Cohen & Gresser partners Christian R. Everdell and Sri Kuehnlenz examine how the nomination of Jay Clayton as U.S. Attorney for the Southern District of New York could shape the office’s enforcement priorities in a new article published by Law360. The piece explores anticipated areas of focus and the potential implications for white-collar enforcement and corporate investigations.

Read the full article on Law360 here (subscription required).

Super Lawyers once again named C&G co­-founder Mark S. Cohen and partner Jonathan S. Abernethy to the Super Lawyers list of the Top 100 lawyers in the New York metropolitan area.

Super Lawyers and Rising Stars are annual lists of outstanding lawyers who have attained a high degree of peer recognition and professional achievement. Only 5 percent of the lawyers in each state are selected as Super Lawyers, and only 2.5 percent are selected as Rising Stars.

The C&G lawyers recognized on the New York Metro Super Lawyers list are:

• Jonathan S. Abernethy, Criminal Defense: White Collar
• Kwaku Andoh, Mergers & Acquisitions
• Luke Appling, Civil Litigation: Defense
• Elizabeth Bernhardt, Business Litigation
• Karen H. Bromberg, Intellectual Property
• Jason Brown, Criminal Defense: White Collar
• Joanna K. Chan, Securities Litigation
• Mark S. Cohen, Business Litigation
• Gale Dick, Business Litigation
• Christian R. Everdell, Criminal Defense: White Collar
• Robert J. Gavigan, Mergers & Acquisitions
• Lawrence T. Gresser, Business Litigation
• Oliver S. Haker, Business Litigation
• Johannes Jonas, Mergers & Acquisitions
• Nicholas J. Kaiser, Real Estate
• David F. Lisner, Business Litigation
• Ellen Paltiel, General Litigation
• Douglas J. Pepe, Business Litigation
• Matthew V. Povolny, Business Litigation
• Bonnie J. Roe, Securities & Corporate Finance
• Stephen M. Sinaiko, Business Litigation
• Mark Spatz, Civil Litigation: Defense
• Daniel H. Tabak, Business Litigation
• Scott D. Thomson, Business Litigation
• Alexandra Wald, Business Litigation

The C&G lawyers recognized on the New York Metro Rising Stars list are:

• Sharon L. Barbour, Criminal Defense: White Collar
• Randall W. Bryer, Business Litigation
• Shannon A. Daugherty, Business Litigation
• Drew S. Dean, General Litigation
• Christine M. Jordan, General Litigation
• William Kalema, Business Litigation
• Phoebe King, Business Litigation
• Sri Kuehnlenz, Civil Litigation: Defense
• Marvin J. Lowenthal, Criminal Defense: White Collar
• Barbara K. Luse, Criminal Defense: White Collar
• Alexandra Theobald, Business Litigation
• Myia Williams, Mergers & Acquisitions
• Benjamin Zhu, General Litigation

Mark Cohen is once again recognized as a Leading Partner in both Securities Litigation and Corporate Investigations & White-Collar Crime: Advice to Individuals.

The 2024 guide also recognizes Lawrence T. Gresser, Jonathan Abernethy, Jason Brown, S. Gale Dick, Christian Everdell, Jeffrey Lang, Alisa Lu, Melissa Maxman, Douglas Pepe, John Roberti, Daniel Tabak, and Ronald Wick as recommended lawyers.

This 17th edition of The Legal 500 United States guide, which identifies the “true superstars of the profession,” involved a detailed assessment of various factors, including work conducted by law firms over the past 12 months and historically; experience and depth of teams; and client feedback.

Founded in 2002, Cohen & Gresser’s New York office serves as the firm’s headquarters. Our New York attorneys are particularly strong in complex litigation, investigations, and transactions. The firm’s Washington, D.C. office handles a range of commercial litigation and regulatory enforcement actions, with a focus on domestic and foreign antitrust issues.

The firm’s White Collar Defense & Regulation practice is once again ranked in the guide, maintaining its position as one of the “Elite” firms in the Litigation: White-Collar Crime & Government Investigations category. Chambers recognized the firm’s “strong regulatory investigations and enforcement practice,” specifically highlighting its “expert financial services practice which offers particular strengths in FINRA and SEC proceedings.” Client feedback praises the team for its “strong expertise with the DOJ and with prosecutors.”

