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☆ SEC charges Do Kwon, Terraform with fraud in connection with Terra collapse
▼ + stars: | 2023-02-16 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Do Kwon, co-founder and chief executive officer of Terraform Labs, insists that he is not on the run from South Korean authorities. Terraform Labs, the company that Kwon founded, is behind the collapsed cryptocurrencies terraUSD and luna, which combined were worth $60 billion before they crashed. The Securities and Exchange Commission charged Terraform Labs and its CEO, Do Kwon, with fraud, alleging that they orchestrated a multibillion dollar "crypto asset securities fraud," the SEC said Thursday. The SEC alleges that Kwon marketed those assets, including those mAsset swaps and Terra, as profit-bearing securities, "repeatedly claiming" the tokens would increase in value. Kwon is wanted in South Korea for his involvement in the collapse of TerraUSD.

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailDogecoin soars after Elon Musk tweet, and Coinbase responds to SEC crackdown: CNBC Crypto WorldCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Paul Grewal, the chief legal officer at Coinbase, responds to a proposed rule change from the SEC that would make it harder for firms to hold customer assets.

☆ Coinbase's Paul Grewal reacts to the SEC's proposed rule change targeting crypto
▼ + stars: | 2023-02-15 | by ( Kate Rooney | ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCoinbase's Paul Grewal reacts to the SEC's proposed rule change targeting cryptoCNBC Crypto World features the latest news and daily trading updates from the digital currency markets and provides viewers with a look at what's ahead with high-profile interviews, explainers, and unique stories from the ever-changing crypto industry. On today's show, Paul Grewal, the chief legal officer at Coinbase, responds to a proposed rule change from the SEC that would make it harder for firms to hold customer assets.

☆ SEC targets ‘crypto-staking’ in $30 million Kraken settlement
▼ + stars: | 2023-02-10 | by ( Brian Fung | ) edition.cnn.com time to read: +3 min

That practice, known as “staking,” reflected an unregistered offer and sale of securities, the SEC alleged in a complaint announced Thursday. According to the SEC, Kraken failed to adequately disclose the risks of participating in the program, which had advertised annual yields of as much as 21%. But according to cryptocurrency advocates, the SEC clampdown on staking could have wider effects that undermine the US cryptocurrency ecosystem. The SEC complaint zeroes in on a practice that the industry says is vital to supporting the healthy function of some virtual currencies. In its complaint, however, the SEC alleged Kraken failed to notify users about the lack of protections it offered to those who engaged in staking through Kraken’s program.

☆ Top House Republicans scrutinize SEC investigation of failed crypto exchange FTX
▼ + stars: | 2023-02-10 | by ( Chelsey Cox | ) www.cnbc.com time to read: +2 min

Rep. Patrick McHenry, a Republican of North Carolina and ranking member of the House Financial Services Committee, speaks during a hearing in Washington, D.C.Top House Republicans on Friday sent a letter to the Securities and Exchange Commission as Congress scrutinizes the agency's actions against Sam Bankman-Fried, the former CEO of failed cryptocurrency exchange FTX. Bankman-Fried was scheduled to testify before the committee on Dec. 13, a day after he was arrested by Bahamian officials. FTX filed for Chapter 11 bankruptcy and Bankman-Fried stepped down as its CEO in November. The committee's request comes a week after McHenry announced the panel will examine certain so-called overreaches by financial oversight agencies. The Financial Services Committee requested communications between the SEC's enforcement division, specifically its director, Gurbir Grewal; communications among Gensler's direct staff and records and communications between SEC and the Justice Department over the last few months by 5 p.m. on Feb. 23.

☆ SEC commissioner Peirce publicly rebukes her agency, Gensler on crypto regulation
▼ + stars: | 2023-02-09 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Hester Peirce, commissioner of the US Securities and Exchange Commission (SEC), speaks during the DC Blockchain Summit in Washington, D.C., on Tuesday, May 24, 2022. Hester Peirce of the Securities and Exchange Commission publicly rebuked her agency's apparent crypto regulation by enforcement, asking if a "hostile" regulator is the best solution for the industry. "Whether one agrees with that analysis or not, a more fundamental question is whether SEC registration would have been possible," Peirce wrote. But Gensler and the SEC Enforcement division under his control have moved far more aggressively than the Department of Justice or policymakers to tamp down on the crypto industry. Peirce, who dissented on the enforcement action, indirectly disputed the premise of that assertion.

