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…