The Commercial Litigation practice is also ranked in the Litigation: General Commercial: Highly Regarded category, receiving high praise from clients for having a “strong understanding of the client’s needs” and for being “smart, creative and willing to try difficult strategies and aggressive approaches.”

The firm’s Antitrust & Competition practice is ranked in the Antitrust category, with Chambers noting that “Cohen & Gresser houses a strong practice across a range of antitrust disputes [including] sophisticated litigation.” Client feedback praises the team for being “creative and responsive” and having “strong knowledge of antitrust class actions.”

Partners throughout Cohen & Gresser’s US practices also earned individual rankings in the following categories:

Antitrust: Litigation Specialists (DC)                                  

Melissa H Maxman

John Roberti

Litigation: General Commercial (NY)

Lawrence T Gresser

Litigation: Securities (NY)

Mark S Cohen

Litigation: White-Collar Crime & Government Investigations (NY)

Jonathan S Abernethy

Jason Brown

Mark S Cohen

Christian R Everdell

Chambers is the world’s leading legal data and analytics provider, highlighting the top lawyers and law firms across the USA based on in-depth research that includes reference feedback, client satisfaction, reputation in the market, peer knowledge, and other discreet independent market sources.

Super Lawyers named C&G co­founder Mark S. Cohen one of the Top 10 lawyers in the New York metropolitan area. Partners Jonathan S. Abernethy and Karen H. Bromberg have also been named to the Super Lawyers list of the Top 100 lawyers in the New York metropolitan area. Additionally, Karen has been recognized as one of the Top 50 women lawyers within the same region.

Super Lawyers and Rising Stars are annual lists of outstanding lawyers who have attained a high degree of peer recognition and professional achievement. Only 5 percent of the lawyers in each state are selected as Super Lawyers, and only 2.5 percent are selected as Rising Stars.

The C&G lawyers recognized on the New York Metro Super Lawyers list are:

• Jonathan S. Abernethy, Criminal Defense: White Collar
• Kwaku Andoh, Mergers & Acquisitions
• Luke Appling, Civil Litigation: Defense
• Elizabeth Bernhardt, Business Litigation
• Colin C. Bridge, Criminal Defense: White Collar
• Karen H. Bromberg, Intellectual Property
• Jason Brown, Criminal Defense: White Collar
• Joanna K. Chan, Securities Litigation
• Mark S. Cohen, Business Litigation
• S. Gale Dick, Business Litigation
• Christian R. Everdell, Criminal Defense: White Collar
• Robert J. Gavigan, Mergers & Acquisitions
• Lawrence T. Gresser, Business Litigation
• Oliver S. Haker, Business Litigation
• Johannes Jonas, Mergers & Acquisitions
• Nicholas J. Kaiser, Real Estate
• Jeffrey I. Lang, Civil Litigation: Defense
• David F. Lisner, Business Litigation
• Ellen Paltiel, General Litigation
• Douglas J. Pepe, Business Litigation
• Matthew V. Povolny, Business Litigation
• Nathaniel P. T. Read, Business Litigation
• Bonnie J. Roe, Securities & Corporate Finance
• Stephen M. Sinaiko, Business Litigation
• Mark Spatz, Civil Litigation: Defense
• C. Evan Stewart, Securities Litigation
• Daniel H. Tabak, Business Litigation
• Scott D. Thomson, Business Litigation
• Alexandra Wald, Business Litigation

The C&G lawyers recognized on the New York Metro Rising Stars list are:

• Sharon L. Barbour, Criminal Defense: White Collar
• Randall W. Bryer, Business Litigation
• Shannon A. Daugherty, Business Litigation
• Drew S. Dean, General Litigation
• Jesse Greenwald, Criminal Defense: White Collar
• Christine M. Jordan, General Litigation
• William Kalema, Business Litigation
• Sri Kuehnlenz, Civil Litigation: Defense
• Marvin J. Lowenthal, Criminal Defense: White Collar
• Barbara K. Luse, Criminal Defense: White Collar
• Benjamin Zhu, General Litigation

C&G’s Commercial Litigation practice is once again ranked in Litigation: General Commercial: Highly Regarded. The practice is recognized for being “regularly sought after by individuals and corporates for representation in securities class actions and derivative matters, as well as various shareholder and product litigation.” Clients note that the team is comprised of “litigators that you don’t want to mess with” and is one that “you can rely on.”

