Tagged: securities and exchange commission

SEC Expands Scrutiny of Companies That Sold ICOs to Unaccredited Investors

The American Securities and Exchange Commission (SEC) has been following up on “scores” of subpoenas it sent in January to companies issuing ICOs (initial coin offerings) and is now focussing on those and “many more” that sold ICOs to unaccredited investors, Yahoo Finance reports. Based… Read More

What We Can Learn From the SEC’s Lawsuit Against Elon Musk

On September 27, 2018, the SEC filed a lawsuit against Elon Musk for committing securities fraud because of some tweets he published on August 7, 2018. A mere two days later, September 29, 2018, Musk settled with the SEC. As part of their settlement agreement,… Read More

Update: LendingClub SEC / DOJ Settlement Totals $6 Million

Last week, CI reported that the Securities and Exchange Commission (SEC) had charged LendingClub Asset Management LLC (part of Lending Club), and former President Renaud Laplanche with fraud for improperly using fund money to benefit LendingClub. A settlement was quickly agreed to by all parties… Read More

SEC Chair Jay Clayton Comments on Elon Musk & Tesla Enforcement Action and Settlement

“…when companies and corporate insiders make statements, they must act responsibly, including endeavoring to ensure the statements are not false or misleading and do not omit information a reasonable investor would consider important in making an investment decision.” – Jay Clayton, Chairman of the SEC… Read More

SEC & CFTC Join in Charging Austria Based Dealer Using Bitcoin for Swaps for Violating US Law

The Securities and Exchange Commission (SEC) announced an enforcement action today against an Austria based international securities dealer with providing securities swaps funded by Bitcoin. The SEC charges Patrick Brunner, CEO of 1pool Ltd. a/k/a 1Broker – registered in the Marshall Islands, with violations of US… Read More

SEC Lawsuit Against Real Estate Crowdfunding Platform iFunding Alleges Fraud Scheme to Misappropriate Investor Funds [u]

The Securities and Exchange Commission (SEC) has filed a complaint against real estate crowdfunding platform iFunding, along with co-founders William Skelley and Sohin Shaw. The complaint alleges that Skelley and Shaw pursued a “fraudulent scheme to misappropriate investor funds.” CI Senior Contributor and securities attorney… Read More

Group of Crypto / Blockchain Industry Leaders Addresses SEC on Fund Innovation & Digital Assets

A letter authored by a group of prominent cryptocurrency / blockchain advocates was forwarded to the Securities and Exchange Commission (SEC) this week. The letter was addressed to Dalia Blass, Director of the Division of Investment Management at the SEC, specifically mentioning the Commission’s Staff… Read More

GAW Miners Fraud Perp Homero Joshua Garza Sentenced to Prison

The saga of the GAW Miners / ZenMiner fraud has come to an end. On September 13, 2018, the perpetrator of the fraud, Homero Joshua Garza, was sentenced to 21 months of imprisonment. The criminal action was completed alongside an SEC civil enforcement action. The US… Read More

SEC Co-Director of Enforcement Discusses Initial Coin Offering Misconduct, Emphasizes Need for Balance in Fostering Innovation

In a speech delivered this week, Stephanie Avakian, Co-Director of the Division of Enforcement at the Securities and Exchange Commission (SEC), discussed their approach to dealing with the avalanche of initial coin offerings (ICOs) and digital assets in general. Avakian said that as of the Q2… Read More

CryptoMom: SEC Commissioner Hester Peirce Talks Crypto, Cautions that Regulators Can be Too Risk Averse thus Undermining Fintech Innovation

Securities and Exchange Commissioner (SEC) Hester Peirce delivered a speech at the Cato Fintech event in SF this week tackling an important topic: That of regulators (and policymakers in general) being too risk averse. This is a truism in policy. We elect, or appoint, public… Read More

“The Case Will Proceed to Trial”:  Taking the RECoin / Diamond & Other ICO Actions One Step at a Time

The Jury by John Morgan Trial Court Judge Law

As has been reported widely, digital token sales (sometimes referred to as initial coin offerings or ICOs) arguably are becoming increasingly important as a new form of capital raising.  To date, certain regulators (including the U.S. Securities and Exchange Commission (the “SEC”)) have provided ongoing… Read More

“ICO Superstore” TokenLot Settles Charges with SEC for Operating as Unregistered Broker Dealer Selling Cryptocurrencies

The Securities and Exchange Commission (SEC) says that TokenLot, a self professed ICO Superstore, will settle charges regarding allegations the firm operated as an unregistered broker dealer. The SEC notes this is the first case charging unregistered broker-dealers for selling digital tokens after the SEC… Read More

Riot Blockchain Restructures as Chairman & CEO John O’Rourke Departs Under Allegations of Microcap Fraud

Riot Blockchain (NASDAQ: RIOT), a crypto company that engages in mining, development of exchange and mining pool platforms, and other investments within the sector, has announced a restructuring following the departure of CEO and Chairman John O’Rourke. O’Rourke departed the firm following an enforcement action by the… Read More

Senate Confirms Elad L. Roisman as SEC Commissioner

In a Senate vote today, the nomination of Elad L. Roisman as a member of the Securities and Exchange Commission (SEC) was confirmed. Roisman received bipartisan support as 85 Senators voted to approve Roisman and only 14 Democrats voted against his nomination. Selected by President… Read More

SEC Chairman Jay Clayton Talks Initial Coin Offerings, Access to Capital at Entrepreneurship Festival

Speaking at the 36|86 Entrepreneurship Festival in Nashville today, Securities and Exchange Commission (SEC) Chairman Jay Clayton addressed the all important topic of entrepreneurship and access to capital. During his tenure at the SEC, Clayton has consistently expressed his intent to improve the ability of smaller… Read More

President Trump: It’s High Time for a few More Tweets to SEC Chairman Jay Clayton

President Trump:  It’s High Time for a few More Tweets to SEC Chairman Jay Clayton Any good litigator can tell you that the difference between success and failure is often the ability to ask the right questions – at the right times – and asking… Read More

The Securities and Exchange Commission is Right on Bitcoin ETF

The SEC Rejects Bitcoin ETF Proposals. The SEC has rejected nine more Bitcoin ETF proposals, one of them from a fairly well-established ETF distributor, ProShares.  The ProShares filing was due for comments on Thursday, but the SEC promptly responded a day early, as well as… Read More

Surprise! SEC Stays Rejection of Bitcoin ETFs Pending Review

An SEC decision to disapprove the listing of several Bitcoin exchange-traded funds (ETFs) on the New York Stock Exchange(NYSE) has been stayed pending review. Commissioner Hester Pierce announced the stay yesterday on Twitter. The SEC had ruled the day before to deny a rule change… Read More

SEC Rejects Two More Bitcoin ETF Proposals; “Should Not Send the Wrong Signal to Manipulators”

The SEC has rejected the Cboe BZX Exchange’s request for a rule change to allow it to trade long and short Bitcoin Futures ETFs (exchange-traded funds). The Cboe applied in January for the rule change that would allow its GraniteShares Bitcoin ETF “Long Fund” and… Read More

How Not to be a VC: SEC Charges HBS Grad Mike Rothenberg with Fraud

The Securities and Exchange Commission (SEC) has charged Michael (Mike) B. Rothenberg, and his firm Rothenberg Ventures with fraud. Rothenberg, and his company, has agreed to settle the charges without admitting nor denying the allegations incorporated in the SEC complaint. The SEC states that Rothenberg’s… Read More

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