Fintech

  • February 14, 2024

    SEC Says Bankruptcy Doesn't Stop Crowdfunding Fraud Case

    Securities regulators are urging a Michigan federal judge to allow them to press on with their claims against the alleged mastermind behind a $2 million crowdfunding scheme — who has since quietly changed his name and allegedly bilked his attorney — arguing that his recent bankruptcy filing shouldn't pause proceedings.

  • February 14, 2024

    Deputy AG Warns Of Harsher Penalties For Crimes Aided By AI

    Deputy Attorney General Lisa Monaco on Wednesday said the U.S. Department of Justice will seek harsher penalties for crimes committed with the aid of artificial intelligence, calling the technology a "double-edged sword" that can be exploited by criminals but utilized by prosecutors with the right controls in place.

  • February 14, 2024

    Split Fed. Circ. Won't Revive Patent Case Against Bank

    Judges on the Federal Circuit split in a Wednesday finding on how exactly the courts should read the phrase "transaction partner" in a patent lawsuit against a regional bank in Indiana, with the majority opting to agree with a federal judge in Illinois that the words could only be construed in such a way that meant the patent case couldn't hold up in court.

  • February 14, 2024

    Genesis Gets Nod To Sell $1.6B In Grayscale Shares In Ch. 11

    Cryptocurrency lender Genesis Global won a New York bankruptcy judge's approval Wednesday to start selling more than $1.6 billion of shares in Grayscale Investments trusts to fund payouts to creditors, defeating an objection by Digital Currency Group over sale timing and the parent company's plea to consult on transactions.

  • February 13, 2024

    PR Giant Ketchum Sued Over Voyager's Celeb Crypto Promos

    A class of users of bankrupt crypto lender Voyager have sued public relations company Ketchum Inc. in Florida federal court over its work organizing a Voyager event with an NBA basketball team and other promotional materials, which the users say amounted to aiding and abetting the crypto platform's sale of unregistered securities.

  • February 13, 2024

    Accused Crypto Mixer 'Key' To Online Drug Market, Gov't Says

    Bitcoin Fog laundered hundreds of millions of dollars worth of bitcoin and played a "key role" in the online drug economy, prosecutors said in an opening statement Tuesday to kick off the trial of the accused operator of the cryptocurrency mixer in D.C. federal court.

  • February 13, 2024

    Voyager Investors Suing Mark Cuban Reach Deal With Gronk

    Investors suing billionaire Mark Cuban over his role in promoting now-bankrupt Voyager Digital Ltd. said Tuesday they had reached a tentative agreement with former NFL star Rob Gronkowski to stay claims tied to his social media posts and appearances boosting the cryptocurrency firm.

  • February 13, 2024

    SEC's Gensler Promises 'War' On AI Fraud

    U.S. Securities and Exchange Commission Chair Gary Gensler told an audience of Yale Law School students on Tuesday that financial firms using so-called artificial intelligence could face the agency's wrath if they don't put proper safeguards in place to combat fraud against investors.

  • February 13, 2024

    Digitex CEO Let Unverified Users Trade Crypto, Gov't Alleges

    The founder of Digitex Futures Exchange was charged in Florida federal court over allegations he refused to implement policies designed to prevent money laundering on his cryptocurrency futures platform, the U.S. Attorney's Office for the Southern District of Florida said in a statement Tuesday.

  • February 13, 2024

    Qihoo 360, Investors Ink $29.75M Deal Over $9.3B Merger Suit

    Investors suing Chinese software company Qihoo 360 Technology Co. Ltd. asked a New York federal judge to approve a $29.75 million settlement ending claims the firm worked to push down its share price in order to pay shareholders an unfairly low price when it went private by means of a $9.3 billion merger.

  • February 13, 2024

    EU Says Apple IMessage, Microsoft Bing Not Gatekeepers

    European enforcers have found that Apple's iMessage and several Microsoft services do not qualify for "gatekeeper" designations under the Digital Markets Act, but the companies nevertheless must abide by new rules giving users more choice and freedom with other products.

  • February 13, 2024

    Crypto Exec Wants IRS Summonses Quashed, Citing Privacy

    A cryptocurrency executive charged in a 2020 bitcoin fraud investigation was never notified about Internal Revenue Service summonses later sent to two banks that sought his and his company's financial records, he told a Texas federal court, arguing that the summonses should be quashed.

