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Short Sellers File AI-Related Securities Suit Against Electronic Power Company | The D&O Diary

Artificial Intelligence (AI) has for months been the hot story in the securities marketplace, with share prices of companies with AI connections soaring. In a new lawsuit with several unusual twists, short sellers have filed a securities class action lawsuit company against electronic component power company Vicor Corporation, alleging that the company misleadingly suggested that it had entered a substantial…

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NYAG Sues 2 Crypto Pyramid Schemes, Promoters Targeting Haitian-Americans in $1B Scam

New York Attorney General Letitia James has filed suit against two purported crypto companies and their top promoters, a married couple, for allegedly operating two consecutive pyramid schemes that predominantly targeted Haitian immigrants to the U.S. According to the complaint filed Thursday, the two schemes – AWS Mining and NovaTechFX – preyed on Creole-speaking church-goers via WhatsApp group chats, bilking…

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Flood of Cash from Coinbase Gives Crypto One of the Biggest U.S. Election War Chests

U.S. digital assets exchange Coinbase (COIN) announced that it was following in the footsteps of its two major campaign-finance partners, Ripple and Andreessen Horowitz (a16z), in throwing another $25 million each into the pot that has taken in about $161 million to spend on the 2024 U.S. elections. The other two companies announced their new commitments last week. The money…

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Statement on the Financial Innovation and Technology for the 21st Century Act

The Financial Innovation and Technology for the 21st Century Act (“FIT 21”) would create new regulatory gaps and undermine decades of precedent regarding the oversight of investment contracts, putting investors and capital markets at immeasurable risk. First, the bill would remove investment contracts that are recorded on a blockchain from the statutory definition of securities and the time-tested protections of…

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SEC Lawyers Resign After Judge Blasts Agency in DEBT Box Crypto Case – Bloomberg

Two Securities and Exchange Commission lawyers resigned after a federal judge sanctioned and sharply rebuked the Wall Street regulator for “gross abuse” of power in a crypto case. Michael Welsh and Joseph Watkins stepped down this month after an SEC official told them that they would be terminated if they stayed, according to people familiar with the matter. The pair…

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Top Crypto Exchanges Look to Move Beyond Settlements With U.S. Regulators – WSJ

Chief compliance officers from three top cryptocurrency exchanges said they continue to make additional investments in compliance controls and staffing as they look to move on from settlements with U.S. regulators over various compliance failures. Compliance chiefs at crypto exchanges Binance, Coinbase and Kraken said at an industry conference Wednesday that they also hope lessons from these settlement agreements could…

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Former Federal Prosecutor and Tech GC Joins Boies Schiller Flexner as Partner

Boies Schiller Flexner LLP today announced that Nili Moghaddam has joined as a partner, splitting her time between the firm’s Los Angeles and San Francisco offices. Nili brings a diverse skill set to the firm, focusing on corporate litigation, white collar defense, and trial work. Nili has spent the past five years in increasingly senior in-house roles at digital tech…

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What Sam Bankman-Fried’s Long Stretch in Prison Might Look Like – WSJ

Inmates can make ceramics or crochet at a federal prison in Lompoc, Calif. At a federal prison in Mendota, a few hours away, inmates can have a harmonica or play basketball on one of five facility courts. Those prisons represent possible landing places for FTX founder Sam Bankman-Fried, who will in coming months report to begin serving his 25-year sentence, imposed…

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