Category Archives: Cryptocurrency

NY Department of Financial Services Slaps $30 Million Fine on Robinhood’s Crypto Platform for Lax Anti-Money Laundering Controls

On August 1, 2022, the New York Department of Financial Services (“DFS” or the “Department”) secured its first enforcement win against a cryptocurrency platform, Robinhood’s crypto trading arm Robinhood Crypto, LLC.

Robinhood Crypto is a wholly-owned subsidiary of Robinhood Markets, Inc. (RHM).  RHM allows users to trade stocks on a commission-free basis through its broker-dealer subsidiary, Robinhood Financial, LLC (RHF).  Robinhood Crypto allows RHF customers to trade cryptocurrencies using customers’ U.S.… More

SEC and DOJ Bring First-Ever Crypto Insider Trading Actions


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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SEC’s Expansion of Crypto Assets and Cyber Unit Signals Increased Enforcement Ahead

Key Takeaways:

  • The U.S. Securities and Exchange Commission’s (SEC’s) Division of Enforcement (Enforcement) announced that it will nearly double the size of its Crypto Assets and Cyber Unit, making the Unit one of the largest within Enforcement.
  • The decision reflects the SEC’s increasing prioritization of cryptocurrency and cybersecurity enforcement.
  • Issuers of digital assets, crypto exchanges and lending platforms, and other industry participants should expect more frequent investigations and enforcement actions.…
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Federal Cryptocurrency Enforcement in 2022

This is the ninth post in this year’s series examining important trends in white collar law and investigations. Our previous post discussed trends in SEC enforcement of ESG priorities. Up next: Looking at the Landscape of Congressional Investigations in 2022.

In 2021, various federal entities took steps toward establishing and exerting their enforcement authority against businesses and individuals transacting in cryptocurrency (or “crypto”),… More

Criminal Tax Violations: 2022 Enforcement Trends

This is the third post in this year’s series examining important trends in white collar law and investigations. Our previous post discussed trends in anti-corruption. Up next: State AG enforcement trends.

  • While the volume of IRS enforcement actions has waned, it may soon increase.
  • Even at current relatively low audit and investigation levels, the IRS remains aggressive in the cases it does pursue.…
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OFAC Publishes New Guidance for the Virtual Currency Industry

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