Daily Archives: April 16, 2024, 6:15 pm

FTX Controversy Derails Top Law Firm’s Bid for Binance Role – Bloomberg

The Department of Justice is retreating from picking an elite New York law firm for a key assignment overseeing cryptocurrency exchange Binance Holdings Ltd. because of its work for FTX, according to people with knowledge of the matter. Sullivan & Cromwell was close to winning approval to serve as independent monitor for Binance on behalf of both the Justice Department…

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Introduction to SEC v. Panuwat: Understanding “Shadow” Insider Trading by J. W. Verret, Greg Lawrence — SSRN

It is difficult to overstate the expansion Panuwat represents for potential liability for insider trading. To be sure, the defense bar will attack this unfair and unwise regulation-through-litigation, and the defense bar will be joined by academics, public interest groups, and supporters in the business community. In the meantime, every entity and individual involved in the capital markets—from public companies…

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Crypto’s Counteroffensive Suits Underscore Need for Regulation

The plaintiffs seek declaratory and injunctive relief in the complaints filed in the Texas federal courts by Lejilex and Crypto Freedom Alliance of Texas and by Beba LLC and DeFi Education Fund. Lejilex describes itself as “a non-custodial digital asset trading platform that allows users to trade digital assets through the use of underlying smart contracts” in “blind bid/ask transactions.”…

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High-Stakes Litigator Mike Kilgarriff Joins Ballard Spahr | News | Ballard Spahr

Mike Kilgarriff—an experienced litigator who has defended clients in high-stakes, multistate investigations and regulatory enforcement matters, including related litigation brought by state attorneys general—has joined Ballard Spahr’s Litigation Department and Commercial Litigation and Dispute Resolution and Consumer Financial Services groups as partner, firm Chair Peter Michaud announced today. Mr. Kilgarriff is resident in the firm’s Denver office. Source: High-Stakes Litigator…

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The Shortseller Enrichment Commission?: Whistleblowers, Activist Short Sellers, and the New Privatization of Public Enforcement

Two developments have transformed the detection of corporate fraud since the global financial crisis: the SEC whistleblower bounty program (WBP) and the rise of activist short sellers. Considered separately, these are generally understood to be two valuable innovations that help detect and deter fraud. But, it turns out, they are not so separate. In a new paper, I document extensive…

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Remarks at Program on Corporate Compliance and Enforcement Spring Conference 2024 – Gurbir Grewal

Put another way: any time you have individuals or corporations trying to capitalize and profit on FOMO, or the “fear of missing out,” around a new technology or offering, it should raise red flags for regulators and compliance professionals alike. After all, effective enforcement and governance require anticipating risk areas. So looking ahead, where do we see potential risk? Every…

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A Detailed Look at the 2023 Securities Litigation Against Life Sciences Companies | The D&O Diary

As readers of this blog well know, life sciences companies are frequent targets of securities class action lawsuits. Interestingly, at least according to the latest annual report from the Sidley law firm, in recent years the number of lawsuits filed against life sciences companies has declined, although the lawsuit frequency against life sciences companies still remains elevated by comparison to…

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