CFTC v. Yueyu Bao: Complaint (‘Illegal Trading’)
Complaint in Commodity Futures Trading Commission v. Yueyu Bao, of Shanghai, China, at the U.S. District Court for the Central District of California.
SEC v. Shanchun Huang: Complaint (‘Securities Fraud’)
Complaint alleging "the Chief Executive Officer (“CEO”) of Future FinTech Group Inc. (“Future FinTech”), a Nasdaq-listed corporation, manipulated the stock price of Future FinTech by buying hundreds of thousands of Future FinTech shares to artificially increase the company’s stock price shortly before and after he became CEO in March 2020" in U.S. Securities and Exchange Commission v. Shanchun Huang, described as a resident of London, England, at the U.S. District Court for the Southern District of New York.
SEC v. Terraform Labs Pte. Ltd. et al: Opinion and Order (‘$40B Crypto Fraud & Unregistered Securities’)
Opinion and Order granting, inter alia, SEC's motion for summary judgment "involving defendants’ unregistered offers and sales of LUNA and MIR in violation of Sections 5(a) and (5c) of the Securities Act" in U.S. Securities and Exchange Commission v. Terraform Labs Pte Ltd., of Singapore, and Do Hyeong Kwon, described in the complaint as a resident of South Korea and Singapore, at the U.S. District Court for the Southern District of New York.
SEC v. Rishi Kapoor et al: Asset Freeze Motion (‘$93M Fraud’)
SEC's Emergency Ex Parte Motion for Asset Freeze in U.S. Securities and Exchange Commission v. Rishi Kapoor, Location Ventures LLC, Urbin LLC, Patriots United LLC, Location Properties LLC, Location Properties LLC, Location Development LLC, Location Capital LLC, Location Ventures Resources LLC, Location Equity Holdings LLC, Location GP Sponsor LLC, 515 Valencia Sponsor LLC, LV Montana Sponsor LLC, Urbin Founders Group LLC, Urbin CG Sponsor LLC, 515 Valencia Partners LLC, LV Montana Phase I LLC, Stewart Grove 1 LLC, Stewart Grove 2 LLC, Location Zamora Parent LLC, Urbin Coral Gables Partners LLC, Urbin Coconut Grove Partners LLC, Urbin Miami Beach Partners LLC, and Urbin Miami Beach II Phase 1 LLC at the U.S. District Court for the Southern District of Florida.
Brooge Energy Ltd. et al: $5.2M Fines & Prohibitions (USA)
Administrative Order by the U.S. Securities and Exchange Commission imposing fines of $5 million, $100,000, and $100,000, respectively, on Brooge Energy Limited, formerly Brooge Holdings Limited, described as a Cayman Islands-domiciled, United Arab Emirates-based company; Nicolaas Lammert Paardenkooper, described as a citizen of the Netherlands, and Lina Saheb, described as a citizen of Iraq, and industry prohibitions on Paardenkooper and Saheb regarding "an accounting and offering fraud".
SEC v. Dozy Mmobuosi et al: Complaint (‘Securities Fraud’)
Complaint "halt an ongoing fraud carried out by three related companies" in U.S. Securities and Exchange Commission v. Mmobuosi Odogwu Banye, a.k.a. Dozy Mmobuosi, described as a resident of London, England; Tingo Group Inc., described as a Delaware company based in New Jersey; Agri-Fintech Holdings Inc., f.k.a. Tingo Inc., described as a Nevada company based in Utah, and Tingo International Holdings Inc., described as a Delaware company based in Stamford, Connecticut, at the U.S. District Court for the Southern District of New York.
SEC v. Brite Advisors USA, Inc.: Complaint (‘Fraud’)
Complaint alleging the defendant "has failed and continues to fail to comply with the Commission’s "Custody Rule", which, to ensure the safety of client assets, requires an annual report from an independent public accountant of Brite Australia’s internal controls" in U.S. Securities and Exchange Commission v. Brite Advisors USA, Inc. at the U.S. District Court for the Southern District of New York.
