Tag Archives: Lily D. Vo

Recent Disclosure Guidance Highlight Growing Concern Surrounding the Risks of User Assets Held by Various Crypto Custodians

by Sidney P. Levinson, Elie J. Worenklein, Alison Hashmall, Caroline Swett, Lily D. Vo, and Justice H. Walters

Recent turmoil in the cryptocurrency market has brought issues related to crypto-asset custody to the forefront of the crypto currency discourse;[1] in an enormous $1 trillion crypto-asset crash between approximately May 6, 2022 and May 16, 2022, some coins lost up to 99% of their original value.[2]  Many crypto-asset investors are now wondering how their assets may be treated if their crypto-asset exchange of choice were to file for bankruptcy.[3] While this question remains largely unanswered, new guidelines issued on April 11, 2022 by the U.S. Securities Exchange Commission (SEC) regarding platforms that safeguard or hold crypto-assets on behalf of users may require additional disclosures on this topic.

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FinCEN Issues Advisory on Kleptocracy and Foreign Public Corruption

by Kara Brockmeyer, Andrew M. Levine, Satish Kini, Robert Dura, and Lily D. Vo

On April 14, 2022, the Financial Crimes Enforcement Network (“FinCEN”) released its “Advisory on Kleptocracy and Foreign Public Corruption” (the “Advisory”), directing covered financial institutions to focus their efforts on identifying the proceeds of foreign public corruption, which is a priority for the Biden administration.[1] The Advisory focuses on so-called “kleptocrats,” defined as individuals who use “their position and influence to enrich themselves and their networks of corrupt actors,” as well as other corrupt public officials who may launder the proceeds of their corruption through financial institutions.

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The FTC’s Strengthened Safeguards Rule and the Evolving Landscape of Reasonable Data Security

by Jeremy Feigelson, Avi Gesser, Satish Kini, Johanna Skrzypczyk, Lily D. Vo, Corey Goldstein, and Scott M. Caravello

On October 27, 2021, the Federal Trade Commission (the “FTC”) announced significant updates to the Standards for Safeguarding Customer Information (PDF: 835 KB) (the “Safeguards Rule” or “Amended Rule”).  This rule, promulgated pursuant to the Gramm-Leach-Bliley Act, is designed to protect the consumer data collected by non-bank financial institutions, such as mortgage lenders and brokers, “pay day” lenders, and automobile dealerships, among many others (“subject financial institutions”).  The Amended Rule is likely to have a far-reaching ripple effect and inform the meaning of reasonable data security requirements industry-wide.  In this blog post, we highlight the Amended Rule’s more novel requirements and provide an overview of the potential impacts. 

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