FINRA Lawyer Blog


SEC Subpoena? How Cryptocurrency Companies Should Prepare

SEC Subpoena? How Cryptocurrency Companies Should Prepare

The SEC is effectively expanding its jurisdiction into the cryptocurrency and ICO market. Dozens of companies, possibly hundreds, are receiving SEC subpoenas, which I advise them to take very seriously.
High profile companies, including giants like TechCrunch’s cryptofund, are...

Cryptocurrency and ICO Space Prepare for Increasing SEC Scrutiny

Cryptocurrency and ICO Space Prepare for Increasing SEC Scrutiny

The SEC has repeatedly warned cryptocurrency investors about the market’s vulnerability to large-scale fraud. Likewise, the agency has made it clear that cryptocurrency offerings that function as securities will be treated as such, and thus subjected to scrutiny. 
Since SEC...

SEC Suit Targets Fintech Startup Scam

SEC Suit Targets Fintech Startup Scam

The SEC has filed a complaint accusing Mozido's founder, Michael Liberty, and four of his associates of defrauding investors out of over $48 million. The mobile payments startup allegedly used funds from investor accounts to sustain its managers' luxurious lifestyles.  
The...

Brooklyn Prosecutors Say ICOs are Securities in Alleged Fraud Case

Brooklyn Prosecutors Say ICOs are Securities in Alleged Fraud Case

On March 19, 2018, federal prosecutors once again reinforced the notion that cryptocurrencies can be securities, as they upheld their certainty that ICOs offered by Maksim Zaslavskiy through his companies REcoin and Diamond Reserve Club, were in fact, securities, and thus, under the SEC’s...


FINRA Fined Citigroup $11.5 Million and J.P. Morgan $2.8 Million

FINRA Fined Citigroup $11.5 Million and J.P. Morgan $2.8 Million

FINRA recently sanctioned Citigroup Global Markets Inc. $11.5 million over inaccurate research rating displays. The sanction includes a $5.5 million in fines and $6 million in compensation for wronged retail customers.
According to the SRO’s findings, over at least five years, Citigroup...

FINRA Issues Warning About Cryptocurrency Stock Scams

FINRA Issues Warning About Cryptocurrency Stock Scams

Recently, several cryptocurrency scams have come to light: dishonest individuals advertising their newly concocted crypto-coin as the next big thing, with a potential to make millions for investors willing to take the risk.
FINRA recently issued an Investor Alert to warn investors about...

FINRA Proposes New Rules, Releases Budget for the First Time

FINRA Proposes New Rules, Releases Budget for the First Time

Last December, FINRA made public its 2018 budget and updated Financial Guiding Principles, after approval by the SRO's Board of Governors. In a new information release, the SRO also detailed several rule proposals for the year and planned improvements to its registration technology.
As part...



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