C&G’s White Collar Defense & Regulation practice is ranked in Chambers USA for the ninth consecutive year. The practice maintains its position as one of the “Elite” firms in Litigation: White-Collar Crime & Government Investigations. Chambers highlights the practice’s “talented pool of litigators with a wealth of government experience” and its “international presence” as key reasons for its continued ranking. Commentary from the guide notes that the practice is “a substantial player in the New York white-collar world” that has “burst onto the scene with strong former prosecutors” and “good results for their clients.”

Ranked Departments:

• Litigation: General Commercial: Highly Regarded
• Litigation: White-Collar Crime & Government Investigations: The Elite

District of Columbia

Antitrust: Litigation Specialists

• Melissa H Maxman
• John Roberti

New York

Litigation: General Commercial

• Lawrence T Gresser

• Mark S Cohen

• Jonathan S Abernethy
• Mark S Cohen
• Christian R Everdell

Super Lawyers ranks outstanding lawyers who have attained a high degree of peer recognition and professional achievement. Only five percent of the lawyers in each state are selected as Super Lawyers, and only 2.5 percent are selected as Rising Stars.

Super Lawyers

Jonathan S Abernethy: Criminal Defense: White Collar

Kwaku Andoh: Mergers & Acquisitions

Elizabeth Bernhardt: Business Litigation

Thomas E Bezanson: Personal Injury – Products: Defense

Colin C Bridge: Criminal Defense: White Collar

Karen H Bromberg: Intellectual Property

Jason Brown: Criminal Defense: White Collar

Joanna K Chan: Securities Litigation

Mark S Cohen: Business Litigation

S Gale Dick: Business Litigation

Christian R Everdell: Criminal Defense: White Collar

Lawrence T Gresser: Business Litigation

Oliver S Haker: Business Litigation

Johannes Jonas: Mergers & Acquisitions

Nicholas J Kaiser: Real Estate

Jeffrey I. Lang: Business Litigation

Melissa H Maxman: Antitrust Litigation

Ellen Paltiel: General Litigation

Nathaniel P T Read: Business Litigation

Bonnie J Roe: Securities & Corporate Finance

Stephen M Sinaiko: Business Litigation

C Evan Stewart: Securities Litigation

Daniel H Tabak: Business Litigation

Scott D Thomson: Business Litigation

Alexandra Wald: Business Litigation

Ronald F Wick: Antitrust Litigation

Rising Stars

Luke Appling: Civil Litigation

Sharon L Barbour: Criminal Defense: White Collar

Drew S Dean: General Litigation

William Kalema: Business Litigation

Sri Kuehnlenz: Civil Litigation

Winnifred A Lewis: Securities Litigation

Marvin J Lowenthal: Criminal Defense: White Collar

Barbara K Luse: Criminal Defense: White Collar

Matthew V Povolny: Business Litigation

Benjamin Zhu: Criminal Defense: White Collar

• Litigation: General Commercial: Highly Regarded
• White-Collar Crime & Government Investigations: The Elite

• Karen H Bromberg

• Lawrence T Gresser

• Mark S Cohen

• Jonathan S Abernethy
• Mark S Cohen
• Christian R Everdell

Christian R Everdell has been promoted to partner, and Joanna K Chan, Erica Lai, and David F Lisner have been promoted to counsel.

"Congratulations and thanks to each of these exceptional attorneys for their commitment to excellence, integrity, and superb client service. We are very fortunate to have them," said Managing Partner, Lawrence T Gresser.

Cohen & Gresser announces the expansion of the firm's White Collar Defense & Regulation, Privacy & Data Security, and Litigation & Arbitration practice groups with the addition of Christian R Everdell to our New York office.

