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Fintech
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September 25, 2024
Silvergate Can't Block Activist Investor From Board In Ch. 11
The parent company of defunct cryptocurrency-friendly bank Silvergate on Wednesday lost its bid to keep activist investor Joseph Stilwell from seeking election to its board, after a Delaware bankruptcy judge rejected its request for a temporary restraining order that would have halted the company's annual shareholder meeting on Friday.
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September 25, 2024
Mango Markets Plans $500,000 CFTC Settlement Offer
Members of the governing body behind crypto platform Mango Markets agreed on Wednesday to present the U.S. Commodity Futures Trading Commission with a $500,000 settlement offer to resolve a nonpublic investigation into purported registration and compliance violations.
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September 24, 2024
Bank Regulators, SEC Face GOP Inquiry Over Crypto Bulletin
House Republicans have called for the Federal Reserve and other agencies to turn over a host of documents for what the lawmakers say is an inquiry into the origins and behind-the-scenes policymaking impact of the U.S. Securities and Exchange Commission's cryptocurrency accounting guidance.
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September 24, 2024
'Be Careful What You Wish For' Post-Jarkesy, SEC Atty Says
A trial lawyer for the U.S. Securities and Exchange Commission told the defense bar Tuesday to "be careful what you wish for" after the U.S. Supreme Court dealt a blow to the agency's in-house court system, saying cases against gatekeepers "are not going away."
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September 24, 2024
Athlete Investment Co. Gets Claims Nipped In $1M Fraud Suit
A New York federal judge has trimmed a suit alleging that an athlete investment company that aimed to "tokenize" and sell shares of professional athletes was involved in a $1 million fraud and lied about its business plan, saying the plaintiff is conflicted from bringing certain derivative claims.
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September 24, 2024
SEC Orders Crypto Cos. To Pay $700K Over Stablecoin Offers
The U.S. Securities and Exchange Commission on Tuesday unveiled a $700,000 settlement with stablecoin issuer TrueCoin and affiliated lending business TrustToken over alleged misrepresentations about the stability of the token and failures to register its use in "profit-making opportunities."
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September 24, 2024
3 Takeaways From Gensler's Big Day Before The House
U.S. Securities and Exchange Commission Chair Gary Gensler appeared before the U.S. House of Representative for potentially the last time on Tuesday, where he stuck up for his agency's actions in the crypto space and hinted at the possible revival of share buyback rules.
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September 24, 2024
Feds Say BitMEX Should Owe $428M For Flouting AML Rules
Federal prosecutors urged a Manhattan federal judge to impose a $428 million penalty for offshore crypto derivatives exchange BitMEX after the firm admitted to lax anti-money laundering procedures, arguing the more than $100 million the firm and founders have already paid to regulators is not enough to deter other crypto firms from Bank Secrecy Act violations.
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September 24, 2024
1st Circ. Affirms Tossing Of IRS Crypto Doc Seizure Case
A New Hampshire federal court correctly dismissed a bitcoin investor's claim that the IRS violated his privacy and property rights when it seized his records from the cryptocurrency exchange Coinbase, the First Circuit ruled Tuesday, agreeing that he lacked a reasonable expectation that his account information would be kept private.
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September 24, 2024
Chancery Told SwervePay Deserves Sanctions In Earnout Suit
A court-appointed special magistrate has recommended sanctioning e-payment venture SwervePay and related parties over up to 22 months of missing or deleted text messages sought by SPOSC Investment Holdings and others in a post-merger battle over an alleged multibillion-dollar overstatement of "monetizable" payment traffic.
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September 24, 2024
Star Witness Against Bankman-Fried Gets 2 Years In FTX Case
A Manhattan federal judge sentenced former cryptocurrency executive Caroline Ellison to two years in prison Tuesday, crediting her decision to testify against FTX founder Sam Bankman-Fried but saying the $11.2 billion fraud was too big to warrant a "get out of jail free card."
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September 24, 2024
Baker Donelson Adds Financial Services Expert In DC
Baker Donelson Bearman Caldwell & Berkowitz PC has hired a new shareholder who started her 15-year legal career as an attorney adviser in the U.S. Department of the Treasury's Banking and Finance Division, the firm announced Tuesday.