☆ Coinbase Layoff Ax Won’t Fall on Compliance Team
▼ + stars: | 2023-01-12 | by ( Richard Vanderford | ) www.wsj.com time to read: +2 min

Wide-scale layoffs at Coinbase Global Inc. won’t significantly impact its compliance team, as the cryptocurrency exchange remains under a New York regulator’s watch after recently settling allegations it violated anti-money-laundering laws. Coinbase wants to cut operating expenses by 25% and plans to lay off about 950 people, Chief Executive Brian Armstrong said Tuesday. A spokeswoman for the company, asked whether the departures would impact the exchange’s risk, compliance or legal teams, said there won’t be “meaningful” layoffs in key roles. Newsletter Sign-up WSJ | Risk and Compliance Journal Our Morning Risk Report features insights and news on governance, risk and compliance. The exchange in the settlement agreed to spend another $50 million to improve its compliance program over the next two years.

☆ McDonald's former CEO lied about 'improper' employee relationships before his firing in 2019, SEC alleges
▼ + stars: | 2023-01-09 | by ( Sindhu Sundar | Nancy Luna | ) www.businessinsider.com time to read: +3 min

The SEC accused the former McDonald's CEO of being untruthful in the chain's internal investigation. McDonald's fired Stephen Easterbrook in 2019 over an employee relationship, then discovered more. During that investigation, Easterbook told lawyers brought in by McDonald's board that he hadn't had any other sexual relationships with McDonald's employees besides the one he was being questioned over at the time. "In July 2020, McDonald's learned that Easterbrook had in fact engaged in other relationships with McDonald's employees in violation of the company's Standards of Business Conduct." In August 2020, McDonald's sued Easterbrook "to recover compensation and severance benefits," alleging he concealed evidence and lied about having other relationships with subordinates.

☆ SEC fines McDonald's ex-CEO Easterbrook $400,000 for allegedly misleading investors about his firing
▼ + stars: | 2023-01-09 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +3 min

New York CNN —Disgraced former McDonald’s CEO Steve Easterbrook will pay $400,000 to settle charges that he allegedly misled investors about the circumstances of his 2019 firing following a relationship with an employee. McDonald’s later filed a lawsuit against Easterbrook that ended with the ex-CEO paying back his $105 million severance payment, but the SEC charged both the executive and the company for making such a deal in the first place. In addition to the $400,000 civil penalty, Easterbrook is also banned from serving as a director or officer at any company that reports to the SEC. In August 2020, McDonald’s filed a lawsuit claiming Easterbrook lied to the board about the extent of his relationships with employees. Steve Easterbrook, former CEO of McDonald's Corp. Brendan McDermid/ReutersMcDonald’s settled the lawsuit with Easterbrook in 2021, forcing him to repay his severance package of $105 million.

Former McDonald's CEO Stephen Easterbrook unveiling the company's new corporate headquarters during a grand opening ceremony on June 4, 2018, in ChicagoThe Securities and Exchange Commission charged former McDonald's CEO Steve Easterbrook on Monday with misrepresenting his November 2019 firing. McDonald's board fired Easterbrook in 2019 for a consensual relationship with an employee, which violated the company's fraternization policy. In December 2021, the two parties settled the lawsuit, and McDonald's successfully clawed back Easterbrook's severance, valued at $105 million. McDonald's has not admitted or denied the SEC's findings. In a statement, the company said that the SEC's actions reinforce what it has previously said about its handling of Easterbrook's misconduct.