Given the success of the SEC’s whistleblower program during Clayton’s tenure as Chair, we expect the Office, under his leadership, to refine the pilot whistleblower program SDNY debuted last January. We also anticipate that, once he is at the helm, the Office will focus on prosecuting more traditional, well-established crimes, with an emphasis on national security, rather than pursuing newer, less tested theories. As discussed below, these anticipated areas of focus will help to inform company counsel’s priorities in the new year.

Refinement of SDNY’s Whistleblower Pilot Program

One of the most notable trends among U.S. Attorney’s offices in 2024 was the number of whistleblower programs created by the United States Department of Justice (the “DOJ”) and individual U.S. Attorney’s offices (including SDNY). In January 2024, SDNY announced a whistleblower program aimed at encouraging early and voluntary self-disclosure by individual participants in certain non-violent criminal conduct in exchange for non-prosecution agreements.^[1] The SDNY program, which was amended last month, seeks information regarding criminal conduct involving (1) fraud, corporate control failures, or harm to market integrity, (2) intellectual property theft, (3) bribery or fraudulent use of government funds, (4) obstruction of justice, perjury or false statements, (5) healthcare fraud, and (6) money laundering and unlicensed money transmitting businesses.^[2] Notably, the program is styled as a “pilot” program to be reassessed by the Office at some point in the future.

We expect Clayton to take a hard look at whether the SDNY program is working and amend it to make it more effective and transparent, as he did when he oversaw the SEC’s whistleblower program.^[3] For example, the SEC whistleblower program under Clayton saw a significant uptick in financial rewards paid to whistleblowers—a benefit not offered to potential whistleblowers under the current SDNY program. In fact, the current policy, as amended last month, requires whistleblowers “to forfeit the proceeds involved in the individual’s criminal misconduct and repay victims as determined by SDNY to be consistent with the individual’s role in the offense.” This may deter potential whistleblowers from participating in the program.^[4] Although payouts to whistleblowers in criminal cases may be incompatible with the policy goals of forfeiture and restitution to victims, this language does allow some discretion that Clayton may use to at least soften the financial impact on whistleblowers.

The policy also contains ambiguities that may make potential whistleblowers wary of participating. For example, the program is focused on disclosures of the crimes specified above, but it also requires an individual to disclose all criminal conduct in which they have participated.^[5] If an individual participated in criminal conduct outside of the categories covered by the program, and discloses such conduct to prosecutors, will the non-prosecution agreement offered by SDNY cover such conduct, or does the individual still face criminal liability?^[6] If Clayton is looking to increase participation in the program, these are some of the issues he may need to address.

Finally, recent directives from the Trump administration may impact the scope of the whistleblower program. For example, on February 10, 2025, the Department of Justice ordered SDNY to dismiss the indictment charging New York City Mayor Eric Adams with bribery offenses.^[7] It remains to be seen whether this decree and others from the Trump Administration will cause SDNY to limit or stop actively soliciting information about bribery offenses as part of its whistleblower program.

Anticipated Reluctance to Prosecute Novel Theories or Industries

Clayton will likely rein in novel prosecutorial theories as well. Clayton has previously expressed a reluctance to engage in any regulatory activity entailing broad policymaking which he believes is something better left to Congress. For example, during his remarks at a June 2024 Chamber of Commerce event, Clayton reportedly stated that the SEC should “stay in [its] lane” and “Congress should do its job” in developing corporate emissions disclosure rules.^[8] Clayton also left behind a market-friendly legacy at the SEC, suggesting he may be hesitant to pursue criminal cases that may stifle nascent industries and growth.^[9] Clayton’s approach appears consistent with the executive order President Trump issued on February 10, 2025 ceasing the initiation of any new investigations or enforcement actions under the Foreign Corrupt Practices Act, in which he asserted that the statute has been “stretched beyond proper bounds and abused in a manner that harms the interests of the United States.”^[10]

If Clayton applies this same mindset at SDNY, the Office will likely pursue fewer prosecutions in relatively new industries, such as digital assets and artificial intelligence, unless the conduct at issue clearly falls within the heartland of the criminal laws. This is particularly so given President Trump’s public embrace of cryptocurrency and AI in recent months.^[11] Indeed, there may not be many crypto prosecutions in progress once Clayton arrives, as SDNY has already signaled that it is shifting its focus from cryptocurrency prosecutions.^[12]

