Category Archives: Cryptocurrency

Key Takeaways:

• The U.S. Securities and Exchange Commission (“SEC”) and U.S. Department of Justice (“DOJ”) have brought the first-ever insider trading actions involving cryptocurrency against a former manager of Coinbase, one of the largest U.S. crypto asset trading platforms, and two tippees for sharing or trading upon confidential information relating to the planned listing of various cryptocurrencies on Coinbase.
• The SEC’s securities fraud charges are based on its longstanding position that certain cryptocurrencies are investment contracts and therefore “securities” subject to the SEC’s jurisdiction.…

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The U.S Department of the Treasury’s Office of Foreign Assets Control (OFAC) has published guidance to aid members of the virtual currency industry (ranging from tech companies to brokers to users) in complying with OFAC requirements. OFAC defines “virtual currency” to encompass non-sovereign, non-fiat currencies that can be used as a store of value or as a medium of exchange—a category inclusive of most cryptocurrencies, including common tokens such as Bitcoin or Ether.… More

Editors’ Note:  This is the fifth in our third annual series examining important trends in data privacy and cybersecurity during the new year.  Our previous entries were on emerging threats, state law trends, comparing the GDPR with COPPA, and energy and security.  Up next:  political advertising.

In our 2018 SEC year in preview post,… More

In late September and early October, the Senate Commerce Committee held a pair of hearings with tech companies and consumer advocates to explore the possibility of federal data-privacy legislation.  The Committee invited representatives from tech giants such as Google, Amazon, and Twitter to testify in September, then in October invited Dr. Andrea Jelinek, Chair of the European Data Protection Board;… More

We posted earlier this year about increased scrutiny of cryptocurrency advertising, especially the promotion of Initial Coin Offerings, or ICOs.  The key takeaway from that post was that the frenzy around cryptocurrencies – including as an investment opportunity for individuals who aren’t otherwise active investors – has led to a number of efforts to curtail cryptocurrency promotion, from both regulators and industry stakeholders.… More

Co-hosted by Foley Hoag LLP and ACC-Northeast

The emergence of blockchain technology, and its use to create digital tokens and currencies, raises numerous legal questions and challenges, across a wide variety of industries.

This webinar is a chance for in-house counsel to learn what blockchain technology is, the relevant legal and regulatory considerations surrounding blockchain technology and cryptocurrency, how to navigate the various areas affecting digital tokens and currency,… More

Perhaps in the spirit of the saying “if you can’t beat them, join them,” the Securities and Exchange Commission recently launched an initial coin offering website of its own – HoweyCoins.com.  No, the SEC has not suddenly decided to join the coin offering craze.  But the Office of Investor Education and Advocacy has launched this new mock site to illustrate the dangers of such offerings to retail investors. … More

Crypto is a Greek prefix meaning “secret” or “hidden.”  Unless you live under a rock, or in one of several countries like Bolivia where buying and selling it is illegal, there is nothing secret or hidden about cryptocurrency.  It’s everywhere.  And public interest in cryptocurrency has led to lots of advertising, mostly on social media and the internet.

Spurred on by an incredible—some might say too-good-to-be-true—increase in value in late 2017,… More

On January 17, 2018, the Massachusetts Securities Division Enforcement Section filed a complaint against the company Caviar and its founder Kirill Bensonoff for violations of the Massachusetts Uniform Securities Act in connection with an ongoing initial coin offering (ICO).

This is Secretary of the Commonwealth William F. Galvin’s first enforcement action related to an ICO. Last month, Secretary Galvin announced that the Massachusetts Securities Division would conduct a sweep of Massachusetts entities engaged in ICOs.… More

As part of our Year in Preview series, we’ve recently covered both international cyberwar and the rise of cryptocurrency.  Just before the holidays, both of these topics collided in a decidedly unpleasant manner.

On December 19, the South Korean cryptocurrency exchange Youbit filed for bankruptcy, disclosing that it had just suffered a hack that made off with about one fifth of the bitcoins stored on its platform. … More

Editors’ Note:  This is the last in a nine-part end-of-year series examining important trends in data privacy and cybersecurity during the coming year.  Previous installments include analyses of HIPAA compliance, emerging security threats, federal enforcement trends, state enforcement trends, … More

The Massachusetts Securities Division has announced that it will conduct an exam sweep of Massachusetts entities engaged in initial coin offerings (ICOs).

In the announcement, released on Friday, Massachusetts Secretary of the Commonwealth William Galvin said that he views ICOs as securities that must be registered with the state.

“Blockchain may or may not change the way banks transfer money or the way credit payments are made,… More

For the second time in less than a month (click here for a prior enforcement action), the SEC’s newly created Cyber Unit has shut down an initial coin offering (ICO).  This time the ICO was for Munchee, Inc., a California-based developer of an iPhone application for people to review restaurant meals.  The recent enforcement activity follows several policy statements and warnings regarding ICOs.  … More