Former SEC attorney slams lack of crypto prosecution for ‘mind-boggling’ enforcement
In a critique of the current state of cryptocurrency enforcement, a former insider from the U.S. Securities and Exchange Commission (SEC) has called for a significant shift in the approach towards tackling crypto-related fraud. In an X (formerly Twitter) post on September 23, John Stark Reed, who served as an attorney in the SEC Division of Enforcement for nearly two decades, emphasized the need for the U.S. Department of Justice (DOJ) to step in and prosecute crypto-grifters, asserting that prison time is the key to making them take enforcement seriously. He highlighted the disparity between the actions of the SEC, which primarily deals with civil enforcement, and the lack of criminal prosecutions. “The stark reality is that the SEC is merely a civil enforcement agency. And until crypto-grifters face the threat of DOJ prosecution (i.e. prison time), they will continue to treat SEC enforcement-related risks (like injunctions, penalties, and disgorgement) as the cost of ...