• In its litigation of the CFTC’s enforcement action against it, Monex swings and misses a second time in the Ninth Circuit.  In a July 20, 2021 memorandum opinion, the Ninth Circuit rejected Monex’s appeal from the district court’s grant of a preliminary injunction.

  • The New York Attorney General’s Office has sued Coinseed, Inc., a start-up virtual currency trading platform, and its CEO and its former CFO under New York State’s Martin Act in Manhattan State Supreme Court.

  • CFTC Digital Assets Primer Overview
    by: Brian M. Walsh | Blockchain Law Center | (12/23/2020)

    On December 17, 2020, the Commodity Futures Trading Commission (CFTC) released a Digital Assets Primer to provide updated information to the public about emerging concepts in digital assets.

  • On October 29, 2020, the CFTC’s Division of Enforcement (“Division”) issued a staff memorandum providing guidance in recommending how the impact of a respondent’s cooperation, self-reporting, and remediation on the penalty imposed will be addressed in the CFTC’s enforcement orders. 

  • In response to market participants’ request for guidance on how the customer protection provisions of the Commodity Exchange Act (“Act”) and the Regulations (“Regulations”) of the Commodity Futures Trading Commission  (“CFTC”) apply to virtual currencies deposited by futures customers or cleared swaps customers with futures commission merchants (“FCMs”), the CFTC’s Division of Swap Dealer and Intermediary Oversight (“DSIO”) issued an advisory on October 21, 2020 (“Advisory”) regarding the holding of virtual currency in segregated accounts.  The Advisory provides FCMs with its views on accepting and holding customer virtual currency assets.  The Advisory also sets forth guidance on practices to consider in developing and maintaining risk management programs in accordance with Regulation 1.11 when holding virtual currency as customer funds.  With the issuance of this Advisory, FCMs holding virtual currencies as customer funds should consider themselves on notice of these requirements and should immediately incorporate these requirements into their risk management programs.    

  • As part of an effort  to promote transparency and clarity, on September 10, 2020, the Division of Enforcement (“Division”) of the U.S. Commodity Futures Trading Commission (“CFTC” or “Commission”) made public its internal guidance to its staff for evaluating compliance programs in connection with enforcement matters.  This three-page guidance, which will be incorporated into the Division’s Enforcement Manual follows a comprehensive memorandum that was previously announced by the U.S. Department of Justice (“DOJ”) in June 2020 for evaluating corporate compliance programs.  With the heightened scrutiny of compliance programs resulting in harsher penalties and undertakings, companies should conduct a comprehensive review of their respective compliance programs to ensure fulsome compliance with the guidance issued by both agencies before the regulator comes knocking at the door.

  •  On April 1, 2020, the Second Circuit revived a class action alleging that the manipulation of Yen LIBOR and Euroyen TIBOR by many of the world’s leading banks caused the plaintiffs to suffer economic injury.[1]  In Sonterra Capital Master Fund, Limited v. UBS AG,[2] the plaintiffs, a group of investment funds, allege that their trading of Yen foreign exchange forwards, interest rate swaps and interest rate swaptions were adversely affected by the defendants’ conduct. 

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