Simple Mistakes with Hefty Consequences—Skipping on Legal Advice Can End a Fund’s Life
Arina Shulga authored the article "Simple Mistakes with Hefty Consequences—Skipping on Legal Advice Can End a Fund’s Life," published by Bloomberg Law on February 26, 2019.
The article discusses the consequences that an investment manager may face if certain securities laws are disregarded when raising capital for a fund, even if it is a crypto fund.
From the article...
"On Dec. 7, 2018, the Securities and Exchange Commission issued a cease-and-desist order (Order) against CoinAlpha Advisors LLC (CoinAlpha) for failure to comply with the provisions of the Securities Act of 1933, as amended, while raising capital. CoinAlpha was a Delaware LLC, created to act as the managing member of, and manager to, CoinAlpha Falcon LP, a Delaware limited partnership (Fund) that invested in crypto assets."