The US Securities and Exchange Commission (SEC) reportedly met with crypto exchange FTX and former CEO Sam Bankman-Fried several times before the crypto firm filed for bankruptcy. SEC Chairman Gary Gensler said that FTX is helping with the legal problems. However, a new report presents an opposing view.
Gensler Conference with Sam Bankman-Fried and FTX
After the bankruptcy filing of the cryptocurrency exchange FTX, there have been reports accusing the chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, of helping the former CEO of FTX Sam Bankman-Fried and his bankruptcy charge and “legal interference in obtaining legal jurisdiction. .” Some people have speculated that the SEC chief is about to give FTX a do-no-work letter.
Gensler’s own calendar shows that he met with Bankman-Fried in March. According to an SEC meeting statement, “members of Chairman Gensler’s staff and the staff of IEX and FTX met to discussion The holding of digital asset securities by broker-dealers has specific reasons, including the unique risks associated with holding digital asset securities and non-performing loans discussed in the statement.”
However, Fox Business’ Charles Gasparino explained on Twitter Saturday that “Contrary to think” about Gensler looking to give the former CEO of FTX Sam Bankman-Fried control over the crypto exchange:
The March meeting between the two parties was described by an attendee as ‘a 45-minute lecture by Gensler’ about his interest in crypto exchange.
Not only did the SEC chairman swear against Bankman-Fried, FTX, and IEX, but he also “ordered them to tell the SEC more about their models,” the reporter said.
“Follow-up meetings with the SEC continued until close to when FTX broke but no SEC approval was indicated,” he continued. “The House GOP is running an FTX hearing based on Bankman-Fried’s Dem political views by calling Gensler as a witness, think twice. Sources say Gensler told Brad Katsuyama and Bankman-Fried that he wanted a thorough investigation, to standards and no guarantees of approval.
However, many people have expressed on social media their belief that Gensler and other SEC employees are helping FTX. Some suspected it was because Bankman-Fried was a prominent figure in the Democratic Party. The former FTX boss was the second-biggest donor to Democrats in 2021-22, donating $39.8 million — second only to George Soros, according to Political Donors. Open Secrets.
Commenting on the approval of the Ethereum Tornado Cash crypto mixing service, privacy hacker and whistleblower Edward Snowden said:
The White House prosecutes and arrests children for the ‘crime’ of creating privacy devices to protect you, while the ‘operators’ and thieves who have robbed 5 million people get away with it. The difference? Thieves are great political donors.
Rep. Tom Emmer (R-MN) tweeted on Thursday: “Reports to my office are that he is helping SBF and FTX do the legal work to get the mandate. .We are investigating this.
Last week, Gensler confirmed during an interview on CNBC that he met with Bankman-Fried. The SEC chairman said: “I think we’ve been clear in these meetings… failure to comply is not going to work, it’s going to put people at risk.”
The SEC chairman has often been criticized for his hard-line approach to regulating the crypto industry. Gensler has said several times that crypto trading and lending sites should “come in,” report to the SEC, and register. However, the CEO of Ripple, Brad Garlinghouse, said in September of last year that, instead of cooperating with the crypto industry, “the SEC is using their meetings with companies to generate leads for their actions strengthen.” His company is currently working on a lawsuit with the SEC over the sale of XRP.
Additionally, several reports have reported that the SEC and the Commodity Futures Trading Commission (CFTC) are investigating FTX for allegedly misappropriating client funds. In May, Gensler warned that crypto exchanges often trade with their customers.
Do you think the SEC is working with Chairman Gensler and the crypto exchange FTX and Sam Bankman-Fried on legal matters? Let us know in the comment section below.
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