SEC Lets Hinman Off the Hook in Ethereum Drama—But Was It Just a Crypto Circus?

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After what felt like an eternity of legal wrangling, Empower Oversight finally got their hands on a report from the SEC’s Office of Inspector General. The burning question? Whether former SEC bigwig William Hinman had a little too much skin in the Ethereum game when he declared it wasn’t a security. Spoiler alert: the answer was a resounding “nope.” 🎭

Oh, and did we mention? Hinman was still cashing checks from his old law firm, Simpson Thacher, which just so happened to be cozy with Ethereum. Coincidence? Probably. Suspicious? Absolutely. 🤔

Hinman’s Ethereum Shenanigans

Back in May 2022, Empower Oversight decided to play detective and asked the OIG to dig into Hinman’s financial ties with Simpson Thacher. Why? Because in 2018, Hinman had the audacity to declare Ethereum wasn’t a security. Bold move, Bill. Bold move. 💼

The OIG’s verdict? Hinman didn’t break any criminal conflict-of-interest laws. Sure, he was still on Simpson Thacher’s payroll, but hey, he disclosed it all. And no, he didn’t personally get rich off it. At least, not that they could prove. 🕵️‍♂️

But Empower Oversight wasn’t buying it. They argued the investigation was about as thorough as a toddler’s bedtime story, sidestepping the real issue: how the SEC handles conflicts of interest and decides which crypto companies to go after. 🎯

“By narrowly focusing on whether criminal charges should be brought against Hinman, the SEC OIG completely missed the bigger issue here—an erosion of public trust in the agency due to inadequate transparency and an undeniable lack of faith in the integrity of its cryptocurrency enforcement decisions,” Foster said. Mic drop. 🎤

The OIG’s December 9, 2024, report answered one very specific question: did Hinman break any criminal conflict-of-interest laws? Nope. But hey, at least they tried. Sort of. Despite the SEC helping Empower Oversight recover some legal costs, the watchdog group is still demanding more transparency and accountability. Because, let’s face it, the SEC’s track record with crypto is about as clear as mud. 🌪️

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2025-04-12 05:53