The Office may also be disinclined to apply novel theories in prosecuting more traditional crimes. Earlier this year, the SEC secured its first victories in obtaining insider trading verdicts and settlements under a theory of “shadow trading.” In contrast to traditional insider trading, “shadow trading” involves using material non-public information of one company, not to trade in the stock of that company or an acquiring company, but to trade in the stock of a different company, such as a competitor. For instance, in SEC v. Panuwat, the SEC obtained an insider trading jury verdict in April 2024 against Matthew Panuwat, a pharmaceutical executive who, after learning about the imminent acquisition of his employer, Medivation, purchased call options of a competitor, Incyte, under the theory that the options would increase in value when the sale became public.^[13] It was expected that criminal prosecutions under the same theory would soon follow. However, that may not happen with Clayton as head of SDNY, particularly given the still-novel nature of the theory and the heavier burden of proof (i.e., “beyond a reasonable doubt” vs. “preponderance of the evidence”) prosecutors must meet.

The Supreme Court’s ongoing efforts to pare back what constitutes fraud under the federal fraud statutes may also impact the Office’s prosecution of other traditional crimes, like wire fraud. In 2020, the Supreme Court ruled in Kelly v. United States that the public officials involved in the “Bridgegate” scandal did not violate federal program fraud or wire fraud laws because taking control of the lanes on the George Washington Bridge did not constitute the taking of property.^[14] Three years later, Ciminelli v. United States invalidated the Second Circuit’s long-standing theory that depriving a victim of information that would inform the victim’s economic decisions (i.e., depriving them of a “right to control”) constitutes property for purposes of the federal wire fraud statute.^[15] This trend may continue at the Supreme Court with its forthcoming opinion in Kousisis v. United States, which was argued before the Court in December 2024. The question before the Court is whether a scheme to induce a commercial transaction through deception that does not seek to harm the victim’s economic interests constitutes wire fraud (there, a government contractor — Alpha Painting and Construction Co. and its project manager, Stamatios Kousisis — provided quality repair work at a competitive price but falsely represented its compliance with regulations aimed at increasing diversity in government contracting).^[16] A decision in Kousisis is expected before the Court’s term ends in June 2025. A ruling in favor of the defendant-appellant, in conjunction with the prior Supreme Court precedents, may contribute to a narrowing of the fraud theories pursued by Clayton’s SDNY.

Potential Focus on Crimes Implicating National Security and Foreign Influence

Clayton may also shift SDNY’s enforcement focus towards cases that implicate national security or undue influence by foreign actors. This would fit within the Trump Administration’s priorities and be consistent with Clayton’s recent comments. According to Reuters, days after Clayton was announced as President Trump’s pick for SDNY in November 2024, he highlighted how, given its location in the financial capital of the world, SDNY is well-positioned to prosecute crimes relating to national security, terrorism financing, and money laundering.^[17]

Clayton might do so by continuing the Biden DOJ’s use of sanctions enforcement as a tool for prosecuting conduct raising national security or foreign influence concerns. In the past four years, the DOJ has increased its commitment to sanctions enforcement, particularly against Russian entities and individuals.^[18] The DOJ has clearly developed a successful blueprint for pursuing these types of cases. However, with the recent disbanding of Task Force KelptoCapture, the interagency task force focused largely on enforcing sanctions against Russian oligarchs, it seems likely that the focus of sanctions enforcement will shift to other countries.

Takeaways

While it may be a few months before Clayton is confirmed, looking ahead to SDNY’s potential priorities once he is at the helm may help to inform company counsel’s areas of focus in the new year.

Counsel may want to review their company’s internal reporting program to ensure it enables employees to quickly inform the company of potential issues, so it can determine how to handle the alleged violation, rather than risking the employee filing a whistleblower complaint resulting in an investigation and catching the company off guard.

While we do not expect SDNY under Jay Clayton to engage in “regulation by enforcement” when it comes to relatively new industries, such as digital assets and AI, companies should nevertheless understand the extent to which their operations implicate those new industries or technologies.

