News & Analysis as of

Blockchain Initial Coin Offering (ICOs) Securities Violations

Troutman Pepper

SEC Scores Victory in Ongoing Effort to Classify Cryptocurrencies as Securities

Troutman Pepper on

A recent decision out of the District of New Hampshire underscores the risks proprietary cryptocurrency issuers face and provides ammunition to the SEC in its continued quest to classify cryptocurrencies as securities subject...more

Farrell Fritz, P.C.

“Kik” in the Butt: Court Decision Against Initial Coin Offering Could be Opportunity for Others

Farrell Fritz, P.C. on

On October 21, 2020, the United States District Court for the Southern District of New York entered a final judgment on consent against Kik Interactive Inc. to resolve the Securities and Exchange Commission’s charges that...more

Stinson - Corporate & Securities Law Blog

SDNY Grants Preliminary Injunction to Halt Telegram Coin Offering

The Southern District of New York granted the SEC’s request for a preliminary injunction halting a coin offering in Securities and Exchange Commission v. Telegram Group Inc. et al....more

Skadden, Arps, Slate, Meagher & Flom LLP

Blockchain Trends and Enforcement Surrounding the New Technology

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

Orrick - On the Chain

Fraud is Fraud – Sales of Unregistered Digital Securities Resemble Classic Microcap Fraud

Orrick - On the Chain on

A Complaint filed by the SEC in the Southern District of New York last week reminds us that in the area of securities law violations there is not much new under the sun. Even though the action against Eran Eyal and...more

Farrell Fritz, P.C.

What to Make of SEC Leniency in Block.one ICO Settlement?

Farrell Fritz, P.C. on

On September 30, 2019, the Securities and Exchange Commission announced that blockchain developer Block.one had agreed to pay a $24 million fine to settle charges that it had engaged in an unregistered offering of securities...more

Latham & Watkins LLP

The SEC Continues Its Enforcement Streak Against Unregistered Token Offerings

Latham & Watkins LLP on

As the agency pursues and prevents offerings of tokens it deems unregistered securities, further issues emerge. The recent wave of US Securities and Exchange Commission (SEC) enforcement actions relating to initial coin...more

Perkins Coie

Blockchain Week in Review - November 2019

Perkins Coie on

U.S. Developments - Litigation - New York Resident Indicted for Duping Investors with Fake ICO Scam - On November 6, the United States Attorney for the Southern District of New York announced a wire fraud charge...more

Orrick - On the Chain

Reading the Blockchain Tea Leaves: Reconciling Telegram and Block.one

Orrick - On the Chain on

The juxtaposition of two recent SEC enforcement actions against token issuers may shed some light on the regulator’s evolving regulatory framework....more

Farrell Fritz, P.C.

Telegram TRO Sends Strong Message to Digital Token Issuers

Farrell Fritz, P.C. on

On October 11, 2019, the Securities and Exchange Commission (the “Commission”) announced it filed a complaint and obtained a temporary restraining order against Telegram Group Inc. and its wholly-owned subsidiary TON Issuer...more

Eversheds Sutherland (US) LLP

The SEC marches on - Cryptocurrency startup Block.one pays civil penalty of $24 million over unregistered initial coin offering

In a somewhat surprising move, the Securities and Exchange Commission (SEC) entered into a $24 million settlement with Block.one on September 30, 2019, over its unregistered initial coin offering (ICO) that raised upwards of...more

Polsinelli

BitBlog Weekly Update

Polsinelli on

The Polsinelli BitBlog Weekly Update begins with the U.S. Securities and Exchange (“SEC”) settlement with an issuer of securities, who managed to both illegally offer securities, and create an unlicensed exchange to trade...more

Latham & Watkins LLP

SEC’s Crypto Summer Continues

Latham & Watkins LLP on

SEC issues cease-and-desist orders for unregistered token presales and anti-touting violations. Not content to let the dog days of summer slip by, the US Securities and Exchange Commission (SEC) recently issued two...more

Proskauer - Blockchain and the Law

SEC Sues Kik for ICO

On June 4, 2019, the U.S. Securities and Exchange Commission (the “SEC”) filed a complaint in the Southern District of New York against Kik Interactive Inc. (“Kik”) alleging violations of Section 5 of the Securities Act of...more

McDermott Will & Emery

The SEC Takes Aim at Another Initial Coin Offering

McDermott Will & Emery on

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

Katten Muchin Rosenman LLP

Bridging the Weeks - June 2019

Last week, a Canada-based social media company was sued by the Securities and Exchange Commission for purportedly conducting an unregistered securities offering to United States persons in connection with an initial coin...more

Perkins Coie

Blockchain Week in Review - May 2019 #2

Perkins Coie on

U.S. Developments - Regulatory Updates - SEC Continues to Delay Decision on Bitwise ETF - On May 14, 2019, the U.S. Securities and Exchange Commission (“SEC”) continued its delay on a decision regarding a bitcoin...more

Skadden, Arps, Slate, Meagher & Flom LLP

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

White and Williams LLP

The SEC Expands Its Enforcement Efforts to Include Cryptocurrency Exchanges

White and Williams LLP on

In an enforcement action filed on November 8, 2018, the Securities and Exchange Commission (SEC) ordered that 31-year-old Zachary Coburn, founder of the EtherDelta cryptocurrency exchange, cease and desist from operating the...more

Burr & Forman

SEC Charges Hip-Hop Artist and Boxer for Unlawfully Promoting ICOs

Burr & Forman on

On November 29, the Securities and Exchange Commission (SEC) announced in a press release that it has settled charges against two celebrities for promoting investments in ICOs without disclosing payments received for the...more

Burr & Forman

SEC Loses Injunction Bid on Crypto ICO

Burr & Forman on

Last week, SEC Enforcement staff lost a bid for a preliminary injunction against a prospective ICO in its pre-offering testing phase....more

Farrell Fritz, P.C.

First Federal Ruling Against SEC on Whether Digital Token is a Security

Farrell Fritz, P.C. on

On November 27, 2018, the United States District Court for the Southern District of California denied the Securities and Exchange Commission’s motion for a preliminary injunction to block an initial coin offering, finding the...more

Kramer Levin Naftalis & Frankel LLP

Unregistered Crypto Exchange Fined by SEC

In a sign of continued enforcement activity involving cryptocurrency products and services, the SEC fined Zachary Coburn, the founder of EtherDelta, for operating an unregistered national securities exchange....more

Kramer Levin Naftalis & Frankel LLP

Cryptocurrencies Face Rise in Investor Class Actions

After a surge in popularity and an increased interest from regulators, virtual currencies — also known as cryptocurrencies — have entered into a new phase in their relatively short history, with an increase in class actions...more

Proskauer - Blockchain and the Law

Ripple Faces Class Action Lawsuit Alleging Sale of Unregistered Securities

A class action lawsuit was filed on May 3rd against Ripple Labs Inc.—a fintech startup that controls the third-largest cryptocurrency in the world—and its CEO Brad Garlinghouse, alleging that Ripple sold unregistered,...more

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