Ripple Legal Head Calls Out Former SEC Director on Malpractice

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  • Ripple CLO Stuart Alderoty mocked Bill Hinman on his promotion at a16z.
  • John Deaton praised Alderoty on his remark, indicating he stands by the Ripple legal head’s opinion.
  • Hinman has been called out multiple times for creating confusion about the crypto industry during his time at the SEC.

Renowned crypto attorney John Deaton praised Ripple’s Chief Legal Officer, Stuart Alderoty, on his quick humor regarding SEC’s former Director of Corporation Finance Bill Hinman’s promotion. On September 12, a Twitter user shared that Bill Hinman, who initially joined venture capital firm Andreessen Horowitz (a16z) as an advisory partner to the crypto team, was promoted to the special advisor position.

However, this news was not well received by the Ripple legal head, who highlighted malpractices followed by Hinman during his time at the U.S. SEC, including collecting funds from his previous organization. Furthermore, Alderoty quoted:

Wait, is it April Fools day? Shouldn’t this read “While a public servant at the SEC, he collected $15 million from his old firm, ignored the law and created even ‘greater confusion’ for the crypto industry

Alderoty’s wit was appreciated by Deaton, who noted that the Ripple GC isn’t “your typical in-house boring and safe GC” and isn’t afraid to voice his opinions. Additionally, the crypto lawyer refused to comment on the promotion, claiming that his followers are always aware of how he “feels about the situation.”

On August 28, Deaton accused Hinman of lying under oath during his testimony, asserting that the SEC isn’t required to fulfill all of the Howey factors in order to establish that an offer or sale falls under the classification of an investment contract. Moreover, Deaton raised doubts about Hinman’s credibility in leading major financial initiatives, citing the Alibaba IPO, which he accomplished alongside former SEC chairman Jay Clayton.

This isn’t the first time Hinman has been under fire. In early August, Alderoty and John Reed Stark called for an investigation due to the “serious conflicts of interest by a gov official,” reflected in Hinman’s speech.