Prosecutors Ease Off: Crypto Crimes Lose Spotlight in Manhattan

The U.S. Attorney’s Office in Manhattan will scale back its focus on cryptocurrency crimes after securing high-profile convictions, including FTX founder Sam Bankman-Fried (SBF), according to Scott Hartman, co-chief of the securities and commodities task force at the Southern District of New York (SDNY). Hartman noted that while crypto cases will not be ignored, fewer prosecutors will handle them compared to the “crypto winter” of 2022 when digital asset prices collapsed and fraud cases surged. This shift comes as former SEC Chair Jay Clayton, known for a lighter approach to crypto regulation during Trump’s first term, is expected to replace Biden appointee Damian Williams as U.S. Attorney in Manhattan. Hartman suggested regulatory agencies like the SEC and CFTC would remain active in the crypto space. Many cryptocurrency executives, critical of current SEC Chair Gary Gensler’s aggressive enforcement, supported Donald Trump’s campaign, anticipating a more favorable regulatory environment.