  • February 13, 2024

    Catching Up With Delaware's Chancery Court

    A pizza chain, an energy company, a medical-device maker and a Manila casino were all hit with book-and-record demands last week in Delaware's Court of Chancery. A shoe company also walked away from a shareholder suit, two cryptocurrency companies tallied the costs of a broken merger, and three cigarette giants argued over Florida settlement payments.

  • February 13, 2024

    Fintech Group Of The Year: Sullivan & Cromwell

    Sullivan & Cromwell LLP's fintech group led some of 2023's most headline-grabbing crypto cases, from steering the bankruptcy of FTX to defending Coinbase in a landmark securities registration suit, earning the firm a spot among Law360's 2023 Fintech Groups of the Year.

  • February 12, 2024

    'Pig Butchering' Scheme Took Down Small Bank, Fed IG Says

    The July collapse of a Kansas community bank appears tied to a type of crypto scam known as pig butchering, enabled by a failure of internal controls that allowed its former CEO to allegedly siphon off enough money to force the bank's closure, according to a new report by a bank regulatory watchdog.

  • February 12, 2024

    Bank Trade Chief Warns Of Rules 'Masquerading As Guidance'

    The American Bankers Association's chief executive fired off a warning shot at federal regulators on Monday over their use of agency guidance, cautioning that several recent documents addressing certain bank fees and other practices are no substitute for formal rulemaking.

  • February 12, 2024

    TradeStation Fined By FINRA For Supervisory Failures

    Broker-dealer TradeStation Securities agreed to pay $700,000 to the Financial Industry Regulatory Authority to settle claims that it failed to properly use anti-money laundering programs to alert the firm of suspicious trading by its customers, and that it did not implement proper procedures for the sales of certain securities.

  • February 12, 2024

    Crypto Pastor Enlisted Family For Scam, Colo. Officials Say

    A pastor accused of running a fraudulent cryptocurrency scheme targeting Christians also recruited his father, in-laws and other church leaders to sell the worthless coin in exchange for commissions of up to $32,500, Colorado's securities commissioner said Monday.

  • February 12, 2024

    FTX Says User Agreements Don't Sink $157M Clawback

    A lawsuit to recoup cryptocurrency withdrawn from defunct trading platform FTX Trading Ltd. in the run-up to its Chapter 11 bankruptcy shouldn't be tossed, FTX told a Delaware bankruptcy court, saying the court can't determine who owned the $157.3 million of digital assets held in customer accounts at the motion to dismiss stage.

  • February 12, 2024

    ByteDance Can't Pause TikTok's EU 'Gatekeeper' Designation

    A European court has rejected a bid by TikTok's parent company ByteDance to pause the video-sharing service's designation as a "gatekeeper" ahead of a March deadline to comply with new obligations under the Digital Markets Act to provide users more choice.

  • February 12, 2024

    Cannabis Fintech Withheld $500K In $7.5M Deal, Suit Says

    A Washington state-based fintech firm that provides payment solutions to cannabis retailers failed to pay the final $500,000 in a $7.5 million deal to buy a rival company, according to a breach-of-contract suit filed in Seattle federal court.

  • February 12, 2024

    Financial Services Co. Underpaid Women Execs, Ex-VP Says

    Trustly Inc. vastly underpaid female executives compared to their male colleagues in keeping with a misogynistic "tech-bro culture," according to a former vice president who claimed in a complaint filed in New Jersey federal court that she was discharged for raising concerns about the pay disparity.

  • February 12, 2024

    Frank Execs Say JPMorgan Is Withholding Communications

    Charlie Javice and Olivier Amar, the indicted former executives of student loan startup Frank, asked a Manhattan federal judge Saturday for an extension of time to decide on raising an advice-of-counsel defense at their trial, saying they can't make a decision yet because JPMorgan is withholding discovery of their communications with Frank's general counsel.

  • February 12, 2024

    Online Marketplace Wish Sold At Steep Discount To $1.1B IPO

    ContextLogic Inc. announced Monday that it would sell off its operating assets and liabilities, including the e-commerce platform Wish, to Qoo10 for $173 million, in a deal that represents a significant drop-off from Wish's $1.1 billion initial public offering in 2020 and that was driven by respective legal advisers Sidley Austin LLP and Shearman & Sterling LLP.

  • February 12, 2024

    Genesis Hit With Objections To $1.6B In Grayscale Trust Sales

    Cryptocurrency lender Genesis Global is facing opposition to its effort to sell about $1.6 billion worth of shares in Grayscale Investments trusts to raise money for its Chapter 11 estate, with Grayscale and Genesis' parent company lodging objections to the proposed transactions in New York bankruptcy court.

