News & Analysis as of

Securities and Exchange Commission (SEC) Trading Platforms Enforcement Actions

Royer Cooper Cohen Braunfeld LLC

AI Washing and the SEC: a Pandoras Box

The SEC has charged a financial firm and its leaders for making false claims about using artificial intelligence (AI) in their automated trading process. This case highlights the critical need for transparency in an...more

Seward & Kissel LLP

Broker-Dealer Charged in Spoofing Scheme

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Quick Take: The SEC recently settled charges against a registered broker-dealer for manipulating the U.S. Treasury cash securities market through a trading method known as spoofing and for failing to reasonably supervise the...more

BakerHostetler

Weekly Blockchain Blog - October 2024

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According to a recent press release by the banking cooperative that operates the world’s foremost global payment messaging network, central and commercial banks will soon be able to use the network “to carry out trial...more

DLA Piper

Blockchain and Digital Assets News and Trends - September 2024

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This monthly bulletin is designed to help companies identify important legal developments governing the use and acceptance of blockchain technology, smart contracts, and digital assets....more

BakerHostetler

Weekly Blockchain Blog - May 2024 #2

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Crypto and Web3 Firms Announce Fintech Integrations - A major U.S. fintech firm recently announced a product integration with MoonPay, a Web3 infrastructure company, “that allows MoonPay users in the U.S. to seamlessly buy...more

The Volkov Law Group

JP Morgan Fined $348 Million for Deficient Record-Keeping

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Regulators with the Federal Reserve and the Office of the Comptroller of the Currency (“OCC”) have fined JP Morgan Chase & Co. a combined total of $348.2 million over the bank’s failure to monitor client trading activities...more

Cornerstone Research

SEC Enforcement of Cryptocurrency Reaches a New High

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More than 50% increase in SEC cryptocurrency-related enforcement actions in 2023 over 2022. The Securities and Exchange Commission (SEC) continues to view cryptocurrency-related enforcement as a top priority, bringing 46...more

Troutman Pepper Locke

SEC Dismisses Ripple Labs Executives After Losing Bid for Interlocutory Appeal

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On October 19, the Securities and Exchange Commission (SEC) dismissed its claims against Ripple Labs, Inc. (Ripple) executives Bradley Garlinghouse and Christian Larsen for allegedly aiding and abetting Ripple’s violations of...more

Katten Muchin Rosenman LLP

SEC’s Request for Interlocutory Appeal of Favorable Rulings for Ripple Labs’ Defendants Rejected Based on Well-Settled Law

On October 3, 2023, a federal court denied the Securities and Exchange Commission’s request to certify for appeal the same court’s decision (Initial Decision) granting Ripple Labs, Inc.’s and two principals’ motion for...more

Troutman Pepper Locke

SEC Requests Leave to Appeal in Ripple Labs

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On August 9, the Securities and Exchange Commission (SEC) sent a letter to U.S. District Judge Analisa Torres requesting leave to file an interlocutory appeal in SEC v. Ripple Labs, Inc. as to the two adverse liability...more

Holland & Knight LLP

A Ripple of Doubt

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Specifically, the SEC wants a change to persuade the U.S. Court of Appeals for the Second Circuit – now, not later – of its view that Torres got it wrong when she determined that the company's offer and sale of its XRP token...more

Skadden, Arps, Slate, Meagher & Flom LLP

Ripple Labs : District Court Holds That Direct Digital Token Sales Constituted Investment Contracts Under Howey, but Other...

On July 13, 2023, Judge Torres of the U.S. District Court for the Southern District of New York issued a much-awaited summary judgment decision in SEC v. Ripple Labs, Inc., No. 1:20-cv-10832-AT-SN (S.D.N.Y. July 13, 2023),...more

Troutman Pepper Locke

Ten State AGs Sue Coinbase, Alleging Securities Law Violations

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On June 6, Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington, and Wisconsin each filed enforcement actions against leading cryptocurrency exchange Coinbase and its parent,...more

Orrick, Herrington & Sutcliffe LLP

New York AG sues crypto trading platform for failing to register

On February 22, the New York attorney general filed a petition in state court against a virtual currency trading platform (respondent) for allegedly failing to register as a securities and commodities broker-dealer and...more

BakerHostetler

DOJ, CFTC and SEC Bring Separate Actions for the Same Conduct: Alleged Digital Asset Manipulation and Fraud Scheme on Mango...

