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Prosecutors and Regulators Announce Criminal Charges and Civil Enforcement Actions Against Sam Bankman-Fried Following FTX...

On December 13, federal prosecutors announced criminal fraud and money laundering charges against Sam Bankman-Fried (SBF) in the wake of the collapse of FTX Trading Ltd. (FTX), the crypto asset trading platform that SBF...more

SEC Advises Companies to Disclose Crypto Market Exposure

On December 8, the Securities and Exchange Commission (SEC) issued new guidance for publicly traded companies, advising them to disclose their exposure and risk in the cryptocurrency market to investors....more

SEC Scores Victory in Ongoing Effort to Classify Cryptocurrencies as Securities

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

Full Scale of Constitutionality of SEC's Adjudication System Underway

The Supreme Court’s decision to hear CPA Michelle Cochran’s appeal represents the latest challenge to the Security and Exchange Commission’s in-house adjudicatory structure and could set the stage for a larger ruling on the...more

SEC Reaffirms 10b5-1 Plans Provide No Protection if Plans Not Established in Good Faith

On September 21, the Securities and Exchange Commission (SEC) announced charges against Cheetah Mobile, Inc.’s CEO and former president for insider trading, even though the questionable trades occurred under a 10b5-1 trading...more

Recent Decisions Cast Shadow Over SEC’s In-House Adjudication System

Two recent judicial developments create questions about the constitutionality of the SEC’s in-house judicial system. First, on May 16, the Supreme Court agreed to hear the case of Michelle Cochran, an accountant facing...more

Recent SEC Complaint Signals Increased Enforcement Risk for Companies on ESG Disclosures

A complaint recently filed by the SEC against Vale S.A., a Brazilian mining company with U.S.-traded American Depository Receipts (ADRs), signals an increased risk of enforcement actions targeting misrepresentations and...more

Delaware Court Issues Novel Ruling Clarifying Treatment of Cryptocurrency Assets When Evaluating Contract Damages

Judge Paul Wallace of the Delaware Superior Court issued a recent opinion in Diamond Fortress Technologies, Inc. v. EverID, Inc., clarifying the treatment of cryptocurrency assets when calculating damages. The opinion also...more

FINRA Issues Guidance Clarifying Liability for Chief Compliance Officers

On March 17, the Financial Industry Regulatory Authority (FINRA) issued a notice, clarifying when chief compliance officers (CCOs) will face liability as supervisors under FINRA Rule 3110. Under Rule 3110, member firms are...more

SEC Commentary Highlights Increased Focus on Data Analytics in Identifying Potential Securities Law Violations (UPDATED)

Recent commentary by Diana Tani, an assistant regional director with the SEC, at the Securities Enforcement West web conference emphasized the agency's focus on data-driven investigations. Two areas targeted for recent...more

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