Rep. Tom Emmer said in a tweet that he had received reports that SEC Chairman Gary Gensler was helping Sam Bankman-Fried and FTX “work on legal loopholes to gain regulatory monopoly.” rice field.
— Tom Emmer (@RepTomEmmer) November 10, 2022
Crypto community questions Gensler-SBF relationship
The crypto community has questioned Gensler’s relationship with the founder of FTX, giving it a dubious label by many.
Speculation within the community claims that SBF’s regulatory push was fueled by its attempts to control the crypto space. Others speculate that the SEC chair was influenced by relationships during his time at the Massachusetts Institute of Technology (MIT).
According to RH Cult’s tweet, Gensler’s boss at MIT was the father of Alameda CEO Caroline Ellison. According to SBF’s Wikipedia page, he graduated from school in his 2014 year.
Gary Gensler’s boss at MIT, Glenn Ellison, is the father of co-CEO Caroline Ellison. #Alameda research. @SBF_FTX I also went to MIT and helped create #AlamedaResearch This looks like a setup for cracking down #Crypt control the system.
— RH Cult (@HEXCULT1) November 10, 2022
It’s worth noting that the relationship between FTX and the SEC goes beyond face-to-face meetings.
General Counsel to FTX US served as Chief Counsel to Chairman Gensler at the CFTC.
By all appearances, he is a competent and excellent lawyer.
The point is that the SEC was pretty close. https://t.co/ohez0oXSjo
— Dane Lund (@lund_dane) November 11, 2022
Additionally, SBF met with Gensler earlier this year, leading the community to scrutinize his contributions to politicians.
Delphi Digital legal counsel Gabriel Shapiro labeled the money spent by FTX a “political bribe.”
“The recent bankruptcy of a major cryptocurrency exchange has shown that the best course of action is the bill we co-wrote after the owner of that exchange spent $40 million in political bribery. I am proving
Jesus. Shit. Christ. https://t.co/LeOZxrKkRB
— _gabriel Shapir0 (@lex_node) November 11, 2022
Popular Crypto Lawyer Jake Chervinsky Said FTX was close to making a deal with financial regulators, which would have set a damaging precedent for everyone else.Chervinsky thanked Congressman Emmer for investigating these allegations. .
Meanwhile, reports have revealed that U.S. lawmakers are pushing an SBF-backed bill with plans to increase oversight over the crypto space.Some crypto industry leaders criticized invoice.
The Stabenow-Boozman-FTX (SBF) bill could not have prevented this disaster as FTX helped draft the bill!
And it did so in a way that allowed them to hide their problems indefinitely while raising more money from U.S. institutional investors.
— Ryan Serkis 🥷 (@twobitidiot) November 11, 2022
SEC Reportedly Investigating SBF
In another development, Bloomberg News report The SEC, citing unnamed sources, said it was investigating whether SBF and his company violated securities regulations.
According to the report, regulators have been scrutinizing the SBF’s role in the recent liquidity crisis. Watchdog added that it is also investigating whether FTX.US and its cryptocurrency lending activities violate the law.
FTX has been under strict regulatory scrutiny following its implosion. US regulators are investigating the connection between SBF’s myriad operations and whether the cryptocurrency exchange mishandled customer funds.