Finally, the DOJ’s focus on national security-related crimes and the likelihood that the SDNY under Clayton would continue such focus is a reminder that companies should continue to scrutinize their overseas business and relationships with foreign actors to ensure compliance with any applicable regulations and to detect potential violations.

Endnotes:

[1] See Press Release, United States Attorney’s Office for the Southern District of New York, U.S. Attorney Williams Announces Enforcement Priorities And SDNY Whistleblower Pilot Program (Jan. 10, 2024), https://www.justice.gov/usao-sdny/pr/us-attorney-williams-announces-enforcement-priorities-and-sdny-whistleblower-pilot.

[2] See SDNY Whistleblower Non-Prosecution Pilot Program, United States Attorney’s Office Southern District of New York (Jan. 14, 2025), https://www.justice.gov/d9/2025-01/01.14.2025_wb_policy_for_sdny_website.pdf.

[3] See Selected SEC Accomplishments: May 2017 – December 2020, U.S. Securities and Exchange Commission (Oct. 21, 2024), https://www.sec.gov/about/sec-commissioners/sec-historical-summary-chairmen-commissioners/jay-clayton/selected-sec-accomplishments-may-2017-december-2020.

[4] See SDNY Whistleblower Non-Prosecution Pilot Program, note 2 supra.

[5] Id.

[6] The current program does allow anonymous reports in the first instance, which may partially address this concern. See SDNY Whistleblower Program Frequently Asked Questions (FAQs), United States Attorney's Office Southern District of New York (June 26, 2024), https://www.justice.gov/usao-sdny/sdny-whistleblower-program-frequently-asked-questions-faqs.

[7] DOJ Brass Want Bribery Charges Against NYC Mayor Dropped, Law360 (Feb. 10, 2025), https://www.law360.com/articles/2296233/doj-brass-want-bribery-charges-against-nyc-mayor-dropped.

[8] See Andrew Ramonas & Avani Kalra, Ex-SEC Chair Calls on Congress to Lead Climate Policymaking, Bloomberg Law (June 25, 2024), https://news.bloomberglaw.com/esg/ex-sec-chair-calls-on-congress-to-lead-climate-policymaking.

[9] See Tom Zanki, SEC’s Clayton Leaves Behind Market-Friendly Legacy, LAW360 (Nov. 20, 2020), https://www.law360.com/articles/1330352/sec-s-clayton-leaves-behind-market-friendly-legacy?ts_pk=b01098fc-8a4a-4e24-904b-0e0413268635&utm_source=user-alerts&utm_medium=email&utm_campaign=tracked-search-alert.

[10] Exec. Order, Pausing Foreign Corrupt Practices Enforcement to Further American Economic and National Security, (signed Feb. 10, 2025), https://www.whitehouse.gov/presidential-actions/2025/02/pausing-foreign-corrupt-practices-act-enforcement-to-further-american-economic-and-national-security.

[11] See, e.g., Will Oremus, Picking Sacks as ‘AI and crypto czar’ signals Trump’s pro-industry stance, The Washington Post (Dec. 5, 2024), https://www.washingtonpost.com/technology/2024/12/06/trump-david-sacks-crypto-ai-czar/.

[12] See Luc Cohen & Chris Prentice, Crypto enforcement seen slowing as Trump shifts priorities, Reuters (Nov. 15, 2024), https://www.reuters.com/legal/manhattan-us-attorney-scale-back-crypto-cases-prosecutor-says-2024-11-15/.

[13] Jury Returns Verdict Finding Defendant Matthew Panuwat Liable for Insider Trading, Litigation Release No. 25970, U.S. Securities and Exchange Commission (Apr. 8, 2024), https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25970.

[14] Kelly v. United States, 590 U.S. 391, 400 (2020).

[15] Ciminelli v. United States, 598 U.S. 306, 316 (2023).

[16] Brief for Petitioner at i, Stamatios Kousisis and Alpha Painting & Construction Co., Inc. v. United States, No. 23-909 (Aug. 19, 2024).

[17] See Chris Prentice & Echo Wang, Trump pick for Manhattan’s top federal prosecutor urges focus on national security, money laundering, Reuters (Nov. 20, 2024), https://www.reuters.com/world/us/trump-pick-manhattans-top-federal-prosecutor-urges-focus-national-security-money-2024-11-20/.

