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Fintech
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February 03, 2025
SEC's Former Acting Enforcement Director Joins Weil In NY
A former acting enforcement director of the U.S. Securities and Exchange Commission who led some of the agency's biggest cases over the past two decades has joined Weil Gotshal & Manges LLP as a partner in the firm's New York office.
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February 03, 2025
Trustee Objects To White & Case Pay In Terraform Ch. 11
The U.S. Trustee's Office has asked a Delaware bankruptcy court to reject a roughly $431,000 request by White & Case LLP for work on behalf of the official committee of unsecured creditors in defunct cryptocurrency company Terraform Labs' Chapter 11, saying the firm was never formally retained by the committee and the work was ineligible.
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February 03, 2025
USAA Fails To Flip PTAB Loss In $218M EDTX Case
Federal Circuit judges decided Monday to affirm an administrative board's rulings that wiped out claims in two patents, including one that is tied to a $218.45 million jury verdict leveled against PNC Bank in a patent case in the Eastern District of Texas.
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February 03, 2025
Canadian Man Charged With $65M Crypto Hacking Scheme
A Canadian man was charged Monday in Brooklyn federal court with exploiting vulnerabilities in two cryptocurrency finance systems to steal about $65 million worth of investor funds.
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February 03, 2025
UK Citizen Moves To Be Released From Novel SEC Action
A former cryptocurrency chief executive in the United Kingdom facing civil fraud claims for his promotion of crypto projects has said the U.S. Securities and Exchange Commission tried to "overstep its bounds" by suing him in Massachusetts even though none of his alleged actions connect him to the state.
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February 03, 2025
Treasury's Bessent Takes CFPB Reins, Halts Agency Actions
President Donald Trump has handed the reins of the Consumer Financial Protection Bureau to U.S. Department of the Treasury Secretary Scott Bessent, who moved Monday to halt rulemaking and other activities at the agency after the ouster of its director, Rohit Chopra.
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February 01, 2025
Trump Fires CFPB Director Chopra, Eliciting Praise, Lament
President Donald Trump has fired Rohit Chopra as director of the Consumer Financial Protection Bureau in a widely expected move to purge another holdover of the Biden administration, drawing cheers from Republicans as Democrats warn of danger for the agency's future.
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January 31, 2025
$577M In Virus Fraud Cases At Risk Unless Congress Acts: IG
The federal government's top pandemic relief watchdog has issued an urgent plea for Congress to save his agency from imminent closure, warning that hundreds of millions of dollars in ongoing fraud investigations hang in the balance.
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January 31, 2025
FDIC Fines Fintech Bank Over Fee, Disclosure Issues
Fintech bank Wex Bank has agreed to pay a $650,000 fine to the Federal Deposit Insurance Corp. to settle claims it allegedly failed to disclose certain fees and charged some customers higher fees than they agreed to pay, among other things.
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January 31, 2025
Visa, Mastercard And Banks Oppose Swipe Fee Do-Over Bid
Visa, Mastercard and several major banks have filed a motion opposing cardholders' solicitations for a New York federal judge to reconsider dismissing claims from their interchange fee suit.
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January 31, 2025
Latham Guides $50M Bitcoin Mining Data Center Investment
Cipher Mining Inc., a data center company that focuses on bitcoin mining, announced a $50 million investment from SoftBank Corp. for the development of high-performance computing data centers in a deal guided by Latham & Watkins LLP.
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January 31, 2025
Supreme Court Eyes Its 'Next Frontier' In FCC Delegation Case
A case about broadband subsidies will give the U.S. Supreme Court the chance to revive a long-dormant separation of powers principle that attorneys say could upend regulations in numerous industries and trigger a power shift that would make last term's shake-up of federal agency authority pale in comparison. And a majority of the court already appears to support its resurrection.
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February 14, 2025
Law360 Seeks Members For Its 2025 Editorial Boards
Law360 is looking for avid readers of our publications to serve as members of our 2025 editorial advisory boards.
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January 31, 2025
Ex-BigLaw Atty Can't Escape OneCoin Conviction At 2nd Circ.
The Second Circuit on Friday upheld a former Locke Lord LLP partner's conviction and 10-year sentence for helping launder roughly $400 million in proceeds from the multibillion-dollar OneCoin cryptocurrency scheme, rejecting the attorney's contention that a sole cooperating government witness' perjury and other purported errors warranted reversing his punishment.
