Blog Posts Tagged With Cyber and Cryptocurrency

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In re Block.one (A.P. Sept. 30, 2019, Settled)

Action against Respondent, a blockchain company, for an alleged unregistered offering.  The SEC alleges that Respondent sold electronic tokens through an initial coin offering without registering or securing an exemption from registration.  Respondent has agreed to pay a civil penalty of $24,000,000.

SEC Order
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CFTC v. Jon Barry Thompson (S.D.N.Y. Sept. 30, 2019, Contested)

Action against Defendant, the principal of a Bitcoin escrow company, for alleged fraud. According to the CFTC, Defendant induced customers to send him funds for the purchase of Bitcoin based on false representations that he already had the Bitcoin in hand.  The CFTC further alleges that Defendant misappropriated the customers’ funds and failed to deliver the promised Bitcoin.

CFTC Press Release

CFTC Complaint
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CFTC v. David Gilbert Saffron a/k/a/ David Gilbert and Circle Society, Corp. (D. Nev. Sept. 30, 2019, Contested)

Action against Defendants, a binary options trading company and its owner, for alleged fraud.  According to the CFTC, Defendants solicited investor funds for use in forex and cryptocurrency trading based on false claims about Defendant owner’s trading expertise and false guarantees of high returns.  The CFTC further alleges that Defendants use investor funds to make Ponzi-like payments to earlier investors.

CFTC Complaint 

CFTC Press Release
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SEC v. ICOBox and Nikolay Evdokimov (C.D. Cal. Sept. 18, 2019, Contested)

Action against Defendants, a digital currency platform and its founder, for alleged fraud and registration failure.  According to the SEC, Defendants publicly offered digital tokens and made false claims that the tokens would appreciate and could be swapped for other tokens.  The SEC further alleges that Defendant company facilitated initial coin offerings without registering as a broker.

SEC Complaint

SEC Litigation Release

SEC Press Release
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In re Phillip Capital Inc. (A.P. Sept. 12, 2019, Settled)

Action against Respondent, a registered futures commission merchant and broker dealer, for alleged cybersecurity violations. According to the CFTC, Respondent experienced a cybersecurity breach, failed to maintain adequate cybersecurity policies and procedures, and failed to timely notify customers of the breach. Respondent has agreed to pay a civil penalty of $500,000 and received credit for payment of $1 million in reimbursement to customer accounts.

CFTC Order

CFTC Press Release
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