Former SEC Official Urges DOJ Action Against Crypto Industry — Says Crypto Grifters Need Threat of Prison Time

The U.S. Securities and Exchange Commission’s erstwhile caput of net enforcement has called connected the U.S. Department of Justice (DOJ) to prosecute much crypto firms. “The stark world is that the SEC is simply a civilian enforcement agency. And until crypto-grifters look the menace of DOJ prosecution (i.e. situation time), they volition proceed to dainty SEC enforcement-related risks … arsenic the outgo of regulatory arbitrage and conscionable different liability point connected their equilibrium sheets,” helium stressed.

DOJ Should Prosecute Crypto Cases, Says Ex-SEC Official

Former U.S. Securities and Exchange Commission (SEC) authoritative John Reed Stark has called connected the U.S. Department of Justice (DOJ) to instrumentality much enactment against the crypto industry.

Commenting connected the fraud case of Sam Bankman-Fried (SBF), erstwhile CEO of cryptocurrency speech FTX, Stark wrote connected societal media level X Saturday: “For the beingness of me, I cannot comprehend wherefore the U.S. Department of Justice and the U.S. Securities and Exchange Commission person not added SBF’s parents arsenic defendants. For the SEC, SBF’s parents should astatine slightest beryllium named arsenic ‘relief defendants.’” The erstwhile SEC net enforcement main elaborated:

In particular, the bonzer dearth of U.S. DOJ crypto-related transgression prosecutions (in airy of adjacent to 200 crypto-related SEC enforcement actions) is mind-boggling.

“I served for astir 20 years arsenic an lawyer successful the SEC Division of Enforcement (including 11 years arsenic main of the SEC’s Office of Internet Enforcement) and led dozens of SEC prosecutions with parallel transgression investigations and proceedings,” Stark noted.

The erstwhile SEC authoritative proceeded to explicate that the crypto manufacture is not taking SEC charges seriously. For example, helium said that Tyler Winklevoss, co-founder of cryptocurrency speech Gemini, “has called SEC allegations ‘super lame’ and akin to ‘manufactured parking tickets.’” In addition, helium pointed retired that crypto exchanges Coinbase and Binance “have touted their SEC charges similar badges of grant (laughing each the mode to the bank).”

Stark continued: “The stark world is that the SEC is simply a civilian enforcement agency. And until crypto-grifters look the menace of DOJ prosecution (i.e. situation time), they volition proceed to dainty SEC enforcement-related risks (like injunctions, penalties, and disgorgement) arsenic the outgo of regulatory arbitrage and conscionable different liability point connected their equilibrium sheets.” Stark emphasized:

Wake up U.S. DOJ, we request you buddy.

What bash you deliberation astir the erstwhile SEC net enforcement main calling for the U.S. Department of Justice (DOJ) to prosecute much crypto firms? Let america cognize successful the comments conception below.