The US Attorney’s Office in Manhattan will scale back its focus on crypto crimes following a series of high-profile convictions, including the recent case against FTX founder Sam Bankman-Fried
Scott Hartman, co-chief of the Securities and Commodities Task Force for the Southern District of New York (SDNY), confirmed the shift on November 15 at a legal conference in New York, Reuters reported,
Cooling down from 2022
Speaking at the Practicing Law Institute event, Hartman stated that while the SDNY remains committed to prosecuting fraud in the blockchain sector, there will be fewer prosecutors handling crypto cases now than during the height of the ‘crypto winter ‘ of 2022, when collapsing crypto prices came to light. widespread misconduct.
He added:
“We brought a lot of big cases in the aftermath of the crypto winter – there were a lot of high-profile fraud cases – but we know our regulatory partners are very active in this area.”
The announcement comes amid broader changes at the U.S. Attorney’s Office in Manhattan. Jay Clayton, former SEC chairman under President-elect Donald Trump, has been nominated to replace Damian Williams as U.S. attorney.
Clayton’s tenure at the SEC, from 2017 to 2021, was marked by a relatively restrained approach to crypto regulation. This is in stark contrast to the more aggressive stance of current SEC Chairman Gary Gensler.
Under Gensler, the SEC has taken numerous enforcement actions, casting a wide net across the industry and drawing criticism from some crypto executives who view the approach as excessive.
As a result, many in the industry supported Trump’s campaign, hoping for lighter regulation under his administration.
The decision to reallocate resources away from crypto business could signal a recalibration of enforcement priorities as the sector stabilizes after a period of turmoil.