Marc Fagel, a former SEC director and securities litigation expert, has taken to social media to offer what may be called "free legal wisdom" to XRP holders and users of the embattled crypto exchange FTX. The advice comes against the backdrop of a lawsuit filed by the new management of the exchange against the parents of Sam Bankman-Fried, its former head, to recover millions of dollars alleged to have been misappropriated.
As reported, Bankman reportedly received substantial sums of money from Alameda in the form of gifts, while Fried played a significant role in the company's political affairs and received millions for her efforts.
In response to these developments, CryptoLaw issued a post expressing criticism of the SEC's priorities. The post conveyed that the SEC, under the leadership of Chairman Gary Gensler, had allocated significant resources to target XRP holders, Ripple, LBRY and Coinbase, while permitting well-connected individuals to go unpunished until their actions attracted public attention.
Fagel, drawing on his extensive experience in securities law, contributed to the conversation by cautioning against intentionally evading SEC oversight. He sarcastically pointed out that intentionally evading the SEC by engaging with unregistered entities in the crypto space can lead to legal consequences, which is exactly what FTX users and XRP holders have experienced.
When asked about the wisdom of companies engaging with the SEC, Fagel emphasized that for most companies, such compliance is not optional. He also noted that if necessary, the regulator can issue a subpoena if there is no cooperation from the company.