SEC v. Kraken: Complaint (‘Unregistered Crypto Exchange’)
Complaint alleging the defendants operated - in the form of a crypto platform - as a securities exchange, broker/dealer, and clearing agency without being registered in U.S. Securities and Exchange Commission v. Payward Inc. and Payward Ventures Inc., collectively doing business as Kraken, at the U.S. District Court for the Northern District of California.
SEC v. John Hughes: Complaint (‘Investment Adviser Fraud’)
Complaint alleging "a multi-year investment adviser fraud orchestrated by Hughes, Individual 1, Prophecy Asset Management LP, and Individual 2" involving entities in the British Virgin Islands, Cayman Islands, and Delaware in U.S. Securities and Exchange Commission v. John Hughes at the U.S. District Court for the District of New Jersey.
SEC v. SafeMoon LLC et al: Complaint (‘Crypto Securities Fraud’)
Complaint alleging the defendants "perpetrated a massive fraudulent scheme that generated millions through the unregistered offer and sale of a crypto asset security called the SafeMoon Token" in U.S. Securities and Exchange Commission v. SafeMoon LLC, SafeMoon US LLC, Kyle Nagy, Braden John Karony, and Thomas Glenn Smith at the U.S. District Court for the Eastern District of New York.
FTC v. Voyager Digital LLC et al: Settlement (‘$1.65B Crypto Fraud’)
Stipulated Order for Permanent Injunction, Monetary Judgment, and Other Relief in Federal Trade Commission v. Voyager Digital LLC, Voyager Digital Holdings Inc., Voyager Digital Ltd., of Canada, and Stephen Ehrlich, as Defendants, and Francine Ehrlich, as Relief Defendant, at the U.S. District Court for the Southern District of New York.
FTC v. Voyager Digital LLC et al: Complaint (‘Crypto Fraud’)
Complaint in Federal Trade Commission v. Voyager Digital LLC, Voyager Digital Holdings Inc., Voyager Digital Ltd., of Canada, and Stephen Ehrlich, as Defendants, and Francine Ehrlich, as Relief Defendant, at the U.S. District Court for the Southern District of New York.
CFTC v. Stephen Ehrlich: Complaint (‘Voyager Digital Crypto Fraud’)
Complaint alleging the defendant and Voyager Digital, of which he was CEO, "fraudulently solicited participation in and operated a digital asset trading and custody platform in a manner that resulted in Voyager’s bankruptcy, owing its U.S. customers over $1.7 billion" in U.S. Commodity Futures Trading Commission v. Stephen Ehrlich at the U.S. District Court for the Southern District of New York.
CFTC v. Or Patreanu et al: Complaint (‘Crypto Fraud’)
Complaint alleging the defendants, "doing business under multiple brand names including Trade2Get, Coinbull, Cryptonxt, Tradenix, Cryptobravos, Nittrex, Wobit, and Pinance", perpetrated a crypto-based investment fraud in Commodity Futures Trading Commission v. Or Patreanu, of Israel; Snir Hananya, of Italy; Artem Prokopenko, of Ukraine; Elijah Samson, of Germany, and Expected Value Plus Ltd., of Seychelles, at the U.S. District Court for the District of New Jersey.
SEC v. Vista Financial Advisors LLC et al: Complaint (‘Ownership Disclosure Misrepresentation’)
Complaint alleging misrepresentation of ownership involving, inter alia, "a Swedish trust" in U.S. Securities and Exchange Commission v. Vista Financial Advisors LLC and Ruben Cedrick Williams at the U.S. District Court for the Southern District of New York.
SEC v. Aras Investment Business Group S.A.P.I. de C.V. et al: Complaint (‘$6M Fraud’)
Complaint alleging "a multi-million-dollar Ponzi scheme, affinity fraud, and unregistered offering of securities" in U.S. Securities and Exchange Commission v. Aras Investment Business Group S.A.P.I. de C.V., of Chihuahua, Mexico; Armando Gutierrez Rosas, Maria de Lourdes Tolentino Roque, Diayanira Rendon Trejo, Efren Norberto Quiroz Gardea, and Luis Ricardo Quiroz Gardea, all citizens of Mexico, at the U.S. District Court for the Western District of Texas.
