Ethereum Developer Receives Wells Notice, Sues SEC for "Unlawful Seizure of Authority"

Consensys Sues SEC Over ‘Unlawful Seizure Of Authority’ Over Ethereum

Ethereum developer Consensys has filed a lawsuit against the U.S. Securities and Exchange Commission, striking back against what the company calls an “unlawful seizure of authority” over Ethereum by the federal regulator.

The company wants a federal court to declare that ETH (ETH) is not a security, any investigation of ConsenSys based on the idea that ETH is a security “would violate” the company’s fifth amendment rights and the Administrative Procedures Act, that MetaMask is not a broker under federal law, that MetaMask’s staking service does not violate securities law and an injunction against the SEC investigating or bringing an enforcement action tied to MetaMask’s Swaps or Staking functions.

In the complaint filed Thursday against the SEC and all five of its commissioners, Consensys revealed it received a Wells notice from the SEC on April 10, indicating its intention to bring an enforcement action against the company for violating securities laws via its MetaMask wallet product….

Hedge Funds Under SEC Spotlight in Expanding WhatsApp Crackdown

The SEC earlier this month fined Senvest Management LLC, a New York hedge fund, $6.5 million. It was the first time the agency has brought a case as part of its messaging app enforcement against a standalone investment adviser.

The move comes amid similar crackdowns against banks — and even the SEC’s own employees last week, after the agency banned third-party messaging apps from work mobile phones.

It’s a harbinger of increased scrutiny around the records of private equity and hedge funds, which usually register with the SEC as investment advisers, attorneys say.

Former PR adviser handed 3-year insider trading sentence in ‘breakfast trust’ trial

A former communications adviser was sentenced to three years and three months in jail by Frankfurt district court on Friday after he was found guilty of insider trading spanning multiple years.

The 48-year-old, who cannot be named for legal reasons, was found guilty by a panel of five judges of making more than €14mn in profit between 2017 and 2021 from trading on inside information shared by a partner of Perella Weinberg Partners, a prestigious boutique investment bank.

He was also ordered to repay the gross proceeds of its illicit share sales of €24mn to the state.

The communications adviser admitted buying shares and options after receiving tips about stocks that “should be looked at”, “could become interesting” or “may turn into a takeover target”.

Patisserie Valerie Accounting Fraud: Four Plead Not Guilty

Four people charged with fraud over the Patisserie Valerie accounting scandal that brought down the 90-year-old high-street bakery chain pleaded not guilty.

The Serious Fraud Office charged former chief financial officer of Patisserie Holdings Christopher Marsh, his wife Louise, financial controller Pritesh Mistry and consultant Nileshkumar Lad with inflating the cash in the firm’s balance sheets between 2015 and 2018.

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The group collapsed into insolvency in 2019 after a forensic investigation revealed thousands of false entries in its accounts, which resulted in hundreds of employees losing their jobs. Once listed Patisserie Holdings, previously owned in part by British restaurant entrepreneur Luke Johnson, had a market value of £446 million ($558 million) before it was suspended.

A Proven Success: The SEC Whistleblower Regime Provides a Roadmap for DOJ’s New Program

As DOJ considers how best to construct this new program, it fortunately has a model of success to consider in the programs created under Dodd-Frank at the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC).

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This is a resounding success by any measure in leveling the playing field in favor of those in corporate America (i.e., the vast majority) who play by the rules. It thus makes sense to carefully consider the key elements of the SEC program underpinning its success, not the least of which as experience has shown – is a transparent and reliable mandatory minimum award.