Author: esquire

Case Summary (IRAC) Issue: Whether Bithumb, a South Korean cryptocurrency exchange, engaged in fraudulent activities resulting in losses for investors. Rule: Under South Korean law, entities like Bithumb are prohibited from engaging in deceptive practices that mislead investors. Fraud in South Korea generally involves an intentional act that results in an unfair advantage by deceiving…

Case Summary: Oracle vs. CryptoOracle Issue: Whether CryptoOracle infringed upon Oracle’s trademark rights and created brand confusion by operating with a similar name in a related technology sector. Rule: Trademark infringement occurs when a party uses a mark that is the same or confusingly similar to a registered trademark owned by another party in connection…

IRAC Summary: State of Florida v. Espinoza Issue: The State of Florida charged Espinoza with the crime of money laundering as he operated a Bitcoin exchange service without a money transmitting license, which, according to the state, was a violation of Florida’s money transmitting and money laundering statutes. Rule: Under Florida law, money laundering is…

Brief Summary of the Case (IRAC) Issue: Whether Trendon Shavers and his company, Bitcoin Savings and Trust (BTCST), violated federal securities laws by operating a Ponzi scheme, which promised high returns on investments in Bitcoin-related opportunities but used new investors’ bitcoins to pay existing investors. Rule: Under federal securities laws, including the Securities Act of…

Case Summary (IRAC Pattern) Issue: Whether Bitfinex, a cryptocurrency exchange platform, engaged in fraudulent activities and violated New York law by mismanaging customer funds and engaging in unlicensed and fraudulent activities related to the cover-up of an $850 million loss. Rule: The New York Attorney General (NYAG) relies on the New York Martin Act and…

Brief Summary: Telegram Group Inc. Securities Case Issue: Whether Telegram Group Inc.’s offering of digital tokens was in violation of the U.S. securities laws by failing to register the offering. Rule: The U.S. securities laws, specifically the Securities Act of 1933, require that any offer or sale of securities be registered with the Securities and…

Brief Summary of the Case (IRAC Pattern) Issue: The primary legal question is whether Ripple Labs Inc. and its executives conducted an unregistered securities offering of $1.3 billion through the sale of XRP tokens, in violation of federal securities laws. Rule: The Securities Act of 1933 requires that all offerings of securities in the United…

Case Summary: Former OpenSea Employee Insider Trading NFTs Issue: Whether the former employee of OpenSea engaged in insider trading by using confidential information to purchase Non-Fungible Tokens (NFTs) before they were featured on the OpenSea platform, thus benefiting from the increased value once they were promoted. Rule: Insider trading is the illegal practice of trading…

IRAC Summary: Issue: The central issue is whether OneCoin Ltd operated as a pyramid scheme, violating securities laws and committing fraud against its participants. Rule: Under various jurisdictions’ laws, a pyramid scheme is an illegal business model that recruits members via a promise of payments or services for enrolling others into the scheme, rather than…

Brief Summary of the Case (IRAC Pattern) Issue: The central issue is whether the former Coinbase manager engaged in insider trading by using confidential information about upcoming announcements of new cryptocurrency listings on the Coinbase exchange to profit from trades made before the information was publicly available. Rule: Insider trading is prohibited under U.S. securities…

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.…