SEC v. William Miller: Complaint (‘$10M Securities Fraud’)
Complaint alleging the defendant "made material misstatements to two entities that would each invest $5 million in Woodstock Partners, a charter school in Minnesota and a real estate fund in Michigan" involving entities in the Cayman Islands, Delaware, and New Jersey in U.S. Securities and exchange Commission v. William E. Miller, of Charlotte, North Carolina, USA, at the U.S. District Court for the Southern District of New York.
SEC v. Concord Management LLC et al: Complaint (‘$7.2B Unregistered Investment Advisers for Sanctioned Russian’)
Complaint alleging the defendants operated as "investment advisers for the benefit of a single client: a wealthy former Russian political official living outside the United States" without being registered with the SEC, managing "a private fund securities portfolio with an estimated total value of $7.2 billion", in U.S. Securities and Exchange Commission v. Concord Management LLC and Michael Matlin, both of New York, USA, at the U.S. District Court for the Southern District of New York. Editor's Note: The 'Russian client' is not identified in the SEC's complaint but The New York Times reported that it was Roman Abramovich.
SEC v. Wilson Rondini III et al: Complaint (‘Unregistered Broker-Dealer’)
Complaint alleging the defendants operated as a broker-dealer without being registered in U.S. Securities and Exchange Commission v. Wilson J. Rondini III, of Florida, USA; Falcon Capital LLP, of the United Kingdom, and Falcon Capital Partners Limited, of Hong Kong, at the U.S. District Court for the Southern District of Florida.
SEC v. NDB Inc. et al: Complaint (‘$1.2M Securities Fraud’)
Complaint alleging "the fraudulent offer and sale of securities" in U.S. Securities and Exchange Commission v. NDB Inc., described as a Wyoming-domiciled and based "private technology startup company formerly based in San Francisco and Pleasanton, California", and Nima Golsharifi, described as a resident of London, England, at the U.S. District Court for the Northern District of California.
SEC v. Guosheng Qi et al: Complaint (‘Securities Fraud’)
Complaint alleging "misuse and unreported use of funds raised in a 2016 initial public offering (IPO) as well as Defendants’ failure to disclose millions of dollars in related-party transactions that benefitted Defendant Qi’s family members" in U.S. Securities and Exchange Commission v. Guosheng Qi, described as a resident of China and Hong Kong, and Gridsum Holding Inc., described as Cayman Islands-domiciled "cloud-based analytics company", as Defendants, and Huijie He, described as a resident of China and Hong Kong, as Relief Defendant, at the U.S. District Court for the Southern District of New York.
SEC v. Romero Cabral da Costa Neto: Complaint (‘Brazil Attorney’s Insider Trading’)
Complaint alleging insider trading by the defendant "while employed at an international law firm with an office in Washington, D.C." while employed there "as a visiting international attorney from Brazil" in U.S. Securities and Exchange Commission v. Romero Cabral da Costa Neto at the U.S. District Court for the District of Columbia.
SEC v. Andrew Waters et al: Complaint (‘Securities Fraud’)
Complaint alleging securities fraud regarding "his private sale of restricted common stock in ECom Products Group Corporation, a Florida corporation that purportedly owns, consolidates, and manages e-commerce platforms" in U.S. Securities and Exchange Commission in Andrew Wyles Waters, a citizen of Australia, as Defendant, and Helen Q. Waters, a citizen of Australia, as Relief Defendant, at the U.S. District Court for the Central District of California.
SEC v. Christopher Slaga et al: Complaint (‘$3.5M Securities Fraud’)
Complaint regarding "Defendants’ scheme that raised approximately $3.5 million from at least 17 investors through a fraudulent and unregistered securities offering" in U.S. Securities and Exchange Commission v. Christopher Slaga, a.k.a. Keith Renko, described as a resident of Barbados; Q4 Capital Group LLC, J4 Capital Advisors LLC, and Hayden Greene at the U.S. District Court for the Central District of California.
SEC v Charles Holzer et al: Complaint (‘$382K Insider Trading’)
Complaint in U.S. Securities and Exchange Commission v. Charles Rustin Holzer, of Wellington, Florida, USA, as Defendant, and Maglione International Ltd. and Frontenac Investments Ltd., both of the Cayman Islands, as Relief Defendants, at the U.S. District Court for the Southern District of New York.
