Showing posts with label regulator. Show all posts
Showing posts with label regulator. Show all posts

2017-12-26

Investors Warned By FINRA Not To Get Fooled By Bitcoin Scams (video)

Investors Warned Not To Get Fooled By Bitcoin  or Cryptocurrency Scams

CNBC.com video above published Dec 22, 2017: Bitcoin's skyrocketing stocks push cryptocurrency mania — and scams — to new highs, but FINRA's guidelines could help investors avoid getting duped.

See also:

FINRA Warns Investors: Don’t Fall for Cryptocurrency-Related Stock Scams | FINRA.org: "... "It can be difficult for investors to avoid the lure of the cryptocurrency markets, especially when prominent people express interest in it, and news reports and social media tout the promise of guaranteed quick fortunes and skyrocketing returns," said Gerri Walsh, FINRA’s Senior Vice President for Investor Education. "But it is important to do your research. Even when legitimate companies enter a hot, new sector, con artists almost always follow suit." Before investing in any cryptocurrency-related stock, buyers should follow these tips to avoid costly mistakes:
  • Be suspicious of anyone who guarantees that an investment will perform a certain way, or makes pushy sales pitches that encourage you to “act now.” If you think the claims might be exaggerated or misleading, contact the SEC, file a complaint using FINRA’s online Complaint Center or send a tip to FINRA's Office of the Whistleblower.
  • Do not say "yes" to cryptocurrency stock purchases from an aggressive cold caller, particularly if the recommended stocks are very low-priced. Not answering at all, or putting down the phone, are generally the safest responses to a cold caller or anyone aggressively pitching low-priced stocks or other investment opportunities.
  • Use FINRA BrokerCheck® to check the professional background of the individuals involved in selling the investment, as well as the firms who tout these opportunities. Selling securities generally requires a license and registrations under state and federal securities laws and FINRA rules.
  • Check the SEC's EDGAR database to find out whether the company files with the SEC. If so, read the reports and verify any information you have heard about the company. But remember, the fact that a company that has registered its securities or filed reports with the SEC doesn't mean it will be a good investment.
  • Be wary of stocks with huge spikes in price. Steep run-ups in price could signal potential manipulation or fraud.
  • Know where the stock trades and pay attention to any cautions associated with the stock. Most stock pump-and-dump schemes tend to be quoted on an over-the-counter (OTC) quotation platform like OTC Markets, which provides icons to warn investors of concerns associated with a given company. These include a stop sign or skull and crossbones to warn of questionable practices.
"Investors can obtain more information about, and the disciplinary record of, any FINRA-registered broker or brokerage firm by using FINRA's BrokerCheck or by calling (800) 289-9999. In 2016, members of the public used this free service to conduct 111 million reviews of broker or firm records. Investors can also call FINRA's Securities Helpline for Seniors at (844) 57-HELPS for assistance with concerns or questions about their brokerage accounts and investments ..."

In the U.S., the Financial Industry Regulatory Authority, Inc. (FINRA) (domain: finra.org) is a private corporation that acts as a self-regulatory organization (SRO). FINRA is the successor to the National Association of Securities Dealers, Inc. (NASD) and the member regulation, enforcement and arbitration operations of the New York Stock Exchange. It is a non-governmental organization that regulates member brokerage firms and exchange markets. The government agency which acts as the ultimate regulator of the securities industry, including FINRA, is the Securities and Exchange Commission (Domain: SEC.gov).

Similarly, the Commodity Futures Trading Commission (CFTC) is the U.S. financial regulatory agency tasked with overseeing the U.S. derivatives markets (domain: cftc.gov). Read the CFTC Statement on Self-Certification of Bitcoin Products by CME (cmegroup.com), CFE (cfe.cboe.com), and Cantor Exchange (cantorexchange.com).

The National Futures Association (NFA) is the industrywide SRO for the U.S. derivatives industry. Read NFA Investor Advisory—Futures on Virtual Currencies Including Bitcoin | nfa.futures.org:
"December 1, 2017 The purpose of this investor advisory is to remind investors that, just like any other speculative investment, trading futures on virtual currencies, including Bitcoin, have certain benefits and various risks. While futures on virtual currencies must be traded on regulated futures exchanges, trading these products involves a high level of risk and may not be suitable for all investors. It is critical, therefore, for investors who are considering trading virtual currency futures to educate themselves about these products, understand their risks, and conduct due diligence before making investment decisions. Investor protection begins with investor education ...." (read more at link above).


