Prosecutors Subpoena Hedge Funds on Dealings with Binance

Subpoenas issued in ongoing federal probe of crypto exchange Binance

Federal prosecutors are examining American hedge funds’ dealings with cryptocurrency exchange Binance as part of a long-running investigation into potential violations of money-laundering rules at one of the world’s leading crypto companies.

In subpoenas sent in recent months, the U.S. attorney’s office for the Western District of Washington in Seattle directed investment firms to hand over records of their communications with Binance, according to two people, each of whom reviewed one of the subpoenas and spoke on the condition of anonymity to discuss the confidential matter.

SEC Charges McDonald’s Former CEO for Misrepresentations About His Termination

he Securities and Exchange Commission today charged Stephen J. Easterbrook, former CEO of McDonald’s Corporation, with making false and misleading statements to investors about the circumstances leading to his termination in November 2019. McDonald’s also was charged for shortcomings in its public disclosures related to Easterbrook’s separation agreement.

According to the SEC’s order, McDonald’s terminated Easterbrook for exercising poor judgment and engaging in an inappropriate personal relationship with a McDonald’s employee in violation of company policy. However, McDonald’s and Easterbrook entered into a separation agreement that concluded his termination was without cause, which allowed him to retain substantial equity compensation that otherwise would have been forfeited. In making this conclusion, McDonald’s exercised discretion that was not disclosed to investors.

Crypto Empire DCG Faces US Investigation Over Internal Transfers

US authorities are digging into the internal financial dealings of Barry Silbert’s expansive crypto empire, according to people familiar with the matter.

Federal prosecutors in Brooklyn are scrutinizing transfers between Digital Currency Group Inc. and an embattled subsidiary that offers crypto lending services, said the people, who asked not to be named because the probe hasn’t been made public. They’re also delving into what investors were told about those transactions.

Prosecutors have started requesting interviews and documents, one of the people said. The Securities and Exchange Commission is also conducting an investigation, another person said. The probes are in early phases and neither Silbert, Digital Currency Group, nor any of its subsidiaries have been accused of wrongdoing.

SEC closes probe into Burr stock trading without taking actionRetired Sen. Richard Burr (R-N.C.) announced on Friday that the Securities and Exchange Commission (SEC) has closed a 2 1/2-year investigation of his stock trading activities without taking action against him.

“This week, the SEC informed me that they have concluded their investigation with no action. I am glad to have this matter in the rearview mirror as I begin my retirement from the Senate following nearly three decades of public service,” said Burr, who retired earlier this week after serving three terms in the Senate.

The SEC had been investigating Burr’s sale of $1.65 million worth of stock at the first outbreak of the COVID-19 pandemic in February 2020. The sale included a large share of hospitality industry stocks, which took a hit when worldwide travel and tourism ground to a halt a few weeks later.

Sam Bankman-Fried’s Lawyers Defended Ghislaine Maxwell and ‘El Chapo’

A pair of attorneys defending FTX founder Sam Bankman-Fried against one of the biggest white-collar prosecutions in decades are veterans of high-profile cases, including ones involving drug lord “El Chapo” and disgraced socialite Ghislaine Maxwell.

Mark Cohen and Christian Everdell, former federal prosecutors who are now partners in the New York-based boutique firm Cohen & Gresser, are known for an unflashy, roll-up-their-sleeves style to cases, with a meticulous and persistent approach to building a defense, lawyers who know the men say. The pair are up against hard-charging Justice Department lawyers who moved quickly to indict Mr. Bankman-Fried after FTX’s collapse and secured two of his former top lieutenants as cooperating witnesses.

Former FTX US head Brett Harrison to spill dirt on crypto disaster

Former FTX US boss Brett Harrison pledged on Sunday night to spill more details about the doomed crypto exchange’s inner workings – and hinted he may already be cooperating with the feds.

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“What did you know about @FTX_Official US and when did you know it?” a Twitter user asked Harrison on Sunday night.

“I’ll share in time,” Harrison replied.

When another asked why Harrison why he wasn’t already “in prison,” the former FTX executive replied that they should “use powers of inference.”

FTX teams in U.S., Bahamas to coordinate crypto recovery efforts

FTX’s U.S.-based bankruptcy team have agreed to coordinate with liquidators winding down the crypto exchange’s operations in the Bahamas, resolving a dispute that threatened the recovery of what could be billions of dollars in lost funds.

In a joint statement on Friday, the two sides said they will work to share information, secure property and coordinate litigation against third parties.

FTX’s U.S. bankruptcy team has been at odds with Bahamian officials since November, when competing bankruptcies were filed in the two countries.