ARTICLE
13 January 2020

Lawsuit Alleges Legal Malpractice Related To Crypto-Assets Deemed Securities, SEC 2020 Priorities Address Digital Assets

B
BakerHostetler

Contributor

Recognized as one of the top firms for client service, BakerHostetler is a leading national law firm that helps clients around the world address their most complex and critical business and regulatory issues. With five core national practice groups — Business, Labor and Employment, Intellectual Property, Litigation, and Tax — the firm has more than 970 lawyers located in 14 offices coast to coast. BakerHostetler is widely regarded as having one of the country’s top 10 tax practices, a nationally recognized litigation practice, an award-winning data privacy practice and an industry-leading business practice. The firm is also recognized internationally for its groundbreaking work recovering more than $13 billion in the Madoff Recovery Initiative, representing the SIPA Trustee for the liquidation of Bernard L. Madoff Investment Securities LLC. Visit bakerlaw.com
Two related cryptocurrency investment companies and their founder recently filed a malpractice claim against their former law firm, after the SEC ordered the companies and...
United States Technology

Two related cryptocurrency investment companies and their founder recently filed a malpractice claim against their former law firm, after the SEC ordered the companies and their founder to pay a $200,000 fine for promoting "the first regulated Crypto Asset Fund in the United States" and raising around $3.6 million from 44 investors without first registering as an investment company with the SEC. The complaint alleges that the law firm "provided inaccurate analysis and advice" when it told the investment companies that their crypto-assets were not securities.

The SEC's Office of Compliance Inspections and Examinations published its 2020 Examination Priorities. The publication confirmed that the SEC will prioritize the evaluation of digital asset markets in order to protect retail investors. Such oversight will include assessing the safety of client funds, the suitability of investments, trading practices and portfolio management, valuation and pricing, compliance protocols, transfer agents, and outside business activities conducted by employees of digital asset market participants.

For more information, please refer to the following links:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More