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September 24, 2024
DOJ Accuses Visa Of Monopolizing Debit Card Market
The U.S. Department of Justice accused Visa on Tuesday of illegally maintaining a monopoly over debit card networks by using its dominance to thwart competition from new and existing rivals, as the Biden administration continues its push to combat high prices using antitrust law.
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September 24, 2024
SEC, CFTC Issue $118M Fines In Latest Text Message Actions
Federal regulators said Tuesday that the Canadian Imperial Bank of Commerce and nearly a dozen other financial firms have agreed to pay fines totaling nearly $120 million to settle recordkeeping violations tied to employee use of unapproved communication methods like text messages to conduct business.
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September 23, 2024
3rd Circ. Probes SEC's 'Close To Vacuous' Reply To Coinbase
Members of a Third Circuit panel on Monday pressed the U.S. Securities and Exchange Commission on its brief denial of crypto exchange Coinbase's request for rulemaking around digital assets, digging into how much of an explanation the agency owes the industry about its decision to forego setting rules for now.
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September 23, 2024
Crypto Miners Must Keep Fighting SEC's $18M Fraud Claims
A Utah federal judge on Monday refused to throw out the U.S. Securities and Exchange Commission's suit accusing two Utah residents of running an $18 million crypto fraud scheme, rejecting their arguments that the transactions at the heart of the dispute do not involve securities subject to the SEC's regulation.
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September 23, 2024
Coinbase Brings On Ex-Citadel Legal Chief With SEC Chops
Coinbase announced on Monday it has hired Ryan VanGrack to serve as its vice president of legal, where he will be overseeing civil litigation, regulatory probes, employment and intellectual property matters for the crypto exchange after spending seven years with Citadel Securities as general counsel.
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September 23, 2024
CFTC Fines Piper Sandler $2M In Latest Text Messaging Action
The U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission both announced settlements Monday in their ongoing probe into the financial industry's use of personal devices to discuss company business, with the CFTC issuing a fine against a subsidiary of Piper Sandler & Co. while the SEC said that a cooperative investment adviser would not have to pay anything.
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September 23, 2024
DOJ Adds AI Risk To Corporate Compliance Program
The U.S. Department of Justice's Criminal Division is now weighing how companies manage risk related to artificial intelligence and potentially stymie whistleblowers, one of several updates to the division's policies on evaluating corporate compliance programs announced by a senior official on Monday.
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September 23, 2024
SEC Scores $12M Judgment In Unregistered Dealer Case
A Minnesota federal judge has ordered financial firm Carebourn Capital LP, its founder and an affiliated company to pay more than $12 million in disgorgement and prejudgment interest over U.S. Securities and Exchange Commission claims they made millions selling securities as unregistered dealers.
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September 23, 2024
PNC, Plaid End Legal Battle With Customer Data-Sharing Deal
PNC Financial Services Group and Plaid have reached an agreement to end nearly four years of trademark litigation that allows PNC customers to use Plaid to share their financial data with fintech companies like Venmo and Cash App.
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September 23, 2024
Davis Polk Vows Ex-Clerk Won't Touch Crypto Merger Suit
Local counsel for Galaxy Digital Holdings Inc. has told a Delaware vice chancellor that Davis Polk & Wardwell LLP will ensure that an incoming associate who clerked for the state's Supreme Court won't share information with attorneys defending the digital assets company in a merger suit that the state's highest court revived in May.
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September 23, 2024
Shkreli Told To Provide More Info On Wu-Tang Album Copies
A Brooklyn federal judge on Monday ordered Martin Shkreli to update the court on how many tracks he copied from a one-of-a-kind Wu-Tang Clan album after the cryptocurrency group that now owns the work argued Shkreli could be holding out on surrendering all his copies amid the parties' legal battle.
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September 23, 2024
Holland & Knight Adds Former Treasury Adviser In DC
A former adviser for the U.S. Department of the Treasury and counsel for the Consumer Financial Protection Bureau has moved his practice to Holland & Knight's office in Washington, D.C., the firm announced Monday.
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September 23, 2024
Autism Played Role In Bankman-Fried Case, 2nd Circ. Told
A group of experts on neurodiversity told the Second Circuit that Sam Bankman-Fried, who has said he has autism and attention deficit hyperactivity disorder, may have been hurt at trial by a "cognitive and communication style" that at times frustrated the trial judge.
