In a recent judgment, the English Court of Appeal has opened the door to the possibility that cryptocurrency software developers may owe fiduciary duties to cryptocurrency users. These duties could have far-reaching...more
The UK Supreme Court has found that an introducer of business was not entitled to any remuneration for a valuable introduction outside of circumstances expressly provided for in the contract.
This judgment highlights the...more
Citing a substantial increase in recent years in the demand for both virtual currencies and virtual currency custody services, the New York Department of Financial Services (NYDFS) on January 23, 2023 released its Guidance on...more
The Board of Governors of the Federal Reserve System (Federal Reserve), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC) (collectively, the Agencies) on January 3, 2023...more
1/27/2023
/ Anti-Money Laundering ,
Cryptoassets ,
Cryptocurrency ,
Cyber Attacks ,
Decentralized Finance (DeFi) ,
Enforcement ,
FDIC ,
Federal Reserve ,
Financial Regulatory Agencies ,
Fraud ,
Investment Contract ,
Market Volatility ,
OCC ,
Risk Management
The staff of the SEC’s Division of Corporation Finance (Division) on December 8, 2022 released guidance for companies issuing securities in an illustrative letter, entitled “Sample Letter to Companies Regarding Recent...more
In a recent judgment the English High Court has again shown its ability to innovate so as to assist victims of crypto fraud. By imposing a constructive trust on a crypto exchange and permitting service of an order for summary...more
12/8/2022
/ Beneficial Owner ,
Bitcoin ,
Blockchain ,
Corporate Counsel ,
Crypto Exchanges ,
Cryptoassets ,
Cryptocurrency ,
Dispute Resolution ,
Fraud ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Software ,
Summary Judgment ,
UK
The White House released a fact sheet on September 16, 2022, issuing the “First-Ever Comprehensive Framework for Responsible Development of Digital Assets” (Fact Sheet), which provides insight into the federal government’s...more
10/5/2022
/ Central Bank Digital Currency (CBDCs) ,
Cross-Border Transactions ,
Cryptocurrency ,
Cybersecurity ,
Digital Assets ,
Environmental Justice ,
Federal Reserve ,
Financial Services Industry ,
Infrastructure ,
Investors ,
New Guidance ,
Shareholders
In response to President Biden’s March 9, 2022 Executive Order on digital assets, the DOJ announced the formation of a new network of prosecutors tasked with becoming specialists in investigating and prosecuting alleged...more
9/22/2022
/ Anti-Money Laundering ,
Biden Administration ,
CFTC ,
Consumer Financial Protection Bureau (CFPB) ,
Cryptocurrency ,
Department of Justice (DOJ) ,
Digital Assets ,
Digital Currency ,
Enforcement ,
Executive Orders ,
Federal Trade Commission (FTC) ,
Financial Institutions ,
Penalties ,
Popular ,
Proposed Legislation ,
Securities and Exchange Commission (SEC) ,
Stablecoins ,
Statute of Limitations
The U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) on August 8, 2022, imposed sanctions against the popular decentralized virtual currency mixer Tornado Cash alleging that it has been used to launder...more
9/16/2022
/ AML/CFT ,
Blockchain ,
Cyber Crimes ,
Data Privacy ,
Decentralized Finance (DeFi) ,
Ethereum ,
Financial Transactions ,
International Emergency Economic Powers Act (IEEPA) ,
Money Laundering ,
Office of Foreign Assets Control (OFAC) ,
Ransomware ,
Sanctions ,
SDN List ,
State Sponsors of Cyberattacks ,
U.S. Treasury ,
Virtual Currency ,
Wire Transfers
The Board of Governors of the Federal Reserve System (Federal Reserve) approved final guidelines (Guidelines) on August 15, 2022, to be used by Federal Reserve Banks (Reserve Banks) to evaluate requests to use accounts and...more
9/13/2022
/ Anti-Money Laundering ,
Cryptoassets ,
Cryptocurrency ,
Due Diligence ,
Federal Reserve ,
Financial Institutions ,
Fraud ,
Money Laundering ,
New Guidance ,
Regulatory Oversight ,
Reporting Requirements ,
Risk Management ,
Stablecoins
The Securities and Exchange Commission (the “SEC”) on July 21, 2022, filed a complaint (the “SEC Complaint”) alleging insider trading violations against an insider, his brother, and a friend, claiming that the trio engaged in...more
8/15/2022
/ Coinbase ,
Crypto Exchanges ,
Cryptocurrency ,
Digital Assets ,
Enforcement Actions ,
Financial Services Industry ,
Insider Trading ,
Misappropriation ,
Non-Public Information ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Securities Violations
Emerging technologies, such as bitcoin, blockchain and non-fungible tokens (“NFTs”), have led to the creation of massive alternative investment vehicles, additional portfolio diversification as well as expansion of the...more
8/11/2022
/ Artificial Intelligence ,
Bitcoin ,
Blockchain ,
Cryptocurrency ,
Digital Assets ,
Distributed Ledger Technology (DLT) ,
Emerging Technologies ,
Non-Fungible Tokens (NFTs) ,
Proposed Amendments ,
Regulatory Reform ,
Uniform Commercial Code (UCC) ,
Uniform Law Commission (ULC)
