Fintech

  • April 12, 2024

    Republicans Warn CFPB Against Pursuing Arbitration Rule 2.0

    Two Republican lawmakers are cautioning the Consumer Financial Protection Bureau against heeding calls for another rulemaking to restrict arbitration provisions in consumer financial contracts, warning that such an effort would be a "significant abuse" of the agency's authority.

  • April 12, 2024

    Capital Recruiter Awarded $7.8M In Back Fees In Breach Suit

    An Atlanta-area capital recruiting firm is owed more than $7.8 million in lost commissions from a former financial technology client that violated its agreement to pay the recruiter to connect it with investors, according to a verdict from a Georgia federal jury.

  • April 12, 2024

    Ex-Amazon Engineer Gets 3 Years For $12M Crypto Hacks

    The former technical lead of Amazon's "bug bounty" program was sentenced in Manhattan federal court Friday to three years in prison for using his specialized computer engineering skills to steal more than $12 million from two decentralized cryptocurrency exchanges.

  • April 11, 2024

    CFPB Says Credit Card Shares Disqualifying In 5th Circ. Case

    The Consumer Financial Protection Bureau sparred Thursday with a coalition of trade groups over recusal standards in their Fifth Circuit lawsuit challenging the agency's new $8 credit card late fee rule, arguing that a judge's ownership of stock in a major card-issuing bank ought to be disqualifying in itself.

  • April 11, 2024

    Crypto Trader Hit With Judgment In SEC's $4.3M Fraud Case

    A cryptocurrency trader has consented to a judgment to end a U.S. Securities and Exchange Commission suit accusing him of duping investors out of $4.3 million by falsely claiming the money would be invested in digital assets that could be obtained at a discount.

  • April 11, 2024

    Visa Beats Some Merchant Claims In Antitrust MDL

    A New York federal judge has trimmed claims lodged by Home Depot and other merchants against Visa and several banks in sprawling multidistrict antitrust litigation dating back to 2005 over network rules forcing merchants to accept the companies' cards.

  • April 11, 2024

    CFPB, EU Say Teamwork 'Critical' As Fintech Bridges Atlantic

    The consumer protection watchdogs in Europe and the U.S. said Thursday that their ongoing dialogue has yielded three shared focuses — the expansion of technology firms' payment services, the use of artificial intelligence in consumer markets and buy now, pay later products.

  • April 11, 2024

    Investors Get OK For $111M Ponzi Case Receiver Passed On

    A Colorado federal judge has given the green light for a group of investors to seek over $111 million from a forex-focused financial technology firm in the U.K. and its affiliate, in a lawsuit alleging they played an instrumental role in a scheme that duped investors and drew the attention of U.S. securities regulators and prosecutors.

  • April 11, 2024

    FTX Brass, Investors Can't Move Bankruptcy Suit To MDL

    The Judicial Panel on Multidistrict Litigation on Thursday denied a bid to move a Delaware bankruptcy proceeding regarding the collapse of cryptocurrency exchange FTX Trading Ltd. to an ongoing multidistrict litigation brought by the company's investors seeking to recoup their losses.

  • April 10, 2024

    SEC Says Crypto Firm Kraken Can't 'Subvert' Securities Test

    The U.S. Securities and Exchange Commission has told a California federal judge that crypto exchange Kraken is asking the court to adopt a "perversion" of the long-standing U.S. Supreme Court precedent for what constitutes an investment contract.

  • April 10, 2024

    DOJ's Apple Antitrust Suit Gets New Judge After Recusal

    The New Jersey federal judge overseeing the U.S. Department of Justice's recent iPhone antitrust case against Apple recused himself from the litigation Wednesday, according to a text order posted to the docket reassigning the case.

  • April 10, 2024

    FTX Strikes Deal With Voyager Over $445M Claim

    FTX Trading Ltd. has asked a Delaware bankruptcy court to approve a deal between it and crypto brokerage Voyager Digital Holdings to resolve its $445 million claim against Voyager and Voyager's $130 million claim against FTX.

  • April 10, 2024

    CFTC Names New Watchdog After Whistleblower Allegations

    The Commodity Futures Trading Commission announced Wednesday that it has appointed the Federal Election Commission's inspector general to head its own independent watchdog office, following allegations his CFTC predecessor failed to protect whistleblowers within the agency.

  • April 10, 2024

    DeFi Platform Uniswap Discloses SEC Enforcement Notice

    The firm behind decentralized crypto exchange Uniswap said on Wednesday that the U.S. Securities and Exchange Commission had notified the firm that it may soon face an enforcement case.

