Category Archives: SEC

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Blockchain Games and Collectibles – Patents and Other Legal Issues

1. Blockchain Games and Collectibles Are on the Rise – The use of blockchain (or distributed ledger) technology for games (a.k.a blockchain games) and token-based digital collectibles is on the rise. The overnight popularity of CryptoKitties was as significant to raising the awareness of digital collectibles as Pokémon Go was to location-based AR games. However, … Continue Reading

Security Tokens — A Superior Platform for Securities Holding and Trading

The use of digital securities or security tokens has coincided with the explosion of crypto-currencies and efforts to establish Internet-traded coins or tokens with utility as a form of currency. Lost amidst the enthusiasm over the revolutionary implications of crypto-currencies is the simple fact that security tokens which use block-chain technology and smart contracts have … Continue Reading

New York Federal Court’s View on Cryptocurrency as Securities

On September 11, 2018, the U.S. District Court for the Eastern District of New York denied[1] a motion to dismiss an indictment of a Brooklyn real estate entrepreneur in relation to two virtual currency investment schemes and initial coin offerings (“ICOs”). The indictment, which charged securities fraud against Maksim Zaslavskiy, was based, in part, on … Continue Reading

Airdrop of Crypto Tokens Hits Regulatory Flak

On August 14, 2018, the U.S Securities and Exchange Commission (“SEC”) issued a cease and desist order (the “Tomahawk Order”) against Tomahawk Exploration LLC (“Tomahawk”) and David Thompson Laurance (“Laurance”) for their actions in connection with an initial coin offering of digital assets called “Tomahawkcoins” or “TOM” (the “Tomahawk ICO”). Tomahawk and Laurance’s actions were … Continue Reading

SEC Blockchain and Crypto Update

The SEC has been busy over the past couple of weeks addressing blockchain and crypto-related issues. ETF Activity The SEC rejected, for a second time, a request by the Winklevoss brothers for a Bitcoin exchange-traded fund. The primary reason given by the SEC was that the submission did not sufficiently explain how the ETF would … Continue Reading

SEC Declares Ether Is Not a Security

The SEC has formally announced that Ether is not a security. The U.S. Securities and Exchange Commission Director of Corporate Finance William Hinman said that the commission would not be classifying ether or bitcoin as securities. Other comments of note include that if a cryptocurrency network is sufficiently decentralized and purchasers no longer have expectation … Continue Reading

How Crypto Token Function and Transferability Could Impact Classification as a Security

Much uncertainty exists throughout the world on the legality and legal classification of crypto tokens. In the United States, Ripple was sued recently for allegedly selling unregistered tokens (XRP) in a violation of U.S. securities laws.  The US SEC and CFTC have held hearings and are assessing whether to classify certain tokens as securities and/or … Continue Reading

Issues to be Considered in Launching an Offering Involving Digital Instruments Based upon the Use of Blockchain

Read the full article here, authored by Richard A. Friedman and Andrea Cataneo. An excerpt: “When considering an offering of digital instruments that involves the use of blockchain technology, whether in the form of tokens, coins or otherwise, there are a number of issues that need to be considered. Much   has been written and said … Continue Reading

Crypto-Crime: The SEC and DOJ Go After BitFunder and Its BitFounder

Taking further steps into the world of cryptocurrency, two entities of the federal government recently took legal action against BitFunder, a now-defunct Bitcoin exchange, and its founder, Jon Montroll. The Securities and Exchange Commission filed civil charges against BitFunder and Montroll, and the U.S. Attorney’s Office in Manhattan brought criminal charges of perjury and obstruction … Continue Reading

SEC Issues Warning on Certain ICOs

As the number and dollar volume of Initial Coin Offerings (“ICOs”) continue to increase, the SEC has taken a greater interest in this activity. As we previously reported, the SEC issued its initial ICO guidance on July 25, 2017. In this guidance it declared that depending on the facts and circumstances, an ICO offering may … Continue Reading
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