Late last month, SoluTech, Inc. and Nathan Pitruzello consented to a cease-and-desist order with the U.S. Securities and Exchange Commission (“SEC”). From April 2018 through March 2019, SoluTech, a technology start-up...more
10/9/2020
/ Cryptocurrency ,
Digital Assets ,
Digital Currency ,
Enforcement Actions ,
Financial Transactions ,
Initial Coin Offering (ICOs) ,
Investment Opportunities ,
Securities and Exchange Commission (SEC) ,
Securities Violations ,
Token Sales ,
Unregistered Securities
The U.S. Securities and Exchange Commission (“SEC”) Division of Trading and Markets recently issued a no action letter to FINRA that may help to streamline the settlement of digital asset securities transactions by...more
The U.S. Department of Justice (“DOJ”) filed a civil forfeiture complaint detailing two hacks of virtual currency exchanges by North Korean actors. These actors stole millions of dollars’ worth of cryptocurrency or other...more
9/16/2020
/ Blockchain ,
Civil Forfeiture ,
Cryptocurrency ,
Data Breach ,
Department of Justice (DOJ) ,
Enforcement Actions ,
Financial Crimes ,
Financial Services Industry ,
FinTech ,
Foreign Exchanges ,
Hackers ,
Money Laundering ,
North Korea ,
Virtual Currency
John Louis Anthony Bigatton will not be providing financial services in Australia and likely not anywhere else, anytime soon. On Thursday, September 3, 2020, the Australian Securities and Investments Commission (“ASIC”)...more
9/11/2020
/ ASIC ,
Australia ,
Bitcoin ,
Cease and Desist Orders ,
Cryptocurrency ,
Enforcement Actions ,
Financial Crimes ,
Financial Services Industry ,
Interest Payments ,
Investment Fraud ,
Investment Schemes ,
Money Laundering ,
Ponzi Scheme ,
Startups ,
Trading Platforms ,
White Collar Crimes
The U.S. Securities and Exchange Commission (SEC) recently charged two Maryland companies and their executives in a scheme that allegedly defrauded approximately 1,200 investors of more than $27 million. ...more
9/1/2020
/ Blockchain ,
Cryptocurrency ,
Enforcement Actions ,
Financial Transactions ,
Investment ,
Investment Fraud ,
Misappropriation ,
Ponzi Scheme ,
Rule 10(b) ,
Rule 10b-5 ,
Section 17(a) ,
Securities and Exchange Commission (SEC) ,
Securities Fraud
On August 12, the SEC’s Office of Compliance Inspections and Examinations released a Risk Alert regarding new operational, technological, commercial and other challenges and issues for investment advisers and broker-dealers...more
Historically, the ability for investment fund managers to take profits in the form of carried interest has allowed those managers to pay the lower long-term capital gains tax rate (compared to income) so long as the...more
The loan market breathed an immense sigh of relief this spring with the ruling in Kirschner v. JPMorgan Chase Bank, N.A. 1 (“Kirschner”) affirming the prevailing market view that notes representing syndicated loans are not...more
The loan market breathed an immense sigh of relief this spring with the ruling in Kirschner v. JPMorgan Chase Bank, N.A. (“Kirschner”) affirming the prevailing market view that notes representing syndicated loans are not...more
On June 15, Jay Clayton, the Chairman of the U.S. Securities and Exchange Commission (“SEC”) re-confirmed there will be no delay in the compliance date for Regulation Best Interest and Form CRS. In the statement, Chairman...more
The Public Company Accounting Oversight Board (PCAOB) recently published guidance for auditors on the accounting treatment of cryptoassets, including Bitcoin. The PCAOB guidance highlights considerations for addressing...more
U.S. Securities and Exchange (SEC) Commissioner Hester Peirce, referred to by some as “crypto mom” for her support for blockchain technology and cryptocurrency, was nominated on June 3, to serve a five-year term. Peirce is...more
The SEC recently required BitClave to return over $25 million to investors which the company raised by selling its Consumer Activity Tokens (CAT) to over 9,000 investors in an initial coin offering (ICO). BitClave was also...more
