Joint Sigint Cyber Unit

SEC Charges Crypto Company SafeMoon and its Executive Team for Fraud and Unregistered Offering of Crypto Securities

Retrieved on: 
Wednesday, November 1, 2023
Crypto, McLaren (surname), Sale, Security (finance), Joint Sigint Cyber Unit, Exercise, Moon, District court, Douglas v. U.S. District Court ex rel Talk America, Travel, SafeMoon, FBI, Collection, Defendant, Cryptocurrency

After this plunge, Karony and Smith allegedly used misappropriated assets to make large purchases of SafeMoon to prop up its price and manipulate the market.

Key Points: 
  • After this plunge, Karony and Smith allegedly used misappropriated assets to make large purchases of SafeMoon to prop up its price and manipulate the market.
  • The SEC’s investigation was conducted by John Lucas, with the assistance of John Crimmins, Pamela Sawhney, Sejal Bhakta, and John Marino.
  • The SEC’s litigation will be led by Dean M. Conway and Oren Gleich, under the supervision of James Connor.
  • The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of New York, which filed a parallel criminal action, and the FBI.

SEC Charges LA-Based Media and Entertainment Co. Impact Theory for Unregistered Offering of NFTs

Retrieved on: 
Monday, August 28, 2023
Crypto, Fair Fund, The Walt Disney Company, Joint Sigint Cyber Unit, Non-fungible token, Division, Security (finance), Impact, Enforcement, Cryptocurrency

Washington, D.C.--(Newsfile Corp. - August 28, 2023) - The Securities and Exchange Commission today charged Impact Theory, LLC, a media and entertainment company headquartered in Los Angeles, with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs).

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - August 28, 2023) - The Securities and Exchange Commission today charged Impact Theory, LLC, a media and entertainment company headquartered in Los Angeles, with conducting an unregistered offering of crypto asset securities in the form of purported non-fungible tokens (NFTs).
  • Impact Theory raised approximately $30 million from hundreds of investors, including investors across the United States, through the offering.
  • Among other things, Impact Theory emphasized that it was “trying to build the next Disney,” and, if successful, it would deliver “tremendous value” to Founder’s Key purchasers.
  • Accordingly, Impact Theory violated the federal securities laws by offering and selling these crypto asset securities to the public in an unregistered offering that was not otherwise exempt from registration.

Crypto Asset Trading Platform Bittrex and Former CEO to Settle SEC Charges for Operating an Unregistered Exchange, Broker, and Clearing Agency

Retrieved on: 
Thursday, August 10, 2023
Crypto, Joint Sigint Cyber Unit, Chris Carney, District court, Division, Security (finance), Section 5 of the Public Order Act 1986, Cryptocurrency, Bankruptcy

Washington D.C.--(Newsfile Corp. - August 10, 2023) - The Securities and Exchange Commission today announced that crypto asset trading platform Bittrex Inc. and its co-founder and former CEO, William Shihara, agreed to settle charges that they operated an unregistered national securities exchange, broker, and clearing agency.

Key Points: 
  • Washington D.C.--(Newsfile Corp. - August 10, 2023) - The Securities and Exchange Commission today announced that crypto asset trading platform Bittrex Inc. and its co-founder and former CEO, William Shihara, agreed to settle charges that they operated an unregistered national securities exchange, broker, and clearing agency.
  • Bittrex Inc.’s foreign affiliate, Bittrex Global GmbH, also agreed to settle charges that it failed to register as a national securities exchange.
  • It was supervised by Mark R. Sylvester, Jorge Tenreiro, and David Hirsch of the Crypto Assets and Cyber Unit.
  • Litigation in the bankruptcy court is being handled by Therese Scheuer and Patricia Schrage and supervised by Alistaire Bambach.

