The U.S. Securities and Exchange Commission (SEC) announced on 2 October 2024 that Gurbir S. Grewal, the Director of the Division of Enforcement, will depart from his role on 11 October 2024. After his departure, Sanjay Wadhwa, the current Deputy Director, will assume the position of Acting Director, while Sam Waldon, the Division’s Chief Counsel, will take on the role of Acting Deputy Director. SEC Chair Gary Gensler praised Grewal’s leadership over the past three years, highlighting his dedication to investor protection and compliance with securities laws.
Chair Gensler emphasized Grewal’s proactive approach to enforcing market integrity. During his tenure, Grewal led initiatives addressing emerging risks and holding insiders and market professionals accountable for securities law violations. Under his guidance, the Division of Enforcement recommended more than 2,400 enforcement matters, leading to orders for over $20 billion in penalties and the return of billions to harmed investors. These efforts included significant actions in the rapidly growing crypto space and enforcement measures aimed at rooting out insider trading and misconduct in the private funds industry.
Grewal reflected on his time at the SEC, expressing pride in his division’s accomplishments, including recalibrating penalties and addressing widespread noncompliance in the cryptocurrency industry. His initiatives also resulted in over 100 enforcement actions in the crypto sector and significant charges related to recordkeeping failures in regulated financial entities.
Sanjay Wadhwa, who will serve as Acting Director, brings extensive experience to the role. He has been with the SEC for more than two decades and has led several key investigations, including actions against prominent hedge fund advisers and Wall Street figures involved in insider trading. Wadhwa’s work in rooting out institutional insider trading and overseeing large-scale investigations has earned him respect within the agency and the industry.
Sam Waldon, the new Acting Deputy Director, has served as Chief Counsel for the Division of Enforcement since 2022. Waldon’s legal expertise and prior experience in both the public and private sectors position him well to assist in leading the Division as the SEC continues its mission of protecting investors and enforcing securities laws.
During Grewal’s tenure, the SEC also prioritized gatekeeper accountability and recordkeeping compliance, with the Division enforcing penalties amounting to $2 billion against firms failing to maintain electronic communications. Grewal’s departure marks the end of a tenure focused on restoring trust in financial markets, holding professionals accountable, and addressing emerging risks, particularly in the evolving crypto space.
Grewal led the SEC’s enforcement division through a turbulent period, especially following the 2022 collapse of FTX. Under his leadership, the SEC ramped up its enforcement efforts against cryptocurrency firms, filing over 100 lawsuits against companies in the sector. Notable cases included actions against Coinbase, the largest U.S. crypto exchange, and Binance, the world’s biggest exchange by trading volume.
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