☆ New York Financial Regulator Notches $100 Million Settlement With Coinbase
▼ + stars: | 2023-01-05 | by ( Mengqi Sun | ) www.wsj.com time to read: +4 min

A $100 million settlement made public by the New York State Department of Financial Services on Wednesday underscores the agency’s intent to set the regulatory agenda for digital currencies. Coinbase also will spend $50 million to improve its compliance program over the next two years. The regulator oversees insurance companies and state-chartered banks and already plays an outsize role nationally in overseeing the financial services sector. Newsletter Sign-up WSJ | Risk and Compliance Journal Our Morning Risk Report features insights and news on governance, risk and compliance. The agency credited Coinbase for its remediation efforts, including how it strengthened its onboarding process, according to the settlement agreement.

☆ Coinbase settles with New York state financial regulator for $100 million, stock spikes
▼ + stars: | 2023-01-04 | by ( Rohan Goswami | ) www.cnbc.com time to read: +2 min

Coinbase signage in New York's Times Square during the company's initial public offering on the Nasdaq on April 14, 2021. Coinbase settled a case with New York's state financial regulator, the parties announced Wednesday, and will pay a $50 million fine and invest a further $50 million in compliance efforts. Regulators from the New York Department of Financial Services said the company had longstanding failures in its anti-money laundering program. "This agreement includes a $50 million penalty and a separate commitment from Coinbase to invest $50 million in our compliance program over two years," Coinbase Chief Legal Officer Paul Grewal said in a statement. Regulators wrote that Coinbase's compliance shortcomings led to "suspicious or unlawful conduct being facilitated through Coinbase's platform," according to the consent order.

☆ Coinbase reaches $100 million settlement with New York regulators
▼ + stars: | 2023-01-04 | by ( Allison Morrow | ) edition.cnn.com time to read: +2 min

New York CNN —Coinbase, one of the most popular US crypto-trading platforms, agreed to a $100 million settlement after New York regulators found “significant failures” to comply with the state’s anti-money-laundering laws. The settlement includes a $50 million penalty Coinbase must pay to the New York Department of Financial Services and a pledge to spend $50 million to strengthen the company’t compliance program over the next two years. The regulator said it had installed an independent monitor to investigate, and that monitor will remain in place for at least another year as needed. Coinbase’s statement included reference to the so-called crypto winter — a chill that hit the industry in 2022, bringing down several companies, including Sam Bankman-Fried’s FTX. “We recognize that the crypto industry is at an inflection point right now and that every public move by a crypto company will receive intense scrutiny,” Grewal said.

☆ Coinbase is paying a $50 million fine over allegations it fell behind on a mountain of internal warnings
▼ + stars: | 2023-01-04 | by ( Sindhu Sundar | ) www.businessinsider.com time to read: +3 min

Coinbase is paying a $50 million fine after a New York agency found fault with its crypto platform. It will also invest $50 million into improving its own vetting of customers and transactions. Coinbase said it has taken "substantial measures" to improve its monitoring tech and protocols. The settlement, which the New York Department of Financial Services disclosed on Wednesday, includes a $50 million fine, and also calls for Coinbase to spend another $50 million on a monitoring plan overseen by the agency. Coinbase, a crypto exchange founded in 2012, has more than 100 million users on its platform.

☆ Coinbase to pay $50 mln to settle NY state investigation, invest $50 mln in compliance
▼ + stars: | 2023-01-04 | by ( Industry Insight | Saw Law Firms Move Past The Pandemic Into A More Client-Focused Service Environment | Thomson Reuters Institute | ) www.reuters.com time to read: +2 min

WASHINGTON, Jan 4 (Reuters) - U.S.-based cryptocurrency exchange Coinbase Inc (COIN.O) has reached a $100 million settlement with New York's Department of Financial Services (DFS), the exchange and the regulator said in statements on Wednesday. The settlement, which includes a $50 million penalty, caps the regulator's investigation into the firm's compliance with requirements to prevent money laundering. “Coinbase failed to build and maintain a functional compliance program that could keep pace with its growth. That failure exposed the Coinbase platform to potential criminal activity," said New York DFS Superintendent Adrienne Harris. Coinbase, a publicly traded firm and one of the largest global crypto exchanges, will pay another $50 million to boost compliance efforts aimed at blocking potential criminals from using the exchange, the company said.

