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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInErnst & Young to Pay $100 Million Penalty for Employees Cheating on CPA Ethics Exams and Misleading Investigation
The Securities and Exchange Commission today charged Ernst & Young LLP (EY) for cheating by its audit professionals on exams required to obtain and maintain Certified Public Accountant (CPA) licenses, and for withholding evidence of this misconduct from the SEC’s Enforcement Division during the Division’s investigation of the matter. EY admits the facts underlying the […]
Crypto Crash: Hedge Fund 3AC Defaults As Liquidity Dies up Across Sector
Cryptocurrency hedge fund Three Arrow Capital defaulted on a $650 million loan Monday, according to lender Voyager Digital. The loan is comprised of roughly 15,000 bitcoin and $350 million worth of the stablecoin USDC. The failure to pay is the latest blow to the hedge fund which previously saw a tranche of its positions liquidated […]
Hackers Steal $100 Million by Exploiting Crypto’s Weak Link – Bloomberg
Hackers looted about $100 million from a so-called cryptocurrency bridge, again exposing a key vulnerability in the digital-asset ecosystem. Blockchain Harmony said in a tweet that the hack of its Horizon bridge, which lets people swap coins between different blockchains, took place Thursday morning. It has “begun working with national authorities and forensic specialists to […]
Cryptocurrency Bear Market: This Bitcoin Crash Is Different From the Past – Bloomberg
For a generation of alienated techies, crypto’s all-for-one ethos was its biggest draw. Now panic is spreading across this universe — and that same ethos is posing what may be the biggest threat yet to its survival. What started this year in crypto markets as a “risk-off” bout of selling fueled by a Federal Reserve suddenly determined […]
Jury takes fraud case against Elizabeth Holmes’s ex-partner | AP News
The fate of hard-nosed technology executive Ramesh “Sunny” Balwani is now in the hands of a jury that will weigh criminal charges alleging he joined disgraced Theranos CEO Elizabeth Holmes, his former partner, in an elaborate fraud that jarred Silicon Valley. U.S. District Judge Edward Davila handed the case to the jury Friday afternoon after […]
Rethinking Insider Trading Compliance Policies in Light of the SEC’s New “Shadow Trading” Theory of Insider Trading Liability
To me, the most interesting question raised by the Panuwat case, and the problem of shadow trading more generally, is why would Medivation (or any company) adopt such a broadly worded insider trading policy? How did this broad proscription on employee trading benefit Medivation’s shareholders? Medivation’s shareholders could not have been harmed by Panuawat’s trading. […]
Crypto’s biggest critics won’t back down
According to Diehl, the crypto industry is reinventing the financial catastrophes of the past. Crypto is like early days, he argues: specifically, the wildcat banking of the 19th century, when small banks outside of federal regulation in the US issued paper cash without enough gold or silver to back it. It made for an unstable […]
Goldman Sachs Leading Investor Group to Buy Celsius Assets: Sources
Goldman Sachs is looking to raise $2 billion from investors to buy up distressed assets from troubled crypto lender Celsius, according to two people familiar with the matter. The proposed deal would allow investors to buy up Celsius’ assets at potentially big discounts in the event of a bankruptcy filing, the people said. Goldman Sachs […]
Congress should put an end to in-house courts at the SEC | The Hill
Congress should give serious consideration to abolishing SEC administrative proceedings. They are not necessary to an effective securities enforcement program, and they fail to meet the standards of impartiality and fairness we expect from federal institutions. Contrary to some observers’ fears, this would not be the end of the administrative state. It would strengthen confidence […]
SEC chair urges ‘one rule book’ for crypto to avoid gaps in oversight | Financial Times
Gensler said he was working on a “memorandum of understanding” with the CFTC, which he headed from 2009 to 2013. The SEC has jurisdiction over platforms listing tokens that are deemed securities. If a token that represents a commodity is listed on a platform overseen by the SEC, the securities regulator would “send that information […]