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January 31, 2025
DLA Piper Adds Digital Finance Regulatory Partner In NY
DLA Piper has hired a financial regulatory and technology partner who has a range of experience helping found and lead digital platforms and technology businesses to its New York team, the firm announced Thursday.
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January 30, 2025
Wise Reaches $2.5M CFPB Deal Over Disclosure, Fee Issues
In its first new enforcement action since President Donald Trump's return to office, the Consumer Financial Protection Bureau on Thursday ordered Wise, a global money transfer fintech, to pay nearly $2.5 million on allegations it committed misleading fee marketing and disclosure-related violations.
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January 30, 2025
PayPal Beats Investor Suit Over Inflated User Metrics Claims
A New Jersey federal court has dismissed a proposed class action that accused PayPal of misleading investors with user metrics inflated by a scam that took advantage of a PayPal promotion that paid people to set up new accounts, saying the investors did not show PayPal knew of the alleged scam when certain statements were made.
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January 30, 2025
Card Co. Netspend Inks $1.1M NY AG Deal Over Fees, Freezes
The New York Attorney General's Office said Thursday that Netspend, a fintech debit and prepaid card provider, will pay nearly $1.1 million to settle claims that it charged New Yorkers illegal fees and allowed debt collectors to seize protected funds.
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January 30, 2025
Pump.Fun Faces Suit Over Unregistered Memecoin Sales
Memecoin launchpad Pump.Fun and its executives should have registered the tokens spawned on its platform with the U.S. Securities and Exchange Commission, according to a proposed securities class action brought by a purchaser in New York federal court.
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January 30, 2025
YouTube's 'Nelk Boys' Sued Over 'Snake-Oil' NFTs
A buyer of an apparently worthless crypto product has filed suit against a pair of influencers behind the YouTube channel "Nelk Boys," calling them "snake-oil salesmen" and claiming they talked up the products online, saying they were valuable when, in reality, the promised perks and returns on investment never materialized.
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January 29, 2025
'DO NOT RESPOND': CFPB Union Calls Buyout Email A Trap
The Consumer Financial Protection Bureau's union has urged staff at the agency to refrain from responding to the Trump administration's buyout offer for federal employees, describing it as a potential trap and suggesting they consider marking it as spam instead.
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January 29, 2025
Binary Options Fraudsters Must Pay $451.6M To CFTC
An Illinois federal judge on Tuesday ordered three Israeli businessmen and the overseas businesses they owned or ran to pay over $451.6 million to the Commodity Futures Trading Commission, holding them liable for lying about the profitability of binary options transactions and misappropriating customer funds.
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January 29, 2025
Sports Co., Ex-CEO Must Pay $1.8M In SEC Fraud Suit
A D.C. federal judge has ordered sports business Crystal World, its ousted CEO and a related investment group to pay approximately $1.8 million in disgorgement and civil penalties for securities violations, lowering the U.S. Securities and Exchange Commission's bid for a $4.1 million total judgment.
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January 29, 2025
Dentons Taps SEC Enforcement Vet From Morrison Cohen
Dentons has brought on a former U.S. Securities and Exchange Commission enforcement attorney from Morrison Cohen LLP, where his work made headlines when he won a rare sanctions order against the regulator over its handling of a case against a client, the crypto project known as Debt Box.
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January 29, 2025
5th Circ. Rejects Outside Bid To Defend CFPB Small-Biz Rule
The Fifth Circuit on Wednesday stood by its decision to refuse two advocacy groups' request to help defend the Consumer Financial Protection Bureau's small business lending data rule, a day after the bureau and the suing banking trade groups pushed back and said they are fine to litigate themselves, without intervention.
Expert Analysis
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Useful Product Doctrine May Not Shield Against PFAS Liability
Courts have recognized that companies transferring hazardous recycled materials can defeat liability under environmental laws by showing they were selling a useful product — but new laws in California and elsewhere restricting the sale of per- and polyfluoroalkyl substances may change the legal landscape, says Kyle Girouard at Dickinson Wright.
