The Banking Group of Debevoise & Plimpton LLP has revised the name and expanded the scope of its blog, now titled “The Debevoise FinReg and FinTech Blog.” The revamped client tool will cover a broader range of regulatory topics impacting the financial sector, particularly in the wake of the recent failures of Silicon Valley Bank, Signature Bank and First Republic…
As previewed in our client update from April 26, 2023, three government agencies released reports reviewing the failures of SVB Financial Group (“SVBFG”) and Signature Bank (“SBNY”) on Friday. Specifically: the Federal Reserve Board (“FRB”) released a report on the failure of SVBFG and Silicon Valley Bank (“SVB”) led by Vice Chair for Supervision Michael Barr (the “FRB Report”); the…
The Silicon Valley Bank (“SVB”) and Signature Bank (“Signature”) failures (together, the “March Failures”) were the second- and third-largest commercial bank failures in U.S. history. Six weeks after the March Failures, bank stability issues continue to generate headlines, and healthy banks remain subject to depositor outflows.[1] The March Failures have raised broad-ranging questions regarding the proper calibration of U.S. bank…
I. Overview March 2023 included several important crypto-related enforcement actions and continued the trend of an active 2023 (which is showing no signs of slowing down in April). The Securities and Exchange Commission (“SEC”) brought an action to stop an alleged Ponzi-like crypto asset fraud scheme, charged eight celebrities for touting tokens without disclosing associated compensation, and continued to focus…
On March 22, 2023, the Securities and Exchange Commission (“SEC”) filed a complaint against Justin Sun and his related companies, which included claims that he made offers and sales of unregistered securities.[1] According to the complaint, Sun distributed two crypto tokens, TRX and BTT, which the SEC claims are unregistered securities. Unlike most prior actions alleging that tokens were sold…
I. Overview February 2023 was an active month for crypto-related enforcement actions. Enforcement agencies brought additional charges as part of the ongoing fallout of FTX. The Securities and Exchange Commission (“SEC”) brought another action against a celebrity for touting tokens, stopped a cryptocurrency-based investment scheme targeting vulnerable individuals, and brought charges against defendants for an alleged multi-billion dollar fraud involving…
Two months in and 2023 is set to be a big year for crypto enforcement. Fueled in part by the bankruptcy of FTX and other crypto-related companies in late 2022, regulators have begun to move past mainly rhetorical warnings regarding the crypto industry and to take a heavier hand. The SEC’s main claim has been for unregistered securities and exchanges,…
In a further response to the events over the past several months that have rattled the crypto industry, on February 23, 2023, the Federal Reserve Board (“FRB”), Federal Deposit Insurance Corporation (“FDIC”) and Office of the Comptroller of the Currency (“OCC”) (together the “Agencies”) issued their second joint statement (the “Statement”) in less than two months regarding crypto-asset-related risks. As…
On Monday, January 23, 2022, the New York Department of Financial Services (the “DFS”) released a letter (the “Guidance”) clarifying virtual currency custody and disclosure standards and practices that the DFS expects from entities that have received a “BitLicense” and New York limited purpose trust companies (the “VCE Custodians”). The Guidance is final and effective immediately. The Guidance complements existing…
On December 19, 2022, FTX Trading Ltd. issued a press release announcing a process for the voluntary return of avoidable pre-bankruptcy payments to “secure the prompt return of such funds to the FTX Estates for the benefit of customers and creditors.”[1] Seeking to clawback or “avoid” pre-bankruptcy transfers is commonplace in bankruptcy. Such transfers may include customer withdrawals, payments to…