SEC Charges Celsius Network Limited and Founder Alex Mashinsky with Fraud and Unregistered Offer and Sale of Securities

Retrieved on: 
Thursday, July 13, 2023
Celsius Network, Crypto, CFTC, CEL, Alex Mashinsky, Joint Sigint Cyber Unit, Sale, Commodity Futures Trading Commission, Complaint, Private prosecution, FBI, Security (finance), Contract management, Safety, Cryptocurrency, Celsius

As alleged, although the Earn Interest Program constituted the offer and sale of securities under the federal securities laws, no registration was filed or in effect for the offering, and no exemption from registration was available.

Key Points: 
  • As alleged, although the Earn Interest Program constituted the offer and sale of securities under the federal securities laws, no registration was filed or in effect for the offering, and no exemption from registration was available.
  • As a result, the Earn Interest Program lacked the protection that registration would offer.
  • The SEC’s complaint alleges that Celsius and Mashinsky manipulated the market of CEL.
  • The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the FBI, and the CFTC.

SEC Charges Investment Fund Founder William K. Ichioka with $25 Million Offering Fraud

Retrieved on: 
Thursday, June 22, 2023
Crypto, CFTC, Average revenue per user, Internal Revenue Service, USAO, State bureau of investigation, Joint Sigint Cyber Unit, Judgement, Complaint, District court, Gambling, Commodity Futures Trading Commission, Security (finance), Director of the Federal Bureau of Investigation, Criminal investigation, Enforcement, Contract management, Cryptocurrency, Ichioka

In reality though, as the complaint alleges, Ichioka was unable to pay investors the promised returns and used money from new investors to repay other investors.

Key Points: 
  • In reality though, as the complaint alleges, Ichioka was unable to pay investors the promised returns and used money from new investors to repay other investors.
  • Also, as alleged in the complaint, Ichioka falsified a bank statement and other documents to create an appearance of success.
  • In parallel actions, the U.S. Attorney’s Office for the Northern District of California (USAO) and Commodity Futures Trading Commission (CFTC) today also announced charges against Ichioka.
  • The SEC appreciates the assistance of the USAO, CFTC, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation.

SEC Charges Coinbase for Operating as an Unregistered Securities Exchange, Broker, and Clearing Agency

Retrieved on: 
Tuesday, June 6, 2023
Crypto, Commission, Joint Sigint Cyber Unit, Sale, Complaint, Denver Regional Council of Governments, District court, Division, Security (finance), CGI, Fraud, Cryptocurrency, Financial adviser, Coinbase

Washington, D.C.--(Newsfile Corp. - June 6, 2023) - The Securities and Exchange Commission today charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - June 6, 2023) - The Securities and Exchange Commission today charged Coinbase, Inc. with operating its crypto asset trading platform as an unregistered national securities exchange, broker, and clearing agency.
  • The SEC also charged Coinbase for failing to register the offer and sale of its crypto asset staking-as-a-service program.
  • According to the SEC’s complaint, since at least 2019, Coinbase has made billions of dollars unlawfully facilitating the buying and selling of crypto asset securities.
  • The SEC alleges that Coinbase intertwines the traditional services of an exchange, broker, and clearing agency without having registered any of those functions with the Commission as required by law.

SEC Files 13 Charges Against Binance Entities and Founder Changpeng Zhao

Retrieved on: 
Monday, June 5, 2023
BAM, Crypto, Exercise, Deception, Broker-dealer, Zhao, Joint Sigint Cyber Unit, Sale, Complaint, District court, Risk, Security (finance), BUSD, Douglas v. U.S. District Court ex rel Talk America, BNB, Cryptocurrency, Financial adviser, Binance

Further, the SEC alleges that, while Zhao and Binance publicly claimed that Binance.US was created as a separate, independent trading platform for U.S. investors, Zhao and Binance secretly controlled the Binance.US platform’s operations behind the scenes.

