Fintech

  • May 10, 2024

    Ex-Pillsbury Communications Leader Joins Dickinson Wright

    Dickinson Wright PLLC announced that a longtime Pillsbury Winthrop Shaw Pittman LLP attorney who previously served as chair of the firm's communications practice has joined its Washington, D.C., office as a member.

  • May 10, 2024

    CFTC Floats Ban On Election Betting Contracts

    A divided U.S. Commodity Futures Trading Commission approved a proposed rule Friday that would ban trading on the outcome of elections, further solidifying its contested position that such activities constitute illegal "gaming" and threaten to thrust the agency into the role of an "election cop."

  • May 09, 2024

    AI-Created Database Isn't Copyrightable, Job Search Co. Says

    Job searching platform Tarta.ai has urged a California federal judge to toss a suit accusing it of stealing rival Jobiak LLC's automated database and using it for its own job postings, arguing that Jobiak's website is not subject to copyright protection because it's powered by artificial intelligence.

  • May 09, 2024

    Amazon, Walmart Face Dem Questions Over 'Dynamic Pricing'

    Senate Banking Committee Chair Sherrod Brown on Thursday raised concerns to Amazon and Walmart about corporations hiking prices by exploiting customer data and pricing algorithms, saying it undermines consumers' ability to comparison shop and save money.

  • May 09, 2024

    Fed. Circ. Wary Of Undoing Gilstrap's Toss Of Banking IP Suit

    The Federal Circuit didn't seem convinced Thursday morning that a patent case against online stockbroker TD Ameritrade had been wrongly tossed out of court, with a judge at one point telling banking patent owner Island Intellectual Property that "this is all abstract."

  • May 09, 2024

    Attys Want $102M In Fees In Stock Loan Antitrust Deal

    Quinn Emanuel Urquhart & Sullivan LLP and Cohen Milstein Sellers & Toll PLLC attorneys asked for $102 million in fees for settling claims from investors that major banks colluded to avoid modernizing the stock loan market, saying the long and complex nature of the case warrants the payout.

  • May 09, 2024

    CFPB's Chopra Trains Sights On Credit Card Rewards

    Consumer Financial Protection Bureau Director Rohit Chopra said Thursday that his agency will be taking aim at what it is describing as "concerning patterns" in the credit card industry's rewards program practices, including stealthy changes to program benefits and manipulation of rewards point values.

  • May 09, 2024

    CFTC Moves For Win Over Gemini's 'Misleading' Statements

    The U.S. Commodity Futures Trading Commission has told a New York federal judge there's no need to try claims that Gemini Trust Co. LLC misled the regulator on a bitcoin futures contract since discovery "confirmed" that the cryptocurrency exchange made "scores of materially false or misleading statements and omissions."

  • May 09, 2024

    Binance Fined $4.4M By Canadian Regulator

    Canada's anti-money laundering watchdog levied a 6 million Canadian dollars ($4.38 million) fine against crypto exchange Binance after the firm allegedly failed to register as a money services business and didn't report thousands of large transactions on its platform.

  • May 08, 2024

    High Court Ruling May Shake Up CFPB's Litigation Docket

    A U.S. Supreme Court ruling that may come as soon as Thursday could decide the fate of not only the Consumer Financial Protection Bureau's funding structure but also numerous pending enforcement actions the agency has brought around the country. Here, Law360 surveys what's at stake and where.

  • May 08, 2024

    New Treasury Rule Amps Up Reporting Burden For Banks

    The U.S. Department of the Treasury introduced an interim final rule Wednesday that refines and further expands recent increases in reporting requirements, including a new obligation for financial institutions to notify the federal government any time they unblock frozen assets.

  • May 08, 2024

    Digitex Founder Pleads Guilty To Bank Secrecy Act Violation

    The founder of Digitex Futures Exchange has pled guilty to violating the Bank Secrecy Act by refusing to implement policies designed to prevent money laundering on his cryptocurrency futures platform.

  • May 08, 2024

    FTX Says Full Recovery Coming Based On 2022 Crypto Price

    Bankrupt cryptocurrency exchange FTX Trading Ltd. has claimed its proposed Chapter 11 plan would be able to pay creditors in full with a $13 billion distribution that exceeds the estimated allowable $11.2 billion in claims, but the payout is based on the value of cryptocurrency in November 2022, when the exchange filed for bankruptcy protection. 

  • May 08, 2024

    Bill To Undo SEC Crypto Accounting Bulletin Passes House

    Lawmakers in the U.S. House of Representatives on Wednesday voted to overturn the U.S. Securities and Exchange Commission's controversial cryptocurrency accounting guidance despite protests from Democrats to take a more targeted approach to amend the directive and a White House pledge to veto the bill.

