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jlacy@winstead.com
817.420.8274

Jamie Lacy is a member of Winstead’s Business Litigation Practice Group.  Jamie’s Business Litigation Practice focuses on securities litigation and enforcement, white collar-defense, and governmental and internal investigations.  Read More

As a follow-up to our last post on the status of the EB-5 Program, the EB-5 Program has been renewed, at least for the short-term.

After the government shutdown ended, and on the evening of Valentine’s Day, Congress pushed the spending bill through to renew the EB-5 Program until September 30, 2019.[1]  Because the EB-5 Program does not have permanent legislation authorization, it will continue so long as Congress periodically renews the program. However, whether the program will continue in the long-run is still up in the air in light of growing criticisms of the Immigrant Investor Program.[2] For now, however, the EB-5 Program will continue at least until the fall of this year.
Continue Reading Update: The EB-5 Program Has Been Renewed . . . For Now

On September 28, 2018, the U.S. Congress passed an appropriations bill that extended the EB-5 Immigrant Investor Program (the “EB-5 Program”) in its current form through December 7, 2018.[1] Thus, the EB-5 Program will expire on December 7, 2018, unless it is renewed once again for another couple of months to a year.

Although the

The regulatory framework for virtual currencies is evolving, as federal and state regulators and courts wrestle with the circumstances in which cryptocurrencies are securities.  For instance, the staff of the Securities and Exchange Commission (“SEC”) has observed that tokens, which start as securities, can become something other than a security over time as a token’s network becomes “sufficiently decentralized.”[1]  In fact, the SEC staff indicate that more comprehensive yet “plain English” guidance will be forthcoming before the end of this year.[2]  In the meantime, we highlight a recent court case considering the question.  In U.S. v. Zaslavskiy[3], a federal court considered whether a cryptocurrency can be regarded as a security.  That case involved criminal charges against Maksim Zaslavskiy accused of promoting digital currencies backed by investments in real estate and diamonds that prosecutors said did not exist.[4]  The U.S. District Judge in New York decided that the prosecutors could proceed with their case alleging that the cryptocurrencies at issue were securities for purposes of federal criminal law.

Prosecutors argued that investments offered by Zaslavskiy in two initial coin offerings (“ICOs”)—REcoin Group Foundation and Diamond Reserve Club—were “investment contracts” that were securities under the federal securities laws.  Zaslavskiy, on the other hand, filed a motion to dismiss the prosecutors’ securities fraud claims, arguing that the virtual currencies promoted in the ICOs are “currencies,” and therefore, by definition, not securities.[5]
Continue Reading Federal Court Evaluates When Cryptocurrency May Constitute a Security in a Criminal Case