Category: Cryptocurrency

Case Summary: BlockFi Lending LLC $100 Million Penalty Issue: Did BlockFi Lending LLC engage in the sale of unregistered securities through its interest accounts, violating securities laws and consequently meriting a $100 million penalty? Rule: The Securities Exchange Act of 1934 and the Investment Company Act of 1940 require that offerings of securities to the…

IRAC Summary Issue: Whether the employees of BitMEX engaged in money laundering activities in violation of relevant legal and regulatory frameworks. Rule: The Bank Secrecy Act (BSA) requires financial institutions, which include certain types of cryptocurrency exchanges, to assist government agencies in detecting and preventing money laundering. This includes implementing an effective anti-money laundering (AML)…

IRAC Summary Issue: Whether the individuals involved in the Bitfinex Hack and subsequent laundering activities are liable under criminal laws pertaining to computer hacking, theft of digital assets, and money laundering. Rule: The applicable legal rules and regulations would include statutes related to computer fraud and abuse, theft, receiving stolen property, and money laundering. These…

Brief Summary of the Case (IRAC Pattern) Issue: Whether Celsius Network LLC has the legal grounds to file for Chapter 11 bankruptcy protection given its operational model as a cryptocurrency lending and borrowing platform, and how the bankruptcy laws apply to digital assets held on behalf of its customers. Rule: The United States Bankruptcy Code,…

Brief Summary of the Case: IRAC Pattern Issue: The primary issue in the case is whether Ripple’s sale of XRP tokens constituted an offer or sale of securities, which would require registration with the Securities and Exchange Commission (SEC) under U.S. securities laws. Rule: The legal rule at the center of this case is the…

Brief Summary of the Case (IRAC pattern): Issue: The primary issue in the case is whether the sale of LBRY Credits (LBC) by LBRY, Inc. constitutes the offering of unregistered securities in violation of Sections 5(a) and 5(c) of the Securities Act of 1933. Rule: Under the Securities Act of 1933, an investment contract—and thus…

IRAC Summary Issue: Whether Solana’s distribution of SOL tokens constituted an unregistered sale of securities in violation of federal securities laws. Rule: Under the Securities Act of 1933, any offer or sale of securities must be registered with the SEC or meet an exemption. The Supreme Court in SEC v. W.J. Howey Co. established the…

IRAC Summary: Issue: The primary legal issue in the Three Arrows Capital (3AC) implosion case is whether the company and its principals engaged in fraud, misrepresentation, or breached their fiduciary duties to investors, creditors, and other stakeholders by engaging in high-risk investments without proper disclosure, and whether these actions led to the company’s eventual insolvency.…