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Anticipating Jarkesy's Effect On Bank Agency Enforcement
Following the U.S. Supreme Court’s decision in U.S. Securities and Exchange Commission v. Jarkesy, federal courts may eventually issue decisions on banking law principles and processes that could fundamentally alter the agencies' enforcement action framework, and the relationship between banks and examiners, says Brendan Clegg at Luse Gorman.
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Unpacking State AG Approaches To Digital Asset Enforcement
Attorneys at Cozen O'Connor survey recent digital asset enforcement by attorneys general nationwide driven by concerns over regulatory gaps where technological developments and market changes have outpaced legislation.
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Opinion
Legal Institutions Must Warn Against Phony Election Suits
With two weeks until the election, bar associations and courts have an urgent responsibility to warn lawyers about the consequences of filing unsubstantiated lawsuits claiming election fraud, says Elise Bean at the Carl Levin Center for Oversight and Democracy.
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Peeling Back The Layers Of SEC's Equity Trading Reforms
The U.S. Securities and Exchange Commission's recently adopted amendments lowering the tick sizes for stock trading and reducing access fee caps will benefit investors and necessitate broad systems changes — if they can first survive judicial challenges, say attorneys at Sidley.
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How Cos. Can Build A Strong In-House Pro Bono Program
During this year’s pro bono celebration week, companies should consider some key pointers to grow and maintain a vibrant in-house program for attorneys to provide free legal services for the public good, says Mary Benton at Alston & Bird.
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Series
Home Canning Makes Me A Better Lawyer
Making my own pickles and jams requires seeing a process through from start to finish, as does representing clients from the start of a dispute at the Patent Trial and Appeal Board through any appeals to the Federal Circuit, says attorney Kevin McNish.
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CFPB School Lunch Focus Could Expand E-Payment Scrutiny
The Consumer Financial Protection Bureau's recent spotlight on payment processing systems used to add funds to school lunch accounts shows its continued ambitions to further expand its supervisory power in the payments industry, all the way down to the school lunch market, says Tom Witherspoon at Stinson.
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Opinion
FDIC's Foray Into Index Fund Rules Risks Regulatory Chaos
A proposed Federal Deposit Insurance Corp. rule concerning control over passive index fund investments in banks is outside the agency's remit, clashes with an existing Federal Reserve process and would inhibit competition in the index fund sector, says J.W. Verret at George Mason University.
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Use The Right Kind Of Feedback To Help Gen Z Attorneys
Generation Z associates bring unique perspectives and expectations to the workplace, so it’s imperative that supervising attorneys adapt their feedback approach in order to help young lawyers learn and grow — which is good for law firms, too, says Rachael Bosch at Fringe Professional Development.
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Ga. Fintech Bank Charter Could Reshape Payments Industry
Georgia’s recent granting of a special banking charter to transaction processor Fiserv, allowing the fintech company to access major card payment networks without a traditional bank as intermediary, could spark a restructuring of the national payments infrastructure and open new possibilities for businesses and consumers, says Jessica Cino at Krevolin & Horst.
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Opinion
Congress Can And Must Enact A Supreme Court Ethics Code
As public confidence in the U.S. Supreme Court dips to historic lows following reports raising conflict of interest concerns, Congress must exercise its constitutional power to enact a mandatory and enforceable code of ethics for the high court, says Muhammad Faridi, president of the New York City Bar Association.
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Series
The Pop Culture Docket: Justice Lebovits On Gilbert And Sullivan
Characters in the 19th century comic operas of Gilbert and Sullivan break the rules of good lawyering by shamelessly throwing responsible critical thought to the wind, providing hilarious lessons for lawyers and judges on how to avoid a surfeit of traps and tribulations, say acting New York Supreme Court Justice Gerald Lebovits and law student Tara Scown.
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California's AI Safety Bill Veto: The Path Forward
California Gov. Gavin Newsom's veto of a bill that sought to impose stringent regulations on advanced artificial intelligence model development has sparked a renewed debate on how best to balance innovation with safety in the rapidly evolving AI landscape, say Bobby Malhotra and Carson Swope at Winston & Strawn.
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Staying Off The CFPB's Financial Services Offender Registry
The Consumer Financial Protection Bureau's soon-to-launch registry of financial services companies that have faced public enforcement orders is designed to ratchet up long-term scrutiny of entities that could become repeat offenders, so companies should take their new compliance and filing requirements seriously, say Andrea Mitchell and Chris Napier at Mitchell Sandler.