The US Securities and Exchange Commission was shaken by a significant resignation today. David Hirsch, head of the Cryptoasset and Cyber Unit in the SEC’s Enforcement Division, has left the agency after nearly nine years. This shows that the fall continues in the SEC after Ladan Stewart.
Fall in the SEC: The head of crypto left!
In a hot development, the head of the Cryptoasset and Cyber Unit in the U.S. Securities and Exchange Commission’s Enforcement Division has left the agency after nearly nine years. David Hirsch announced his departure on the social link platform LinkedIn. In this context, Hirsch said, “Last Friday was my last day in the SEC after almost 9 years. “During this time, as a staff attorney in the Fort Worth Field Office, I had the opportunity to work on much more complex, challenging investigations and matters than I ever imagined when I joined the agency.” said.
Hirsch, meanwhile, stated that he stands behind his work at the SEC. “I am particularly proud of the historic work done by the Crypto Assets and Cyber Unit team that I have the privilege of leading,” Hirsch added. Hirsch did not give any details about his future plans. However, he noted that he would share more details after a break. Prior to joining the SEC, Hirsch was a legal advisory board member at the NYU Center for Cybersecurity.
The important role of the SEC in the cryptocurrency world!
cryptokoin.comAs you’ve been following from , crypto is becoming an increasingly hot political topic in the US ahead of this year’s presidential election. On the other hand, it continues to be one of the focal points of the SEC. Because of the SEC’s stance, its Chairman, Gary Gensler, has long been a hostile figure among crypto supporters. In other news, the agency recently came under pressure from lawmakers to approve Ethereum exchange-traded funds.
Meanwhile, David Hirsch is not the first person in the crypto space to leave the SEC. Ladan Stewart, a former attorney known for bringing high-profile cases against Ripple and Coinbase, also left the SEC’s enforcement division earlier this year. Stewart had worked in the SEC for eight years. After leaving, he joined the law firm White & Case LLP as a partner.
SEC rejects Ripple’s offer of a lower penalty
The SEC rejected Ripple Labs’ request for a lower penalty. He also said he couldn’t compare his deal with Terraform Labs. Ripple requested a much lower penalty than the SEC’s proposed $876.3 million civil penalty. However, the SEC stated that Ripple’s request was not sufficient. He argued that the SEC’s $4.5 billion deal with Terraform Labs was made because the firm was bankrupt, agreed to refund investors and fired its leaders. Ripple stated that it did not accept such help. The SEC also noted that it is not an accurate comparison to say that Ripple’s $420 million fine for Terraform was only about 1.27% of the company’s gross sales. The SEC defended rejecting Ripple’s request for a lower penalty.
Regulatory body SEC has determined its penalties against Terraform and Ripple. Terraform’s penalty amount based on “gross profits of infringing conduct” was $3.5 billion, a rate of approximately 12%. It was argued that if this rate was applied to Ripple, the civil penalty would be 102.6 million dollars. The SEC recommended fines exceeding $2 billion in total for Ripple. This penalty includes precautionary interest, civil penalty and disgorgement. The SEC alleges that Ripple sold unregistered securities, an allegation that Torres acknowledged in its July 2023 decision. However, Ripple argues that it only sells to institutional investors.
To be informed about the latest developments, follow us twitter‘in, Facebookin and InstagramFollow on and Telegram And YouTube Join our channel!