  • April 10, 2024

    Chase, Zelle Can Arbitrate Stolen-Funds Reimbursement Case

    A Pennsylvania federal judge on Tuesday granted Chase Bank and Zelle's request to arbitrate customer claims they acted negligently and violated consumer protection laws by refusing to refund stolen funds, with the judge saying that relevant virtual terms of service required by Chase are valid, and that Zelle may enforce the agreement as a third-party beneficiary.

  • April 10, 2024

    Ex-BigLaw Atty In OneCoin Scam A Flight Risk, Feds Say

    A former Locke Lord LLP partner who was convicted of laundering proceeds from the OneCoin cryptocurrency scam has "every incentive" to flee the country, prosecutors told a New York federal judge, arguing he shouldn't be allowed to stay out on bail while his appeal is pending.

  • April 09, 2024

    5th Circ. Asks For Briefing Amid Scrutiny Of Judge's Citi Stock

    The Fifth Circuit has ordered additional briefing in a banking industry-backed legal challenge to the Consumer Financial Protection Bureau's $8 credit card late-fee rule amid questions that have been raised about a potential conflict of interest involving a circuit court judge on the case.

  • April 09, 2024

    Crypto Booster Says $1B SEC Fraud Suit Offends Free Speech

    The crypto founder known as Richard Heart told a federal judge in Brooklyn on Tuesday that the U.S. Securities and Exchange Commission violated his and others' free speech rights when it brought a case accusing him of selling $1 billion worth of unregistered digital asset securities across his projects and misappropriating customer assets.

  • April 09, 2024

    Crypto Trader Says $110M Mango Markets Trades Were Legit

    An attorney for a crypto trader accused of stealing $110 million from investors on the Mango Markets exchange through a market manipulation scheme told a Manhattan federal jury on Tuesday that his client was executing a legitimate trading strategy and had no intent to defraud anyone.

  • April 09, 2024

    Why IP Attys Are Watching This $2B Trade Secrets Battle

    A case of alleged corporate espionage involving two software companies that resulted in a $2 billion verdict has all the hallmarks of a legal thriller, and attorneys are watching the appeal closely to see how it could impact trade secrets litigation.

  • April 09, 2024

    FDIC Beats Industry Group's Challenge To NSF Fee Guidance

    The Federal Deposit Insurance Corporation no longer faces a bank industry group's suit alleging its guidance on nonsufficient funds fees violated federal law after a Minnesota federal judge found the group put "the cart before the horse" in presuming certain FDIC guidance would be binding.

  • April 09, 2024

    Fintech Investment Biz To Go Public Via $700M SPAC Merger

    Financial technology investment platform Linqto Inc., advised by Lowenstein Sandler LLP, on Tuesday unveiled plans to go public through a merger with blank-check company Blockchain Coinvestors Acquisition Corp. I, advised by Seward & Kissel LLP, in a deal valued at $700 million.

  • April 09, 2024

    Crypto Mining CEO's Asset Freeze Fight Axed At 11th Circ.

    An Eleventh Circuit panel has rejected a bid to lift an asset freeze by a man accused of running a crypto mining scheme, ruling U.S. financial industry regulators did not have to formally serve him before asking a court to block activity in his financial accounts.

  • April 09, 2024

    House GOP To Air Measure Rejecting SEC Climate Rule

    The U.S. House of Representatives' Financial Services Committee will hold a hearing Wednesday morning addressing the U.S. Securities and Exchange Commission's climate disclosure rules, where a leading Republican member of the committee is expected to put forth a resolution that would nullify the rules.

  • April 09, 2024

    Treasury Renews Call For Tools To Combat Crypto Crime

    Deputy Treasury Secretary Wally Adeyemo on Tuesday renewed his call to Congress for additional tools to combat cryptocurrency's use by bad actors as lawmakers floated their own priorities for a cryptocurrency regulatory regime.

Expert Analysis

  • How Harsher Penalties For AI Crimes May Work In Practice

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    With recent pronouncements from the U.S. Department of Justice that prosecutors may seek sentencing enhancements for crimes committed using artificial intelligence, defense counsel should understand how the sentencing guidelines and statutory factors will come into play, says Jennie VonCannon at Crowell & Moring.

  • 2nd Circ.'s Binance Locus Test Adds Risk For Blockchain Cos.