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Mango Markets is a decentralized cryptocurrency exchange that allows users to purchase and borrow cryptocurrencies and cryptocurrency-related financial products. Mango Markets is run by the Mango Decentralized Autonomous...more

Paul Hastings LLP

Kraken Consents to SEC Injunction and Ceases Marketing its Staking-as-a-Service Program

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In a headline-grabbing action, the Securities and Exchange Commission (“SEC”) announced on February 9 that it had instituted and settled an enforcement action against Kraken, a large crypto trading platform, in which it...more

Polsinelli

Kraken the Whip – Kraken Penalized Over Staking-as-a-Service

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On February 9, 2023, the U.S. Securities and Exchange Commission (the “SEC”) charged Kraken with offering and selling Kraken’s Staking Program – its staking-as-a-service product – as an unregistered security. Kraken, more...more

Nelson Mullins Riley & Scarborough LLP

Clash of the Titans: SEC Sues Genesis and Gemini for Digital Asset Offerings

Like Zeus unleashing the Kraken in Clash of the Titans, the U.S. Securities and Exchange Commission (SEC) has unleashed the Kraken (not the digital asset company) to unleash havoc on Genesis Global Capital LLC (Genesis) and...more

Cadwalader, Wickersham & Taft LLP

DOJ, SEC and CFTC Announce Parallel Criminal and Civil Charges Against Sam Bankman-Fried, FTX Trading and Alameda Research

On December 13, the U.S. Attorney’s Office for the Southern District of New York (the “U.S. Attorney’s Office”), the U.S. Securities and Exchange Commission (the “SEC”), and the U.S. Commodity Futures Trading Commission (the...more

White and Williams LLP

Cryptocurrency Regulations and How They May Impact Private Investment Funds

Over the last five years, decentralized finance (DeFi), especially cryptocurrencies and other digital assets are a space that continues to grow at an exponential rate, not only for retail investors but also for private...more

Sheppard Mullin Richter & Hampton LLP

April 2022 Crypto Enforcement Actions And Regulatory Guidance Roundup

In April, we continued to see a steady pace in the seriousness and frequency of crypto enforcement actions by state and federal law enforcement.  (See our March 2022 Crypto Enforcement Actions Roundup blog here where we...more

Proskauer - Blockchain and the Law

SEC Brings Charges against Blockchain-Based Trading Platform over Alleged Violations of Disclosure Rules

On January 10, 2022, the Securities and Exchange Commission (“SEC” or the “Commission”) announced it settled charges in In re tZERO ATS, LLC, No. 93938 (SEC Order Jan. 10, 2022) (“Order”)....more

Sheppard Mullin Richter & Hampton LLP

NYAG’s Warning to Crypto Businesses Muddies Regulatory Waters; Compliance Requirements Remain Elusive

New York’s chief law enforcement agency recently squandered an opportunity to bring much needed guidance to the digital assets space. On October 18, 2021, the Office of New York Attorney General, Letitia James (“NYAG”),...more

Proskauer - The Capital Commitment

U.S. Federal Regulators Turn Up the Heat on Cryptocurrency Trading Platforms

With new types of digital assets and related business on the rise, federal authorities have been busy investigating.  Recently, the SEC, FinCEN and the CFTC have imposed some notable settlements involving cryptocurrency...more

Proskauer - Blockchain and the Law

SEC Brings Charges against Allegedly Fraudulent Unregistered Decentralized Finance Project That Ran on the Ethereum Platform

On August 6, 2021, the Securities and Exchange Commission (SEC) announced that it had charged two men, Gregory Keough and Derek Acree, and their company, Blockchain Credit Partners, doing business as DeFi Money Market...more

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