NY Office of the Attorney General Alleges Bitfinex Engaged in $850 M Fraud

WebContentCase Studies, Cryptocurrency, Market Rules & Responsibilities


On April 25, 2019, the New York Office of the Attorney General (“OAG”) announced that it obtained a court order against the operators of Bitfinex demanding the online digital asset exchange turn over a plethora of important documents related to previous subpoenas the OAG issued to Bitfinex. The order’s accompanying petition alleges that Bitfinex “borrowed” funds from its affiliate, Tether, the … Read More

Supreme Court Addresses Hiring of SEC Administrative Law Judges

Emily HayesCase Studies

supreme court addresses hiring of sec administrative law judges

Earlier this summer, the U.S. Supreme Court ruled that the SEC used unconstitutional methods to hire Administrative Law Judges. In a highly anticipated decision, the U.S. Supreme Court ruled in Lucia v. SEC, 138 S. Ct. 2044 (2018), that the Administrative Law Judges (“ALJs”) of the Securities and Exchange Commission (“SEC”) are inferior Officers of the United States subject to … Read More

Citi Agrees to Adopt Compliance Program and Pay CFTC $25 Million for Alleged Spoofing

Emily HayesCase Studies, Market Rules & Responsibilities


Citigroup Global Markets Inc. (Citi) settled with the Commodity Futures Trading Commission (CFTC) on January 19, 2017 over the CFTC’s allegations that five traders at Citi “spoofed” the U.S. Treasury futures markets and that Citi failed to supervise the trading activity of its employees.  Pursuant to the Order, Citi must pay a fine of $25,000,000 and must maintain systems and … Read More

Brexit Supreme Court Ruling and Article 50

Julianne DardanesCase Studies


Last June British voters shocked the world by answering affirmatively to a referendum that, if acted on, would remove the United Kingdom from the European Union. The political and economic implications of this decision were and still remain largely unknown, but we outlined some of the possibilities in our initial post about this topic over the summer.

Navinder Sarao Pleads Guilty to Spoofing

Emily HayesCase Studies, Market Rules & Responsibilities


On Wednesday, November 9, 2016, Navinder Sarao pled guilty to spoofing and wire fraud before Judge Virginia Kendall in the Northern District of Illinois. After unsuccessfully fighting his extradition from the UK, Sarao became the second person found liable for violating Dodd-Frank’s anti-spoofing statute after Michael Coscia was convicted last year.

Central Bank of Canada Experiments with Blockchain Technology

Emily HayesCase Studies, Market Rules & Responsibilities, Operations, Startup Tips & Resources


As large financial institutions partner with Fintech start-ups to test blockchain technology, it is no surprise that governments are also experimenting with blockchain to see any potential savings in transaction costs when clearing and settling payments.  Recently, the national governments of Canada and the United Kingdom tested the technology. The Central Bank of Canada conducted a trial in conjunction with the New York based start-up R3 CEV, whereby … Read More

CFTC’s Recent Spoofing Settlement

Emily HayesCase Studies, Market Rules & Responsibilities, Operations


Igor Oystacher, the now-infamous trader nicknamed “the Russian,” and his proprietary trading firm, 3Red Trading, informed the Northern District of Illinois on October 19, 2016, that the parties agreed to settle with the CFTC on the agency’s spoofing allegations. The settlement announcement came after Oystacher and 3Red failed to convince the court to dismiss the case in September 2016. Yet, … Read More

Ending the EU Affair: Brexit and the Markets

Julianne DardanesCase Studies, Market Rules & Responsibilities


In the words of famous English rock band The Clash, Britain has been asking itself “should I stay or should I go?” for the past ten months now – the relationship in question being its affair with the European Union. After a year-long campaign on both sides of the coin to determine the country’s political and economic future, the U.K. finally voted to call it quits. But, as we all know, break-ups can be messy and … Read More

Supreme Court’s Key Jurisdictional Question in Manning v. Merrill Lynch Pierce Fenner & Smith Inc.

Matthew TobinCase Studies

Ziliak Law  Associate Matthew Tobin wrote an article for Law360 on the Supreme Court’s key jurisdiction question in Manning. Below is an excerpt; the full article is on Law360’s website, which is behind a paywall. Law360, New York (September 1, 2015, 10:55 AM ET) — To resolve a long-standing circuit split over the scope of U.S. Securities and Exchange Commission … Read More

Coscia Criminal Spoofing Case

WebContentCase Studies

Ziliak Law Associate Doug Cahanin, Founder of Derivatives Law Blog, published this article on December 29, 2014  after Michael Coscia filed for dismissal. Background On Monday, December 15, 2014, Michael Coscia filed a motion to dismiss the spoofing and commodities fraud charges alleged against him.  This motion to dismiss is just the most recent move in one of the most … Read More