The US Securities and Exchange Commission’s enforcement director, Gurbir S. Grewal, an Indian American, is leaving his position after three years of increased enforcement actions against Wall Street and cryptocurrency firms. His departure on October 11 will be followed by Sanjay Wadhwa, another Indian American and a 21-year veteran of the agency, stepping in as the Acting Director, as announced by the SEC on October 2.
Grewal took the lead of SEC’s 1,500-person enforcement unit in July 2021 following his role as New Jersey attorney general. During his tenure, he pursued significant cases in the crypto sector, such as suing exchanges like Binance and Coinbase for facilitating illicit offerings to retail investors. Additionally, he was involved in charging FTX in a larger government action against the exchange’s multibillion-dollar fraud and suing the firm’s auditor for negligence.
Under Grewal’s leadership, the SEC launched a broad, multi-year investigative initiative targeting Wall Street’s use of personal devices and apps like WhatsApp to discuss business matters. This initiative resulted in over $2 billion in civil fines imposed on firms including JP Morgan Chase, Goldman Sachs, and Morgan Stanley.
Grewal’s enforcement division also engaged in legal battles with Elon Musk over the billionaire’s refusal to testify for the agency’s investigation into his takeover of Twitter, now known as X, and settled charges against billionaire investor Carl Icahn for disclosure failures. Throughout his tenure, more than 2,400 enforcement matters led to orders for over $20 billion in disgorgement, prejudgment interest, and civil penalties, as well as over 340 industry bars against individuals, over $1 billion in awards to whistleblowers, and the return of billions of dollars to affected investors.
Grewal prioritized restoring investor trust and confidence in financial markets by focusing on proactive enforcement initiatives and creating a culture of compliance among market participants. His leadership emphasized holding insiders, industry professionals, and gatekeepers accountable for securities law violations, combating fraudulent conduct, enforcing disclosure and recordkeeping requirements, and upholding whistleblower protections.
Before joining the SEC, Grewal served as the Attorney General for the State of New Jersey from January 2018 to June 2021, following his role as the Bergen County Prosecutor. He also served as an Assistant United States Attorney for the District of New Jersey and the Eastern District of New York, as well as in private practice.
Sanjay Wadhwa, the Deputy Director of the Enforcement Division since August 2021, will take over as Acting Director following Grewal’s departure. Wadhwa has extensive experience at the SEC, having worked in various roles including Senior Associate Director of the Division of Enforcement in the New York Regional Office, Deputy Chief of the Market Abuse Unit, and Assistant Director in NYRO. Prior to joining the SEC, he worked as a tax associate at law firms Cahill Gordon & Reindel LLP and Skadden, Arps, Slate, Meagher & Flom LLP.
Wadhwa holds a BBA from Florida Atlantic University, a J.D. from South Texas College of Law Houston, and an LL.M. in taxation from New York University School of Law. With his background and experience, Wadhwa is well-equipped to continue the SEC’s enforcement agenda and uphold the agency’s mission of investor protection.