Coinbase CEO Brian Armstrong has warned law firms after announcing that the crypto exchange had cut ties with firms that had employed former executives from the U.S. Securities and Exchange Commission (SEC).
Armstrong slammed any senior workers at the agency who did not decide to leave on their own accord, claiming that “you cannot say you were just following orders.”
On Tuesday, Armstrong took to X to call out fellow exchanges, urging them to part ways with law firms if they hired “anyone who committed these bad deeds in the (soon to be) prior administration.”
The Coinbase CEO, who has been a major critic of the agency, said the exchange has already parted ways with a law firm that has hired an executive.
“For instance, Milbank recently messed up and hired Gurbir [Grewal]. We don’t work with them now (and never will while he works there),” Armstrong wrote.
Grewal accused some of the biggest exchanges of securities violations, including Coinbase and Binance.
“It’s an ethics violation in my book to try and unlawfully kill an industry while refusing to publish clear rules,” Armstrong said.
Armstrong gave no leeway for excuses, claiming that he believed no executives could say, “You were just following orders.”
“They had the option to leave the SEC, and many good people did,” he said.
While the CEO does not believe in “canceling” anyone, he said the industry should not be “putting money in their pocket after the abuse.”
“They can go work in other areas,” he added.
Gurbir is not the only SEC executive hired by law firms focusing on digital assets. Many senior execs have left the agency to use their insider knowledge to help the side they were originally against.
Carolyn Welshhans, former Acting Chief of the SEC’s Crypto Assets and Cyber Unit, joined law firm Morgan Lewis in October 2024.
The firm has a strong focus on digital assets, with Welshans helping clients with securities enforcement issues and those needing clarity on the SEC’s evolving legal framework.
Meanwhile, Ladan Stewart, a key figure in SEC’s lawsuits against Coinbase and Ripple, has joined White & Case.
Stewart now helps the firm’s clients work through SEC enforcement actions related to crypto.