Crypto.com recently announced that the U.S. Securities and Exchange Commission (SEC) has closed its investigation into the company without taking any legal action. This decision marks the end of the SEC’s scrutiny of the popular cryptocurrency exchange, making Crypto.com the latest crypto company to have its investigation closed by the regulatory body.
The news comes after Crypto.com faced a lawsuit filed by the SEC in October of last year. However, the company confirmed that the SEC will not be pursuing any further legal action against them. In a statement released on Thursday, Crypto.com’s Chief Legal Officer, Nick Lundgren, criticized the SEC for its past actions, accusing the agency of using its power unethically to harm the crypto industry under the leadership of former chairman Gary Gensler.
It was revealed that the Crypto.com legal team had planned to expose any bad actors within the SEC who were working against the crypto space. The company had even filed suit against the SEC, but the case was put on hold following the election of Donald Trump as president in December 2024.
The SEC’s decision to close its investigation into Crypto.com follows a trend of the regulatory body dropping various investigations and legal actions against other crypto firms, including Coinbase and Kraken. Earlier this month, the SEC also dropped its appeal in the case against Ripple, signaling a shift in its approach to the crypto industry.
The recent changes at the SEC, including the departure of former Chair Gary Gensler and the establishment of a dedicated crypto task force, suggest a more crypto-friendly stance under the Trump administration. SEC Chairman Paul Atkins has stated that developing a legal framework for crypto holders is a top priority for the agency.
In a separate development, Crypto.com has come under scrutiny for reissuing 70 billion CRO tokens, despite previously claiming to have permanently burned them in 2021. This move has raised concerns about the exchange’s trustworthiness, with some accusing the company of breaching trust and engaging in borderline fraud. The controversy has led to questions about why a project like Truth would partner with Crypto.com instead of more established platforms like Coinbase or Kraken.
As always, it is important to conduct thorough research and consult with financial advisors before making any investment decisions in the crypto market. The information provided in this article is for informational purposes only and should not be construed as financial advice.