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    The Second Circuit’s recent use of the irrevocable liability test to rule a class action may proceed against decentralized crypto exchange Binance heightens the possibility that other blockchain-based businesses with domestic customers and digital infrastructure will find themselves subject to U.S. securities laws, say attorneys at Holland & Knight.

  • Protested CFPB Supervisory Order Reveals Process, Priorities

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    The Consumer Financial Protection Bureau’s order announcing its first use of special oversight power to place installment lender World Acceptance Corp. under supervision despite resistance from the company provides valuable insight into which products and practices may draw bureau scrutiny, and illuminates important nuances of the risk assessment procedures, say Josh Kotin and Michelle Rogers at Cooley.

  • Document Retention Best Practices To Lower Litigation Risks

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    As new technologies emerge and terabytes of data can be within the purview of a single discovery request, businesses small and large should take four document management steps to effectively minimize risks of litigation and discovery sanctions long before litigation ensues, says Kimbrilee Weber at Norris McLaughlin.

  • Series

    Riding My Peloton Bike Makes Me A Better Lawyer

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    Using the Peloton platform for cycling, running, rowing and more taught me that fostering a mind-body connection will not only benefit you physically and emotionally, but also inspire stamina, focus, discipline and empathy in your legal career, says Christopher Ward at Polsinelli.

  • Compliance Steps After ABA White Collar Crime Conference

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    Senior law enforcement officials’ statements this month at the American Bar Association's white collar crime conference suggest government enforcement efforts this year will increasingly focus on whistleblower incentives, artificial intelligence and data protection, and companies will need to update their compliance programs accordingly, say attorneys at Baker McKenzie.

  • Spartan Arbitration Tactics Against Well-Funded Opponents

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    Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.

  • What 2 Years Of Ukraine-Russia Conflict Can Teach Cos.

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    A few key legal lessons for the global business community since Russia's invasion of Ukraine could help protect global commerce in times of future conflict, including how to respond to disparate trade restrictions and sanctions, navigate war-related contract disputes, and protect against heightened cybersecurity risks, say attorneys at Morgan Lewis.

  • How AI May Be Used In Fintech Fraud — And Fraud Detection

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    Recent enforcement actions in the fintech and finance industries show that the government is increasingly pursuing fraud enabled by artificial intelligence — at the same time it’s using AI innovations to enforce regulations and investigate fraud, say attorneys at ArentFox Schiff.

  • What Recent Study Shows About AI's Promise For Legal Tasks

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    Amid both skepticism and excitement about the promise of generative artificial intelligence in legal contexts, the first randomized controlled trial studying its impact on basic lawyering tasks shows mixed but promising results, and underscores the need for attorneys to proactively engage with AI, says Daniel Schwarcz at University of Minnesota Law School.

  • Banks Should Continue To Prep For CFPB Data Rule Rollout

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    Consumer Financial Protection Bureau-supervised banks should not expect industry pressure to delay the rollout of proposed Section 1033 open banking rules, which regulate how consumer financial information flows between financial institutions, and prepare their required data access portals and compliance procedures now, say attorneys at Troutman Pepper.

  • Fintech 'Prenups': Planning For A Card Program Breakup

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    After a year of economic downturns, some banks and their fintech partners are realizing they may have rushed to the altar without a good prenup, but planning ahead can curb both foreseeable and unexpected issues in the event of a termination of a bank-fintech card-issuing agreement, say Andrew Grant at Ketsal and Richard Malish at Community Federal Savings Bank.

  • 3 Notification Pitfalls To Avoid With Arbitration Provisions

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    In Lipsett v. Popular Bank, the Second Circuit found that a bank's arbitration provision was unenforceable due to insufficient notice to a customer that he was bound by the agreement, highlighting the importance of adequate communication of arbitration provisions, and customers' options for opting out, say attorneys at Covington.

  • What Fed's Credit-Linked Note FAQ Means For Capital Relief

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    U.S. banks that seek to mitigate their loss of liquidity under the Basel III capital requirements by issuing direct credit-linked notes should turn to recent Federal Reserve FAQs for insight into how this new use of synthetic securitizations may reshape risk and regulation in the U.S. market, says Cris Cicala at Stinson.

  • Fintech Compliance Does Not Always Equal Bank Compliance

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    Recent enforcement actions are a reminder for banks working with financial technology providers — whether as partners to extend their reach or as internal resources to support existing operations — that few areas of risk need more frequent attention than Bank Secrecy Act and anti-money laundering compliance, says Christopher Couch at Phelps Dunbar.

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