  • May 08, 2024

    SEC Doubles Down On $2B Ripple Labs Sanction Bid

    The U.S. Securities and Exchange Commission is standing by its call for crypto platform Ripple Labs to pay $2 billion as punishment for selling unregistered securities, telling a New York federal judge that a lower penalty would send the wrong message to the industry at large.

  • May 08, 2024

    Japanese Crypto Exchange Coincheck Eyes US Listing In '24

    Simpson Thacher-led Japanese cryptocurrency exchange Coincheck Group BV plans to complete a long-awaited merger with a special-purpose acquisition company by the year's second or third quarter, a combination that would make it the second U.S.-listed crypto venue.

  • May 08, 2024

    Skadden Taps SoFi Bank, Shearman Attys For Co-Lead Roles

    Skadden Arps Slate Meagher & Flom LLP has hired two new co-leaders of its financial institutions regulatory group to advise banks, financial institutions and other market participants on regulatory and legislative developments, the firm announced Wednesday.

  • May 07, 2024

    DOJ's 'Dr. Doom' Sees AI's Crime-Fighting Abilities, And Risks

    The U.S. Department of Justice is using artificial intelligence to bolster its investigations, including into the Jan. 6 attack on the U.S. Capitol, said U.S. Deputy Attorney General Lisa Monaco on Tuesday at a cybersecurity conference at which she dove into the beneficial uses of AI alongside its threats to security and democracy.

  • May 07, 2024

    SEC Says Morrison Can't Save Terraform From Disgorgement

    The U.S. Securities and Exchange Commission said bankrupt crypto firm Terraform Labs should remain on the hook for potentially $3.6 billion in disgorgement over its fraud trial loss, saying any claims that its unregistered transactions took place beyond the court's reach are undermined by the agency's congressional authority.

  • May 07, 2024

    FINRA Fines Broker M1 Over Short Sale Identification Errors

    Financial services provider M1 Finance has agreed to pay $400,000 to the Financial Industry Regulatory Authority to settle claims that it failed to correctly identify 12 million short sales, inaccurately marking those orders as "long."

  • May 07, 2024

    Gronk, Others To Pay $2.4M In Voyager Crypto Promoter Suit

    Retired football star Rob Gronkowski, NBA player Victor Oladipo and NASCAR driver Landon Cassill have agreed to collectively pay $2.4 million to settle allegations they helped promote failed cryptocurrency exchange Voyager Digital Holdings Inc.

  • May 07, 2024

    Tax Software Co. Still Can't Trim Rival's Trade Secrets Suit

    A corporate-focused tax preparation software company still can't pare back a suit alleging that it poached workers from its rival's recently acquired company, a Pennsylvania federal judge ruled Tuesday.

  • May 07, 2024

    CFPB Fines Chime Financial Over Delayed Consumer Refunds

    The Consumer Financial Protection Bureau on Tuesday ordered fintech company Chime Financial to pay more than $4.5 million for allegedly leaving thousands of its users waiting weeks and sometimes months for their balance refunds after their accounts were closed.

  • May 07, 2024

    6th Circ. Considers Rebooting Crypto Reporting Challenge

    Sixth Circuit judges seemed unsure of whether a group of cryptocurrency users can challenge a pending mandate to report large crypto transactions, as the judges grappled Tuesday with whether the plaintiffs have shown they are harmed by the forthcoming rule and whether the challenge is premature.   

  • May 07, 2024

    Paycom Brass Face Investor Suit Over Future Revenue Woes

    The top brass of human resources technology company Paycom Software Inc. have been hit with a shareholder derivative suit alleging that executives failed to disclose that a new product to streamline payroll processes was threatening its future revenue by helping companies avoid errors they would otherwise pay to fix.

Expert Analysis

  • How Harsher Penalties For AI Crimes May Work In Practice

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    With recent pronouncements from the U.S. Department of Justice that prosecutors may seek sentencing enhancements for crimes committed using artificial intelligence, defense counsel should understand how the sentencing guidelines and statutory factors will come into play, says Jennie VonCannon at Crowell & Moring.

  • 2nd Circ.'s Binance Locus Test Adds Risk For Blockchain Cos.

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    The Second Circuit’s recent use of the irrevocable liability test to rule a class action may proceed against decentralized crypto exchange Binance heightens the possibility that other blockchain-based businesses with domestic customers and digital infrastructure will find themselves subject to U.S. securities laws, say attorneys at Holland & Knight.

