Top SEC Cases of the First Half of 2023 Highlight Whistleblowers and Crypto

Securities Enforcement & Litigation partners Jane Norberg and Christian Schultz were quoted in the recent Law360 article, “From Crypto To Cyber Probes: Top SEC Cases So Far In '23.” The article discusses the most notable cases taken on by the U.S. Securities and Exchange Commission in the first half of the year, including two multimillion dollar whistleblower awards and the agency’s work regulating the crypto industry.

Norberg, former chief of the SEC’s Office of the Whistleblower, told Law360 that several recent high dollar whistleblower awards, including a record-breaking $279 million award to an anonymous whistleblower, show that the SEC is picking up steam on enforcement actions and more settlement announcements are likely in the near future. Norberg also said she expects the SEC to continue filing lawsuits against employers that try to prevent whistleblowers from coming forward. "I think those are going to be cases to continue to look for, because the commission is obviously using whistleblower information" and the SEC will want to “protect whistleblowers as much as they possibly can,” Norberg said.

Schultz, former Assistant Chief Litigation Counsel in the SEC’s Division of Enforcement, told Law360 the SEC’s expansion of its cryptocurrency and cybersecurity enforcement unit is starting to bear fruit. However, two recent crypto cases highlight that the industry is starting to push back on SEC enforcement instead of quietly settling. “They're not walking away and reaching a settlement that would satisfy the commission, but may be difficult for the company or their investors to withstand,” Schultz said.

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