The Federal Deposit Insurance Corporation and the Board of Governors of the Federal Reserve System (Board of Governors) issued a joint letter (Joint Letter) on July 28, 2022, to Voyager Digital, LLC and its related entities...more
8/5/2022
/ Consumer Financial Products ,
Cryptocurrency ,
Deposit Insurance ,
Depository Institutions ,
Enforcement Actions ,
False Statements ,
FDI Act ,
FDIC ,
Federal Reserve ,
Financial Services Industry ,
Misleading Statements ,
Misrepresentation
In a recent innovative ruling, the English High Court has granted permission for a claim to be served on a defendant by non-fungible token (NFT), embracing blockchain technology and taking a pragmatic view on the most...more
8/3/2022
/ Blockchain ,
Crypto Exchanges ,
Cryptocurrency ,
Digital Wallets ,
Financial Fraud ,
Litigation Strategies ,
Misrepresentation ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Service of Process ,
UK ,
Unjust Enrichment
On 30 June 2022, the European Council (Council) and the European Parliament (Parliament), announced that they had reached a provisional agreement on the proposal for regulation on markets in cryptoassets (MiCA), which covers...more
7/15/2022
/ Asset Management ,
Blockchain ,
Corporate Counsel ,
Cryptoassets ,
Distributed Ledger Technology (DLT) ,
EU ,
Financial Markets ,
Financial Regulatory Reform ,
Financial Services Industry ,
FinTech ,
Investment Opportunities ,
Investor Protection ,
Non-Fungible Tokens (NFTs) ,
Popular ,
Regulatory Agenda ,
Regulatory Standards ,
Stablecoins ,
Token Sales
DFS Guidance -
The New York State Department of Financial Services (DFS) Superintendent Adrienne A. Harris issued new DFS Regulatory Guidance (Guidance) on June 8, 2022, setting foundational criteria for USD-backed...more
Key Takeaways -
According to sources with firsthand knowledge, the SEC is conducting an industry-wide inquiry into alleged insider trading activities of cryptocurrency exchanges.
Insider trading occurs when a corporate...more
7/6/2022
/ Bitcoin ,
Capital Markets ,
Cryptoassets ,
Cryptocurrency ,
Enforcement Actions ,
Enforcement Priorities ,
Financial Instruments ,
Financial Regulatory Agencies ,
Insider Trading ,
Investment Opportunities ,
Popular ,
Regulatory Oversight ,
Securities and Exchange Commission (SEC) ,
Trading Platforms ,
Virtual Currency
In an important ruling, the English High Court has recognised for the first time that there is an arguable case that non-fungible tokens (NFTs) are to be treated as property under English law. This means that the powerful...more
6/29/2022
/ Blockchain ,
Corporate Counsel ,
Cryptocurrency ,
Digital Assets ,
Financial Markets ,
Fraud ,
Investment Opportunities ,
Investor Protection ,
Non-Fungible Tokens (NFTs) ,
Popular ,
UK ,
UK Supreme Court
Key Takeaways -
A judge has issued an opinion in a first-of-its-kind criminal sanctions case involving the use of virtual currency to evade U.S. economic sanctions. The opinion reinforces the Treasury Department’s position...more
Introduction -
Cryptocurrencies have surged in popularity in recent years. As we have reported in recent OnPoints, the swift growth and adoption of cryptocurrencies raise legal questions about everything from their...more
Key Takeaways-
The United States Securities and Exchange Commission announced a settlement against chip manufacturing company Nvidia Corporation, on May 6, 2022, for inadequate disclosures concerning the impact of...more
5/19/2022
/ Bitcoin Mining ,
Corporate Counsel ,
Cryptocurrency ,
Enforcement Actions ,
Failure To Disclose ,
Gaming ,
Gaming Revenues ,
Microchip Technology ,
NVIDIA ,
Popular ,
Securities and Exchange Commission (SEC) ,
Securities Fraud ,
Settlement Agreements
On Wednesday, March 9, President Biden issued an Executive Order entitled Ensuring Responsible Development of Digital Assets. The President’s order represents the first time that the White House has sought to develop a...more
4/5/2022
/ Biden Administration ,
Bitcoin ,
Blockchain ,
Central Bank Digital Currency (CBDCs) ,
Cryptocurrency ,
Digital Assets ,
Executive Orders ,
Financial Regulatory Reform ,
Financial Services Industry ,
Financial Transactions ,
Investment Contract ,
Investor Protection ,
Regulatory Agenda
The Securities and Exchange Commission on January 26, 2022 voted three to one to propose amendments to Form PF, a confidential reporting form for certain SEC-registered investment advisers to private funds. The amendments...more
The English High Court has granted a combination of powerful remedies including worldwide freezing orders in favour of a UK resident who fell victim to persons unknown operating a suspected cryptocurrency investment scam....more
3/10/2022
/ Bitcoin ,
Cryptocurrency ,
Digital Currency ,
Enforcement Actions ,
International Litigation ,
Investment Fraud ,
Investment Opportunities ,
Misappropriation ,
Popular ,
Scams ,
UK ,
Virtual Currency
The Securities and Exchange Commission on February 9, 2022, voted three to one to propose a set of new rules and rule amendments under the Investment Advisers Act of 1940 that collectively, if adopted, would represent the...more