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Gurbir Grewal, Tough On Crypto, WhatsApp Messages, Leaves SEC

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Gurbir Grewal, Tough On Crypto, WhatsApp Messages, Leaves SEC

India-West Staff Reporter

WASHINGTON D.C – The U.S. Securities and Exchange Commission (SEC) announced on October 2 that Gurbir S. Grewal, Director of the Division of Enforcement, will step down from his position on October 11. Grewal’s departure comes after a prominent tenure marked by an aggressive crackdown on cryptocurrency violations and Wall Street’s use of unauthorized communications platforms.

Grewal, who has led the SEC’s enforcement division since 2021, oversaw a team of 1,300 attorneys responsible for some of the agency’s most high-profile cases. Under his leadership, the SEC pursued hundreds of enforcement actions, including significant cases against financial institutions for non-compliance and fraudulent practices. His successor, Sanjay Wadhwa, the Division’s Deputy Director, will serve as Acting Director, while Sam Waldon, Chief Counsel of the Division, will step in as Acting Deputy Director.

Enforcement Legacy

Grewal’s tenure at the SEC is defined by his commitment to restoring investor confidence and ensuring market integrity. Under his leadership, the SEC brought over 2,400 enforcement matters, resulting in more than $20 billion in disgorgement, prejudgment interest, and civil penalties. These cases also led to the return of billions of dollars to harmed investors.

One of Grewal’s key initiatives was tackling emerging risks, particularly in the fast-growing cryptocurrency sector. The SEC authorized more than 100 enforcement actions related to the crypto industry, targeting some of the world’s largest crypto trading platforms for failing to comply with federal securities laws. Grewal’s team held these operators accountable for depriving investors of key protections, sending a clear message about the agency’s stance on crypto regulation.

One of the most notable areas of Grewal’s enforcement work was the SEC’s aggressive stance on off-channel communications. Banks and financial institutions often rely on platforms like WhatsApp for business discussions, making it difficult for regulators to monitor for compliance. Under Grewal’s leadership, the SEC levied billions of dollars in fines on Wall Street firms for failing to maintain records of these communications.

Bloomberg reported that Grewal was especially focused on preventing banks from bypassing regulatory oversight through unofficial channels. This crackdown resulted in sweeping penalties against major financial institutions, reinforcing the SEC’s commitment to transparency and accountability.

High-Profile Cases

Grewal’s tenure was marked by several high-profile enforcement actions. In May, the SEC announced $14 million in penalties against a Colorado firm that had vetted the financial records of Donald Trump’s social media company. Grewal criticized the firm as a “sham audit mill,” which led to a new auditor being selected days later.

Another notable case under his leadership was the action taken against an audit firm responsible for over 1,500 filings with the SEC. This case was one of the largest enforcement actions involving an audit firm’s failure to meet its gatekeeping responsibilities. The SEC also charged another firm with hundreds of violations related to auditor independence, emphasizing the importance of ethical and professional standards among industry gatekeepers.

 Grewal holds a J.D. from the College of William & Mary and a B.S. from the Georgetown University School of Foreign Service.

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