Blockchain Legal Resource

What Happened

The US Department of Justice (“DOJ”) made several recent announcements expanding on its expectations for corporate compliance programs and unveiling new guidance on executive compensation structures, consequence management and business communications and ephemeral messaging.

DOJ also announced a new enforcement push focused on the intersection of corporate crime and national security.

Hunton Andrews Kurth LLP continues to assist clients and monitor developments in the financial markets arising from the liquidity challenges and market volatility currently facing the banking industry. Late Tuesday brought the first inevitable wave of lawsuits and government investigations. There will be many more in the days ahead.

As we stated in our March 13, 2023 Client Alert, the Federal Reserve issued a press release on March 12, 2023, announcing the creation of the new Bank Term Fund Program (“BTFP”). The Federal Reserve established the BTFP to make available additional funding to eligible depository institutions in order to help assure that banks have the ability to meet the needs of all their depositors.

We have linked three client alerts that highlight the key events that occurred over this past weekend in the wake of the failure of Silicon Valley Bank. We will continue to monitor events and send updates as major developments occur. Hunton Andrews Kurth LLP has assembled a cross-disciplinary team consisting of attorneys from various practices to assist clients with the evolving situations involving Silicon Valley Bank, Signature Bank and any similarly situated banks.

Silicon Valley Bank: March 13, 2023 Updates on FDIC Receivership and Bridge Bank

Signature Bank: What to Know ...

The metaverse is brimming with multifaceted, thought-provoking legal issues. We can help you develop and execute strategies to traverse this modern frontier.

Hunton Andrew Kurth LLP’s Metaverse practice benefits from the skills of our lawyers across the firm. Many of our attorneys have been advising on related matters for some time, including blockchain, non-fungible tokens (NFTs), cryptocurrency, artificial intelligence (AI), machine learning (ML), data privacy, cybersecurity, and rights to digital assets. These lawyers have joined forces to seamlessly advise clients who are focused on the metaverse and other emerging technology issues. In this alert, they address some of the questions you may have as your company considers doing business in the metaverse.

On February 15, 2023, by a 4-1 vote, the SEC proposed new rules regarding an investment adviser’s obligation to custody assets. Unlike the existing rules, if adopted, the new rules would apply to all crypto assets.

On February 8, 2023, a jury in the Southern District of New York reached a verdict finding Mason Rothschild liable for trademark infringement of the Hermes BIRKIN mark when Rothschild advertised and sold a series of “MetaBirkin” non-fungible tokens (NFT or NFTs).¹ The verdict required Mr. Rothschild pay $110,000 for trademark infringement and dilution, as well as $23,000 for cybersquatting on the MetaBirkins domain name.²

On January 20, 2023, The Centre for Information Policy Leadership (“CIPL”) at Hunton Andrews Kurth published “Digital Assets and Privacy,” a discussion paper compiling insights from workshops with CIPL member companies that explored the intersection of privacy and digital assets, with a particular focus on blockchain technology. The paper includes recommendations for developing coherent, tech-friendly, future-focused, and pragmatic regulations and policies.

When investors are considering investments in cryptocurrency, it is critical to understand the terms of asset ownership and transfer. Current and potential cryptocurrency investors should be aware that the Southern District of New York (SDNY) recently ruled that holders of cryptocurrency investments with the now-bankrupt cryptocurrency lending company Celsius Network LLC are not the true owners of these assets.

As we begin the new year and reflect on what we learned last year, the Hunton Andrews Kurth Blockchain team would like to provide you with a recap of the top posts we shared throughout 2022. Please visit the links below for these highlights.

Our goal is to continue to provide our readers with relevant, real-time information on legal and regulatory developments in the blockchain space. If you would like to receive email alerts when new posts are published to this blog, please enter your email address in the 'Subscribe' field. Thank you for your readership!