U.S. Securities and Exchange Commission (SEC) Officially Concludes Investigation into Crypto Exchange Crypto.com
The U.S. Securities and Exchange Commission (SEC) has officially concluded its investigation into the cryptocurrency exchange Crypto.com without taking any enforcement action. However, despite the removal of external pressure, CEO Kris Marszalek finds himself embroiled in controversy over the issuance of the exchange’s token CRO, and has sparked public outcry after blocking blockchain investigator ZachXBT, indicating ongoing internal governance concerns.
SEC Investigation Comes to a Close, Crypto.com Regains Freedom
On March 27, Kris Marszalek, CEO of Crypto.com, announced that the SEC has concluded its investigation into the exchange, and no enforcement actions would be taken.
“They used every tool available to attempt to stifle us, restricting access to banking, auditors, investors, and beyond. It was a calculated attempt to put an end to the industry.”
— Kris | Crypto.com (@kris) March 27, 2025
He vehemently criticized former SEC officials for their “deliberate attempt to stifle the crypto industry,” hindering the exchange’s business expansion:
“They used every means to try to suppress us, limiting our access to banks, auditors, and even investors. The purpose was quite clear and deliberate: to end this industry.”
Crypto.com’s Chief Legal Officer, Nick Lundgren, also stated, “The current SEC’s attitude has changed significantly, in stark contrast to the period under Gary Gensler.”
This investigation began in October 2024, when the SEC issued a Wells notice, indicating potential legal action. Crypto.com subsequently retaliated with a lawsuit, accusing the SEC of taking a “misleading” regulatory approach. After seven months, the investigation finally came to an end, lifting a long-standing cloud over the company.
Policy Shift! New SEC Leadership Sparks “Crypto-Friendly” Wave
Since Mark Uyeda took over as acting SEC Chair on January 20, the SEC has withdrawn investigations or enforcement actions against Coinbase, Uniswap Labs, and Robinhood in just five weeks.
At the same time, Paul Atkins, who was directly nominated by Trump and is poised to become the new SEC Chair, has been revealed as an active participant in the crypto space, which may signal a more friendly regulatory approach in the future, potentially injecting more positive factors into the industry.
(New SEC Chair nominee Paul Atkins discloses $6 million in crypto investments, concerns over FTX conflict of interest remain.)
As policies trend towards leniency, Crypto.com has also seized the opportunity, announcing on March 24 a partnership with Trump Media to launch a “Made in America” themed ETF, demonstrating its ambition to penetrate the U.S. market.
(Focusing on Bitcoin, CRO, and U.S. tech stocks! Trump Media collaborates with Crypto.com to launch a “Patriotic ETF.”)
The Fire Still Burns! ZachXBT Criticizes Unresolved CRO Issuance Controversy
However, just as Crypto.com was celebrating its release from the SEC investigation, internal controversies resurfaced. On-chain investigator ZachXBT criticized the exchange for reissuing 70 billion CRO tokens that had previously been “permanently burned” in 2021, which he claimed violated community promises, stating, “CRO is no different from a scam.”
“CRO is no different from a scam. Your team just reissued 70B CRO a week ago that was previously burned ‘forever’ in 2021 (70% total supply) and went against the community wishes as you control a majority of the supply. Unsure why Truth would choose a partnership with your exchange…”
— ZachXBT (@zachxbt) March 25, 2025
(Crypto.com’s proposal to reissue 70 billion CRO approved, token holders express outrage: Trust has been broken!)
He also questioned the motivation behind Trump choosing to partner with Crypto.com instead of larger exchanges like Coinbase or Kraken. The next day, ZachXBT publicly stated that he had been blocked by Marszalek, and remains blocked to this day, raising significant concerns about the company’s transparency and governance mechanisms.
Looking Ahead? Crypto.com Approaches a Critical Moment of Transformation
The conclusion of the SEC investigation undoubtedly creates growth opportunities for Crypto.com and paves the way for its collaboration with Trump Media. However, Marszalek’s decision to block ZachXBT reflects potential issues in the company’s governance and communication.
As the policy environment gradually improves, whether Crypto.com can genuinely rebuild trust within the market and community will be a crucial factor determining its ability to achieve long-term development.
Risk Disclaimer
Investing in cryptocurrencies carries high risks, with prices potentially experiencing extreme volatility, and you may lose all of your principal. Please assess the risks carefully.