The SEC's enforcement director quit following disputes on pursuing charges in cases linked to Trump associates, including settlements with crypto entrepreneur Justin Sun and Tesla
Margaret Ryan, the former director of the U.S. Securities and Exchange Commission's Division of Enforcement, resigned on March 16 after clashing with SEC Chair Paul Atkins and other officials over how to handle certain cases.
The conflicts centered on cases involving individuals with ties to President Donald Trump, including crypto entrepreneur Justin Sun and Tesla CEO Elon Musk. Ryan reportedly wanted to pursue fraud and other charges but faced resistance from Republican appointees.
Cases Involving Justin Sun
The SEC sued Justin Sun and his companies in March 2023 for allegedly selling unregistered securities and engaging in manipulative trading. The agency settled the case earlier this month for $10 million, with Sun neither admitting nor denying the allegations.
Sun has invested heavily in Trump's crypto project, World Liberty Financial, purchasing $30 million worth of tokens in November 2024 and increasing his stake to $75 million in January 2025. An SEC official noted that the case was complicated by changing crypto guidance and pending laws.
Dispute Over Elon Musk Case
The SEC filed a lawsuit against Elon Musk in January 2025, alleging he failed to disclose his beneficial ownership of Twitter (now X) shares in 2022, which allowed him to buy at lower prices. Ryan's push to aggressively pursue this case reportedly added to the tensions.
On March 17, the SEC and Musk announced they were in talks to settle the lawsuit. Lawyers following the cases said both the Sun and Musk matters had a strong chance of SEC success in court.
The SEC has faced scrutiny from Democratic lawmakers over its handling of crypto cases under the current administration, including dropping or settling cases initiated by former Chair Gary Gensler. CoinTelegraph cited Reuters for these details, and the SEC did not immediately respond to requests for comment.
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