thecryptobasic.com
Jorge G. Tenreiro, the SEC’s Enforcement Chief for Crypto Assets and Cyber Unit, is facing a bar complaint after signing off the appeal against Ripple and its founders.
The SEC’s chief enforcer could face termination from the bar after a misconduct complaint was filed against him. According to an X article, holders of the VERI token have submitted an Amicus Brief to Judge Analissa Torres, who presides over the SEC vs. Ripple case.
Tenreiro Faces Allegations of Overreach
Tenreiro was one of the SEC’s executives who signed off on the appeal of the case against fintech giant Ripple. The October 2 notice of appeal was in contention with the court ruling from Judge Torres.
Notably, Tenreiro was also involved in several other cases involving crypto projects, including lawsuits against Debt Box and Veritaseum. On October 4, holders of VERI, Veritaseum’s native token, started filing a bar complaint against the SEC’s chief enforcer.
For context, a bar complaint is a civil accusation filed against a lawyer. If the bar deems the grievances fit, cases handled by the legal practitioner will be reviewed, and the lawyer will face debarment if the association finds any misconduct.
SEC vs. Veritaseum Case Etymology
The legal battle between the Wall Street regulator and the crypto project started on August 12, 2019, when the SEC sued Veritaseum’s owner, Reggie Middleton, for crypto fraud. Per the filing, the SEC alleged that Middleton raised $15 million by selling unregistered securities through its initial coin offering (ICO) and called for the court to freeze his assets.
Notably, Middleton fought back, accusing the SEC of twisting facts about the VERI token. The CEO also argued that selling VERI to investors does not constitute an investment contract. However, he later reached a settlement with the regulator.
Despite this, holders of the VERI token began filing a bar complaint against Tenreiro, who was the SEC’s senior trial counsel in the case against the Veritaseum project. The complaint alleged that Tenreiro and the SEC wrongfully prosecuted the project, leading to substantial losses for VERI holders.
The complaint also cited the wrongful accusation against Debt Box, in which they claim the SEC used manipulative and false evidence to prosecute the project. For context, the SEC dropped its lawsuit against Debt Box in May after admitting it submitted wrong evidence. The regulator paid a $1.8 million fine for damages.
Meanwhile, the complaint was a part of the wider crypto sector’s fightback following the SEC appeal of the Ripple case. Leading exchange Coinbase also asked the judge presiding over its case with the SEC to approve its interlocutory appeal, citing the SEC’s October 2 filing.