SEC v. Sisu Capital LLC et al: Complaint
Complaint in U.S. Securities and Exchange Commission v. Sisu Capital LLC, of California, USA; Timothy Overture, of California, USA, and Hansueli Overture, described as a resident of Hallau, Switzerland, at the U.S. District Court for the Northern District of California.
RTW Investments LP: $1.4M Fine (SPACs)
Administrative Order by the U.S. Securities and Exchange Commission imposing a fine of $1.4 million on RTW Investments LP for regulatory breaches involving entities in the Cayman Islands, Guernsey, and USA.
Corvex Management LP: $1M Fine
Administrative Order by the U.S. Securities and Exchange Commission imposing a fine of $1 million on Corvex Management LP for regulatory breaches "in connection with the firm's activities related to certain special purpose acquisition companies" that, inter alia, involved entities in the Cayman Islands and Delaware.
Michele Mason: $3.8K Penalties (‘Crypto Promotion’)
Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $3,820 on Michele Mason Lohan, described as “a film director and internet personality known as 'Kendra Lust'" residing in Michigan, USA, for promoting a crypto security known as “Tronix tokens” without disclosing that she was paid to do so.
Akon: $168K Penalties (‘Crypto Promotion’)
Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $168,000 on Aliaune Damala Badara Akon Thiam, described as "a well-known entertainer and internet personality known as 'Akon'" residing in Georgia, USA, for promoting a crypto security known as “Tronix tokens” without disclosing that he was paid to do so.
Shaffer Smith: $48K Penalties (‘Crypto Promotion’)
Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $48,000 on Shaffer Smith, described as “a well-known entertainer and internet personality known as 'Ne-Yo'” residing in Georgia, USA, for promoting a crypto security known as “Tronix tokens” without disclosing that he was paid to do so.
Miles McCollum: $40K Penalties (‘Crypto Promotion’)
Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $40,000 on Miles McCollum, described as "a well-known recording artist and internet media personality known as 'Lil Yachty'" residing in Georgia, USA, for promoting a crypto security known as “Tronix tokens” without disclosing that he was paid to do so.
Jake Paul: $100K Penalties (‘Crypto Promotion’)
Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $100,000 on Jake Paul, described as "a well-known internet personality and professional boxer" residing in Puerto Rico, for promoting a crypto security known as "Tronix tokens" without disclosing that he was paid to do so.
Lindsay Lohan: $40K Penalties (‘Crypto Promotion’)
Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $40,000 on Lindsay Lohan, described as "a well-known actress, singer, and internet personality" residing in Dubai, United Arab Emirates, for promoting a crypto security known as "Tronix tokens" without disclosing that she was paid to do so.
Equity Acquisition Company Ltd. et al: $3.9M Penalties (USA)
Administrative Order by the U.S. Securities and Exchange Commission imposing disgorgement and penalties totaling $3.9 million on Equity Acquisition Company Ltd., described as "a trust organized under the laws of Bermuda", and Carsten Klein, described as "a citizen of Germany and lawful permanent resident of the United States residing in Parkland, Florida" to settle allegations of unregistered activity.
African Gold Acquisition Corp.: $103K Fine
Administrative Order by the U.S. Securities and Exchange Commission imposing a fine of $103,591 on African Gold Acquisition Corp., described as "a publicly traded special purpose acquisition company incorporated in the Cayman Islands with its principal place of business in New York, New York", for, inter alia, the entity's "failure to implement sufficient internal controls enabled its former chief financial officer [Cooper Morgenthau] to misappropriate nearly all of the money in African Gold’s operating bank account and to otherwise effectively use African Gold’s operating bank account as his own personal account for over one year".
Nexo Capital Inc.: $45M Fines (‘Unregistered Crypto Securities Offering’)
Press Release by the U.S. Securities and Exchange Commission announcing that Nexo Capital Inc., of the Cayman Islands, has agreed to pay $45 million in penalties for conducting an "unregistered offering of crypto asset lending product".
Nexo Capital Inc.: $22.5M Fine (‘Unregistered Crypto Offering’)
Administrative Order by the U.S. Securities and Exchange Commission imposing a civil money penalty of $22.5 million on Nexo Capital Inc., described as a Cayman Islands-domiciled provider of "crypto asset-related financial products and services", for an unregistered securities offering.
