer for class action defendants | Reuters

Under Torres’s ruling, in other words, XRP was simultaneously a security (in Ripple’s sales to institutional investors) and not a security (in sales to retail investors on crypto exchanges). It all hinges, in the judge’s analysis, on the expectations of the buyer. That sounds complicated – which is exactly why defense lawyers believe that the ruling will help crypto defendants…

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Goldman Sachs Insider Trading Prosecutor Joins Pallas Partners

Manhattan federal prosecutor Joshua Naftalis is joining UK litigation boutique Pallas Partners in the firm’s New York office. Naftalis led the prosecution of Brijesh Goel, a former Goldman Sachs banker, convicted in June on charges related to insider trading. He also worked on a KleptoCature Task Force seeking to seize assets from Russian oligarchs sanctioned over the Ukraine invasion. Source:…

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Baxter Hit with Supply Chain-Related Securities Class Action Lawsuit | The D&O Diary

In my 2022 year-end wrap up of D&O insurance developments, I identified macroeconomic factors as among the sources of D&O claims during the past year including, among other things, interest rate increases, economic inflation, labor supply and supply chain disruption, and the Ukraine War. In various posts this year, I have noted that these factors continue to affect companies and…

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Ripple Is a Security and It Isn’t – Bloomberg

More broadly, if you take this decision seriously, it means that the SEC has essentially no jurisdiction over crypto. Most token sales will either be (1) direct to institutional investors or (2) on exchanges. Sales on exchanges, says Judge Torres, are not securities offerings, because the buyer doesn’t know that she is giving money to the issuer. Sales to institutional…

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Supreme Court to Decide Fund Manager’s 10-Year SEC Fight — SEC Roundup | ThinkAdvisor

Jarkesy contends, and a federal appellate court agrees, that the SEC’s administrative proceedings are unconstitutional and deny IAs and others their right to a jury. “It’s a very broken system,” McColloch said. The SEC sets up “these fake courts, I call them fake, inside the agency, administrative law judges … and they put on trials, just like a federal court…

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Director of CFTC’s Whistleblower Program Steps Down – WSJ

Christopher Ehrman, the director of the Commodity Futures Trading Commission’s whistleblower program since 2013, is leaving the agency effective immediately and will begin representing whistleblowers as a lawyer in private practice. The derivatives-market regulator said Christina McGlosson, who recently returned to her role as associate director of the whistleblower office after two years in the private sector, will serve as acting…

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