In a recent update on X (formerly known as Twitter), Bill Morgan, a distinguished attorney in the cryptocurrency legal sphere, emphasized the importance of a lawyer’s duty of candor to the court, especially in urgent legal motions. Morgan’s statement came amid criticisms from other top legal figures in the crypto industry, including Stuart Alderoty, Chief Legal Officer at Ripple, directed towards the Securities and Exchange Commission (SEC). This duty of candor, as outlined by Morgan, requires lawyers to inform the court of any relevant facts or arguments that could be made by the defense, even if these points do not support the lawyer’s case.
Bill Morgan highlights ethics in crypto law
Morgan’s comments responded to Alderoty’s observations about the SEC’s conduct in various crypto-related cases. On December 1, Alderoty accused the SEC of a pattern of questionable behavior in its dealings with cryptocurrency companies. He highlighted instances where the court criticized the SEC for its inconsistency and lack of adherence to legal principles, particularly in the Ripple case.
Alderoty also noted the SEC’s failure to respond appropriately to Coinbase’s request for crypto rulemaking in June 2023. A subsequent court finding labeled the SEC’s treatment of similar products as arbitrary and capricious.
Considering these criticisms, Bill Morgan underscored the seriousness of misleading the court in ex parte motions. He labeled such conduct as the ethical antithesis of fulfilling the duty of candor. Morgan views this as severe professional misconduct, suggesting that those who engage in such deceptive practices with intent should face severe consequences, including potential disbarment. His stance reflects a growing concern within the legal community regarding the ethical standards in high-stakes crypto litigation.
Bill Morgan’s assertions highlight the intricate balance lawyers must maintain between advocating for their clients and upholding their ethical duties to the court. His emphasis on the duty of candor in urgent legal motions, especially in the rapidly evolving field of cryptocurrency law, serves as a reminder of the fundamental principles that govern legal practice. As the crypto industry continues to face regulatory scrutiny, the conduct of lawyers and regulatory bodies remains under close watch, highlighting the need for integrity and transparency in legal proceedings.
