Quick Take:-
• The SEC decided not to file any action against Crypto.com.
• Crypto.com faced a lawsuit by the SEC in October of last year.
Crypto.com clearly said that their investigation for the exchange is closed by the U.S. Securities and Exchange Commission (SEC), and this is the last crypto company whose investigation is closed by this regulatory body.
According to the reports, a statement was made on Thursday that Crypto.com said that the SEC would not file any legal action against the company.
Crypto.com Chief Legal Officer Nick Lundgren made a statement that, under the last governance, the SEC was used by its officers for unethical work and also used to increase its power to harm the industry under the leadership of its former chairman, Gary Gensler, who did not like the crypto space.
It is worth it to note that the Crypto.com legal team was planning to go long to unearth the bad actors, who were playing a bad game against the crypto space on behalf of the SEC agency. For such plans, Crypto.com filed suit against the SEC body, but later, in Dec 2024, they dragged their feet following the victory of Donald Trump in the presidential election.
Over the last couple of months, the SEC has presently left the various investigations and legal actions against the crypto firms, involving Coinbase and Kraken. At the beginning of this month, the authority also decided to leave its appeal for that case against Ripple ($XRP lawsuit).
According to the reports at the beginning of the year, the former SEC Chair Gary Gensler’s exit, and the agency has updated that greatly in the last few weeks because of the Trump administration. From the beginning of January, the SEC has cancelled the controversial crypto accounting guidance, left the lawsuit against the major crypto industry, and created a powerful crypto task force that manages all the legal cases and departments related to crypto-related activities.
According to the reports on Wednesday, some questions were asked to the SEC chairman, Paul Atkins, on their agency’s past actions and his connections to the bankrupt FTX by President Donald Trump. The SEC chairman said that he intended to focus on developing a legal framework for crypto holders as a “top priority”.
Crypto.com CRO Token Controversy
ZachXBT, a popular crypto detective, accused the Crypto.com team of breaking its promise by reissuing 70 billion CRO tokens recently.
In 2021, Crypto.com stated that it permanently burned 70 billion CRO tokens, but their latest action raised multiple questions over the exchange’s trust level.
He called it a very big, serious breach of trust and borderline fraud despite being a reputable crypto exchange in this space. He also questioned why Truth partnered with Crypto.com instead of platforms like Coinbase or Kraken.
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