Fintech

  • January 31, 2024

    NFT Co. NBA Top Shot Wants To Block User's Privacy Suit

    The issuer and licensors behind non-fungible token marketplace NBA Top Shot told a California judge to toss a proposed class action over the platform's use of a tracker that passed user data to Meta Platforms Inc. since users agreed to certain information sharing when they logged onto the site and transactions on the platform are meant to be public.

  • January 31, 2024

    US Bid To Seize Assets In BlockFi Case Hits Another Snag

    A New Jersey bankruptcy judge dealt another blow to the Justice Department's efforts to seize assets stemming from criminal conduct related to the BlockFi bankruptcy, saying the U.S. government cannot pause an adversary case through criminal forfeiture.

  • January 31, 2024

    FTX Intends To Pay Customers In Full Under New Ch. 11 Plan

    Attorneys for bankrupt cryptocurrency exchange FTX Trading Ltd. told a Delaware judge on Wednesday that it intends to file a new Chapter 11 plan that projects payment in full for all customers and general unsecured creditors.

  • January 31, 2024

    FTX Can Estimate Digital Claims In US Dollars, Judge Says

    Bankrupt cryptocurrency exchange FTX Trading Ltd. can estimate the value of digital asset claims of customers in U.S. dollars after a Delaware judge said Wednesday that conducting individual valuations of each claim would be costly and time-consuming.

  • January 31, 2024

    Terraform Says Impending SEC Fine Proves It's In Distress

    Cryptocurrency company Terraform Labs told a Delaware bankruptcy judge on Wednesday the mere fact it could face a ruinous U.S. Securities and Exchange Commission fine in the future justifies Chapter 11 protection today, arguing a recent judgment in favor of the regulatory agency attests to its financial distress.

  • January 31, 2024

    SVB Cayman Unit Seeks FDIC Probe On Customer Deposits

    Liquidators of the Cayman Islands branch of defunct Silicon Valley Bank and U.S. bank regulators faced harsh questions on Wednesday from a New York bankruptcy judge as the liquidators sought the ability to conduct discovery regarding the fate of $477 million in deposits.

  • January 31, 2024

    JPMorgan Directors Seek Toss Of Zelle Fraud Suit In Del.

    A shareholder lawsuit accusing JPMorgan Chase & Co. of ignoring fraud complaints about peer-to-peer banking platform Zelle cites only a few news articles and a congressional hearing as "red flags" that directors allegedly missed, falling "well short" of a valid claim, the directors' attorney told Delaware's Court of Chancery Wednesday.

  • January 30, 2024

    US Trustee Opposes 'Backdoor' Releases In Genesis Ch. 11

    The U.S. Trustee's Office is challenging cryptocurrency company Genesis Global's Chapter 11 plan, arguing it would improperly pay certain legal fees without court approval, include overbroad releases and allow for an "impermissible backdoor third-party release."

  • January 30, 2024

    SEC Tells 9th Circ. Crypto Law Firm Has No Claim To Bring

    The U.S. Securities and Exchange Commission told the Ninth Circuit on Monday that cryptocurrency-using law firm Hodl Law PLLC can't challenge the agency's digital asset enforcement policy because the firm's concerns about future harms are all hypothetical.

  • January 30, 2024

    Terraform Will Use Ch. 11 To Craft Appeal Of SEC Crypto Case

    An executive for crypto company Terraform Labs told the Delaware bankruptcy court Tuesday it has sought Chapter 11 protection mainly to delay a potentially existential U.S. Securities and Exchange Commission penalty tied to the implosion of its algorithmic stablecoin, the collapse of which in 2022 provoked a widespread crash in cryptocurrency markets.

  • January 30, 2024

    SEC To Drop Debt Box Suit For Now, Amid Sanctions Threat

    The U.S. Securities and Exchange Commission on Tuesday said it plans to drop its case against crypto project Debt Box while it conducts a review of alleged misrepresentations the agency's Utah-based attorneys made to the court, according to its latest response to potential sanctions over the matter.

  • January 30, 2024

    NY Sues Citi Over Fraud Protection, Reimbursement Practices

    New York's attorney general on Tuesday sued Citibank NA in federal court over claims that the banking giant lacks sufficiently strong online security measures to protect customers against scammers and has unlawfully refused to reimburse them for fraud losses.

  • January 29, 2024

    Justices Urged To OK 9th Circ.'s Coinbase Arbitration Ruling

    The American Association for Justice, legal scholars and a consumer advocacy organization threw their weight behind a proposed class of Coinbase users Monday in their fight at the U.S. Supreme Court to keep their dispute alleging the cryptocurrency exchange platform misled them about a Dogecoin sweepstakes out of arbitration.

