Tag: Gurbir S Grewal

Gurbir S. Grewal, the former Director of the Division of Enforcement at the U.S. Securities and Exchange Commission (SEC), has left his position to join Milbank LLP, one of the most innovative and prestigious law firms globally. This transition from his high-profile regulatory role to private practice is likely to have lasting implications, particularly on the SEC’s enforcement strategy in the crypto sector.

The U.S. Securities and Exchange Commission (SEC) is set to experience a significant leadership change as Enforcement Director Gurbir S. Grewal announces his departure. Grewal oversaw a period of heightened regulatory activity specifically targeting the crypto sector. Under his leadership, the SEC Filed high-profile lawsuits against major cryptocurrency exchanges, including Binance and Coinbase.

Hardly any SEC press release does not include his name. Gurbir S. Grewal stands as a pivotal figure in the realm of global financial regulation, having assumed the role of Director of the Division of Enforcement at the U.S. SEC. Since his appointment, Grewal has embarked on a mission to fortify the integrity of financial markets through rigorous enforcement of securities laws, reflecting his deep commitment to protecting investors.

The U.S. SEC has levied fines exceeding $81 million against a group of 16 financial firms for substantial recordkeeping lapses. These firms, encompassing five broker-dealers, seven entities dual-registered as broker-dealers and investment advisers, along with four affiliated investment advisers, have admitted to failing to maintain and preserve electronic communications as mandated by federal securities laws.

The U.S. SEC has charged Payward Inc. and Payward Ventures Inc., d/b/a Kraken, with operating an unregistered securities exchange, broker, dealer, and clearing agency. This latest action by the SEC aligns with similar complaints filed against industry giants Binance and Coinbase, intensifying concerns that such regulatory measures may significantly challenge the crypto scene in the U.S.

In a notable development for fiscal year 2023, the U.S. Securities and Exchange Commission (SEC) reported 784 executed enforcement actions, obtained orders for nearly $5 billion in financial remedies, and distributed nearly $1 billion to harmed investors. The SEC’s Whistleblower Program had a record-breaking year as well, issuing nearly $600 million in awards.

The U.S. Securities and Exchange Commission (SEC) confirmed a settlement with Bittrex Inc., a leading crypto trading platform, and its co-founder & ex-CEO, William Shihara, over allegations of operating without proper registrations. Bittrex Global GmbH, the international branch of Bittrex Inc., also settled charges for not registering as a securities exchange. While settling, Bittrex and Shihara haven't admitted or denied the SEC's claims.

The U.S. Securities and Exchange Commission (SEC) announced the largest-ever whistleblower award. The U.S. regulator paid nearly $279 million to a whistleblower whose information and assistance led to the successful enforcement of SEC and related actions. This is the highest award in the SEC’s whistleblower program’s history, more than doubling the $114 million whistleblower award the SEC issued in October 2020.

In 2021, the U.S. banking giant JP Morgan paid $175 million for Frank, a student loan assistance fintech startup founded by former CEO Charlie Javice in 2016 (report here). JP Morgen launched a lawsuit against its founder Javice, alleging she had created 4.25 million users to inflate the value of the business. Now, the U.S. Department of Justice (DOJ) and the U.S. Securities and Exchange Commission (SEC) charged Javice with fraud. She fooled the wrong people and was was arrested last night.

In Q2 2022, the TerraUSD (USDT) stablecoin collapsed with an estimated $60 billion wipeout, shaking the global digital currency market. The USDT crash marked the begin of Crypto Winter with the collapse of other major crypto schemes. The U.S. Securities and Exchange Commission (SEC) charged Singapore-based Terraform Labs PTE Ltd and Do Kwon with orchestrating a multi-billion dollar crypto asset securities fraud involving an algorithmic stablecoin and other crypto asset securities.