Damian Williams, the United States Attorney for the Southern District of New York, has announced his resignation, effective December 13, 2024. Appointed by President Joe Biden in 2021, Williams has been instrumental in prosecuting high-profile cases, notably within the cryptocurrency sector.
During his tenure, Williams led the prosecution of former FTX CEO Sam Bankman-Fried, securing a conviction on charges of fraud and money laundering. His office also pursued cases against other significant figures in the crypto industry, including the founders of the OneCoin and AirBit Club Ponzi schemes. These efforts underscored the Southern District’s commitment to addressing financial crimes in the rapidly evolving digital asset landscape.
Following Williams’ departure, Deputy U.S. Attorney Edward Y. Kim will assume the role of Acting U.S. Attorney. President-elect Donald Trump has nominated Jay Clayton, former Chair of the Securities and Exchange Commission (SEC), to succeed Williams. Clayton’s nomination is pending Senate confirmation.
The Southern District of New York has been a pivotal jurisdiction for financial crime enforcement, particularly in the cryptocurrency realm. Under Williams’ leadership, the office achieved several major convictions, including that of Bankman-Fried. However, recent statements from Scott Hartman, co-chief of the securities and commodities task force at the Southern District, indicate a strategic shift. Hartman noted that the office plans to allocate fewer resources to cryptocurrency-related cases, suggesting a reduced focus compared to the period following the 2022 “crypto winter.”
Jay Clayton’s potential appointment has garnered attention due to his previous tenure at the SEC, where he was perceived as less aggressive in regulating the cryptocurrency industry compared to his successor, Gary Gensler. This has led to speculation about the future direction of crypto enforcement under his leadership.
As the Southern District transitions to new leadership, the cryptocurrency industry and legal observers will be closely monitoring how these changes impact the prosecution of digital asset-related crimes.
