ConstitutionDAO Tokens Worth Over $300 Million After Disbanding

As of January 19, 2022 tokens of the now defunct ConstitutionDAO are worth over $300 million.  Last year, the ConstitutionDAO raised over $47 million for the purpose of purchasing an original copy of the U.S. Constitution at a Sotheby’s auction. In return for their contribution, the DAO issued PEOPLE tokens, which were going to represent…

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SEC Cryptocurrency Enforcement Report: Analysis

A new report analyzing the SEC’s Cryptocurrency enforcement activities illustrates the regulator’s focus on Initial Coin Offerings (ICO). Notably, 70% (14/20) of SEC actions alleging unregistered securities offerings in 2021 stemmed from an ICO with 64% (9/14) alleging securities fraud against the public. “It has become increasingly common to structure an ICO, as well as pre-sale round(s), as…

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Warren Law Group: CanaFarma Complaint

CanaFarma Hemp Products Corp. (“CanaFarma”) was recently indicted by the DOJ and concurrently, the SEC filed a complaint for securities fraud and misrepresentation in their offering documents. Co-founders of CanaFarma, Vitaly Fargesen, and Igor Palatnik, solicited and raised approximately $15 million from its investors. Fargesen and Palatnik failed to disclose that CanaFarma was not creating…

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NASAA 2021 Reg BI Phase Two Report Findings: Compliance is not as Strong as NASAA Hoped

The North American Securities Administrators Association (NASAA) released its 2021 Reg BI Phase One report last week. The findings ultimately conclude that Reg BI is not as effective as NASAA had intended, as the percentage of broker-dealers not in compliance with these regulations has increased. For instance, the number of broker-dealers offering more complicated and…

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US Treasury To Monitor Foreign Crypto Activity

The US Department of Treasury is keeping a suspicious eye on foreign crypto activity after the treasury recently blacklisted Russian-based SUEX for eliciting cyber-criminal activity. The deputy security of the department aims to keep applying pressure to foreign threats by investing in stronger technological resources and cyber-security expertise. The US Treasury has stated that they…

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USDT Recommends Congress To Further Regulate Stablecoins

In the very near future, it is projected that Stablecoins will be widely used by everyday consumers, and with this increased popularity and demand come new sets of regulations as well as traps for the unwary. US Congress is facing pressure from the US Treasury to fill these regulatory gaps and to address how these…

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CFTC Whistleblower Annual Report

On October 29th, 2021 the CFTC submitted its annual report to Congress containing information regarding its Whistleblower awards.  Notable takeaways from the report:  Whistleblowers who have reported information to the SEC or the NFA can also qualify for awards with the CFTC The total sanctions awarded by the CFTC exceeded over $1 billion dollars, with…

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US Deputy Attorney General Addresses Stricter Regulatory Enforcement Compliances

US Deputy Attorney General, Lisa Monaco is enforcing compliance regulations as a means to confront corporate and white-collar crime. Due to the previous administration’s stance on compliance regulations, Monaco’s stance is deemed significant and worth noting to clients.  Monaco’s key takeaways from her speech included:  Companies need to actively review their compliance programs to ensure…

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SEC Awards Whistleblowers Over $2 Million

Along with Dodd-Frank, the SEC Whistleblower Program allows qualified whistleblowers to be entitled to 10-30 percent of funds recovered by the government due to information provided to assist the SEC. These established regulatory frameworks also provide anti-retaliation protections to the Whistleblower, awarding double back pay and uncapped damages for retaliatory termination. In this most recent…

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