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‘Enforcement 40’ for 2020
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Join the Securities Litigation and Enforcement Group on LinkedInSEC crypto enforcement chief David Hirsch outlines next possible areas of SEC crypto focus
Crypto assets are causing “a lot of risk and harm to investors” and institutional investors should be careful about acting as statutory underwriters, said David Hirsch, chief of the SEC Crypto Assets and Cyber Unit, Division of Enforcement. Hirsch discussed SEC enforcement actions against crypto exchanges, celebrity touters, and NFT issuers, among other topics, in […]
U.S. SEC’s Crypto Enforcement Chief Warns Charges Won’t End at Coinbase, Binance
The U.S. Securities and Exchange Commission (SEC) isn’t done chasing down crypto exchanges and decentralized finance (DeFi) projects it sees as violating securities laws in the same vein as Coinbase Inc. (COIN) and Binance, said David Hirsch, head of the agency’s Crypto Assets and Cyber Unit. His enforcement office, which has been litigating at a […]
SEC’s Gensler May Face an Unbeatable Foe in Crypto – The Daily Upside
At the forefront of what comes next will be whether the SEC can establish it should have purview of the rapidly expanding cryptoverse – and whether many crypto offerings are, indeed, securities. In his recent interview with CNBC, former SEC chair Clayton said he was not so sure the SEC would prevail. “As this has […]
What Will Be the Next Target of the SEC’s Enforcement Regime?
Having closely observed the actions of regulators, we envision crypto wallets and certain digital asset transactions will be the next target. Drawing from prior federal enforcement actions and signals from these agencies in publications and notices, we anticipate that digital asset enforcement will grow in two ways: the Securities Exchange Act of 1934 (“Exchange Act”) […]
‘Cryptoqueen’ partner gets 20 years prison in $4 billion ponzi fraud
The co-founder of the fraudulent OneCoin cryptocurrency, a massive pyramid scheme that amassed more than $4 billion from millions of investors worldwide, was sentenced Tuesday to 20 years in prison. Karl Greenwood, 46, who orchestrated the multibillion-dollar multilevel marketing con, pleaded guilty in December to wire fraud and money laundering charges. His partner, Ruja Ignatova, […]
Linus Financial Agrees to Settle SEC Charges of Unregistered Offer and Sale of Securities
The Securities and Exchange Commission today announced settled charges against Linus Financial, Inc. for failing to register the offers and sales of its retail crypto lending product, the Linus Interest Accounts. The SEC determined not to impose civil penalties against Linus Financial because of the Nashville-based company’s cooperation and prompt remedial actions. According to the […]
Boss of Failed Crypto Exchange Gets 11,000-Year Sentence – Bloomberg
Faruk Fatih Ozer, who ran crypto exchange Thodex until it imploded in 2021, was sentenced to 11,196 years in prison by a Turkish court for crimes including fraud. Delivering its verdict late Thursday, the court in Istanbul sentenced Ozer and his two siblings to similar-length jail terms, finding them guilty of aggravated fraud, leading a […]
FASB Adopts Crypto Accounting and Disclosure Rule for Companies – WSJ
The FASB, which sets accounting standards for U.S. public and private companies and nonprofits, on Wednesday voted unanimously to adopt a new standard that would require businesses to use fair-value accounting for bitcoin and certain other crypto assets. Companies and accountants have repeatedly rallied for this change, as it would allow them to recognize losses […]
Six bitcoin billionaires in the world, new crypto super-rich report says
The firm’s report on Tuesday says says 88,200 people have crypto assets worth at least $1 million — less than 1% of overall crypto users. Some 40,500 of them hold their investments in bitcoin, just under 46% of the total. Far fewer people are so-called centi-millionaires who have crypto holdings valued at over $100 million. […]
A $700 Million Bonanza for the Winners of Crypto’s Collapse: Lawyers – The New York Times
Lawyers, accountants, consultants, cryptocurrency analysts and other professionals have racked up more than $700 million in fees since last year from the bankruptcies of five major crypto firms, including the digital currency exchange FTX, according to a New York Times analysis of court records. That sum is likely to grow significantly as the cases unfold […]