Coinbase Inc.: $50M Fine (New York)
Consent Order imposing a fine of $50 million in the Department of Financial Services v. Coinbase Inc.
Bittrex Inc.: $24M Fine (OFAC)
Public Notice by the U.S. Department of the Treasury's Office of Foreign Assets Control that Bittrex Inc., which operates a crypto exchange, has agreed to pay $24.2 million to settle an investigation into "violations of multiple sanctions programs".
Bittrex Inc.: $5M Fine (FinCEN)
Consent Order imposing a penalty of $29 million, of which $5 million will be paid after a $24 million credit to OFAC is taken into account, for violations of the Bank Secrecy Act in Financial Crimes Enforcement Network v. Bittrex Inc., a crypto exchange.
Leroy King: Order Instituting Administrative Proceedings
Order Instituting Administrative Proceedings in U.S. Securities and Exchange Commission v. Leroy King, described as "a dual citizen of both the United States and Antigua and Barbuda" who "served as the Administrator and Chief Executive Officer of the Financial Services Regulatory Commission, an agency of the Antiguan government, from approximately 2002 to 2009" and is currently serving a 10-year prison sentence after pleaded guilty to criminal charges regarding a fraud committed by former banker Allen Stanford
Kim Kardashian: $1.26M Penalties (‘Crypto Promotion-Undisclosed Compensation’)
Administrative Order by the U.S. Securities and Exchange Commission imposing penalties totaling $1.26 million on Kimberly Kardashian, described as "a well-known media personality and businesswoman" for promoting "a crypto asset security" known as EthereumMax (EMAX) without disclosing that she received compensation of "approximately $250,000".
Nexo Inc. et al: Statement of Charges (Washington State)
Statement of Charges in Washington State Department of Financial Institutions v. Nexo Inc., of the Cayman Islands; Nexo Capital Inc., of the Cayman Islands, and Antoni Trenchev, a citizen of Bulgaria.
Nexo Inc. et al: Cease and Desist Order (Maryland)
Cease and Desist Order in Maryland Securities Commission v. Nexo Inc., of the Cayman Islands; Nexo Capital Inc., of the Cayman Islands, and Antoni Trenchev, a citizen of Bulgaria.
Nexo Inc. et al: Cease and Desist Order (Oklahoma)
Cease and Desist Order by the Oklahoma Department of Securities against Nexo Financial LLC, of Delaware; Nexo Inc., of the Cayman Islands, and Nexo Capital Inc., of the Cayman Islands, which collectively operate a crypto lending platform.
Nexo Inc. et al: Cease and Refrain Oder (California)
Cease and Refrain Order by the California Department of Financial Protection and Innovation against Nexo Group, which "comprises business entities organized primarily in European countries and territories"; Nexo Inc., of the Cayman Islands, and Nexo Capital Inc., of the Cayman Islands, which collectively "a crypto platform that offers crypto interest accounts, self-directed and over-the-counter trade execution, and lending, borrowing, and exchange services".
Nexo Inc. et al: Cease and Desist Order (Vermont)
Ex Parte Order to Cease and Desist by the State of Vermont Department of Financial Regulation in re. Nexo Inc., of the Cayman Islands; Nexo Capital Inc., of the Cayman Islands, and Nexo Financial LLC, a Delaware entity based in London, England, collectively described as "a financial services company that generates revenue by providing, deploying, and investing digital assets and virtual currencies".
Nexo Inc. et al: Cease and Desist Order (Kentucky)
Emergency Order to Cease and Desist Order in the Kentucky Department of Financial Institutions v. Kentucky Department of Financial Institutions v. Nexo Inc., of the Cayman Islands; Nexo Capital Inc., of the Cayman Islands, and Nexo Group, which "comprises business entities organized primarily in European jurisdictions".
Sparkster Ltd. et al: $30M+ Penalties (‘Unregistered Crypto Offering’)
Administrative Order by the U.S. Securities and Exchange Commission imposing fines and disgorgement totaling $30.75 million on Sparkster Ltd. of the Cayman Islands, and Sajjad Daya, a resident of the United Kingdom, for conducting an unregistered securities offering involving crypto.
