Fintech : Law360 : Legal News & Analysis (2024)

​​​​​​​Biden's AI Guidance For Gov't May Need More Risk Controls

The Biden administration's latest guidance for federal agencies' purchases of generative artificial intelligence technologies doesn't fully account for risks such as systems failing to work as intended, and could therefore fail to deter agencies from ill-advised investments, according to experts.

BTC-e Mastermind Cops To Money Laundering Conspiracy

A Russian national pled guilty Friday to conspiracy to commit money laundering related to his central role in operating the cryptocurrency exchange BTC-e from 2011 to 2017, according to the U.S. Attorney's Office for the Northern District of California.

Fed. Circ. Says PTAB Rightly Axed Some Ioengine IP Claims

The Federal Circuit has backed the Patent Trial and Appeal Board's finding that invalidated numerous Ioengine LLC patent claims on card reader technology challenged by Ingenico Inc.

Sentencing Delayed For Ex-Fintech Exec In Crypto Case

Sentencing for the CEO of fintech company Hydrogen Technology Corp. was delayed Friday after a dispute over how to calculate the amount of money lost in the conspiracy to manipulate the market for Hydrogen's digital assets.

Fintech Co. Says PNC Acknowledged Use Of Logo For Years

Fintech company Plaid Inc. tried to fend off PNC Bank's allegations it tricked customers into handing over confidential account information, telling a Pennsylvania federal judge on Friday that the bank knew its trademarks were being used on Plaid's system.

SoFi Unit To Pay FINRA $1.1M To Settle Customer ID Claims

SoFi Securities has agreed to pay $1.1 million to settle Financial Industry Regulatory Authority claims that it lacked a suitable user verification process for the firm's cash management brokerage business, allowing the opening of 800 accounts used by third parties to illegally transfer $8.6 million from other financial institution accounts.

Kwok's Ex-Chief Of Staff Pleads Out Before $1B Fraud Trial

The former chief of staff to exiled Chinese billionaire Ho Wan Kwok pled guilty in Manhattan federal court on Friday to participating in a $1 billion investor fraud, less than three weeks before she was scheduled to go to trial alongside her erstwhile boss.

Wells Fargo Discloses Zelle Dispute-Handling Scrutiny

Wells Fargo & Co. on Thursday became the latest financial institution to disclose government scrutiny of how customers' dispute claims for potentially mistaken or fraudulent instant payments are being handled.

No Atty Fees For Objectors To $5.6B Swipe Fees Settlement

Class members who initially objected to a $5.6 billion settlement with Visa and Mastercard cannot collect nearly $1 million in attorney fees, a New York federal judge ruled Thursday, saying they haven't shown their objections to the original 2013 settlement substantially benefited the class.

Tech, Finance Experts Urge CFTC To Consider AI Regs

Tech advisers urged the U.S. Commodity Futures Trading Commission on Thursday to consider policies to manage the risks associated with artificial intelligence, along with a list of other recommendations detailing potential approaches to the growing use of AI in financial markets.

Attys Due For Spam Suit Sanction, But Not $750K, Judges Say

Class counsel's misconduct in helping instigate a spam text suit against stock-trading app Robinhood Financial LLC warranted sanctions, a Washington state appeals court panel ruled Thursday, but the judges said the $750,000 penalty went over the top in deterring the bad behavior.

A new collection of major retailers is joining Target Corp. and Grubhub in objecting to a proposed settlement deal cut by Visa and Mastercard, saying the deal would actually codify an illegal price-fixing agreement.

Ex-FTX Boss Ryan Salame To Give Up $5.9M Bahamas House

Ryan Salame, the former co-chief executive of FTX Digital Markets, an affiliate of bankrupt cryptocurrency exchange FTX Trading Ltd., has agreed to transfer a $5.9 million house he owns in the Bahamas to FTX in lieu of paying the firm restitution over fraudulent political donations, according to a Wednesday motion.

Deals Rumor Mill: Coca-Cola, General Mills, MLB's Giants

Coca-Cola is preparing an IPO for its African bottling division, cereals giant General Mills is exploring selling its North America yogurt business, and a 5% stake in the San Francisco Giants is up for sale at a price that could value the club at $4 billion. Here, Law360 breaks down these and other notable deal rumors from the past week.

Republicans Say Bank Merger Reviews 'Need A Shot Clock'

House Republicans on Wednesday raised concerns with federal banking officials about how long it can take their agencies to sign off on proposed bank mergers, a long-standing industry complaint that the lawmakers say a tight "shot clock" could help address.

Forex Fraudsters Hid Losses From Investors, Jury Hears

Federal prosecutors told a Colorado jury Wednesday that two men helping run a foreign exchange investment company sold investors on a supposedly successful trading algorithm that ended up being nothing more than a multimillion-dollar fraud.

PayPal Won't Face CFPB Enforcement Over Venmo Probe

Payments giant PayPal is not expecting any enforcement action from the Consumer Financial Protection Bureau after the agency told the firm it was closing its inquiry into social payment subsidiary Venmo, the company disclosed in a securities filing.

Artist Can Exhibit 'MetaBirkins' NFT Despite TM Trial Loss

A New York federal judge has said the Los Angeles-based designer behind the "MetaBirkins" non-fungible token can provide permission to a Swedish museum to display his trademark-infringing artwork, despite an injunction barring him from promoting or selling the NFTs.

NY Man Charged With $43M Hospitality Ponzi Scheme

A Manhattan resident was charged Wednesday with soliciting $43 million in investments through a Ponzi scheme that peddled false claims about his company's business interests in cryptocurrency, Las Vegas sports stadiums and hospitality.

Microsoft Details How It Addresses AI Risks In New Report

Microsoft Corp., the leading investor in ChatGPT creator OpenAI, detailed Wednesday in its first-ever artificial intelligence transparency report how the tech giant is working to keep its ballooning stable of AI tools from causing harm in the U.S. and abroad.

Conn. Attorney Scores Default $85K Win In Legal Bill Feud

A federal judge has ordered two Colorado companies, one of which claimed to be working on a cryptocurrency exchange, to pay a default judgment of $85,456 after failing to answer a Connecticut firm's claims that they failed to pay nearly $107,000 in legal fees.

AI Is Top Of Mind For Companies — And Securities Regulators

As references to artificial intelligence in securities filings soar, attorneys say companies must ground their disclosures in fact and be upfront about risks posed by AI in order to avoid the wrath of regulators, who promise to crack down on misleading claims.

5th Circ. Wants Texas Injunction Ruling In CFPB Late Fee Case

In a late Tuesday twist, the Fifth Circuit has sent a banking industry lawsuit over the Consumer Financial Protection Bureau's $8 credit card late fee rule back to Texas federal court, saying it doesn't want to be the first to decide whether the rule should be blocked from taking effect later this month.

'Bitcoin Jesus' Dodged Nearly $50M In Taxes, Feds Say

The U.S. has charged an early bitcoin investor dubbed "Bitcoin Jesus" over allegations that he dodged approximately $48 million in taxes by filing false tax returns and concealing how much of the cryptocurrency he owned, according to an announcement from the U.S. Department of Justice on Tuesday.

Debt Box Wants Attorney Fees Paid If SEC Brings New Action

Crypto project Debt Box has asked a Utah federal judge to impose multiple "guardrails" if the court allows the U.S. Securities and Exchange Commission to refile its troubledregistration suit against the firm, including payment of all attorney fees arising from the original, compromised suit.