☆ Wells Fargo's top strategy exec details the bank's the multi-year internal reorganization to cut down its tech development cycle
▼ + stars: | 2022-12-30 | by ( Carter Johnson | Bianca Chan | ) www.businessinsider.com time to read: +6 min

Wells Fargo launched a digital strategy group in 2020 amid a broader re-org. "The heritage of Wells Fargo has been very fragmented. "Now you have to teach business people about tech development and tech development people about how the business works. In the wake of the CFPB announcement, Wells Fargo said it expects operating losses in the fourth-quarter to reach $3.5 billion. Wells Fargo reports quarterly earnings on January 13.

☆ FTX was a 'house of cards' built on a 'foundation of deception,' SEC boss says in scathing statement about Sam Bankman-Fried
▼ + stars: | 2022-12-13 | by ( Beatrice Nolan | ) www.businessinsider.com time to read: +2 min

The SEC has accused FTX of being a "house of cards" built on a "foundation of deception," in a statement. The SEC released charges on Tuesday morning, accusing Bankman-Fried of a "years-long" fraud. In its complaint, the SEC announced it had charged the FTX cofounder, Sam Bankman-Fried, with "orchestrating a scheme to defraud" FTX investors. SEC Chair Gary Gensler said in the statement: "We allege that Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto." The director of the SEC's Division of Enforcement, Gurbir S. Grewal, accused FTX of operating "behind a veneer of legitimacy" that was created by Bankman-Fried, per the Tuesday press release.

New York CNN —FTX founder Sam Bankman-Fried was indicted on eight criminal charges including wire fraud and conspiracy by misusing customer funds, according to an indictment from the US Attorney of the Southern District of New York. Separately Tuesday, US markets regulators charged Bankman-Fried with defrauding investors and customers in his failed crypto exchange FTX. The Securities and Exchange Commission said Bankman-Fried, “orchestrated a years-long fraud” to conceal from FTX investors the diversion of customer funds to Alameda Research, his crypto-trading hedge fund. Star athletes and celebrities who backed FTX also reportedly received a stake in the company, including Tom Brady and Gisele. That meant there was no meaningful distinction between FTX customer funds and Alameda’s funds that Bankman-Fried used as his “personal piggy bank,” the complaint says.

☆ U.S. SEC stepped up enforcement activity in fy2022, assessed record penalties
▼ + stars: | 2022-11-15 | by ( John Mccrank | ) www.reuters.com time to read: +2 min

The total assessed included a record $4.2 billion in civil penalties, up from a total amount of $3.6 billion in 2021, as it filed 760 total enforcement actions, including 462 new or stand-alone ones. The SEC chair previously announced the amount of fines and fees assessed, but the annual report published on Wednesday provided more details in its roundup of activity in the year ended Sept. 30. SEC actions against JP Morgan Securities LLC, 15 other broker dealers, and one investment adviser for widespread and long-standing failures to maintain and preserve work-related text messages conducted on employees' personal devices made up over $1.2 billion of SEC penalties in 2022. The SEC also filed charges against Deloitte's China-based affiliate of failing to comply with U.S. auditing requirements and secured a record penalty against crypto firm BlockFi for selling unregistered securities. Reporting by John McCrank in New York; Additional reporting by Chris Prentice; Editing by Jonathan OatisOur Standards: The Thomson Reuters Trust Principles.

The SEC filed 760 enforcement actions in the year ending Sept. 30, up 9% from the year before, according to the agency’s annual enforcement report, which was made public Tuesday. The SEC imposed a total of $6.44 billion in monetary penalties, the highest amount on record and 67% above the previous year. That made it the second-highest year for both the number of awards and dollar amounts of awards issued, the SEC said. PREVIEWThe SEC whistleblower program in August reversed a Trump-era change that would have put a limit on the amount of awards it could provide. The SEC said it was focusing on actions that would deter future violations while encouraging accountability from major institutions.

