- The Manhattan US Attorney’s Office plans to reduce its pursuit of crypto cases and devote fewer resources to policing crypto crimes.
- This comes after the office succeeded in multiple recent crypto cases, including against Sam Bankman-Fried and FTX.
- With Jay Clayton, the former SEC chair nominated as the next US attorney for the Southern District of New York, crypto firms currently entangled in scandals could expect less-harsher cases.
The Manhattan US Attorney’s Office has announced plans to pursue fewer crypto cases going forward. This shift comes after the office successfully prosecuted several major crypto cases recently.
Background on Recent Crypto Cases Brought by US Attorney’s Office
The US Attorney’s Office for the Southern District of New York has been very active in prosecuting crypto-related crimes over the past few years. This includes high-profile cases against Sam Bankman-Fried and FTX.
Prosecutors say that in the wake of the “crypto winter,” there were many important fraud cases that needed to be brought. Now that some of the biggest cases have been handled, the office feels it can pull back its resources devoted to policing crypto.
New US Attorney Expected to Be Less Aggressive on Crypto
The change in direction aligns with the recent nomination of Jay Clayton as the next US Attorney for the Southern District of New York. Clayton formerly served as SEC chair under Trump and was viewed as less aggressive on crypto enforcement than the current chair Gary Gensler.
With Clayton as US Attorney, crypto companies caught up in scandals may face less scrutiny. This could give more breathing room to crypto platforms as criminal pursuit lessens in New York.
Crypto Industry Reactions
The crypto community has welcomed the news that the Manhattan US Attorney’s office will lighten up on crypto cases. With less pressure from criminal prosecutors, crypto businesses may have more freedom to operate and innovate. However, the SEC and other regulators will likely continue policing the space.
Conclusion
The Manhattan US Attorney’s Office plans to devote fewer resources to crypto cases going forward. This follows a period of aggressive prosecution of major crypto frauds. The appointment of a new US Attorney who is friendlier to crypto could give the industry more room to grow with less fear of criminal prosecution. However, crypto will still be regulated, just with a different focus.