Expert Analysis
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Replacing The Stigma Of Menopause With Law Firm Support
A large proportion of the workforce is forced to pull the brakes on their career aspirations because of the taboo surrounding menopause and a lack of consistent support, but law firms can initiate the cultural shift needed by formulating thoughtful workplace policies, says Barbara Hamilton-Bruce at Simmons & Simmons.
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Crypto Regs Could See A Reset Under The Next President
Donald Trump has taken a permissive policy stance favoring crypto, while Kamala Harris has been silent on the issue, but no matter who wins the presidential election, we may see a more lenient regulatory climate toward the digital currency than from the Biden administration, says Liam Murphy at McKool Smith.
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Planning Law Firm Content Calendars: What, When, Where
During the slower month of August, law firms should begin working on their 2025 content calendars, planning out a content creation and distribution framework that aligns with the firm’s objectives and maintains audience engagement throughout the year, says Jessica Kaplan at Legally Penned.
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Key Concerns To Confront In FDIC Brokered Deposit Proposal
Banks and fintech companies should note several fundamental issues with the Federal Deposit Insurance Corp.'s recent proposal to widen how it classifies brokered deposits, an attempt to limit prudential risk that could expose the industry and underbanked consumers who rely on bank-fintech apps to widespread unintended consequences, say attorneys at Gibson Dunn.
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Crypto Gatekeepers May Be The Next Front Of Enforcement
Lawyers and other professionals who advise cryptocurrency companies should beware regulators' increasing focus on gatekeeper accountability, and should take several measures to fulfill their ethical and legal obligations, including implementing a robust vetting mechanism when representing crypto clients, say Temidayo Aganga-Williams and Xinchen Li at Selendy Gay.
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Series
Playing Golf Makes Me A Better Lawyer
Golf can positively affect your personal and professional life well beyond the final putt, and it’s helped enrich my legal practice by improving my ability to build lasting relationships, study and apply the rules, face adversity with grace, and maintain my mental and physical well-being, says Adam Kelly at Venable.
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What To Expect From CFPB And DOT Card Rewards Inquiry
Following the Consumer Financial Protection Bureau's announcement of joint efforts with the U.S. Department of Transportation to investigate credit card rewards points, credit card issuers and airlines should keep a close eye on potential regulatory and class action litigation risks stemming from the inquiry, say attorneys at DLA Piper.
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Law Firms Should Move From Reactive To Proactive Marketing
Most law firm marketing and business development teams operate in silos, leading to an ad hoc, reactive approach, but shifting to a culture of proactive planning — beginning with comprehensive campaigns — can help firms effectively execute their broader business strategy, says Paul Manuele at PR Manuele Consulting.
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3 Ways To Limit Risks Of Black-Box AI In Financial Services
As regulators increasingly highlight the potential for artificial intelligence to make unfair consumer credit decisions, and require financial institutions to explain how these so-called black-box algorithms arrive at conclusions, companies should consider three key questions to reduce their regulatory risks from these tools, say Jeffrey Naimon and Caroline Stapleton at Orrick.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Takeaways From Virginia's $2B Trade Secrets Verdict Reversal
The Virginia Court of Appeals' recent reversal of the $2 billion damages award in Pegasystems v. Appian underscores the claimant's burden to show damages causation and highlights how an evidentiary ruling could lead to reversible error, say John Lanham and Kamran Jamil at Morrison Foerster.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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How Corner Post Affects Enviro Laws' Statutes Of Limitations
The U.S. Supreme Court's recent ruling in Corner Post v. Federal Reserve Board has helped to alter the fundamental underpinnings of administrative law — and its plaintiff-centric approach may have implications for some specific environmental laws' statutes of limitations, say Chris Leason and Liam Martin at Gallagher and Kennedy.
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Lessons From Recent SEC Cyber Enforcement Actions
The recent guidance by the SEC's Division of Corporation Finance is helpful to any company facing a cybersecurity threat, but just as instructive are the warnings raised by the SEC's recent enforcement actions against SolarWinds, R.R. Donnelley and Intercontinental Exchange, say attorneys at O'Melveny.