The private cell phones of employees in high-stakes internal investigations can put key stakeholder relationships at risk, posing a serious challenge for general counsel or law firms unwilling to “burn a bridge” with a client or other external stakeholder.
In these complex situations, an independent, “one-off” third party uninterested in pursuing institutional relationships can be critical in delivering an unbiased, confidential assessment.
Companies should seek to limit liability by taking a few preventive measures to avoid serious risks associated with investigations.
The U.S. Commodity Futures Trading Commission (CFTC) has quietly increased scrutiny of digital currency markets, focusing on spoofing.
Successful traders normally do not run from risk in their trading activities, yet they often do exactly that in the face of unfamiliar regulatory risks, leading to worse outcomes.
Targets of regulatory enforcement should therefore consider a range of aggressive measures before responding to inquiries from enforcement authorities.
The U.S. government has set its sights on market manipulation and “spoofing” among both traditional and digital currency traders.
For the trading firms and other market participants who could be in the government’s crosshairs, now is the time to plan how you will respond to a subpoena.
Traders and trading firms that find themselves on the receiving end of a subpoena related to spoofing or market manipulation should not immediately assume that cooperation is the best or only way to respond.
The U.S. Department of Justice (DOJ) and Commodity Futures Trading Commission (CFTC) are aggressively directing their enforcement resources to combat against digital currency traders in the UK and greater EMEA.
Counsel located in the UK and greater EMEA region needs to be aware of the risks involved with this new-found aggression and how to prepare for any U.S.-driven regulatory inquiries or subpoenas.
Firms representing European entities and individuals involved in cryptocurrency should be more comprehensive in their preparation.
