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On May 13, 2022, U.S. Magistrate Judge Zia M. Faruqui of the District of Columbia took the unusual step of unsealing and issuing a Memorandum Opinion captioned “In Re: Criminal Complaint” to explain the court’s conclusion that probable cause existed to authorize a federal criminal complaint against an individual for transmitting over $10 million worth of bitcoin between the United States and an Office of Foreign Assets Control–sanctioned nation, violating the International Emergency Economic Powers Act (IEEPA) and defrauding the United States, in violation of 18 U.S.C. § 371.

Blockchain; Cybersecurity; Enforcement; National Security; Policy

Data Matters: The Declaration for the Future of the Internet

May 19 2022

Alan Charles Raul and Lucia Radder

On April 28, 2022, the White House announced, in partnership with 60 global partners, the launch of the Declaration for the Future of the Internet, also known as the “DFI.”

According to the White House briefing, the Declaration sets forth the shared principles regarding how parties should comport themselves with respect to the Internet, the digital ecosystem, and the digital economy. The Declaration affirms that the signatories are committed to defending the Internet, to governing it by a multi-stakeholder approach, and to promoting an open, free, global, interoperable, reliable, and secure Internet for the world. The State Department’s newly formed Bureau of Cyberspace and Digital Policy put out a nearly identical statement.

Financial Privacy; International; National Security; Online Privacy; Policy; White House

Nation-State-Sponsored Attacks: Not Your Grandfather’s Cyber Attacks

May 17 2022

Alan Charles Raul, Joan M. Loughnane, Stephen McInerney and Laura Sorice

*Reprinted with permission from the May 6, 2022 edition of the New York Law Journal © 2022 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or reprints@alm.com.

It used to be that data breaches were all about cyber-crooks hacking computer systems to steal personal information, followed by an affected company sending regretful notification letters offering a year or two of complimentary credit monitoring. Not anymore.

Cybersecurity; Data Breaches; Information Security

Convergence in Antitrust and Privacy Law: An Interview With Colleen Brown and New Partner Sean Royall

May 13 2022

Colleen Theresa Brown and Sean Royall

Sean Royall, new Sidley partner and co-leader of the firm’s global Antitrust and Consumer Protection practice, sits down with Colleen Brown to discuss the convergence in antitrust and consumer protection law. They cover the U.S. Federal Trade Commission’s (FTC) promotion of a more inter-disciplinary approach of looking at data issues, the practical effects that the closer coordination of the FTC’s antitrust and consumer protection branches would have on clients, and what law firms can be doing in response to the increasingly interrelated areas of antitrust and privacy.

Antitrust; Consumer Protection; FTC

Antitrust and Consumer Protection at Last Converge

May 12 2022

Sean Royall

Antitrust and consumer protection law—long separate provinces, even within a dual-mission government enforcement agency like the FTC that covers both fields—at last seem to be converging, as reflected in recent government enforcement activity, statements by the FTC’s leadership, and novel private litigation theories. Sean Royall, who co-leads Sidley’s Antitrust and Consumer Protection practice and is a former Deputy Director of the FTC’s Bureau of Competition, recently called attention to this trend in an article published in Corporate Counsel magazine.

Antitrust; Consumer Protection; FTC; Policy

Digital Health Industry Take Note: New HIPAA Comment Opportunity and Guidance Addresses Growing Risk of Cybersecurity Attacks

May 06 2022

Elizabeth Hardcastle, Meenakshi Datta, Colleen Theresa Brown and Sama E. Kahook

Digital health companies should take note of new data privacy and security developments under the Health Insurance Portability and Accountability Act (HIPAA) that can affect product planning and customer negotiations.

The U.S. Department of Health and Human Services Office for Civil Rights (OCR) has released a request for information (RFI) seeking input on (1) how covered entities implement recognized security practices, which OCR considers in enforcement matters and (2) the different types of harm that individuals experience from HIPAA violations in order to consider how OCR may share enforcement recoveries with individuals harmed. Digital health companies subject to HIPAA should consider submitting comments by the June deadline to ensure that the evolving digital health industry has a voice in establishing industry best practices and advocating for continued flexibility in the implementation of security standards that suit their unique business needs distinct from traditional covered entities and business associates.

Cybersecurity; Health Privacy; HHS; HIPAA; Policy

CISA: “We don’t stab the wounded.”

May 05 2022

Alan Charles Raul and Joyce Yeager

Jen Easterly, Director of the U.S. Cybersecurity and Infrastructure Security Agency (“CISA”), repeatedly emphasizes CISA’s cooperative approach with the U.S. private sector. During her interview with Sidley’s Alan Raul on April 13, 2022, Easterly emphasized that CISA’s role was not to “name, blame, shame, or stab the wounded” victims of cybersecurity incidents. Instead, she described the Agency as a coequal partner with the private sector in securing U.S. infrastructure. CISA desires to partner with other agencies as well, operating as the “front door” to federal agency support and cyber security resources, she stated. During the Raul interview, she also provided insight into the Agency’s perspective on the newly enacted Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA).

CISA; Cybersecurity; Legislation; National Security; Policy

Market Leading Cybersecurity and National Security Lawyers David Lashway and John Woods Join Sidley in Washington, D.C.

May 04 2022

Data Matters Contributors

Washington, D.C. – Sidley announced today that David Lashway and John Woods have joined as partners in the firm’s Privacy and Cybersecurity practice in Washington, D.C. Mr. Lashway and Mr. Woods join Sidley from Baker McKenzie where they started and led the global cybersecurity practice group for over 10 years.

“David and John’s industry leading knowledge and global experience provide a rare viewpoint of the current geopolitical risks in the world today and will have an immediate and positive impact on our broad range of client representations,” said Stephen Cohen, global practice leader of the Regulatory and Enforcement group and a member of the firm’s Executive Committee. “By adding these two global market leaders, we are expanding our expertise to better support our clients with the ever growing risks associated with national security and cybersecurity matters across our multi-disciplinary practices.”

General

Blockchain Tracing: The U.S. Government’s Newest Tool to Combat Foreign Crime