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‘Enforcement 40’ for 2020
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FTX Hires Ex-Regulators to Investigate Firm’s Collapse – WSJ
In its first hearing in Delaware bankruptcy court on Tuesday, a lawyer representing FTX said the firm has hired former enforcement chiefs from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, now both partners at law firm Sullivan & Cromwell LLP, to help the company’s new chief executive investigate what went […]
Sam Bankman-Fried, Elon, and a secret text | Semafor
Elon Musk used Twitter, the platform he now owns, to gleefully mock the meltdown of the crypto exchange FTX. His “bullshit meter was redlining” when he met the crypto exchange’s founder, Sam Bankman-Fried, Musk has said. But Musk was in a friendlier mood on May 5. Two weeks after clinching a deal to buy Twitter […]
Big Crypto’s Tired and Toothless Refrain | John Reed Stark
Crypto-focused law firm Hodl Law PLLC has sued the U.S. Securities and Exchange Commission, alleging that the SEC has failed to clarify its jurisdictional authority over digital assets and failed to define whether it views digital assets as securities. This lawsuit is perhaps one of the most ridiculous legal documents I have ever read regarding […]
Five Things You Need to Know to Start Your Day – Bloomberg
Here’s a difference between crypto right now and the mortgage disaster of 2008: Whereas people always need housing and are willing to pay money to live in a home, there’s no equivalent fundamental human need (or even want) that is currently satisfied by cryptocurrencies, and the financial structures that have been built around them. *** This […]
Tom Brady, Steph Curry FTX Endorsements Probed by Texas Regulator – Bloomberg
Tampa Bay Buccaneers quarterback Tom Brady and the Golden State Warriors’ Steph Curry are among the celebrities that a Texas regulator is investigating for potential securities-law violations tied to their promotions of crypto exchange FTX. The regulator is scrutinizing payments received by the celebrities to endorse FTX US, along with what disclosures were made and […]
My bad: The YouTube financial influencer network paid to pump FTX – MarketWatch
For the group of popular self-styled YouTube finance gurus Creators Agency represented, the sponsorship deals to promote FTX to their millions of followers were highly lucrative. Kevin Paffrath, a 30-year-old YouTube star with 1.85 million followers to his real estate and financial tip page Meet Kevin, says he was paid $2,500 every time he mentioned […]
Exclusive: Bankman-Fried’s FTX, parents bought Bahamas property worth $121 million | Reuters
Sam Bankman-Fried’s FTX, his parents and senior executives of the failed cryptocurrency exchange bought at least 19 properties worth nearly $121 million in the Bahamas over the past two years, official property records show. Most of FTX’s purchases were luxury beachfront homes, including seven condominiums in an expensive resort community called Albany, costing almost $72 […]
Keeping Track of Crypto Is Hard – Bloomberg
One thing that I will say is that, while crypto in theory is supposed to avoid the need to trust centralized intermediaries, in practice there is a huge market for trusted central intermediaries in crypto. It is just sort of a diverse market; there are many flavors of trust, with different people looking trustworthy in […]
Silvergate, Provident, Signature Were Banks Holding the Bag in FTX Implosion – Bloomberg
Banks go where the money is. So when a market overextends and subsequently collapses, it’s no surprise they’re sometimes left holding the bag. Crypto is no exception. While major banks stayed away from what Jamie Dimon called a “decentralized Ponzi scheme,” many small lenders saw a profitable niche in helping to service companies operating in the fledgling space. They […]