In its second action involving NFTs, the SEC targets an offering tied to fundraising and promises of future value. By Ghaith Mahmood, Nima H. Mohebbi, Stephen P. Wink, Douglas K. Yatter, Adam Zuckerman, Luca Marquard, and Deric Behar On September 13, 2023, the Securities and Exchange Commission (SEC) issued a cease-and-desist order (the Order) against … Continue Reading
In its first enforcement action involving NFTs, the SEC focused on issuer marketing that promised outsized returns on investment and platform building. By Ghaith Mahmood, Nima H. Mohebbi, Stephen P. Wink, Douglas K. Yatter, Adam Zuckerman, and Deric Behar On August 28, 2023, the Securities and Exchange Commission (SEC) issued a cease-and-desist order (the Order) … Continue Reading
Ethereum’s transition to proof of stake presents opportunities and pitfalls for certain digital assets and tokens built on the network. By Jenny Cieplak, Ghaith Mahmood, Yvette D. Valdez, Stephen P. Wink, Adam Fovent, and Justin Tzeng After years of development, the Ethereum blockchain appears poised to make its much-anticipated transition from a proof-of-work (PoW) consensus … Continue Reading
Bitcoin Association for BSV will release software to facilitate court orders to freeze stolen or lost coins, while some courts recently authorised service proceedings by tokenised airdrop. By Christian F. McDermott, Andrew C. Moyle, and Nara Yoo Earlier this year, in Tulip Trading Ltd (TTL) v. Bitcoin Association for BSV (Bitcoin Association) and others, the … Continue Reading
The latest analysis of “smarter contracts” provides helpful guidance on the opportunities and potential legal and practical risks in adopting these technologies. By Christian F. McDermott, Andrew C. Moyle, and Nara Yoo LawtechUK’s latest analysis of so-called smarter contracts in the UK, set out in its Smarter Contracts Report (the Report), seeks to identify how … Continue Reading
A new Article 12 and amendments to Article 9 regarding “controllable electronic records” would govern transactions and security interests in digital assets. By Lawrence Safran and Deric Behar On July 13, 2022, the Uniform Law Commission (in partnership with the American Law Institute) approved amendments intended to modernize the Uniform Commercial Code (UCC). The amendments … Continue Reading
The SFC issued a statement to clarify its regulatory approach in relation to non-fungible tokens and remind investors of related risks. By Simon Hawkins, Farhana Sharmeen, Adrian Fong, Gen Huong Tan and Shirley Wong On 6 June 2022, the Hong Kong Securities and Futures Commission (SFC) issued a statement drawing attention to the risks associated … Continue Reading
The Court held that software developers do not owe a duty of care to bitcoin owners who lost their private keys. By Christian F. McDermott, Andrew C. Moyle, and Nara Yoo In Tulip Trading Ltd (TTL) v. Bitcoin Association for BSV and others, TTL claimed that personal computers of its CEO, Dr. Craig Wright, were … Continue Reading
Popular and institutional interest in digital assets, decentralized applications, NFTs, and blockchain technology skyrocketed, and regulators sprinted to catch up. By Todd Beauchamp, Yvette D. Valdez, Stephen P. Wink , Adam Bruce Fovent, Adam Zuckerman, and Deric Behar For the digital asset markets, 2021 was a banner year. Among the milestones: • Bitcoin prices hit … Continue Reading
NFT creators should craft strategies to avoid minting or auctioning NFTs that use the likeness of an individual without their consent. By Ghaith Mahmood, Nima H. Mohebbi, and Tara McCortney As non-fungible tokens (NFTs) increase in popularity, the so-called common law “right of publicity” may create additional legal risks for NFT minters. The common law … Continue Reading