• The Revised Policies will place increased pressure on companies and could result in substantial shifts in how companies need to investigate potential employee misconduct.
• Failure to disclose misconduct early in an investigation could result in companies facing the possibility of a guilty plea or indictment, rather than a deferred or non-prosecution agreement.
• To receive full cooperation credit, companies will need to assess several new strategic considerations, including the timing of disclosing hot documents and whether to claw back compensation from employees who engaged in misconduct.

• The SEC action directly raises the question whether the tokens at issue qualify as unregistered securities, with significant implications for whether the platforms that facilitate trading in those tokens are potentially exposed to legal liability as unregistered securities exchanges.
• While Coinbase is not named in the SEC's complaint as an unregistered securities exchange, the nine tokens mentioned in the complaint were all traded on Coinbase, leaving it unclear what, if any, consequences will result from the SEC’s enforcement action for Coinbase.
• These are also the first cases to allege “tippee” liability for insider trading in the crypto sphere -- a "tippee" being a person who receives and trades on information obtained by someone else (the "tipper") in violation of the tipper's duty to a third party.

• In the past few months, the DOJ has announced new task forces and more resources to combat fraud in connection with COVID-19 relief, criminal activity related to cryptocurrency, and sanctions violations by Russian entities and individuals linked to the Putin regime.
• These initiatives signal an uptick in criminal enforcement in the coming months, especially in the areas involving fraud, digital assets, sanctions, and money laundering.

• The announcement further suggests that NCET’s initial mandate will broaden the enforcement focus from criminal actors themselves to those who enable and facilitate illicit activities involving cryptocurrency.
• Cryptocurrency exchanges should take appropriate steps to work with counsel to avoid becoming the subject of a DOJ investigation or prosecution.
• The increased scrutiny will also likely extend to all cryptocurrency-focused businesses, NFT platforms, companies that accept cryptocurrency as payment, and even those that merely do business with third parties dealing in cryptocurrency.
• Given the heightened scrutiny from the DOJ and a constantly evolving regulatory landscape, all companies in the industry should evaluate compliance programs and practices to mitigate risk and exposure.

In this C&G client alert, Christian Everdell and Barbara Luse discuss a recent congressional report released by the Senate’s Permanent Subcommittee on Investigations that exposes how Russian oligarchs looking to evade U.S. sanctions are able to exploit loopholes in the art industry and calls for more regulation in a notoriously opaque industry which, according to the report’s findings, undermines one of the most fundamental tools that U.S. administrations use to pressure foreign governments against “bad behavior.”

Jonathan S Abernethy, S Gale Dick, and Christian R Everdell authored an article examining the Department of Justice's (DOJ) new policy discouraging DOJ attorneys from "piling on" multiple penalties against companies for the same misconduct.

This article first appeared on the website of the Criminal Law Committee of the Legal Practice Division of the International Bar Association, and is reproduced by kind permission of the International Bar Association, London, UK. © International Bar Association.

Christian R Everdell analyzes the potential implications of the regulation of cryptocurrency as a result of Ryan Coffey v. Ripple Labs, Inc. in his latest article for Law360. 

Christian R Everdell continues his examination of SEC enforcement actions regarding initial coin offerings in an article published by the New York Law Journal, this time analyzing the SEC’s response to RECoin, PlexCoin, and Munchee.

Even start-ups are being disrupted! In this article, C&G counsel Christian Everdell examines the SEC’s role in regulating Initial Coin Offerings.

Recently, legitimate businesses have begun to recognize the potential value of distributed ledger technology as a stand-alone technological innovation with numerous benefits, including, among other things, preventing money laundering. In this article, Christian R Everdell examines some of the potential applications of Blockchain technology to prevent crime.

This annual fundraising event features a mock U.S. Supreme Court argument, followed by an awards ceremony at which the Milton S. Gould Award for Outstanding Advocacy is presented to two of the most highly regarded advocates in the nation and the OAD Counsel for Justice Award is presented each year to a prominent in-house counsel who exemplifies OAD’s commitment to justice.

Learn more about the event