Odaily News U.S. government watchdog Empower Oversight has filed a lawsuit against the SEC, alleging it failed to disclose a report on ethical conflicts and selective enforcement within the agency.
The lawsuit alleges that the SEC’s Office of Inspector General completed the report more than a year ago, but the agency has not released it despite multiple Freedom of Information Act requests.
The lawsuit seeks to force the SEC to disclose findings related to William Hinman, the former director of the SEC’s Division of Corporation Finance. The investigation focused on possible conflicts of interest in Hinman’s relationship with his former law firm, Simpson Thacher, which had a financial interest in promoting Ethereum.
Empower Oversight has been pursuing transparency from the SEC since August 2021, filing multiple FOIA requests and lawsuits seeking documents related to the agency’s communications with cryptocurrency entities. The regulator believes that the SEC’s delays indicate a pattern of evading accountability for its enforcement actions.