There is growing speculation in the community that Securities and Exchange Commission (SEC) chairman Gary Gensler may work with FTX co-founder Sam Bankman-Fried to find regulatory loopholes exchange can benefit.
The speculation comes as the connections between Sam Bankman-Fried, his parents Joseph Bankman and Barbara Fried, and prominent people at the highest level of government and administration in the United States have been revealed in recent days. now. On top of that, Bankman-Fried is also a major political donor, primarily to the Democratic Party.
The rumor mill in recent days has been heavily influenced by Republican Rep. Tom Emmer, known as one of the most crypto-friendly members of the House of Representatives, tweeted that he had received reports that Gary Gensler was helping Bankman-Fried “do legal loopholes to get in control.”
“We are investigating this,” the crypto-friendly politician added.
A possible explanation for the news that Emmer is talking about is that FTX’s acquisition of the US-based cryptocurrency exchange, BlockFi, already has the necessary regulatory approval in the US. By acquiring this company, Bankman-Fried may have thought that regulatory approvals would also extend to FTX, giving the price a significant advantage over its global competitor Binance and others.
Links to the Democratic Party
Notably, the tweet from Emmer came a day after an article in Fortune revealed that Bankman-Fried’s mother, Barbara Fried, is the owner of a group called Mind the Gap is raising money from the tech industry for Democrats.
In a 2020 article in The Stanford Daily, Mind the Gap was described as a “Stanford-affiliated Democratic fundraising group” that gave more than $20m to Democratic candidates in the 2018 House elections.
Meanwhile, Bankman-Fried’s father, Stanford law professor Joseph Bankman, also had close ties to leading politicians. In the past he has written tax legislation for Senator Elizabeth Warren, a Democrat known for her opposition to crypto mining and crypto mining.
SEC chairman Gary Gensler also has ties to the Democratic Party, having previously served as finance chairman for Hillary Clinton’s presidential campaign.
“It’s not a stretch to think [Sam Bankman-Fried] sought to use these political connections to his advantage,” the Fortune article said, adding that this is “a good time for skeptics to ask why [Gensler] failed to prevent FTX in the first place—and if another high-level site plays a role in enabling this problem.”
Finally, and perhaps unsurprisingly, speculation about ties between Bankman-Fried and prominent government figures is rife in the community.
Among those who expressed their opinion was popular crypto user Tara Bull, who asked if “FTX was used to siphon money for the democratic party?”
“It’s a question worth asking,” replied Twitter’s new boss and prominent Dogecoin fan Elon Musk.