Sentencing Day is Here for Binance's CZ, Betting Markets Predict Sentence Under 6 Months

Binance founder CZ heads to sentencing hearing facing years in prison

The government is asking for a sentence of three years, double the high end of the guidelines range to “reflect the gravity of his crimes,” the prosecutors’ memo says.

Zhao’s lawyers have asked for five months’ probation. They say Zhao has accepted responsibility for dodging AML requirements, and that he has a history of philanthropy and community service. Additionally, he’s already spent more than five months in the U.S., away from family, since pleading guilty.

Supreme Court rejects Elon Musk over agreement with SEC to vet social media posts

The Supreme Court on Monday turned away tech billionaire and Tesla CEO Elon Musk’s attempt to challenge the terms of an agreement he reached with the Securities and Exchange Commission that required a lawyer to review some of his social media posts.

The justices rejected Musk’s appeal of a ruling by the New York-based 2nd U.S. Circuit Court of Appeals in favor of the government agency.

Musk complained that the SEC unlawfully imposed conditions on his ability to comment online about Tesla-related issues what has been dubbed the “Twitter sitter” provision.

Grassley Questions Staffing, Delays in SEC Whistleblower Effort

Sen. Chuck Grassley (R-Iowa) wants the SEC to disclose how much staff is dedicated to its whistleblower program, writing that investigative delays and a recent dip in the number of awards have raised “concerns” about the agency’s signature enforcement effort.

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“(C)oncerns have been raised about the SEC’s delay in paying whistleblower awards and a lack of transparency about the resources the SEC has dedicated to review whistleblower tips and award determinations,” Grassley wrote. “Accordingly, given the recent lower than anticipated number of whistleblower awards and the increased number of whistleblower tips, I write today to gather more information with respect to the resources dedicated by the SEC to processing whistleblower tips and claims.”

Introduction to SEC v. Panuwat: Understanding “Shadow” Insider Trading

It is difficult to overstate the expansion Panuwat represents for potential liability for insider trading. To be sure, the defense bar will attack this unfair and unwise regulation-through-litigation, and the defense bar will be joined by academics, public interest groups, and supporters in the business community. In the meantime, every entity and individual involved in the capital markets—from public companies to retail traders—need to take head of the increased risks and perils that comes with trading in a post-Panuwat market. For companies, this includes at least re-evaluating insider trading policies and educating directors, officers, and employees on the new landscape. And securities lawyers need to adjust their advice to clients and strategies for defending insider trading investigations, regulatory actions, and prosecutions.

Ultimately, Congress needs to step in and define by legislation what is and is not illegal insider trading, which it has never done to date. One can debate what should and should not be permitted, but Congressional action would provide the best opportunity for consideration of the competing considerations of the scope and contours of the insider trading laws.

Unicorn Companies and Securities Litigation

One of the more distinctive developments in the capital markets in recent years has been the rise in the number of very large private companies. These companies are sometimes referred to as “unicorns,” as if they are very rare creatures — but the reality is that worldwide there over 1,230 of them. Because the rise of so many large private companies is relatively recent, many of the legal principles and procedures relevant to these companies are just forming – giving rise to what University of Illinois Law Professor Verity Winship describes as the “gaps between private-market reality and legal structures that were designed for public companies.”

Among the “uncharted areas” is shareholder litigation; in a new paper, Professor Winship considers what shareholder litigation has meant in the context of these unicorn companies. What she found is that shareholder litigation involving these companies is rare, and that the procedural mechanisms available to investors are limited, at least by comparison to the mechanisms available to public company investors….

Binance’s Founder Plans a Comeback Even as He Faces Prison Time

He enjoyed a home-cooked dinner in Montana with a former U.S. senator. He visited Telluride, Colo., and Moab, Utah, a vacation spot known for its national parks. And he chatted about start-ups with Sam Altman, the chief executive of OpenAI.

After pleading guilty to a money-laundering violation in November, Changpeng Zhao, the founder of the cryptocurrency exchange Binance, did not sit still. A federal judge denied his request to return home to Dubai, but Mr. Zhao, 47, was free to roam the United States. So he spent the past five months traveling the country, networking with other entrepreneurs and laying the groundwork for his next act.