Securities Exchange Act, Initial Coin Offering (ICOs)

SEC Cryptocurrency Enforcement Report Summary

Cornerstone Research on 1/31/2024

Cryptocurrency enforcement continues to be a high priority for the U.S. Securities and Exchange Commission (SEC). In 2023, the SEC administration under Chair Gary Gensler brought a total of 46 cryptocurrency-related...more

Inside the Courts – An Update From Skadden Securities Litigators - December 2021

Skadden, Arps, Slate, Meagher & Flom LLP on 12/3/2021

This quarter’s issue includes summaries and associated court opinions of selected cases decided in August and September 2021. Appraisal Rights - Delaware Supreme Court Enforces Sophisticated Investors’ Waiver of Appraisal...more

A Busy Week For The SEC’s Enforcement Efforts In Crypto’s “Wild West”

Morrison & Foerster LLP on 8/16/2021

The Securities and Exchange Commission (“SEC”) brought three enforcement actions concerning digital assets in rapid succession in a week, underlining that the Division of Enforcement is as committed to crypto enforcement...more

Barron v. Helbiz Inc.: A Rare Mixture Of An ICO, Morrison, And State Law Claims

Morrison & Foerster LLP on 6/7/2021

Pending before the Second Circuit is a unique (and apparently sua sponte) application of the jurisdictional test announced by the Supreme Court in Morrison v. Nat’l Australia Bank Ltd., to dismiss non-securities state law...more

Delaware Supreme Court Holds Appraisal Action Is Not “Securities Claim” Covered By D+O Insurance Policy

Goodwin on 11/9/2020

Delaware Supreme Court Holds Appraisal Action is Not “Securities Claim” Covered by D&O Insurance Policy; Delaware Supreme Court Affirms Dismissal of Derivative Claims Against Life Sciences Company For Failure to Plead Demand...more

Two Recent SEC Cases Involving Cryptocurrency Offerings

Faegre Drinker Biddle & Reath LLP on 11/4/2020

Ever since the creation of Bitcoin in the late 2000s, the SEC has warned that, depending on the circumstances, “initial coin offerings” (ICOs) involving digital tokens or coins may be subject to regulation under the federal...more

SEC warns investors about initial exchange offerings

Eversheds Sutherland (US) LLP on 2/19/2020

Recently, the U.S. Securities and Exchange Commission (SEC) issued an Investor Alert (the Alert) warning investors to use caution before investing in initial exchange offerings (IEOs) through online trading platforms. The...more

Blockchain Trends and Enforcement Surrounding the New Technology

Skadden, Arps, Slate, Meagher & Flom LLP on 1/21/2020

In 2019, regulators continued to consider whether and how to regulate blockchain technology. After the two previous years that included a high number of initial coin offerings (ICOs), many of which involved allegedly...more

2019 Digital Asset Regulatory Look Back (US Edition)

Latham & Watkins LLP on 1/9/2020

It was a year filled with tantalizing tidbits and many loose ends. 2019 marked the 10th year since blockchain technology was released into the wild by its still unknown inventor, Satoshi Nakamoto, who mined the first bitcoin...more

SEC Settles with BCOT on Alleged Violations of the Securities Act

Orrick - On the Chain on 1/8/2020

On December 18, 2019, the Securities and Exchange Commission announced settled charges against blockchain technology company Blockchain of Things Inc. (BCOT) for conducting an unregistered initial coin offering (ICO) of...more

Bridging the Week - November 2019 #2

Katten Muchin Rosenman LLP on 11/19/2019

A social media company and its wholly owned subsidiary sued by the Securities and Exchange Commission for conducting an offering of an unregistered digital security claimed that the agency was wrong in its characterization of...more

The SEC Takes Aim at Another Initial Coin Offering

McDermott Will & Emery on 6/13/2019

A recent complaint concerning KIK Interactive Inc. filed in the US District Court of the Southern District of New York reveals some SEC priorities for cryptocurrency enforcement actions. The complaint indicates that the SEC...more

Southern District Of Florida Dismisses Claims Against Individual Defendants Related To Initial Coin Offering For Failure To...

