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Daily Compliance News

February 3, 2023 – The We’re No. 1 Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition of Daily Compliance News:

  • SEC now looking at hedge fund use of ephemeral messaging apps. (Bloomberg)
  • Somalia most corrupt, according to TI-CPI. (Quartz)
  • SBF banned from contacting former FTX employees. (Reuters)
  • Think you are having a bad week-did your business lose $100MM? (BBC)
Categories
All Things Investigations

All Things Investigations: Episode 20 – FTX – What’s the Current Status with Amina Hassan

Welcome to the Hughes Hubbard Anticorruption and Internal investigation Practice Group’s podcast, where host Tom Fox and members of the Hughes Hubbard Anticorruption and Internal Investigation Practices Group delve into the legal issues surrounding white-collar and other investigations, both domestically and internationally. In this episode, Tom sits down with Amina Hassan, a litigator in the Hughes Hubbard litigation department. Tune in as they discuss the FTX scandal, one of the most unbelievable stories in recent fraud history.

Amina has been with the firm since graduating law school and has a wealth of experience in the crypto world, handling cross-action security litigation and helping clients navigate the uncertain regulatory and enforcement landscape in the US.

Key ideas you’ll hear in this episode:

  • FTX was the second largest crypto exchange. It was a sprawling group of over 100 entities headquartered in the Bahamas. It offered a crypto derivatives exchange for trading futures on a margin, but not available to US customers.
  • Sam Bankman-Fried was the founder of FTX. Alameda Research was a sister company and one of FTX’s biggest customers, but also borrowers. Money seemed to flow between and through all of the entities in an unusual way which led to the failure and lack of control.
  • The collapse of FTX has brought scrutiny on the SEC’s role in regulating crypto. However, the SEC’s position is that they already have a regulatory structure in place and will continue to enforce it.
  • The SEC has been the most active regulatory agency for crypto enforcement, but other agencies, such as the CFTC, FTC, and CFPB, will likely become more active in enforcing regulations in the crypto space.
  • Sophisticated investors such as pension funds, hedge funds, and large wealth management funds invested nearly a billion dollars in FTX despite having fewer financial statements than the average individual.
  • The FTX scandal is a wake-up call for institutional investors to improve their due diligence in the crypto space. This should include understanding the technology and asking the right questions, such as how wallets are kept and stored.
  • The aftermath of the collapse of FTX may mean challenges for its competitors, such as Coinbase or even Bitcoin.
  • The SEC has taken an enforcement-centric approach towards crypto and has not indicated any plans for rulemaking in 2023.
  • There have been calls for more clarity in existing regulations for the crypto space and for possible specialized agencies like FINRA to be created for the crypto industry.

KEY QUOTE:

“One of the key takeaways from the FTX scandal is really the complete failure and lack of controls.” ~ Amina Hassan

Resources

Hughes Hubbard & Reed website

Amina Hassan on LinkedIn

Categories
Daily Compliance News

January 30, 2023 – The Robbing Ohio Blind Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition of Daily Compliance News:

  • Is corruption robbing Ohio blind? (Ohio Capital-Journal)
  • Shareholders can sue execs for ‘failure of oversight.’ (Reuters)
  • Is SBF contacting witnesses edition? (WSJ)
  • The court hearing on a monitor for Boeing. (Law360)
Categories
Daily Compliance News

January 9, 2023 – The Don’t Pee in a Plane Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Some of the stories include:

  • DOJ sets up a website for those defrauded by FTX. (Reuters)
  • Vietnam removes two Deputy PMs for corruption. (Aljazeera)
  • Indian bank exec urinates on a fellow plane passenger. (NYT)
  • Will remoted work continue in 2023? (Bloomberg)
Categories
Daily Compliance News

December 23, 2022 – The Lonely at the Top Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you four compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Stories we are following in today’s edition of Daily Compliance News:

  • What the year in crypto taught us. (FT)
  • Senate probing automaker’s use of Uyghur forced labor. (WSJ)
  • Bye-Bye Bieber. (BBC)
  • SBF is getting lonely. (NYT)
Categories
Daily Compliance News

December 22, 2022 – The SBF is Coming Home Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you four compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Stories we are following in today’s edition of Daily Compliance News:

  • More ‘instances of cheating’ in accounting tests but not systemic. (FT)
  • SBF is coming home. (Bloomberg)
  • Great job, boss, ‘kind of a jerk.’ (Reuters)
  • Ethical use of ChatGPT. (NYT)
Categories
Daily Compliance News

December 19, 2022 – The Qatar Threatens The EU Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you four compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

 

Stories we are following in today’s edition of Daily Compliance News:

  • Qatar threatens EU over bribery allegations. (WSJ)
  • The UK takes a stand against corruption. (Forbes)
  • Washington SCt blocks Albertson’s distribution. (Reuters)
  • SBF expected to agree to extradition. (NYT)
Categories
Daily Compliance News

December 13, 2022 – The SBF Arrested Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you four compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All from the Compliance Podcast Network.

Stories we are following in today’s edition of Daily Compliance News:

  • Guangzhou R&F Properties wanted for bribery in the US. (YahooNews)
  • Charges brought in Qatar bribes of EU legislators. (NYT)
  • Braun wants the Wirecard trial suspended. (FT)
  • DOJ split over charging Binance for money laundering. (Reuters)
Categories
Daily Compliance News

December 5, 2022 the Crazy Like a Fox Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings you four compliance-related stories to start your day. Sit back, enjoy a cup of morning coffee and listen to the Daily Compliance News. All, from the Compliance Podcast Network.

Stories we are following in today’s edition of Daily Compliance News:

  • SBF media strategy: Crazy or crazy like a Fox. (WSJ)
  • Bribery as contract defense: Nigeria tried to ditch $11bn award. (Reuters)
  • Hwang says prosecutorial misconduct requires dismissal. (Reuters)
  • Who cheated in chess? (NYT)