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2016-04-14

Will ICANN File An Interlocutory Appeal in DCA Trust gTLD AFRICA Case?

UPDATE June 16, 2016: New gTLD AFRICA Litigation: Defendant ZACR Dismissed as a Party.

 UPDATE ICANN filed an appeal on May 11, 2016, of the District Court's Order granting DCA Trust a Preliminary Injunction--Notice of Appeal embedded below:

UPDATE May 6, 2016: ICANN has withdrawn its Motion to Dismiss (pdf) "[i]n view of the Court's order on DCA's Motion for Preliminary Injunction" (which DCA won), and Defendant ZACR has now filed its own Motion to Dismiss (pdf) set for hearing on May 31, 2016, at 9:00 am in Los Angeles U.S. District Court.

UPDATE April 17: see News Review: dotAFRICA, Public Interest, Judge Holds ICANN Accountable.

[original post below]
"... Here, the public has an interest in the fair and transparent application process that grants gTLD rights. ICANN regulates the internet – a global system that dramatically impacts daily life in today’s society. The IRP Declaration recognizes that ICANN’s function is “special, unique, and publicly important” and ICANN itself “is the steward of a highly valuable and important international resources.” (Bekele Decl.¶ 23.110, Ex. 1, ECF No. 17.) .... the Court finds “serious questions” going toward DCA’s likelihood of success on the merits and a balance of hardships that tips sharply in DCA’s favor ... Additionally, the Court finds that both the likelihood of irreparable injury and the public interest favors the injunction. As such, the Court GRANTS a preliminary injunction barring ICANN from delegating the rights to .Africa until this case is resolved ..."--Judge Klausner, U.S. District Court, April 12, 2016, DotConnectAfrica Trust vs ICANN & ZA Central Registry, infra, embedded below (emphasis added).
In a U.S. District Court ruling that may have far reaching impacts beyond just the Plaintiff's case, new gTLD .AFRICA applicant, DotConnectAfrica Trust (DCA Trust), won its motion for preliminary injunction, as indicated above (read the full decision embedded below).

Will ICANN now file an interlocutory appeal from the Court's ruling?

One legal commentator on Standards of Appellate Review (pdf) has written:
"An appellate court reviews a preliminary injunction primarily for “abuse of discretion.” It will (and should) be predisposed to affirm the trial judge; getting a reversal will be difficult. Most trial courts will at least pay lip service to the usual factors for entering a preliminary injunction. This avoids reversal for simple legal error, and showing abuse in the weighing of those factors can be close to impossible.  The problem is more than just a likely loss, however. A hasty decision to take an interlocutory appeal that you then lose can hurt in the ultimate resolution of the merits. The fact that the standard of review is abuse of discretion reflects an appellate judgment that some decisions are best left to the trial court. Still, declaring the law is what appellate courts principally do; so, when they review the “possibility of success” criterion in injunction appeals, they often announce in controlling dicta the rules for later proceedings. See West Publishing Co. v. Mead Data Central, Inc. 799 F.2d 1219 (8th Cir. 1986)." (emphasis added)
In this case, ICANN and its counsel, Jones Day, may very well decide to file an interlocutory appeal. Obviously ICANN needs controlling legal precedent to prevent parties from seeking redress in the Courts after they have knowingly given up their "rights to sue" in new gTLD applications, registry agreements, etc. This case may also have a bearing on ICANN's suitability to serve as steward of the IANA functions and coordinate the global internet DNS, and may even affect the current IANA transition process now underway. In any event, this ruling is not dispositive of all issues in the case--ICANN has a pending motion to dismiss DCA Trust's case (pdf)--stay tuned.

 Complete copy of Court's Ruling* (yellow highlighting added):

 *DCA Trust issued a press release dated April 12, 2016, with link to the document embedded above. As of April 13, 2016, 2:50 pm PDT, ICANN still had not posted the decision on its webpage of all documents filed in this case, nor made any reference to the ruling on the ICANN website.

See also on Domain Mondo: New gTLD AFRICA: DotConnectAfrica Trust vs ICANN, End of the Line?




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