Keep your finger on the legal world's pulse
12th December 2025
 
THE HOT STORY
TerraUSD creator sentenced to 15 years for $40bn fraud
Do Kwon, the South Korean cryptocurrency entrepreneur who was behind two digital currencies that lost an estimated $40bn in 2022, has been sentenced to 15 years in prison for what a New York judge called an "epic fraud." Mr. Kwon was the co-founder of Singapore-based Terraform Labs, which developed the TerraUSD and Luna digital coins. U.S. District Judge Paul A Engelmayer said the Stanford graduate had repeatedly lied to investors who trusted him with their money. "This was a fraud on an epic, generational scale," he said during Thursday's court hearing in Manhattan. "In the history of federal prosecutions, there are few frauds that have caused as much harm as you have."
LAW
U.S. House limits states' power to block pipeline projects
The House of Representatives has passed the PERMIT Act, aimed at reducing states' authority to impede pipeline developments, with a vote tally of 221 to 205. This legislation targets a provision of the Clean Water Act that governors in Northeastern states have used to block pipelines they believe could harm water supplies and the environment. By curbing these powers, the bill seeks to facilitate the federal permitting process for energy projects, allowing increased access to shale gas from states including Pennsylvania and Ohio to urban consumers.
ZTE may face $1bn payment to U.S. over bribery allegations
Chinese telecom firm ZTE is reportedly negotiating a settlement with the U.S. government that could exceed $1bn concerning longstanding allegations of foreign bribery to secure telecom contracts. Investigations date back to 2018 and involve alleged violations of the Foreign Corrupt Practices Act.
EMPLOYMENT LAW
Starbucks strike expands as union escalates push for first labor contract
More than 3,800 Starbucks baristas across 180 stores in 130 U.S. cities have joined a month-long strike, marking the longest work stoppage in the company’s history as Starbucks Workers United presses for a first labor agreement. The union is demanding better pay, staffing, and scheduling, while Starbucks says fewer than 1% of its 17,000 U.S. locations have been affected and is prepared to resume talks. The strike began during the company’s Red Cup Day on November 13th and follows stalled negotiations and the rejection of a previous pay proposal.
REGULATION
U.S. banks face scrutiny over 'debanking' practices
The Office of the Comptroller of the Currency (OCC) has said the nine largest U.S. banks had in the past placed restrictions on providing financial services to some controversial industries in a practice known as "debanking." The regulator launched its review after President Donald Trump signed an executive order directing a regulatory review of all banks for such current or past practices. “It is unfortunate that the nation’s largest banks thought these harmful debanking policies were an appropriate use of their government-granted charter and market power," Comptroller of the Currency Jonathan Gould said. The OCC was unable to provide specific examples of wrongdoing at the banks. The firms examined were JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, U.S. Bank, Capital One, PNC, TD Bank and BMO Bank.
Treasury eyes central role in bank AML enforcement under Trump overhaul
The U.S. Treasury is proposing to take a lead role in anti-money-laundering (AML) enforcement, aiming to curb what it sees as excessive and ineffective regulation of banks. Under the draft plan, regulators would need Treasury’s Financial Crimes Enforcement Network (FinCEN) approval before penalizing banks for Bank Secrecy Act breaches, especially in cases of technical violations. Treasury Secretary Scott Bessent argues current rules stifle economic growth and wants FinCEN to act as a "gatekeeper" for AML enforcement. The proposal would undergo public consultation before implementation.
TECHNOLOGY
OpenAI warns of high cybersecurity risks from new AI models
OpenAI has issued a warning regarding its forthcoming artificial intelligence models, indicating they could present a "high" risk to cybersecurity as their capabilities evolve rapidly. The company noted that the models might not only develop zero-day exploits but could also assist in sophisticated intrusion operations aimed at significant effects. To mitigate these risks, OpenAI is investing in bolstering its cybersecurity measures and is creating an advisory group, the Frontier Risk Council, to collaborate with cybersecurity experts on these challenges.
FIRMS
Big associate bonuses at Dunn Isaacson Rhee
Dunn Isaacson Rhee, a newly established litigation boutique in Washington, is rewarding its associates with substantial year-end bonuses, despite being less than a year old. According to a source, bonuses will range from $21,000 to $175,000, depending on seniority, with all associates guaranteed a $35,000 bonus. Notably, the firm, which represents high-profile clients including Google and Meta Platforms, has opted not to impose any hours-related requirements for bonus eligibility.
INTERNATIONAL
Amazon to pay $582m in Italian tax case
Amazon is to pay €510m ($582m) to settle a tax dispute in Italy, in one of a number of cases involving the company there. Reuters reports that Milan's prosecutors are however in disagreement with the settlement between the tax collection agency and the company, and plan to continue their criminal investigation, according to sources. Amazon criticized the Italian regulatory environment, saying: "We will forcefully defend our position on the potential ungrounded criminal case . . . Unpredictable regulatory environments, disproportionate penalties, and protracted legal proceedings are increasingly affecting Italy's attractiveness as an investment destination."
Mexico passes strict vape ban with prison sentences of up to eight years
Mexico’s Senate has approved sweeping legal reforms that impose prison terms of up to eight years and fines of up to 226,000 pesos ($12,500) for producing or selling vapes and electronic cigarettes, in a major escalation of anti-tobacco enforcement. The legislation, backed by President Claudia Sheinbaum, now awaits her formal enactment and aims to crack down on the growing market amid health concerns and fears of criminal involvement.
OTHER
Court approves C$18m sale of Hudson’s Bay charter to Thomson and Weston families
The Ontario Superior Court has approved the C$18m ($13m) sale of Hudson’s Bay Company’s 355-year-old royal charter to holding companies owned by the Thomson and Weston families, who plan to donate the historic document to four Canadian institutions. Issued by King Charles II in 1670, the charter granted HBC control over vast parts of modern-day Canada and will now be jointly held by the Archives of Manitoba, the Manitoba Museum, the Canadian Museum of History, and the Royal Ontario Museum.

 

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