Expert Analysis

  • Perspectives

    6 Practice Pointers For Pro Bono Immigration Practice

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    An attorney taking on their first pro bono immigration matter may find the law and procedures beguiling, but understanding key deadlines, the significance of individual immigration judges' rules and specialized aspects of the practice can help avoid common missteps, says Steven Malm at Haynes Boone.

  • Series

    ESG Around The World: Canada

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    In Canada, multiple statutes, regulations, common law and industry guidance address environmental, social and governance considerations, with debate over ESG in the business realm potentially growing on the horizon, say attorneys at Blakes.

  • Lessons From Country Singer's Personal Service Saga

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    Recent reports that country singer Luke Combs won a judgment against a Florida woman who didn’t receive notice of the counterfeit suit against her should serve as a reminder for attorneys on best practices for effectuating service by electronic means, say attorneys at Jenner & Block.

  • New Tech, Old Tricks: How GCs Can Fight White Collar Crime

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    As emerging technologies like artificial intelligence and cryptocurrency provide bad actors with new avenues to commit classic crimes, general counsel should develop a strategy to future-proof their organizations against such threats and prepare for regulatory scrutiny, say directors at FTI Consulting.

  • Series

    Baking Bread Makes Me A Better Lawyer

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    After many years practicing law, and a few years baking bread, I have learned that there are a few keys to success in both endeavors, including the assembly of a nourishing and resilient culture, and the ability to learn from failure and exercise patience, says Rick Robinson at Reed Smith.

  • Federal Courts And AI Standing Orders: Safety Or Overkill?

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    Several district court judges have issued standing orders regulating the use of artificial intelligence in their courts, but courts should consider following ordinary notice and comment procedures before implementing sweeping mandates that could be unnecessarily burdensome and counterproductive, say attorneys at Curtis.

  • Series

    NY Banking Brief: All The Notable Legal Updates In Q4

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    New York's banking and financial sector saw a number of notable regulatory and legislative changes in the final quarter of 2023, including guidance on climate risks and heightened cybersecurity protocols issued by the New York State Department of Financial Services, as well as final revisions to virtual currency listings in the state, say attorneys at WilmerHale.

  • Why CFTC Whistleblowers Are Crucial To Crypto Regulation

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    The U.S. Commodity Futures Trading Commission's whistleblower program has proven to be a key tool in the U.S.' efforts to police cryptocurrency, but a funding issue shows that it has become a victim of its own success, says Stephen Kohn at Kohn Kohn.

  • 7 E-Discovery Predictions For 2024 And Beyond

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    The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.

  • Securities Class Actions Show No Signs of Slowing In 2024

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    Plaintiffs asserted securities class actions at elevated levels in 2023 — a sign that filings will remain high in the year ahead — as they switched gears to target companies that allegedly have failed to anticipate supply chain disruptions, persistent inflation, rising interest rates and other macroeconomic headwinds, say attorneys at Skadden.

  • How Corp. Transparency Act Can Unmask Crypto Owners

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    With the federal Corporate Transparency Act in effect as of Jan. 1, litigants may now have a less burdensome path toward determining the identities of owners behind convoluted corporate entities, and, by extension, any digital assets they own that could be subject to a potential judgment, says Brett Sager at Ehrenstein Sager.

  • Major EU AI Banking Ruling Will Reverberate Across Sectors

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    Following the European Court of Justice's recent OQ v. Land Hessen decision that banks' use of AI-driven credit scores to make consumer decisions did not comply with the General Data Protection Regulation, regulators indicated that the ruling would apply broadly, leaving numerous industries that employ AI-powered decisions open to scrutiny, say lawyers at Alston & Bird.

  • CFPB As Pay App Watchdog May Invite More Fintech Regs

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    While the Consumer Financial Protection Bureau's recent proposal to enhance federal oversight of the biggest consumer payment applications would impose no new regulatory obligations, the rulemaking could provoke heightened scrutiny for all participants in the digital payments market, say attorneys at Steptoe.

  • 5 Litigation Funding Trends To Note In 2024

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    Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.

  • Bank-Fintech Partnerships Can Thrive Despite A Tough 2023

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    Many banking-as-a-service players experienced regulatory enforcement activities in 2023, including consent orders and more targeted, detailed guidance aimed at bank-fintech partnerships, and while it seems this trend will continue in 2024, savvy banks can use the turmoil of last year as a guide for how to better manage the risks inherent in partnerships, says Justin Steffen at Barack Ferrazzano.

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