Hot News: SEC’s Chief Crypto Officer Resigns!

The US Securities and Exchange Committee was shaken by a significant resignation today. David Hirsch, head of the Crypto Asset 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 leader in charge 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 from the social networking platform LinkedIn about betting. In this context, Hirsch said, “Last Friday was my last day in the SEC after almost 9 years. “During this time, I have had the opportunity to work on much more complex, powerful investigations and matters than I ever imagined when I joined the Fort Worth Regional Office as an employment attorney.” said.

Meanwhile, Hirsch 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,” added Hirsch. Hirsch did not give any details about his future plans. However, he noted that he would share more details later. Prior to joining the SEC, Hirsch was a legal advisory board member at the NYU Center for Cybersecurity.

SEC’s valuable role in the cryptocurrency world!

cryptokoin.com As you’ve been following from , crypto is becoming an increasingly hot political issue 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. On the other hand, the institution recently came under pressure from lawmakers to approve Ethereum exchange-traded funds.

By the way, David Hirsch is not the first person to leave the SEC in the crypto space. 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 that he could not compare the agreement he made 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 settlement with Terraform Labs was made because the company went bankrupt, agreed to refund investors and fired its leaders. Ripple stated that it does not accept such help. The SEC also noted that Ripple’s statement that Terraform’s $420 million fine was only about 1.27% of the company’s gross sales was not a true comparison. 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 price, 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 proposed fines exceeding $2 billion in total for Ripple. This penalty includes precautionary interest, civil penalty and disgorgement. The SEC argues that Ripple is selling unregistered securities, an allegation it acknowledged in Torres’ July 2023 decision. However, Ripple argues that it only sells to institutional investors.