Tezos Likely Avoiding SEC Action With $25M Class-Action Lawsuit Settlement

The Tezos (XTZ) class-action lawsuit from law firm Block & Leviton will likely conclude in a $25-million settlement on August 27. Tezos, like many initial coin offerings (ICO) from 2017, has come under scrutiny from both investors and regulators alike alleging that its token sale constituted an illegal offering of securities. Indeed, the U.S. Securities and Exchange Commission (SEC) has come down hard on numerous 2017-era ICOs demanding penalties for securities violation. Even distributions to non-U.S. citizens have also come under the SEC’s radar, as was the case with Telegram. The…

Telegram’s Courtroom Saga With the SEC Comes to a $1.2 Billion End

On June 26, Judge Kevin Castel signed the final judgment in the SEC v. Telegram case, which will require Telegram pay back $1.2 billion to investors in their ICO for the failed Telegram Open Network.  Cointelegraph reported on the final judgment proposed yesterday. What has changed is the approval of the court, putting an end to a legal drama that began with the SEC ordering a stop to Telegram’s impending distribution of GRAM tokens.  Per the SEC’s announcement on today’s approval: “New and innovative businesses are welcome to participate in…

SEC Charges Lobbying Kingpin Jack Abramoff With Fraud For Promotion of 2018 ICO

On June 25, the United States Securities and Exchange Commission charged the issuer of AML Bitcoin — not to be confused with Bitcoin itself — with conducting a fraudulent offering. These charges follow up on a criminal filing in San Francisco from June 22.  AML Bitcoin’s story Per the complaints, Rowland Marcus Andrade and his NAC Foundation raised upwards of $5.6 million in an initial coin offering (ICO) for AML Bitcoin beginning in August 2017 and continuing through 2018, amid the huge ICO boom of that time.  The criminal charges…

SEC Asks Court to Order Telegram to Pay $1.2B Back for $1.7B ICO

The United States’s Securities and Exchange Commission, or SEC, has filed a proposal for final court judgement in regard of the terminated Telegram Open Network project. In a document filed on June 25, the SEC has asked the New York Southern District Court to order million dollar penalties to multiple defendants related to the case. “Defendants are jointly and severally liable for disgorgement of $1,224,000,000,” the SEC wrote in the proposed judgement. As of press time, the judgement has been received by the court. Although the court has “reviewed and…

SEC Suit Over $30m Crypto Scam Halted Due to Criminal Proceedings

A judge has granted a motion from the U.S. attorney’s office to pause the SEC’s action against Edit Pardo and Boaz Manor for their involvement in the alleged $30 million crypto investment scam CG Blockchain. United States District Judge Stanley Chesler cited a parallel criminal investigation into Pardo and Manor in granting the motion to stay the Security and Exchange Commission’s action, reasoning that halting the suit until the conclusion of the criminal proceedings “would best serve the interests of justice”. “A stay would strike the proper balance between the…

U.S. SEC Chair Clayton Nominated to Oversee Crypto Regulatory-Heavy NY

United States Attorney General William Barr announced that President Trump will most likely task Jay Clayton as the legal enforcer for a chunk of New York — a state that has historically held a heavy-handed regulatory stance on crypto.  Barr said in a June 19 statement from the Department of Justice, or DoJ: “I am pleased to announce that President Trump intends to nominate Jay Clayton, currently the Chairman of the Securities and Exchange Commission, to serve as the next United States Attorney for the Southern District of New York.”…

SEC Halts Crypto Scam, Alleging Two Brothers Stole Millions From Investors

The United States Securities and Exchange Commission (SEC) has halted activity of another alleged cryptocurrency-related scam stealing millions of dollars from investors. According to a SEC’s announcement on June 19, the authority has been granted a temporary restraining order and asset freeze against two Pennsylvania-based brothers allegedly running three crypto scam schemes. According to the SEC, Sean Hvizdzak and Shane Hvizdzak lied about their crypto fund performance by fabricating financial statements, instead redirecting investor funds to their own accounts with banks as well as crypto exchanges. As ruled by the…

Online Fantasy Sports Company Recognizes Ransomware Attack in SEC Filing

Fantasy-sports company, DraftKing Inc, recently filed a Form S-1 registration statement with the U.S. Securities and Exchange Commission, or SEC. This form indicates that SBTech, a company DraftKing Inc acquired, was hit by a ransomware attack in March. According to the registration form, which is required by the SEC before companies may go public on Nasdaq, SBTech, an online gambling technology provider which merged with DraftKing, suffered the cyber attack before the merger finalized on March 27. The SEC’s filing stated: “On March 27, 2020, SBTech detected a ransomware attack…

Wilshire Phoenix Files With SEC for Publicly Traded Bitcoin-Backed Fund

Alternative investment firm Wilshire Phoenix has filed an S-1 registration statement with the U.S. Securities and Exchange Commission, or SEC, for a publicly traded Bitcoin Fund in line with regulation. The registration reads: “The Shares will provide investors with exposure to bitcoin in a manner that is accessible and cost-efficient without the uncertain and often complex requirements relating to acquiring or holding bitcoin.” Wilshire’s new Bitcoin Commodity Trust aims to have its shares available for public trading on OTC Markets Group, Inc.’s OTCQX Best Marketplace. Once issued, shares of the…

SEC Launches Virtual Meetups for Fintech Industry Players

FinHub, a fintech arm of the U.S. Securities and Exchange Commission (SEC) will now host digital meetings for industry players amid COVID-19 lockdowns. “To facilitate ongoing communications, FinHub will host a series of thematically-based virtual P2P meet-ups over the next few months,” the commission said in a June 11 statement, adding: “During each series, FinHub staff will meet virtually with innovators, entrepreneurs, or firms that wish to discuss issues related to that series’ theme.”  FinHub began as a way of guiding innovation FinHub started up in late 2018 as a…