Why CISOs Need D&O Coverage Like the Rest of the C-Suite

Why CISOs need enhanced legal protections in the age of breach lawsuits

Given the increased regulatory focus on cybersecurity, coupled with the fact that even the best CISO cannot prevent every breach, it’s important that companies start affording CISOs the same protections they offer more traditional corporate officers and directors. They should not limit these protections to CISOs of public companies as, based on prior experience, it’s likely regulators and civil plaintiffs will also take an aggressive stance when it comes to private organizations.

Some have argued that such protections for CISOs are expensive and unnecessary, but both are not true. If CISOs are actually at minimal risk, as some have argued, then these protections will not cost a lot of money, so there should be no obstacle to offering them.

Mt. Gox Creditors Get Crypto Repayments After Decade of Waiting

Mt. Gox creditors are receiving a portion of the roughly $8 billion worth of cryptocurrency they’ve been owed since a hack drove the Tokyo-based exchange into bankruptcy a decade ago.

Kraken has distributed Bitcoin and Bitcoin Cash from the Mt. Gox estate, according to a post on the X social media platform from the San Francisco-based exchange’s chief executive. A Kraken spokesperson confirmed the distribution and declined to comment on the specific amount.

Mixed result for SEC in cyber disclosure case against SolarWinds and its CISO

Setback for the SEC on accounting controls.

The SEC suffered a significant loss with the court’s rejection of its expansive interpretation of the accounting controls provision. In recent years, the SEC has brought a series of settled actions alleging internal accounting controls violations in circumstances unrelated to the financial reporting process. For example, the SEC has alleged accounting controls violations in connection with stock buyback arrangements (see our prior client updates here and here) and just a few weeks ago, announced a settlement alleging that a company’s cybersecurity controls violated the internal accounting controls provisions. That case drew a vigorous dissent on similar grounds as the court’s decision in SolarWinds. With most of the SEC’s efforts to expand the accounting controls provision taking place in settled proceedings, this rejection by a federal judge provides support to companies in pushing back against expansive SEC controls theories.

Coinbase Asset Management Plans Tokenized Money-Market Fund, a Hot Area After BlackRock’s BUIDL Success: Sources

The asset management arm of U.S.-listed cryptocurrency exchange Coinbase (COIN) is creating a tokenized money-market fund, jumping into one of the hottest crypto-powered corners of finance, according to four people familiar with the plan.

Tokenization, or representing ownership of real-world assets (RWAs) through blockchain-based products, has become one of the big trends in crypto of late. BlackRock, the world’s biggest asset manager, introduced a fund called BUIDL that holds U.S. Treasuries. That fund quickly hit $500 million of assets following its introduction in March.