Sarah H. Brennan, counsel in the Securities and Capital Markets practice and head of the Digital Assets and Disruptive Technologies team, was recently interviewed in the CoinDesk article titled, “Mysterious Filings Suggest Impostor Is Using Grayscale’s Name to Pump Obscure Coins.“ The article discussed LLCs set up in Delaware to appear as if they were formed by digital asset manager, Grayscale Investments, for two obscure coins. In the article, Sarah states that the type of entity set up raises questions -- historically Grayscale uses trusts. Sarah describes that, from a practical perspective, there are few limits on naming conventions in setting up entities in Delaware. Anyone could have set these up as a marketing ploy for these two assets and Delaware would not have prevented the formation of these entities based on the use of Grayscale’s name in an entity name. In all, it is just another day in crypto as people invent new and creative ploys to pump assets.
To view the article on the CoinDesk website, click here.