{"id":80033,"date":"2023-06-12T09:41:26","date_gmt":"2023-06-12T06:41:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=80033"},"modified":"2025-09-11T14:25:09","modified_gmt":"2025-09-11T11:25:09","slug":"former-sec-official-urges-asset-withdrawals-from-crypto-platforms","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/former-sec-official-urges-asset-withdrawals-from-crypto-platforms\/","title":{"rendered":"Former SEC Official Urges Asset Withdrawals from Crypto Platforms"},"content":{"rendered":"<p>Cryptocurrency exchanges face a long battle with the <span data-descr=\"US Securities and Exchange Commission\" class=\"old_tooltip\">SEC<\/span>, with clients urged to \u201cwithdraw from using them immediately.\u201d This was stated by former agency lawyer John Reed Stark.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Get out of crypto platforms now, I can\u2019t say it any plainer. Having worked as an attorney in the SEC Enforcement Division for almost 20 years (including 11 years as Chief of the SEC Office of Internet Enforcement), I believe that we now know for certain that crypto trading\u2026<\/p>\n<p>\u2014 John Reed Stark (@JohnReedStark) <a href=\"https:\/\/twitter.com\/JohnReedStark\/status\/1666780985189433347?ref_src=twsrc%5Etfw\">June 8, 2023<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The expert reacted to the latest industry developments\u2014the agency&#8217;s actions against <a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-binance-and-changpeng-zhao\">Binance<\/a> and <a href=\"https:\/\/u1f987.com\/en\/news\/sec-files-suit-against-coinbase-exchange\">Coinbase<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cI believe that the SEC is impeccable in its efforts to enforce laws relating to digital assets. It doesn&#8217;t matter what the \u2018gaudy touts\u2019 promise, the axiom is that platforms carry high risks and are inherently unsafe. \u2026 Crypto exchanges have found themselves under siege by U.S. regulators, and it has only begun,\u201d<\/em> \u2014 he stressed.<\/p>\n<\/blockquote>\n<p>Stark explained that his position is based on the absence of registration [by platform operators] with the SEC, which points to a lack of oversight.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>\u201cThere are no gaps in protecting customers, only a chasm,\u201d<\/em> \u2014 said Reed Stark.<\/p>\n<\/blockquote>\n<p>The expert cited issues with crypto exchanges&#8217; accounting practices, as well as their failure to comply with order-flow requirements.<\/p>\n<p>Reed Stark stressed that there is no internal incentive for firms to follow U.S. laws prohibiting market manipulation, insider trading, operations against customers and other misconduct.<\/p>\n<p>According to the expert, there are no requirements for cybersecurity or privacy protection, internal obligations to comply, provisions governing handling of customer complaints, or any minimum financial standards for carrying out transactions.<\/p>\n<p>Earlier, Reed Stark<a href=\"https:\/\/u1f987.com\/en\/news\/former-sec-official-explains-the-reasons-behind-the-crypto-markets-collapse\"> explained<\/a> the reasons behind the \u201ccollapse of cryptocurrencies\u201d.<\/p>\n<p>As noted, trading volumes on <span data-descr=\"centralized cryptocurrency exchanges\" class=\"old_tooltip\">CEX<\/span> in May fell to their lowest since October 2020<a href=\"https:\/\/u1f987.com\/en\/news\/activity-on-cryptocurrency-exchanges-falls-to-the-lowest-since-october-2020\"> around $424 billion.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cryptocurrency exchanges face a long battle with the SEC, with clients urged to withdraw from using them immediately, according to former agency lawyer John Reed Stark.<\/p>\n","protected":false},"author":1,"featured_media":80034,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1166,1138,36],"class_list":["post-80033","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-centralized-exchanges-cex","tag-opinions","tag-regulation"],"aioseo_notices":[],"amp_enabled":true,"views":"28","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=80033"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80033\/revisions"}],"predecessor-version":[{"id":80035,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/80033\/revisions\/80035"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/80034"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=80033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=80033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=80033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}