Archive

Is the privatization of whistleblower programs a trend?

Posted 12/3/21

Tether is a type of cryptocurrency known as a “stablecoin.” That means, in theory, that anyone buying Tether is promised Tether holds an equal amount of U.S. currency to back up your crypto purchases. There’s just one problem with that: no one has seen any proof that Tether actually holds anywhere close to sufficient currency to back up the billions in stablecoins traded. All Tether has offered is an...

Tagged in: Cryptocurrency, Financial and Investment Fraud, Whistleblower Rewards,

SEC Chairman Views Cryptocurrency Markets as the “Wild West” and Calls for More Investor Protection

Posted 08/13/21

Cryptocurrency and US Hundred Dollar Bills Scattered Around

During a recent speech discussing the intersection of national security with cryptocurrencies at the Aspen Security Forum, Gary Gensler, the new Chairman of the Securities and Exchange Commission (SEC), made clear the SEC will use its broad powers to continue protecting investors from the volatility associated with cryptocurrency markets which he characterized as the “Wild West.” He also urged Congress to grant...

Tagged in: Cryptocurrency, Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Insider Trading, Market Manipulation and Trading Violations, Ponzi Schemes, Securities Fraud, Whistleblower Rewards,

How will regulators respond to Bitcoin’s price fluctuations?

Posted 05/18/21

The price of Bitcoin—never stable—has become even more erratic in the last month. From April 17 to May 17, the price fell 26%. Such a huge drop would be noteworthy in a stock investment. But in something claiming to be a currency, that kind of instability is normally only seen in times of crisis and hyperinflation. Coming just as cryptocurrencies are making a play to be considered mainstream, this latest...

Tagged in: Cryptocurrency, Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Insider Trading, Market Manipulation and Trading Violations, Ponzi Schemes, Securities Fraud,

CFTC Clobbers Cryptocurrency Con Man

Posted 04/1/21

Last week, the CFTC announced that a federal court entered a nearly $600 million default judgment against a British man who used bitcoin to defraud more than 1,000 people worldwide. The judgment is yet another indication that the CFTC will vigorously police cryptocurrency fraud.

The Scam

The CFTC filed a complaint against Benjamin Reynolds and his bitcoin trading and investment company, Control-Finance, back in...

Tagged in: Catch of the Week, Cryptocurrency, Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Ponzi Schemes,

Top Ten SEC and CFTC Recoveries of 2020

Posted 01/15/21

Despite its many shortcomings, 2020 did bring great news for whistleblowers: record-breaking growth in the CFTC and SEC Whistleblower Programs, as well as massive enforcement actions by both agencies. In this post, we will detail the Top Ten SEC and CFTC recoveries of 2020 in cases other than FCPA enforcement. As detailed below, the SEC netted billions of dollars in penalties and restitution from companies accused...

Tagged in: Accounting Fraud, CFTC Whistleblower Reward Program, Cryptocurrency, Financial and Investment Fraud, Fraud in CFTC-Regulated Markets, Market Manipulation and Trading Violations, SEC Whistleblower Reward Program, Securities Fraud, Top 10,

COVID Leaves Bags of Illicit Cash with Nowhere to Go

Posted 05/15/20

Few people may have given much thought to the actual mechanics of money laundering beyond rooting (or not) for Skyler and Walt’s carwash business. Many non-television criminals do, in fact, use otherwise legitimate small businesses to “launder” their money, mixing ill-gotten gains in with legitimate profits. The shutdown of the international economy has thus had a surprising consequence: illicit funds have...

Tagged in: COVID-19, Cryptocurrency, Money Laundering,

Catch of the Week: SEC Hits Actor Steven Seagal for Improper ICO Promotion

Posted 03/6/20

This week’s Catch of the Week goes to the SEC for securing over $300,000 recovery from actor Steven Seagal in connection with his alleged failure to disclose payments he received for promoting an initial coin offering (ICO) conducted by Bitcoiin2Gen (B2G). The settlement is part of the SEC’s broader effort to combat the role of celebrities in promoting novel—and sometimes fraudulent—cryptocurrency...

Tagged in: Catch of the Week, Cryptocurrency, Financial and Investment Fraud, SEC Whistleblower Reward Program, Securities Fraud,

Constantine Cannon Whistleblower Team’s Top-Ten “Staff Picks” of 2019

Posted 01/27/20

From cybersecurity, cryptocurrency, and “big data” to private-equity backed healthcare, private detention facilities, and the essential whistleblower experience – your prolific and relentless CC WB bloggers have chosen some of their favorite 2019 posts (and one from 2018) – don’t miss these insider-favorite gems!

1. Your worst nightmare – private data exposed to the unscrupulous – could be curbed...

Tagged in: Cryptocurrency, Cybersecurity and Data Breaches, FCA Federal, FCPA, Importance of Whistleblowers, Money Laundering, Pharma Fraud, Tax Fraud, Top 10, Whistleblower Case, Whistleblower Rewards,

The Latest on Cryptocurrency, Offshore Tax Avoidance and Money-Laundering, and Whistleblowing: A Report from OffshoreAlert Miami 2019

Posted 05/3/19

Hanging Hundred Dollar Bills on Clothes Line

“A diverse collection of the hunters and the hunted.” That’s how the Wall Street Journal described the OffshoreAlert Conference in 2009. The 2019 conference was no different, bringing together those who work in the offshore industry, the government enforcers who try to stop the unscrupulous among them, and the asset recovery professionals who pursue lost funds. Alongside them were whistleblowers and their...

Tagged in: CFTC Whistleblower Reward Program, Cryptocurrency, Financial and Investment Fraud, Importance of Whistleblowers, IRS Whistleblower Reward Program, Market Manipulation and Trading Violations, Money Laundering, Ponzi Schemes, SEC Whistleblower Reward Program, Securities Fraud, Tax Fraud,

Federal Judge — CFTC Can Regulate “Cryptocurrency” Fraud

Posted 10/10/18

In good news for investors, a Massachusetts federal judge recently ruled that the Commodity Futures Trading Commission (CFTC) has the authority to fight fraud in the booming virtual currency market. The decision follows on the heels of a ruling in New York where a different federal judge reached the same conclusion. Through the Commodity Exchange Act, Congress authorized the CFTC to fight fraud involving...

Tagged in: CFTC Whistleblower Reward Program, Court Decision, Cryptocurrency, Fraud in CFTC-Regulated Markets,

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Is the privatization of whistleblower programs a trend?

SEC Chairman Views Cryptocurrency Markets as the “Wild West” and Calls for More Investor Protection

How will regulators respond to Bitcoin’s price fluctuations?

CFTC Clobbers Cryptocurrency Con Man

The Scam

Top Ten SEC and CFTC Recoveries of 2020

COVID Leaves Bags of Illicit Cash with Nowhere to Go

Catch of the Week: SEC Hits Actor Steven Seagal for Improper ICO Promotion

Constantine Cannon Whistleblower Team’s Top-Ten “Staff Picks” of 2019

The Latest on Cryptocurrency, Offshore Tax Avoidance and Money-Laundering, and Whistleblowing: A Report from OffshoreAlert Miami 2019

Federal Judge — CFTC Can Regulate “Cryptocurrency” Fraud

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