Key Points: 
  • Further, the SEC alleges that, while Zhao and Binance publicly claimed that Binance.US was created as a separate, independent trading platform for U.S. investors, Zhao and Binance secretly controlled the Binance.US platform’s operations behind the scenes.
  • The SEC also alleges that Zhao and Binance exercise control of the platforms’ customers’ assets, permitting them to commingle customer assets or divert customer assets as they please, including to an entity Zhao owned and controlled called Sigma Chain.
  • “Through thirteen charges, we allege that Zhao and Binance entities engaged in an extensive web of deception, conflicts of interest, lack of disclosure, and calculated evasion of the law,” said SEC Chair Gary Gensler.
  • The SEC also alleges that Zhao is liable as a control person for Binance’s and BAM Trading’s respective registration violations.

SEC Charges Crypto Asset Trading Platform Bittrex and its Former CEO for Operating an Unregistered Exchange, Broker, and Clearing Agency

Retrieved on: 
Monday, April 17, 2023
Crypto, Commission, Joint Sigint Cyber Unit, Chris Carney, Complaint, District court, Division, Risk, Security (finance), Cryptocurrency, Douglas v. U.S. District Court ex rel Talk America

Washington, D.C.--(Newsfile Corp. - April 17, 2023) - The Securities and Exchange Commission today charged crypto asset trading platform Bittrex, Inc. and its co-founder and former CEO William Shihara for operating an unregistered national securities exchange, broker, and clearing agency.

Key Points: 
  • Washington, D.C.--(Newsfile Corp. - April 17, 2023) - The Securities and Exchange Commission today charged crypto asset trading platform Bittrex, Inc. and its co-founder and former CEO William Shihara for operating an unregistered national securities exchange, broker, and clearing agency.
  • The SEC also charged Bittrex, Inc.’s foreign affiliate, Bittrex Global GmbH, for failing to register as a national securities exchange in connection with its operation of a single shared order book along with Bittrex.
  • Since at least 2014, Bittrex has held itself out as a platform that facilitated buying and selling of crypto assets that the SEC’s complaint alleges were offered and sold as securities.
  • Further, Bittrex, as alleged, failed to register and comply with U.S. securities laws as an exchange, broker-dealer, and clearing agency.

SEC Charges Software Company Blackbaud Inc. for Misleading Disclosures About Ransomware Attack That Impacted Charitable Donors

Retrieved on: 
Thursday, March 9, 2023
Crypto, Risk, Failure, Organization, Disclosure, Federal Trade Commission, Blackbaud, Security (finance), Social Security, Attorney, State, Joint Sigint Cyber Unit, Axon Enterprise, Inc. v. Federal Trade Commission, Cryptocurrency

The SEC’s order finds that, on July 16, 2020, Blackbaud announced that the ransomware attacker did not access donor bank account information or social security numbers.

Key Points: 
  • The SEC’s order finds that, on July 16, 2020, Blackbaud announced that the ransomware attacker did not access donor bank account information or social security numbers.
  • Within days of these statements, however, the company’s technology and customer relations personnel learned that the attacker had in fact accessed and exfiltrated this sensitive information.
  • These employees did not communicate this information to senior management responsible for its public disclosure because the company failed to maintain disclosure controls and procedures.
  • The SEC appreciates the assistance of the Federal Trade Commission and the Offices of the Attorneys General for the States of Indiana and Vermont.

SEC Charges NBA Hall of Famer Paul Pierce for Unlawfully Touting and Making Misleading Statements About Crypto Security

Retrieved on: 
Friday, February 17, 2023
Crypto, Pierce, Social media, Cryptocurrency, EMAX, Research, Investment, Security (finance), NBA, Nature, Joint Sigint Cyber Unit, Enforcement

Pierce agreed to settle the charges and pay $1.409 million in penalties, disgorgement, and interest.

Key Points: 
  • Pierce agreed to settle the charges and pay $1.409 million in penalties, disgorgement, and interest.
  • The SEC’s order finds that Pierce failed to disclose that he was paid more than $244,000 worth of EMAX tokens to promote the tokens on Twitter.
  • "Investors are entitled to know whether a promotor of a security is unbiased, and Mr. Pierce failed to disclose this information."
  • The case is being supervised by Mark R. Sylvester, Jorge G. Tenreiro, and David Hirsch of the Crypto Assets and Cyber Unit.