The Office of the Manhattan US Attorney will scale back focus on cryptocurrency crimes following major convictions, citing resource reallocation.
The Manhattan U.S. Attorney’s Office intends to lessen its attention to crimes using cryptocurrencies.
Scott Hartman, co-chief of the Southern District of New York (SDNY) securities and commodities task force, said the ruling comes after a string of significant court wins.
Among these is the well-known conviction of FTX founder Sam Bankman-Fried.
Amid Change In Leadership, Manhattan US Attorney Will Concentrate Less On Cryptocurrency Fraud
After increasing its involvement in the previous year, the Manhattan US Attorney’s Office will now reduce the number of bitcoin scam cases it enforces.
At a seminar in New York, Scott Hartman acknowledged that fewer prosecutors would now be concentrating on these types of offenses.
He said that during the 2022 cryptocurrency winter, the office has handled a large number of serious fraud cases brought on by market volatility.
Hartman further explained that the office’s strategic restructuring is reflected in the decreased focus.
This development coincides with other regulatory bodies continuing to actively examine crypto laws, including the Commodity Futures Trading Commission (CFTC) and the U.S. Securities and Exchange Commission (SEC).
Jay Clayton, Former SEC Chair, Will Head Manhattan Attorney’s Office
The Manhattan US Attorney’s Office is likely to undergo a leadership change at the time of the resource cuts for crypto cases.
Former SEC Chair Jay Clayton is the new front-runner to be the U.S. Attorney when Trump takes office.
Unlike current SEC Chair Gary Gensler, Clayton, the SEC’s director from 2017 to 2021, had a less combative approach.
Notably, the SEC leadership’s criticism of the present administration’s strategy sparked a contentious discussion among the cryptocurrency community.
As a result, several cryptocurrency aficionados, including former SEC official John Reed Stark, called for Gary Gensler to step down.
Clayton’s appointment raises the possibility of a reevaluation of the Manhattan US Attorney’s Office’s priorities.
It is anticipated that the office will turn its focus to other general securities and commodities-related issues as its leadership changes.
Furthermore, the Manhattan US Attorney’s Office has been successful in a number of prosecutions pertaining to the cryptocurrency industry, including one involving SBF, the former CEO of FTX.
A major phase in the battle against cryptocurrency fraud has been marked by all of these legal victories.
According to Hartman, the office was able to modify its resource allocation due to the effective resolution of significant cases.
As the office focuses on other enforcement, fewer prosecutors will be assigned to look into bitcoin offenses in the future.
The Manhattan US Attorney’s Office stressed continued cooperation with organizations such as the SEC and CFTC, even if it narrowed its focus.
Hartman agreed that these regulatory agencies guarantee ongoing supervision and enforcement of illegal activity.
This collaborative strategy seeks to uphold accountability while allowing the office to focus on a greater number of legal topics.