Crypto Co. Founder's Atty Tells Jury Biz Partner Lied, Not Him

By Bonnie Eslinger

A cryptocurrency firm's founder deceived investors by claiming his company's auto-trading platform was up and running, a federal prosecutor told a California federal jury during closing arguments Friday, while the defendant's lawyer said his client was not trying to cheat anyone and called the government's cooperating witness "a stone cold liar."

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Kalshi Wants Wash. Ban Axed After State 'Blessed' Competitor

By Sarah Jarvis

Kalshi has urged a Washington state court to reconsider a recent order blocking the company from offering event contracts to the state's residents in most of its prediction market categories, raising equitable findings concerns and pointing to Washington's recent "blessing" of event contracts offered by one of Kalshi's competitors.

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Wash. AG Pauses OG Case As 9th Circ. Weighs Preemption

By Jonathan Capriel

Washington's attorney general and its gambling commissioners have agreed to hold off on enforcing the state's gambling laws against prediction market platform OG, run by the North American Derivatives Exchange, while the Ninth Circuit decides related appeals that could resolve the underlying legal dispute.

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Prime Core Customer Can't Duck $70M Clawback Suit

By Emily Lever

Cryptocurrency platform Plutus must face a $70 million clawback lawsuit from the litigation trust for Prime Core, the Delaware bankruptcy court has ruled, finding the trust's complaint contained pleadings with sufficient detail that Plutus had received a transfer of crypto worth $63 million and $7 million in cash.

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Rising Star: Skadden's John Zelenbaba

By Aislinn Keely

John Zelenbaba of Skadden Arps Slate Meagher & Flom LLP played a key role in two of the most talked-about crypto transactions of the past year — Gemini Space Station's headline-grabbing $425 million initial public offering and Kraken's landmark $800 million fundraise — earning him a spot among the fintech law practitioners under age 40 honored by Law360 as Rising Stars.

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Banking Industry Pushes For Lighter Load On 'Camels'

By Jon Hill

The banking industry is pressing federal regulators to beef up their plan to rein in confidential supervisory ratings that are used to score the health of banks, urging them to set sharper limits around downgrade decisions and potentially ditch management-specific ratings entirely.

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BSTR Ends $1.5B SPAC Deal Amid Bitcoin Market Woes

By Katryna Perera

Bitcoin treasury company BSTR Holdings has terminated a merger with special purpose acquisition company Cantor Equity Partners I Inc. that would have provided BSTR with up to $1.5 billion in financing in a go-public deal.

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Roundup

Taxation With Representation: Fenwick, Hengeler Mueller

By Zak Kostro

In this week's Taxation With Representation, Santander SA completes its acquisition of U.S. regional lender Webster Financial Corp., financial services company Stripe buys artificial intelligence routing platform OpenRouter and Madison Air Solutions Corp. acquires German airflow technology maker ebm-papst.

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Parsing Gov't Scrutiny Of Lending To Unauthorized Workers

Attorneys at Mayer Brown explain guidance recently issued by three banking regulators that addresses risks associated with lending to so-called non-work authorized individuals and discuss what the regulatory update could mean for fintech companies.

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AGs Want Meta's Privilege Claims Reviewed In Bellwether Trial

By Dorothy Atkins

During a break in a jury trial Monday over states' claims Meta hid social media's harm, states' counsel urged a California federal judge to require Meta to re-review all of its attorney-client privilege designations, arguing that "it seems actually logically impossible" that Meta described the wrong standard in only a single document.  

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Legal Center Says DOJ Is Stonewalling Fund Records Request

By Jared Foretek

A voting rights nonprofit is accusing the U.S. Department of Justice of stonewalling a request for records on the Trump administration's attempted "anti-weaponization fund," claiming that the agency has spent the summer unlawfully ducking a Freedom of Information Act submission.

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Galindo Law Files For Ch. 11 After Camp Lejeune Fee Fight

By Ben Zigterman

A Houston-based personal injury law firm sought bankruptcy relief on Monday with more than $50 million in liabilities after a mass tort litigation marketing company sued for over $9 million in fees related to finding potential victims of water contamination at Marine Corps Base Camp Lejeune.

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Attys Ask Court To Toss Suit Alleging They Stole 1,000 Cases

By Spencer Brewer

Multiple attorneys asked a Texas federal court to toss claims that they conspired to hijack 1,000 cases filed by hurricane survivors who had hired and built cases with a different firm, claiming the firm that brought the suit failed to plead a viable RICO claim.

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Catching Up With Delaware's Chancery Court

By Jarek Rutz

The Delaware Chancery Court last week saw a wave of lawsuits involving corporate oversight, take-private deals, financing transactions, bankruptcy fallout, stockholder voting rights and disputes over control.

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