EmpowerOversight, a non-profit organization, has created an email with the Securities and Exchange Commission detailing the authorities’ improper conduct regarding Ripple ()XRP) Proceedings.
In the statement, the organization Said The email indicates that former SEC officer William Hinman has been warned of a conflict of interest with his old company Simpson Thatcher.
EmpowerOversight submitted for the release of Email, Said that it can prove that the SEC is selectively enforcing legislation in the crypto sector.The organization argued that the SEC may have promoted some Cryptocurrency Than others.
Hinman reportedly continued to work with a New York-based law firm, despite concerns. In a high-profile engagement, Hinman was warned with his co-founder and investor to meet another law firm partner, Josh Bonnie. Ethereum..
The meeting declared that Ether was not security shortly before Hinman’s speech in 2018. The speech was monumental to the crypto space, as the first 60 million Ethereum were sold to raise funds for the Ethereum Foundation.
“The latest documentation provided by the SEC raises more questions than they answer. We will continue to work with the SEC for more meaningful and timely transparency on this issue.” Jason Foster, founder and president of EmpowerOversight, said.
At one point, SEC ethical adviser Shira Minton warned Hinman to stop even attending group meetings with law firm members due to financial conflict.
SEC objections to email release
After Empower Oversight filed a FOIA request in August 2021, an email of approximately 200 pages was released. The SEC ignored the request and the organization filed a proceeding to force the SEC to comply with the FOIA request.
SEC lawyers opposed the directive that the email included staff deliberations and was protected from discovery.
Notable questions arose when Hinman fully disclosed Simpson Thatcher’s role in Ethereum to SEC ethics officials. It is unknown whether the law firm approved the meeting with full disclosure.
Judge Sarah Netburn is expected to rule the SEC’s motion for reconsideration regarding the plaintiff’s preparation of internal documents.
However, when Empowerment Oversight gains access to the SEC’s email, legal experts claim that its content could further undermine the authorities’ outlook that the proceedings would win the proceedings against Ripple.