TheCorporateCounsel.net

I blogged last summer about the SEC’s first-ever insider trading case involving cryptocurrency – which foreshadowed the broader “crypto crackdown” that is now playing out. I’m not aware of the SEC announcing a resolution to this civil matter, but in the DOJ’s parallel criminal charges, one of the defendants pled guilty last fall and has now been sentenced to 10 months in prison. This WSJ article shares more detail:

U.S. District Judge Loretta Preska said in handing down the sentence that Nikhil Wahi made about 40 trades and tried to conceal the illicit proceeds using anonymous crypto wallets.

“The defendant knew it was wrong and did not see it as a no-harm, no-foul course of conduct,” she said. He must also pay $892,500 in forfeiture, she said.

The DOJ is continuing to aggressively pursue alleged crypto criminals …and there appear to be plenty to choose from. The SEC is also continuing its enforcement of regulatory violations by crypto companies and related individuals (many folks are predicting that the Commission is just getting started). The SEC is spotlighting all of its crypto asset & cyber enforcement actions on this page.

– Liz Dunshee