Fintech

  • 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    A lawsuit to recoup cryptocurrency withdrawn from defunct trading platform FTX Trading Ltd.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.

  • February 12, 2024

    Fintech Group Of The Year: Skadden

    Within one month, the fintech practice group at Skadden Arps Slate Meagher & Flom LLP secured the dismissal of class actions against Coinbase — one of the largest U.S. digital asset platforms — and MakerDAO, a leading decentralized finance system, earning it a spot as one of Law360's 2023 Fintech Groups of the Year.

  • February 09, 2024

    Merrill Customer Sues Over Lax WhatsApp Supervision

    A Merrill customer has filed suit against two of the broker-dealer's branch managers for allegedly failing to supervise advisers who used WhatsApp to communicate about risky options strategies that ultimately wiped out his account.

  • February 09, 2024

    SafeMoon CEO Finally Gets Bail In $300M Crypto Fraud Case

    A New York federal judge on Friday agreed to let the CEO of bankrupt cryptocurrency asset company SafeMoon out on bail, after a monthslong, multijurisdictional tug of war over fears he would flee rather than face trial over accusations that he bilked investors out of $300 million.

  • February 09, 2024

    New SEC Dealer Rule Leaves Crypto Pros Feeling In The Dark

    A newly finalized rule from the U.S. Securities and Exchange Commission requiring certain traders to register with the agency as dealers will set near-unworkable compliance hurdles for some crypto firms — chief among them determining who will have to register, attorneys say.

  • February 09, 2024

    Robinhood Inks $9M Deal To End Promotional Text Suit

    Stock-trading app Robinhood has agreed to pay $9 million to resolve proposed class claims that its "Refer a Friend" program caused non-users to receive unsolicited promotional texts, in violation of Washington state law, consumers told a Seattle federal judge Thursday.

  • February 09, 2024

    Fed. Circ. Affirms Alice Rejection Of Financial Trading Patent

    The Federal Circuit has backed the U.S. Patent and Trademark Office's decision to reject an application for a patent on electronic trading of financial instruments, affirming a finding that the patent didn't actually cover something patentable.

  • February 09, 2024

    SEC's 'Orwellian' Trade Database Is Unlawful, 11th Circ. Told

    Citadel Securities LLC and the American Securities Association have laid out their objections to a U.S. Securities and Exchange Commission directive that requires brokerage firms to fund the buildup of a database known as the consolidated audit trail, telling the Eleventh Circuit that the tool created an "Orwellian surveillance regime" that puts American investors at risk of being hacked.

  • February 09, 2024

    SEC To Collect $81M In Fines In Latest Texting Probe Cases

    The U.S. Securities and Exchange Commission announced Friday that it has secured agreements to pay more than $81 million in fines from 16 firms over their employees' use of personal messaging apps to do business, though the agency added that one set of firms ended up paying much less for having self-reported the violations.

  • February 09, 2024

    Fintech Group Of The Year: Morrison Foerster

    Morrison Foerster LLP's fintech team counseled technology startups as well as financial agencies on handling cyberattacks, strategic partnerships and acquisitions, guiding a client's $220 million digital asset recovery effort and advising Experian on the launch of a full-service digital banking platform, earning the firm a spot among Law360's 2023 Fintech Groups of the Year.

  • February 09, 2024

    Off The Bench: NCAA NIL Rule Lives; Dartmouth Players Win

    In this week's Off The Bench, a Tennessee judge sends mixed signals to the NCAA in the fight over its NIL recruiting ban, Dartmouth's basketball players tally a win for college athletes' unionization efforts, and DraftKings tries to stop rival Fanatics from benefiting from a former executive who switched sides. If you were on the sidelines over the past week, Law360 is here to clue you in on the biggest sports and betting stories that had our readers talking.

  • February 09, 2024

    NY AG Seeks $2B More From Genesis Parent Co. In Fraud Suit

    New York's attorney general filed an expanded complaint Friday accusing Digital Currency Group and other cryptocurrency companies of defrauding customers out of more than $3 billion, shortly after reaching a settlement with its subsidiary Genesis Global Capital in its bankruptcy case.

  • February 08, 2024

    Lawmakers Slam SEC Over Misstatements In Debt Box Case

    A group of Republican U.S. senators told the U.S. Securities and Exchange Commission that its alleged misrepresentations in its enforcement case against a Utah crypto project may call its other crypto lawsuits into question.

  • February 08, 2024

    Fed, OCC Urged To Create 'Unaffiliated' Director Rule For Banks

    The Federal Reserve Board and Office of the Comptroller of the Currency were petitioned Thursday to issue new rules mandating that large banks appoint at least some outside, independent directors to their boards as a safeguard against conflicted decision-making within big corporate families.

  • February 08, 2024

    SEC, CFTC Jointly Demand More Hedge-Fund Disclosures

    The U.S. Securities and Exchange Commission and U.S. Commodity Futures Trading Commission jointly passed rules Thursday requiring additional disclosures from hedge funds and other private fund advisers, aimed at improving market stability and transparency, despite dissent from Republican commissioners of both agencies who say the requirements are overreaching.

  • February 08, 2024

    Consumers Seek Final OK Of $6.8M FCRA Settlement

    A class of consumers have asked a Connecticut federal court to give final approval to a $6.8 million deal ending a suit alleging mortgage credit reporting companies Xactus LLC and Avantus LLC harmed them by preparing consumer reports that misidentified them as "terrorists, drug traffickers, arms dealers and other enemies of the United States."

