A group of senior U.S. government lawyers prioritizes law enforcement and prosecution of individuals and companies that commit crypto-related crimes.
Law enforcement officials from the U.S. Department of Justice (DoJ), the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC) talked about the direction their agencies will take in a panel discussion at the American Bar Association’s Annual White Research Institute October 27 The collar crime in Miami.
According to the report of the incident, in addition to corporate participants, legislators are carefully studying individuals. Law 360Nicholas McQuaid, the chief deputy assistant attorney general of the Criminal Division of the US Department of Justice, said that prosecuting individuals in white-collar cases is a top priority.
He added that the department is expanding the use of data-based investigations in cases related to cryptocurrencies. The U.S. Department of Justice is forming a special team within the FBI to cooperate with its fraud department to assist in investigations and prosecutions.
Gurbir Grewal, Director of Enforcement at the SEC, commented that the agency has strengthened its review of unregistered and fraudulent initial coin offerings (ICOs), unregistered cryptocurrency exchanges, and cryptocurrency lending and reward programs. He stated that “we will ensure that these players and actors abide by the rules”, and then added:
“That’s why we will carefully review the gatekeepers such as auditors and audit companies, lawyers and underwriters.”
In early September, The SEC threatens to take legal action against Coinbase Its stablecoin revenue plan is Lend. Since then, Coinbase cancelled its plans to launch the service.
The US Securities and Exchange Commission also issued a subpoena in September against Terraform Labs CEO Do Kwon. As a South Korean resident, Kwon raised an objection on the grounds that the regulatory agency has no jurisdiction.
In October 2020, the US Department of Justice filed criminal charges against four BitMEX executives, accusing them of illegally operating a derivatives exchange Trial is scheduled for March 2022.
Vincent McGonagle, Acting Director of Enforcement of the CFTC, said that he is also concerned about the digital assets and decentralized finance (DeFi) fields. He did point out that the crypto asset space may not be the only component of illegal activities, as other factors may be involved, such as foreign exchange:
“In the field of digital assets, we have taken a number of actions against entities that provide digital assets, Bitcoin or other assets by means of margin or financing.”
Government agencies are clearly increasing their activities against crypto companies and individuals.
In mid-August, legislators urged the SEC and CFTC to form a joint working group on crypto assets so that they can work out how to “effectively use existing jurisdictions together.” In late September, CFTC charges fees to 12 New York crypto option companies Because the registration failed.
October 18, New York Attorney General’s Office Order crypto lending companies to cease activitiesThe Celsius crypto lending platform said that it is not one of the two, but is cooperating with New York regulators.