FinCEN 30th Anniversary April 25, 2020

Compliance, US Code

31 U.S.C. 310 Mandate from the Congress The statute established FinCEN, the Financial Crimes Enforcement Network, within the Treasury Department, and was followed by Treasury Order No. 105-08 on April 25, 1990. 31 U.S.C. 310(b)(2) states the duties and powers of the Director are as follows: Advise and make recommendations on matters relating to financial intelligence, financial criminal activities, and other financial activities to the Under Secretary of the Treasury for Enforcement. Maintain a government-wide data access service with a broad range of... Read More

8 Best Practices for a Master Services Agreement in Information Technology

Compliance, Contracts, Cybersecurity, Data Privacy

MSA and SaaS / IaaS / PaaS / TaaS / XaaS Agreements This article is part of the Action Cyber Times™ Series on Agreements for Information Technology and Transactions. 8 Best Practices for a Master Services Agreement cover the terms and conditions for the services from a SaaS (Software as a Service) provider, with a primary focus on the operational and financial requirements of the transaction. As with most commercial agreements, one size does not fit all, and will be tailored... Read More

SEC Regulations for Data Security and Disclosures

Compliance, Cybersecurity, Data Privacy, Risk Management

This article is part of an Action Cyber Times™ series on Cybersecurity Risk Management. The series reviews relevant issues regarding cybersecurity compliance and enforcement.   SEC Statement and Guidance on Public Company Cybersecurity Disclosures Rules and Regulations in the SEC arsenal.  See SEC Release Nos. 33-10459 and 34-82746, published at 83 Federal Register 38 pp 8166-8172 (Feb 26 2018) re 17 CFR Parts 229 and 249. See also the prior ACT post titled, SEC 2018-2019 - ICOs and Cybersecurity, for a brief review of... Read More

SEC Enforcement of ICOs 2018-2019

Blockchain DLT, Compliance, Cryptocurrency, Cybersecurity, ICO Initial Coin Offering

2019 for ICOs and Cybersecurity were addressed in the December 6, 2018, speech by Chairman Jay Clayton, "SEC Rulemaking Over the Past Year, the Road Ahead and Challenges Posed by Brexit, LIBOR Transition and Cybersecurity Risks": Chairman Clayton first reviewed the extensive 2018-2019 SEC regulatory agenda and projects presented in Appendices A and B, including improving the regulation of investment professionals, facilitating capital formation, monitoring evolving securities markets, and encouraging long term investment.   Distributed Ledger Technology, Digital Assets and Initial Coin... Read More

Update: SEC Postpones VanEck SolidX CboeBZX Bitcoin Shares ETF

Blockchain DLT, Compliance, Cryptocurrency

Crypto-Cop Conundrum > Bitcoin ETF PostponedSEC File No. SR-CboeBZX-2018-040 CboeBZX Inc Exchange Request to the SEC for trading of VanEck SolidX Bitcoin Shares December 6, 2018 - Read below to review the prior regulatory history.  On September 20, 2018, the Commission instituted proceedings to approve or disapprove the proposal. In the interim, the Commission stated that 1,600 comments have been received. Wow! Was this the crypto version of a 'literal stampede', or a 'troll tide', or was there a sale on... Read More

SEC v Mayweather and DJ Khaled

Blockchain DLT, Compliance, Cryptocurrency, ICO Initial Coin Offering

SEC Consent Orders 11/29/2018 re: In the Matter of Floyd Mayweather Jr., Respondent, Nov. 29, 2018, SEC Release No. 33-10578; Administrative Proceeding File No. 3-18906  In the Matter of Khaled Khaled, Respondent, Nov. 29, 2018, SEC Release No. 33-10579; Administrative Proceeding File No. 3-18907   Rensel et al. v. Centra Tech, Inc., et al, No. 1:17-cv-24500 (SD Florida) - Class Action Celebrities As Paid Promoters: On November 1, 2017, the SEC issued a Public Statement entitled, SEC Statement Urging Caution Around Celebrity Backed ICOs. drafted by the... Read More

DOJ Indictment for the $36M SamSam Ransomware CyberAttacks

Compliance, Cyberattack, Cybersecurity, US Code

Dept of Justice, US Attorney’s Office for the District of New Jersey, Newark, NJ United States District Court for the District of New Jersey (Newark, NJ) USA v Faramarz Shari Savandi and Mohammad Mehdi Shah Mansouri, 3:18-cr-00704-BRM   Cyberattack Criminal Action: On November 28, 2018, Deputy Attorney General Rod Rosenstein, on behalf of the DOJ and the US Attorney’s Office for the DNJ, announced at the SamSam Ransomware Press Conference, that they had filed in federal court, the USDC for the District of New... Read More

SEC v Colburn Consent Order (EtherDelta Exchange), File No. 3-18888

Blockchain DLT, Compliance, Cryptocurrency, Smart Contract, US Code

Synopsis of the Securities and Exchange Commission Proceeding and Order re: In the Matter of Zachary Colburn (EtherDelta Exchange), November 8, 2018 SEC Release No. 34-84553; Administrative Proceeding File No. 3-18888   SEC Colburn Cooperation: On November 8, 2018, the SEC issued an administrative consent ORDER instituting Cease-and-Desist Proceedings pursuant to Section 21C of the Securities Exchange Act of 1934 (“Exchange Act”) against the Respondent, Zachary Colburn, made Findings, issued a Cease-and-Desist Order, and imposed Remedial Sanctions including disgorgement of $313,000.00, a civil fine... Read More

SEC Chairman Jay Clayton Fireside Chat at CONSENSUS:INVEST Nov 27 2018

Compliance, Cryptocurrency

CONSENSUS:INVEST 2018 Hot-Seat for SEC Chairman Clayton COINDESK has announced that SEC Chairman Jay Clayton and Federal Reserve Director Glenn Hutchins will have a one-on-one fireside conversation at the CONSENSUS:INVEST conference to be held November 27, 2018, in New York City.   CONSENSUS Broad Agenda The agenda appears to be a whirlwind of hot blockchain and cryptocurrency topics (but really, is there any other kind?) A Welcome address by Coindesk Director of Research, Nolan Bauerle, will be followed by a Keynote address from Michael Casey,... Read More

ProShares Bitcoin ETF Disallowed by the SEC

Blockchain DLT, Compliance, Cryptocurrency

NYSE Arca, Inc., Exchange Proposal to the SEC for ProShares Bitcoin ETFs  SEC File No. SR-NYSEArca-2017-139 Further SEC Review October 4, 2018 ORDER > Division of Trading and Markets Disapproval Order of August 22, 2018, to Remain in Effect and Schedule for Filing Statements on Review - See SEC Release No. 34-84369 (1) The Commissioner set the time limit for comments to November 5, 2018, and (2) ORDERED that the order August 22, 2018, ORDER disapproving the proposed rule change would remain... Read More

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