With the world slowly coming out of the COVID-19 lock down and the economy hopefully on the path to recovery there have been many developments in the blockchain / crypto space over the last few weeks....more
5/19/2020
/ Bitcoin ,
Blockchain ,
CFTC ,
Cryptocurrency ,
Digital Assets ,
Digital Currency ,
FinTech ,
Fraudulent Investment ,
Initial Coin Offering (ICOs) ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Stock Exchange ,
Unregistered Securities ,
Virtual Currency
The SEC recently filed suit against Dropil, Inc. (“Dropil”), Jeremy McAlpine, Zachary Matar, and Patrick O’Hara, alleging the defendants had defrauded investors in an unregistered offerings of securities described by the...more
“Welcome to Fight Club.” Like the fighters in Fight Club, the Members Exchange (MEMX), a new fighter has entered the ring of nationally recognized securities exchanges fighting for volume. MEMX is a new exchange registered...more
The CFTC recently filed a multi-million dollar fraud action charging three individuals and three companies with fraudulently soliciting tens of millions of customers and prospective customers to open and fund off-exchange...more
On April 28, 2020, the Congressional Research Service (CRS) published an in depth report related to Fintech, titled Fintech: Overview of Innovative Financial Technology and Selected Policy Issues....more
The SEC successfully landed another blow in its ongoing battle with Blockvest, LLC for alleged securities fraud and the sale of unregistered securities. ...more
While the world at large shelters in place due to COVID-19 legal and regulatory activity of digital asset and the blockchain world is hopping. ...more
4/23/2020
/ Best Interest Standard ,
Bitcoin ,
Blockchain ,
CFTC ,
Cryptocurrency ,
Digital Currency ,
Distributed Ledger Technology (DLT) ,
Financial Instruments ,
Form CRS ,
FSB ,
Initial Coin Offering (ICOs) ,
Investment Fraud ,
Regulation BI ,
Securities and Exchange Commission (SEC) ,
Token Sales ,
Virtual Currency
Like Butch Cassidy and the Sundance Kid gloriously diving off a cliff, Telegram is about to take the fall and is trying to take the SEC with it. However, Telegram and supporters are making a number of important arguments in...more
Judge P. Kevin Castel of the Southern District of New York struck his gavel and hung up on Telegram’s contentious $1.7 billion initial coin offering (“ICO”). Judge Castel ruled Telegram's planned distribution of Grams...more
While most of the world was locked down, the preverbal shoe (litigation) finally dropped on Crypto companies that raised money through the sale of digital assets which are alleged to be illegal, unregistered securities...more
When we started thinking about this update, less than two weeks ago, the proposal by the U.S. Securities Exchange Commission (“SEC”) to liberalize Reg A and Reg CF (as discussed below) was the biggest news on our minds…. How...more
3/19/2020
/ Bitcoin ,
Capital Raising ,
Coinbase ,
Commodities ,
Coronavirus/COVID-19 ,
Crisis Management ,
Digital Currency ,
FinTech ,
Initial Coin Offering (ICOs) ,
Investment ,
Relief Measures ,
Securities and Exchange Commission (SEC)
Strikeout for Bitcoin ETF -
Another ETF bites the dust. On February 26th the SEC rejected the application of NYSE Acre for the approval of an exchange traded fund sponsored by the New York firm of Wilshire Phoenix to...more
3/4/2020
/ Bitcoin ,
Bitcoin Mining ,
Celebrity Endorsements ,
CFTC ,
Chapter 11 ,
Commercial Bankruptcy ,
Commodities ,
Criminal Conspiracy ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Digital Currency ,
Enforcement Actions ,
ETFs ,
Exchange-Traded Products ,
Financial Crimes ,
Financial Instruments ,
Financial Markets ,
Financial Transactions ,
GAO ,
Influencers ,
Initial Coin Offering (ICOs) ,
Money Laundering ,
Money Transfer ,
Popular ,
Securities and Exchange Commission (SEC) ,
Securities Regulation ,
Token Sales ,
Virtual Currency