U.S. Attorney's Office Downsizing Crypto Cases

The U.S. Attorney's Office for the Southern District of New York (SDNY), known for its enforcement against crypto-related crimes, announced a reduction in resources dedicated to such cases.

Scott Hartman, co-chief of the securities and commodities fraud task force, stated during a Practising Law Institute conference that while crypto cases will still be pursued, the manpower will be reduced compared to 2022. He noted, "You won't see as much crypto stuff coming out of at least the SDNY in the future."

The SDNY has previously taken significant actions against figures in the crypto industry, including high-profile cases against former FTX CEO Sam Bankman-Fried and Celsius founder Alexander Mashinsky, both of whom faced bankruptcy in 2022.

Hartman's comments followed President-elect Donald Trump’s appointment of Jay Clayton, former SEC chairman, to lead the SDNY. Clayton oversaw the agency during the ICO boom from 2017 to 2018 and initiated several lawsuits against various crypto projects, including a notable ongoing case against Ripple for allegedly raising $1.3 billion through unregistered security sales of XRP.

Additionally, Hartman acknowledged that regulatory bodies, such as the SEC and the Commodity Futures Trading Commission, continue to be active in crypto enforcement, indicating ongoing scrutiny of crypto entities like FTX and Binance.