☆ Crypto Advocacy Group Sues U.S. Treasury Over Tornado Cash Sanctions
▼ + stars: | 2022-10-12 | by ( Mengqi Sun | ) www.wsj.com time to read: +4 min

A cryptocurrency research and advocacy group has filed a lawsuit challenging the U.S. Treasury Department’s sanctions against cryptocurrency mixer Tornado Cash. In August, OFAC imposed sanctions on Tornado Cash, a currency mixer that enables users to co-mingle their funds in order to obfuscate ownership. OFAC accused Tornado Cash of laundering billions of dollars in virtual currency, including $455 million allegedly stolen by North Korean hackers. In September, however, OFAC clarified that the sanctions placed on Tornado Cash don’t prohibit U.S. individuals or businesses from interacting with open-source code itself, as long as it doesn’t involve a prohibited transaction with the Tornado Cash platform. The Coinbase suit also argues that these sanctions exceed Treasury’s statutory authority and infringe on the plaintiffs’ constitutional right to privacy.

☆ I'm BCG's head of talent. Here are 3 qualities all top candidates have — and the one tricky question I like to ask.
▼ + stars: | 2022-10-12 | by ( Robin Madell | ) www.businessinsider.com time to read: +5 min

Amber Grewal is a managing director, partner, and head of global talent at Boston Consulting Group. This as-told-to essay is based on a conversation with Amber Grewal, a managing director, partner, and the head of global talent at Boston Consulting Group in San Francisco, California. Before BCG, I was the chief talent officer at Intel, supporting their talent strategy and management, and before that, I was the corporate VP of global talent acquisition at IBM. The easiest and most effective way to show curiosity is to ask questions. When I ask questions like this, which may seem random and throw the candidate off, I'm looking forward to the approach the interviewee will take.

☆ What to Know About (Legally) Marketing Crypto Assets
▼ + stars: | 2022-10-06 | by ( Megan Graham | ) www.wsj.com time to read: +6 min

Newsletter Sign-up WSJ | CMO Today CMO Today delivers the most important news of the day for media and marketing professionals. The cryptocurrency boom has attracted many investors, including less experienced ones, raising questions about what is appropriate when marketing these types of assets. “Over time, especially in the crypto space, we’ve seen [people] try to call it different things to avoid the securities laws,” Mr. Gerold said. What is something else?” Mr. Gerold said. Mr. Gerold said it can depend on what the stars are saying in these ads.

☆ Wall Street's texting problem forces unhappy regulators to send a billion dollar message
▼ + stars: | 2022-09-28 | by ( Bob Pisani | ) www.cnbc.com time to read: +3 min

Wall Street has a texting problem and the SEC is not happy. The firms, including Goldman Sachs, Morgan Stanley, Barclays and UBS, agreed to pay combined penalties of more than $1.1 billion. That means that many broker-dealers were communicating with each other either on their personal cell phones directly, or using personal email, or using messaging apps like Telegram or WhatsApp that are hard to detect. The firms did not maintain or preserve the substantial majority of these off-channel communications, in violation of the federal securities laws." "Since the 1930s, such recordkeeping has been vital to preserve market integrity," SEC Chair Gary Gensler said in a statement.

☆ U.S. fines 16 Wall Street firms $1.8 bln for talking deals, trades on personal apps
▼ + stars: | 2022-09-27 | by ( Michelle Price | ) www.reuters.com time to read: +4 min

Sept 27 (Reuters) - U.S. regulators on Tuesday fined 16 financial firms, including Barclays (BARC.L), Bank of America , Citigroup , Credit Suisse (CSGN.S), Goldman Sachs , Morgan Stanley and UBS (UBSG.S), a combined $1.8 billion after staff discussed deals and trades on their personal devices and apps. Register now for FREE unlimited access to Reuters.com RegisterThe institutions did not preserve the majority of those personal chats, violating federal rules which require broker-dealers and other financial institutions to preserve business communications. The failings occurred across all 16 firms and involved employees at multiple levels, including senior and junior investment bankers and traders, the SEC said. In one example cited by her office, Bank of America staff used WhatsApp, with one trader writing: "We use WhatsApp all the time but we delete convos regularly." The head of a trading desk routinely directed traders to delete messages on personal devices and to use Signal, including during the CFTC's probe.

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