  • January 29, 2024

    Cash App Fights Proposed Class Action Over Text Referrals

    Block Inc., which operates mobile payment service Cash App, has asked a Seattle federal judge to toss a consumer's proposed class action alleging that the company's referral texts constitute "annoying and harassing spam texts."

  • January 29, 2024

    Accused Crypto Pastor 'Preyed' On His Flock, Judge Says

    A Colorado state judge Monday extended an asset freeze against a social media pastor who appeared to confess online to an alleged scheme to defraud congregants with worthless cryptocurrency, with the judge calling it a "case of unmitigated greed."

  • January 29, 2024

    Feds Charge 3 In $1.9B HyperFund Crypto Pyramid Scheme

    The individuals behind cryptocurrency project HyperFund are facing federal charges and a U.S. Securities and Exchange Commission action over their roles in what prosecutors say was a crypto Ponzi scheme that defrauded investors out of nearly $1.9 billion.

  • January 29, 2024

    Del. Justices Reverse Toss Of Cantor Fitzgerald No-Compete

    In a ruling affirming Delaware's corporate law deference to valid partnership contracts, the state's Supreme Court on Monday reversed a Chancery Court decision that last year invalidated "forfeiture for competition" terms in Cantor Fitzgerald LP's limited partnership agreements, unwinding a win worth $12.5 million.

  • January 29, 2024

    CFTC Chair Says Bitcoin ETFs Make Crypto Oversight 'Critical'

    U.S. Commodity Futures Trading Commission Chair Rostin Behnam said the need for federal legislation governing crypto assets "has never been more critical" now that spot bitcoin exchange-traded funds are on the market, since participants may confuse the approval of products holding crypto as regulatory oversight of their underlying asset.

  • January 29, 2024

    FTX Strikes $16M Deal To End Donations Clawback Suit

    FTX has asked Delaware's bankruptcy court to approve a $16 million settlement scrapping an adversary action the cryptocurrency exchange operator leveled to recover millions of dollars in customer and company funds that were transferred as philanthropic gifts to entities tied to founder Sam Bankman-Fried.

  • January 29, 2024

    OCC's Hsu Floats 'Chalk Lines' For Bank Merger Approvals

    The Office of the Comptroller of the Currency's acting chief on Monday unveiled a proposal to provide banks with a sketch of what the agency thinks a winning merger applicant does and doesn't look like, pitching the plans as a boon to bank merger review transparency while stirring industry doubts.

  • January 29, 2024

    Catching Up With Delaware's Chancery Court

    A transportation services company and cryptocurrency fund both exited litigation, a grill maker and EV-charging company fired up new cases, and biotechs bandaged old wounds while judges fast-tracked a musical power struggle and unwound a REIT deal. All told, a typical week for Delaware's court of equity.

  • January 26, 2024

    FDIC Must Clean House Amid Deep 'Rot,' GOP Sen. Says

    The Federal Deposit Insurance Corp. is facing fresh Republican scrutiny of its workplace policies following an agency attorney's guilty plea to child sexual exploitation charges, a case that U.S. Sen. Joni Ernst of Iowa slammed Friday as epitomizing deep "rot" inside the agency that must be rooted out.

  • January 26, 2024

    SEC's Plan To Expand Dealer Definition Set For Critical Vote

    The U.S. Securities and Exchange Commission could soon adopt a rule to bring proprietary trading firms under the agency's purview as registered dealers in an effort to enhance transparency in stock and bond trading, but hedge fund managers and cryptocurrency traders will be waiting to see if they get swept up in the requirements, too.

  • January 26, 2024

    JPMorgan, Zelle Parent Co. Can Arbitrate Customer Fraud Suit

    JPMorgan Chase Bank NA and Early Warning Services LLC, Zelle's parent company, will see account holder fraud allegations sent to arbitration after they argued the customers who brought a proposed class action had agreed to arbitration "multiple times," a Manhattan federal judge determined.

  • January 26, 2024

    UK Fintech Says Georgia Accountant Misvalued Share Price

    U.K.-based fintech Genesis Global Technology told a Georgia federal court that a stateside accounting firm's miscalculation of its common share price left the business open to liabilities and penalties, forcing it to spend time and money to redress the issues.

Expert Analysis

  • Series

    The Pop Culture Docket: Judge D'Emic On Moby Grape

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    The 1968 Moby Grape song "Murder in My Heart for the Judge" tells the tale of a fictional defendant treated with scorn by the judge, illustrating how much the legal system has evolved in the past 50 years, largely due to problem-solving courts and the principles of procedural justice, says Kings County Supreme Court Administrative Judge Matthew D'Emic.

