SEC Cryptocurrency Enforcement: Fraud and Unregistered Securities Offering Allegations
Wednesday, January 19, 2022

The following is an excerpt from a Cornerstone Research report entitled SEC Cryptocurrency Enforcement: 2021 UpdateTo read the full report, please click here.

For more information about this report, please click here.

  • In 2021, three of the six administrative proceedings alleged fraud under Section 17(a) of the Securities Act and/or Section 10(b) and Rule 10b-5 of the Exchange Act, while 10 of the 14 litigations alleged a fraudulent scheme.

  • Moreover, four of the six administrative proceedings and 12 of the 14 litigations alleged an unregistered securities offering violation under Sections 5(a) and 5(c) of the Securities Act. 

  • Overall, since 2013, 54 (56%) SEC enforcement actions alleged fraudulent behavior, while 71 (73%) alleged an unregistered securities offering violation under Sections 5(a) and 5(c) of the Securities Act.

In 2021, the vast majority of litigations alleged fraud, while the majority of administrative proceedings involved alleged violations of an unregistered securities offering.

Source: SEC.gov

Note: The figure focuses on SEC cryptocurrency administrative proceedings under Section 8A of the Securities Act and/or Section 21C of the Exchange Act and litigations where fraud was alleged under Section 17(a) of the Securities Act and/or Section 10(b) and Rule 10b-5 of the Exchange Act.

Source: SEC.gov

Note: The figure focuses on SEC cryptocurrency administrative proceedings under Section 8A of the Securities Act and/or Section 21C of the Exchange Act and litigations where the SEC alleged a violation of Sections 5(a) and 5(c) of the Securities Act. 

 

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