SEC’s Lawsuit Against Telegram Raises Questions About Cryptocurrency “Presales” Under Regulation D

On October 11, 2019, the Securities and Exchange Commission (“SEC”) filed a lawsuit against Telegram Group, Inc. and TON Issuer, Inc. (“Telegram”), and simultaneously obtained a temporary restraining order preventing Telegram from issuing its “Gram” cryptocurrency, which had been scheduled for delivery on October 31, 2019.  The SEC claimed that the sale of Grams amount…

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You Got Loot? FTC Examines In-Game Purchases

The FTC held three panels on Wednesday, August 7, 2019, that centered on one topic: loot boxes earned or purchased during online game play. It’s clear from the selection of panelists and the questions posed by FTC staff that the FTC is on high alert about potential consumer protection issues surrounding these in-game purchases.  If…

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Equifax Settlement Teaches The Dos and Dont’s About Data Security

It’s been a busy summer for the FTC and the federal agency is dominating the headlines. There is the $5 billion settlement with Facebook for failing to better protect user privacy, which was announced earlier this month. Then there is the multimillion dollar settlement with Google for failing to adequately protect children’s privacy. That was…

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Ability to Revoke TCPA Consent Limited When Consent Was Provided Via Contract

Although the Telephone Consumer Protection Act (“TCPA”) limits the ways in which companies may contact individuals via automated dialers, with prerecorded messages, or via text message, one of its hallmarks is that companies are entitled to contact consumers who have provided their express consent to be called.  However, in 2015, the Federal Communications Commission (“FCC”)…

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INITIAL EXCHANGE OFFERING: THE NEW PARADIGM FOR CRYTPO CAPITAL?

Crypto exchange Bittrex made news this week when it announced its first initial exchange offering (IEO), which it was to host through its Malta-based affiliate Bittrex International.  Bittrex planned to offer its registered members the opportunity to buy RAID’s XRD token.  RAID is an international gaming data blockchain project, with the goal to create a…

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UPDATE – NOT SO FAST INDEED: DISTRICT COURT BALKS AT SEC’S BLANKET CHARACTERIZATION OF TOKENS AS SECURITIES BUT THEN RECONSIDERS RULING

An issue of major importance to cryptocurrency and digital token markets has been whether tokens were all to be considered securities under U.S. law.  The SEC’s frequent admonishments that it would consider ICOs to be securities offerings has caused a dramatic slowdown in the US ICO market.  In one of the first cases to test…

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