"The SEC Expects You To Read This…"

The SEC Expects You To Read This…

Specifically, the SEC order emphasized that company lawyers had received several “general client bulletins, legal alerts, and case summaries” about the Commission’s 21F-17 enforcement activity. In addition, the company’s regular outside employment counsel attached an alert as a “client memo” to an email they sent to the General Counsel and other lawyers involved with the employment agreements, which predicted more enforcement activity and recommended that public companies revise their employment agreements. While Rule 21F-17(a) doesn’t require intent to prove a violation, the SEC cast that as “specific advice” – and used it to add context to other findings that resulted in the settlement.

‘Pig Butchering’ Crypto Scam Victim To Get Money Back From Binance, Law Enforcement Says

Rick Jenkins, a detective with the Gilroy Police Department, a city south of San Jose, wrote in a May 13 search warrant affidavit obtained by Forbes that “an unknown suspect” met a victim on a dating website, and eventually “tricked the victim” into investing over $243,000 worth of USDT into a fake cryptocurrency exchange.

The seizure marks the first time that romance scam-related cryptocurrency losses have been recovered in this Silicon Valley county, according to Erin West, a veteran prosecutor with the Santa Clara County District Attorney’s Office. Authorities are now beginning the process of returning the seized funds to victims.

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According to the Federal Trade Commission, losses from romance scams, many carried out using online dating sites, have “skyrocketed” recently, and in 2021, reached an all-time high, of $547 million. A subset of these romance scams involve cryptocurrency, and are sometimes known as “pig butchering” scams, in which victims are enticed to put in more and more money – fattening them up – before disappearing with vast sums of cryptocurrency.

Trump Social Media Company Receives Grand Jury SubpoenaA federal grand jury is seeking information from Trump Media & Technology Group about its planned merger with Digital World Acquisition Corp., according to a filing from the blank-check firm.

Digital World said that it found out Thursday that the panel in the Southern District of New York had demanded TMTG turn over documents related to the planned combination. The Securities and Exchange Commission issued a subpoena for similar information earlier in the week, the special purpose acquisition company said in a Friday filing.

The sinking of Voyager

I have no problem with a hedge fund lending only to seven counterparties, if it is lending its own funds or those of professional investors who understand the risks they are taking. But Voyager marketed high-risk investments to retail depositors with promises of safety and (non-existent) insurance. To my mind, this isn’t just bad, it is criminal. But crypto is an unregulated, borderless space. Even if Voyager has lied to its customers and embezzled their funds, it is unclear what if any power national authorities have to hold it to account. And even though there will undoubtedly be a forest of lawsuits, the money is gone.

Sorry, Voyagers. You are going down with this ship, and no lifeboat will save you.

Wave of SPAC Deals Canceled in Latest Blow to Stumbling Industry – BloombergA flurry of blank check mergers were called off over the past 24 hours as target firms and SPAC sponsors deal with market turmoil that has shaken the industry and capital markets.

At least four special-purpose acquisition company tie-ups have been called off since the end of Thursday’s trading, bringing the year’s total to 30 breakups. The malaise is expected to keep Panera Brands, the owner of Panera Bread and Einstein Bros. Bagels, and online brokerage eToro private.

Bank of England Committee Calls for Enhanced Crypto Regulation to Limit Contagion

The Bank of England’s Financial Policy Committee called for “enhanced regulation” of the crypto asset market to mitigate against potential risks.

Noting recent market turmoil, the committee said crypto assets did not yet pose a threat to the wider financial system. They might, however, in the future as they become more integrated into mainstream finance, according to meeting summary notes published Tuesday. The committee focuses on the central bank’s role in maintaining financial stability.

Peter Thiel-Backed Crypto Lender Vauld Suspends Withdrawals

The platform, Vauld, said Monday that it froze the operations after users pulled almost $200 million over the last three weeks. A sharp decline in cryptocurrency prices that began with the collapse of two cryptocurrencies in May has spooked traders and caused knock-on effects in the digital asset world.

Crypto broker Voyager Digital temporarily suspended trading, deposits, withdrawals and loyalty rewards Friday. Major crypto lender Celsius Network LLC has paused withdrawals and has tapped advisers to prepare for a possible bankruptcy, The Wall Street Journal previously reported. Crypto hedge fund Three Arrows Capital Ltd. has been ordered to liquidate.

Supreme Court Climate Ruling Adds Obstacles to SEC Policies

The Supreme Court’s decision to curb the Environmental Protection Agency’s powers could provide legal ammunition for challenges to financial regulations envisioned by the Securities and Exchange Commission and other agencies.

The SEC is regarded by legal analysts as an obvious target for challenges employing the logic in the EPA case. The Wall Street regulator is drafting rules to require public companies to disclose climate risks and greenhouse-gas emissions. The ruling’s impact, moreover, could be wider-ranging, touching on initiatives from the Federal Trade Commission, the Consumer Financial Protection Bureau and other agencies, legal analysts said.

McGonigle Has Combined With Davis Wright Tremaine

Effective July 1, 2022, McGonigle P.C. has combined with Davis Wright Tremaine LLP. The move joins McGonigle’s deep expertise in securities regulation and enforcement, commodities, digital assets, white collar, and litigation with DWT’s full-service national platform….