  • Protested CFPB Supervisory Order Reveals Process, Priorities

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    The Consumer Financial Protection Bureau’s order announcing its first use of special oversight power to place installment lender World Acceptance Corp. under supervision despite resistance from the company provides valuable insight into which products and practices may draw bureau scrutiny, and illuminates important nuances of the risk assessment procedures, say Josh Kotin and Michelle Rogers at Cooley.

  • Document Retention Best Practices To Lower Litigation Risks

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    As new technologies emerge and terabytes of data can be within the purview of a single discovery request, businesses small and large should take four document management steps to effectively minimize risks of litigation and discovery sanctions long before litigation ensues, says Kimbrilee Weber at Norris McLaughlin.

  • Series

    Riding My Peloton Bike Makes Me A Better Lawyer

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    Using the Peloton platform for cycling, running, rowing and more taught me that fostering a mind-body connection will not only benefit you physically and emotionally, but also inspire stamina, focus, discipline and empathy in your legal career, says Christopher Ward at Polsinelli.

  • Compliance Steps After ABA White Collar Crime Conference

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    Senior law enforcement officials’ statements this month at the American Bar Association's white collar crime conference suggest government enforcement efforts this year will increasingly focus on whistleblower incentives, artificial intelligence and data protection, and companies will need to update their compliance programs accordingly, say attorneys at Baker McKenzie.

  • Spartan Arbitration Tactics Against Well-Funded Opponents

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    Like the ancient Spartans who held off a numerically superior Persian army at the Battle of Thermopylae, trial attorneys and clients faced with arbitration against an opponent with a bigger war chest can take a strategic approach to create a pass to victory, say Kostas Katsiris and Benjamin Argyle at Venable.

  • What 2 Years Of Ukraine-Russia Conflict Can Teach Cos.

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    A few key legal lessons for the global business community since Russia's invasion of Ukraine could help protect global commerce in times of future conflict, including how to respond to disparate trade restrictions and sanctions, navigate war-related contract disputes, and protect against heightened cybersecurity risks, say attorneys at Morgan Lewis.

  • How AI May Be Used In Fintech Fraud — And Fraud Detection

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    Recent enforcement actions in the fintech and finance industries show that the government is increasingly pursuing fraud enabled by artificial intelligence — at the same time it’s using AI innovations to enforce regulations and investigate fraud, say attorneys at ArentFox Schiff.

  • What Recent Study Shows About AI's Promise For Legal Tasks

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    Amid both skepticism and excitement about the promise of generative artificial intelligence in legal contexts, the first randomized controlled trial studying its impact on basic lawyering tasks shows mixed but promising results, and underscores the need for attorneys to proactively engage with AI, says Daniel Schwarcz at University of Minnesota Law School.

  • Banks Should Continue To Prep For CFPB Data Rule Rollout

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    Consumer Financial Protection Bureau-supervised banks should not expect industry pressure to delay the rollout of proposed Section 1033 open banking rules, which regulate how consumer financial information flows between financial institutions, and prepare their required data access portals and compliance procedures now, say attorneys at Troutman Pepper.

  • Fintech 'Prenups': Planning For A Card Program Breakup

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    After a year of economic downturns, some banks and their fintech partners are realizing they may have rushed to the altar without a good prenup, but planning ahead can curb both foreseeable and unexpected issues in the event of a termination of a bank-fintech card-issuing agreement, say Andrew Grant at Ketsal and Richard Malish at Community Federal Savings Bank.

  • 3 Notification Pitfalls To Avoid With Arbitration Provisions

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    In Lipsett v. Popular Bank, the Second Circuit found that a bank's arbitration provision was unenforceable due to insufficient notice to a customer that he was bound by the agreement, highlighting the importance of adequate communication of arbitration provisions, and customers' options for opting out, say attorneys at Covington.

  • What Fed's Credit-Linked Note FAQ Means For Capital Relief

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    U.S. banks that seek to mitigate their loss of liquidity under the Basel III capital requirements by issuing direct credit-linked notes should turn to recent Federal Reserve FAQs for insight into how this new use of synthetic securitizations may reshape risk and regulation in the U.S. market, says Cris Cicala at Stinson.

  • Fintech Compliance Does Not Always Equal Bank Compliance

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    Recent enforcement actions are a reminder for banks working with financial technology providers — whether as partners to extend their reach or as internal resources to support existing operations — that few areas of risk need more frequent attention than Bank Secrecy Act and anti-money laundering compliance, says Christopher Couch at Phelps Dunbar.

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