Archive

SEC and CFTC Cryptocurrency Regulation Chronology and Outlook for the Rest of 2018

The over 80 subpoenas recently issued to companies in the cryptocurrency sector have provided a logical corollary to the agency’s many warnings about ICOs potential violations of security laws. The time for warnings is over. Now, the SEC’s intentions have evolved into enforcement actions, forever changing the scenario…
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SEC Court Order Follows Jay-Z Refusal to Cooperate

Hip-hop star Shawn Carter, aka Jay-Z, has just received a subpoena to appear in court after he failed to testify in connection with the SEC’s probe into Iconix Brand Group’s accounting practices. Iconix acquired intangible assets from Jay-Z’s clothing brand Rocawear in 2007, which boasted $700 million in…
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“CRAEFUL!” The Do’s & Don’ts of Cryptocurrency and ICO Investing

Recently, British comedian John Oliver dedicated his weekly show to cryptocurrency. Drawing from a seemingly endless supply of ICO Ponzi schemes, pump-and-dumps, and grandiose cryptocurrency speakers, the program emphasized the hitherto lax regulations that have enabled fraudulent schemes to flourish. Oliver coined the hashtag #CraefulGang, a play on…
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FINRA Imposes $550,000 Fines on Aegis Capital Over Anti-Money Laundering Violations

FINRA has fined Aegis Capital Corp. $550,000 for failing to implement required anti-money laundering (AML) and supervisory programs designed to prevent fraudulent activity. The violations specifically affected low-priced securities transactions involving DVP (delivery versus payment) accounts. According to the outcome of FINRA’s investigation, the supervisory system Aegis used…
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FINRA Fines Wedbush Securities $1.5 Million Over Violations Related to Customer Reserves and Net Capital Requirements

FINRA recently announced monetary sanctions against Wedbush Securities in the amount of. $1.5 million for SEC rule violations and associated compliance failures. According to FINRA, Wedbush violated the SEC Customer Protection Rule, which requires broker-dealers to maintain a certain degree of physical possession and control over customer securities….
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New Arrest in SEC Case Against Celebrity-backed ICO Centra Tech

Celebrity endorsements add an element of trust for investors who are just entering the ICO market. But the strategy did not turn out well for Centra Tech, as a third arrest has just been made in connection with the SEC’s allegations that the company defrauded investors out of…
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