A&O Shearman on 5/22/2019

On May 13, 2019, Judge Robert N. Scola, Jr., of the United States District Court for the Southern District of Florida dismissed all claims asserted against four individual defendants under Sections 12(a)(1) of the Securities...more

The Current State of Cryptocurrency Enforcement and Securities Litigation

Skadden, Arps, Slate, Meagher & Flom LLP on 4/30/2019

On April 24, 2019, Skadden hosted a webinar titled “The Current State of Cryptocurrency Enforcement and Securities Litigation.” The presented topics largely focused on the SEC’s evolving regulatory approach to cryptocurrency...more

SEC Staff Announces Guidance and No-Action Relief Regarding Status of Digital Assets as Securities

Dechert LLP on 4/19/2019

Through two publications on April 3, 2018, the Staff of the Securities and Exchange Commission provided greater clarity on the application of the federal securities laws to blockchain-based “digital assets.”1 While the Staff...more

The Distributed Ledger: Blockchain, Digital Assets and Smart Contracts - April 2019

Skadden, Arps, Slate, Meagher & Flom LLP on 4/16/2019

In this issue, we examine the release of the much-anticipated Strategic Hub for Innovation and Financial Technology (FinHub) guidance for analyzing how U.S. federal securities laws apply to initial coin offerings, the...more

Gladius Escapes Fines for Unregistered ICO after Self-Reporting to the SEC

Proskauer - Blockchain and the Law on 4/1/2019

On February 20, 2019, the SEC announced that it settled charges against Gladius Network LLC (“Gladius”) for failing to register non-exempt offers and sales of securities in violation of Sections 5(a) and 5(c) of the...more

ICOs – The Developing Regulatory Environment

Womble Bond Dickinson on 3/12/2019

Initial Coin Offerings, or ICOs, have emerged at the intersection of cryptocurrencies and blockchain. Compared to a traditional equity offering in the United States where a company issues stock to investors in exchange for...more

SEC Settles With Gladius Networks for Unregistered ICO; Declines to Issue Monetary Fine Due to Self-Reporting

Goodwin on 2/22/2019

On February 20, 2019, the Enforcement Division of the U.S. Securities and Exchange Commission (“SEC”) issued an Order Instituting Cease-And-Desist Proceedings Pursuant To Section 8a Of The Securities Act Of 1933, Making...more

How To Get Your Crypto Currency Offering Enjoined

Dorsey & Whitney LLP on 2/22/2019

Crypto currency has been all the fashion. Most proponents that have been confronted by a regulator – the SEC or CFTC generally – have quickly resolved the matter. Few have tried to litigate with the agencies and those who...more

The Top Ten Regulatory and Litigation Risks for Private Funds in 2019

Proskauer - The Capital Commitment on 2/21/2019

An increasingly sophisticated and active OCIE division, innovative market disruptors, a maturing credit cycle, and a philosophical change in how the private fund industry views and utilizes litigation are likely to lead to...more

After Second Look, Judge Grants SEC Bid for Preliminary Injunction Halting Initial Coin Offering

A&O Shearman on 2/20/2019

On February 14, 2019, Judge Gonzalo P. Curiel of the United States District Court for the Southern District of California reversed his November 2018 decision and granted a motion for preliminary injunction filed by the...more

Token Taxonomy Act Seeks to Provide Regulatory Clarity to Crypto Industry

Farella Braun + Martel LLP on 1/14/2019

Two United States congressmen introduced legislation in late December that would exclude certain digital currencies from being defined as securities – a bill that, if enacted, may finally provide the cryptocurrency industry...more

Investment Management Regulation: Year in Review

Kilpatrick on 1/3/2019

As we prepare for a new year of regulatory initiates and actions, we believe it is important to take inventory of the most significant regulatory events from the past year. True to its word, the SEC focused on reducing...more

The SEC and Digital Assets—A Busy Year End

Perkins Coie on 12/21/2018

The end of the year has been a very busy time for the SEC in the digital asset space. From speeches to the issuance of joint statements to enforcement actions, there are many things to highlight, discuss and consider. This...more

Securities Exchange Act › Initial Coin Offering (ICOs)

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