Category Archives: Insider Trading

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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House of Representatives Votes to Codify Insider Trading Laws

Yesterday, the full House of Representatives approved H.R. 2534, otherwise known as the Insider Trading Prohibition Act.  If passed by the Senate and signed by the President, this legislation would mark an important milestone in insider trading jurisprudence.  For decades, the Securities and Exchange Commission (“SEC”) and Department of Justice (“DOJ”) have pursued insider trading violations through general anti-fraud provisions, which has resulted in extensive judge-made law and ambiguity as to when actors will be held liable for insider trading. … More

Two Recent Insider Trading Cases Shed Light on 2017 Martoma Decision

The Second Circuit recently decided a pair of insider trading cases that provide additional guidance on the law following the court’s 2017 decision in Martoma.  In United States v. Klein, 2019 U.S. App. LEXIS 858 (2d Cir. Jan. 10, 2019), the Second Circuit upheld Defendant Schulman’s insider trading conviction. Schulman, the “tipper,” did not directly trade on material, non-public information, but rather shared it with Klein,… More