  • February 08, 2024

    Gemini's $800M Claim On Genesis Isn't Secured, Judge Says

    A New York bankruptcy judge rejected cryptocurrency exchange Gemini's argument that it has a secured claim on more than $800 million in Genesis Global Capital assets, ruling that because Genesis never transferred the assets, they cannot count as collateral pledged by the debtor.

Expert Analysis

  • Bank-Fintech Partnerships Can Thrive Despite A Tough 2023

    Author Photo

    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.

  • A Look At Consumer Reporting In 2023, And What's To Come

    Author Photo

    The legal landscape of consumer reporting is evolving as courts, federal regulators and state legislatures continue to weigh in — and while last year may have seen a slight downtick in the overall volume of Fair Credit Reporting Act litigation, 2024 is set to be a watershed year for this area of the law, say attorneys at Troutman Pepper.

  • Anti-Money Laundering Compliance Must Put Officers On Alert

    Author Photo

    Recent government actions against FTX and other crypto companies have put a laser focus on corporate compliance failures, with added pressure on compliance officers — making the need for personal risk assessment particularly acute given today's novel anti-money laundering issues, say Poppy Alexander at Constantine Cannon and Caleb Hayes-Deats at MoloLamken.

  • Cannabis Banking Bill Uncertainty May Actually Be A Blessing

    Author Photo

    The passage of a cannabis banking law is alluring, but little will be lost if the Secure and Fair Enforcement Regulation Banking Act — facing stiff competition from other congressional priorities — gets tabled because the bill ultimately does little to meaningfully propel the industry toward full legalization, says Michael Rosenblum at Thompson Coburn.

  • Series

    ESG Around The World: South Africa

    Author Photo

    While South Africa has yet to mandate the reporting of nonfinancial and environmental, social, and corporate governance issues, policy documents and recent legislative developments are likely to have a material impact in the country's transition to a low-carbon economy and in meeting its international obligations, say Glynn Kent at Eversheds Sutherland.

  • Calif. Banking Brief: All The Notable Legal Updates In Q4

    Author Photo

    As 2023 came to an end, we continued to see developments in California that are certain to have an impact on the financial services industry in 2024, including the California Department of Financial Protection and Innovation's request for comments on the state's new digital asset law and the state's continued enforcement actions against debt collectors, say Jennifer Olivestone and Juan Azel at Winston & Strawn.

  • 4 Legal Ethics Considerations For The New Year

    Author Photo

    As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.

  • Series

    In The CFPB Playbook: Rulemaking Rush Before Election Year

    Author Photo

    In this quarterly Consumer Financial Protection Bureau activity recap by former bureau personnel, attorneys at McGuireWoods explain the regulator's recent push to finalize new rules about data aggregators, digital payment apps and more before the election-year Congressional Review Act window opens.

  • Securities Question Stands After Contradicting Crypto Rulings

    Author Photo

    The debate about the regulation of crypto-assets came to a head in 2023 when two New York federal judges came to opposite conclusions about whether crypto-assets were securities by using the Howey test, highlighting the uncertainty facing the crypto industry as it seeks to resolve definitional questions, say attorneys at Ballard Spahr.

  • What The Law Firm Of The Future Will Look Like

    Author Photo

    As the legal landscape shifts, it’s become increasingly clear that the BigLaw business model must adapt in four key ways to remain viable, from fostering workplace flexibility to embracing technology, say Kevin Henderson and Eric Pacifici at SMB Law Group.

  • 4 PR Pointers When Your Case Is In The News

    Author Photo

    Media coverage of new lawsuits exploded last year, demonstrating why defense attorneys should devise a public relations plan that complements their legal strategy, incorporating several objectives to balance ethical obligations and advocacy, say Nathan Burchfiel at Pinkston and Ryan June at Castañeda + Heidelman.

  • Compliance Risk After SEC Warning Against 'AI Washing'

    Author Photo

    The U.S. Securities and Exchange Commission has begun looking into the way public companies disclose how they use artificial intelligence to investors and it is likely to become an enforcement priority, meaning companies and their compliance programs should take steps now to avoid regulatory sanctions and shareholder lawsuits, say attorneys at Bracewell.

  • Texas Banking Brief: All The Notable Legal Updates In Q4

    Author Photo

    Among the most noteworthy developments in the Texas banking sphere in the last quarter of 2023 were the Texas Department of Banking's extension of the state banking commissioner's authority, a recommendation to implement an updated ransomware self-assessment tool, and ongoing litigation in the state involving the Consumer Financial Protection Bureau, says Patrick Hanchey at Alston & Bird.

  • SDNY Ruling Highlights Fed's Broad Master Account Power

    Author Photo

    In denying a Puerto Rican bank’s recent motion for injunction against the New York Fed, a New York federal court went beyond the specifics of the case in holding that financial institutions have no statutory right to a master account with a Federal Reserve bank, emphasizing the Fed’s unilateral discretion in these matters, say attorneys at Ballard Spahr.

  • Cybersecurity Issues For Financial Industry To Track In 2024

    Author Photo

    In 2024 financial institutions will confront new federal, state and industry regulations around cybersecurity that require additional procedures, enhanced proactive security measures, and timely disclosure of security incidents, say Alex Koskey and Matt White at Baker Donelson.

Want to publish in Law360?


Submit an idea

Have a news tip?


Contact us here
Can't find the article you're looking for? Click here to search the Fintech archive.
Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!