Fundraising is an important foundation for a company or venture wishing to develop their products or technology which could potentially promote innovation in an industry. Traditionally, securities are issued as an incentive to accredited investors to ensure their stake within the company or venture. The investment contract is known as a SAFE or Simple Agreement of Future Equity. When it…
There is a lot that is unknown when you start a new company, but you can be sure of one item: risk. Though this is true of any new business, businesses dealing with cryptocurrency may have just a bit more than average. The price of bitcoin, for example, is famously volatile, and this could cause a number of problems if…
Cryptocurrency may not be everything, but in the eyes of US legal authorities, it may be getting close. Depending on who you ask, it could be a security, property, a commodity, or even money. Let’s look at this more closely. Could Cryptocurrency Be a Security? If we want to know whether cryptocurrency is a security, the first step, naturally, would…
On January 7, 2022, a class-action lawsuit was filed against the company and individuals behind the cryptocurrency EthereumMax. The suit also named Kim Kardashian, Floyd Mayweather and Paul Pierce as defendants. The plaintiff alleged that the principals behind EthereumMax engineered a classic pump and dump scheme with the help of the named celebrities. While it is hard to generalize from…
The technology sector is continuing to rapidly evolve, with the metaverse, NFTs, the blockchain and a host of other advancements sweeping industry discussions in the last year. The legal industry is deeply connected to tech advancements and as a result is also adapting to the “new normal”. In keeping with this, firms that are able to understand and expertly advise…
Recently we have seen a great deal of interest from investors investing in cryptocurrencies and governments and regulators seeking to rein in the excesses. Background In the U.S. Congress, early drafts of the Infrastructure Bill contained reporting obligations for trading platforms and holders of cryptocurrencies. In July 2021, a Presidential Working Group consisting of the heads of the SEC, CFTC,…
On August 10, 2021, the Commodities Futures Trading Commission (“CFTC”) and the Financial Crimes Enforcement Network (“FinCEN”) announced a $100 Million settlement with BitMEX, a company claiming to be the largest cryptocurrency derivatives platform in the world. BitMEX offered derivatives trading in bitcoin, ether and litecoin. As part of the settlement, BitMEX agreed to: (i) pay a fine of $100…
Recently, we have seen an explosion in the number of different digital tokens/cryptocurrency/personal digital money. Investor interest is at an all-time high in what some call digital currency and others, including the SEC, call securities. Let’s take a look at some of the legal and economic risks for sellers, promoters, and the trading platforms. Is it a security? The SEC…
On February 18, 2021, BitPay, Inc. (“BitPay”), a private company based in Atlanta, Georgia, entered into a $507,375.00 settlement with the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) for 2,102 apparent violations of multiple sanctions programs...
The Tokenization of Real Estate This article was written by Alexandra “Sasha” Levin, Esq. and was originally published in the FIBREE annual report. Ms. Levin is a Partner, Co-Head of Emerging Growth & Technology Practice and Israel Practice, and Head of Real Estate Practice. She can be reached at (212) 837-2600 x1003 or [email protected]. While tokenization of real estate may…