  • What Banks Should Know About FDIC Assessment Rule

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    Max Bonici at Venable answers questions banking organizations may have about the Federal Deposit Insurance Corp.'s recent approval of a rule implementing a special assessment on banks to recoup costs associated with protecting uninsured depositors after the bank failures earlier this year, and highlights other considerations for uninsured deposits.

  • Series

    Performing Music Makes Me A Better Lawyer

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    The discipline of performing live music has directly and positively influenced my effectiveness as a litigator — serving as a reminder that practice, intuition and team building are all important elements of a successful law practice, says Jeff Wakolbinger at Bryan Cave.

  • Expect CFPB Flex Over Large Nonbank Payment Cos.

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    A recent enforcement action and a new rule proposal from the Consumer Financial Protection Bureau indicate a growing focus on the nonbank payment ecosystem, especially larger participants, in 2024, say Felix Shipkevich and Jessica Livingston at Shipkevich.

  • Breaking Down High Court's New Code Of Conduct

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    The U.S. Supreme Court recently adopted its first-ever code of conduct, and counsel will need to work closely with clients in navigating its provisions, from gift-giving to recusal bids, say Phillip Gordon and Mateo Forero at Holtzman Vogel.

  • High Court's Chevron Review May Be A Crypto Game-Changer

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    The outcome of the U.S. Supreme Court's review of the Chevron doctrine in its pending Loper v. Raimondo case will potentially usher in a paradigm shift in cryptocurrency regulation, challenging agency authority and raising hopes for a recalibrated approach that favors judicial interpretation, says Sylvia Favretto at Mysten Labs.

  • Opinion

    Legal Profession Gender Parity Requires Equal Parental Leave

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    To truly foster equity in the legal profession and to promote attorney retention, workplaces need to better support all parents, regardless of gender — starting by offering equal and robust parental leave to both birthing and non-birthing parents, says Ali Spindler at Irwin Fritchie.

  • 'Paper Tiger' Finds Its Fangs: Repeat Offenders And The CFPB

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    Following the Consumer Financial Protection Bureau’s recent imposition of structural remedies on Enova for repeat offenses, financial institutions, especially those that have previously been subject to consent orders, need to carefully consider their options when facing future enforcement proceedings with the CFPB, says Caitlin Mandel at Winston & Strawn.

  • How FinCEN's Proposed Rule Stirs The Pot On Crypto Mixing

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    The Financial Crimes Enforcement Network’s recently issued proposal aims to impose additional reporting requirements to mitigate the risks posed by convertible virtual currency mixing transactions, meaning financial institutions may need new monitoring techniques to detect CVC mixing beyond just exposure, say Jared Johnson and Jordan Yeagley at Buchanan Ingersoll.

  • Series

    Writing Thriller Novels Makes Me A Better Lawyer

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    Authoring several thriller novels has enriched my work by providing a fresh perspective on my privacy practice, expanding my knowledge, and keeping me alert to the next wave of issues in an increasingly complex space — a reminder to all lawyers that extracurricular activities can help sharpen professional instincts, says Reece Hirsch at Morgan Lewis.

  • What Lawyers Must Know About Calif. State Bar's AI Guidance

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    Initial recommendations from the State Bar of California regarding use of generative artificial intelligence by lawyers have the potential to become a useful set of guidelines in the industry, covering confidentiality, supervision and training, communications, discrimination and more, say attorneys at Debevoise.

  • Industry Must Elevate Native American Women Attys' Stories

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    The American Bar Association's recent research study into Native American women attorneys' experiences in the legal industry reveals the glacial pace of progress, and should inform efforts to amplify Native voices in the field, says Mary Smith, president of the ABA.

  • A Breakdown Of The OCC's New Venture Lending Pointers

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    In light of the Office of the Comptroller of the Currency's recent bulletin outlining venture lending risks for banks, Matt Schwartz and Jeffrey Hare at DLA Piper highlight key considerations for both lenders and venture-backed companies seeking or maintaining loans from OCC-regulated national banks and federal thrifts.

  • Crypto, Audit Cases Dominate SEC's Enforcement Focus In '23

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    Attorneys at Covington examine the U.S. Securities and Exchange Commission's fiscal year 2023 enforcement results, which marked the SEC's third consecutive year of increasing enforcement activity since Chair Gary Gensler took over in 2021 — this time driven by a focus on combating cryptocurrency-related scams and enforcing recordkeeping compliance.

  • New York Cybersecurity Amendments Raise Regulatory Bar

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    Financial service providers both in and outside New York should study recent changes to the state financial regulator's cybersecurity requirements, which add governance controls, technical safeguards and incident response protocols to improve what is already becoming the national benchmark for robust cybersecurity compliance programs, say attorneys at Baker McKenzie.

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