CryptoLaw has taken to the crypto community with members of the US Congress alleging “Gary Gensler’s official actions and possible role in one of the biggest scams in American history.” Congress appears to be under pressure in the wake of the FTX crisis. Many began to question whether there was an agreement between the crypto exchange and the head of the SEC.
Is there a connection between FTX and SEC chairman Gensler?
According to the US crypto regulatory news outlet, members of the crypto community deserve their questions answered. As the crypto community tries to resolve FTX’s bankruptcy, links are emerging between SBF, the exchange’s CEO, and Gary Gensler, chairman of the US Securities and Exchange Commission (SEC).
https://twitter.com/CryptoLawUS/status/1590747807363010560
On behalf of XRP holders in the SEC and Ripple lawsuit, CryptoLaw founder and amicus curiae John E. Deaton shared in a tweet yesterday. The tweet alleged that the SEC continues to fail in its mandate to protect cryptocurrency holders in the US. John E. Deaton points out that SEC chairman Gensler met with the SBF prior to the FTX crisis.
Here is the message:
“The SEC’s job is to protect investors, but Gary Gensler as chairman has failed to protect retail digital asset holders over and over. https://t.co/Ra0og5yE5y
— John E Deaton (@JohnEDeaton1) November 10, 2022
Web 3 startup founder JagoeCapital has made connections claiming that Alameda Research CEO Caroline Ellison knew Gensler personally. As a result, while Gensler was still a professor at the institution, his father was head of the Economics department at the Massachusetts Institute of Technology (MIT). Mark Wetjen, head of policy at FTX USA, served with Gensler during his tenure as chairman of the CFTC. FOX Business journalist Eleanor Terret shared on her Twitter account.
Also worth noting: A former @CFTC commissioner who served under @GaryGensler and replaced him as acting chair @MarkWetjen is FTX U.S. Head of Policy and Regulatory Strategy. Per a source, he was key in SBF’s Washington lobbying efforts and “introduced Sam to the right people.” https://t.co/Fa67dGrLm9
— Eleanor Terrett (@EleanorTerrett) November 11, 2022
Terret, citing anonymous sources, points out that Wetjen played an important role in introducing the SBF to key figures in Washington.
Emmer: We’re investigating this issue.
Congress’s representative in Minnesota, Tom Emmer, stated that he would investigate the issue in detail. In addition, Emmer made the following statements in his Twitter post:
Reports in my office contain allegations that SBF and FTX are helping to obtain a regulatory monopoly by working through loopholes. We are investigating this.
Interesting. @GaryGensler runs to the media while reports to my office allege he was helping SBF and FTX work on legal loopholes to obtain a regulatory monopoly. We're looking into this. https://t.co/SznowgcP6V
— Tom Emmer (@RepTomEmmer) November 10, 2022
As we have reported as Kriptokoin.com; Emmer is a member of the Investor Protection, Entrepreneurship and Capital Markets Subcommittee. However, these allegations, according to Emmer, are unfortunately not an empty matter. With all this, FTX, FTX.US, Alameda Research and SBF are under investigation by the US SEC, according to a report published in Bloomberg. The report states that the SEC tracked the activities of the crypto exchange months ago. In addition, it is known that investigations have been launched against the US branch of FTX.
FTX crisis affected the entire cryptocurrency market
The cryptocurrency market took a big hit this week with the collapse of FTX, of which Sam Bankman-Fried is CEO. However, leaders interested in the cryptocurrency industry have claimed that the SEC was responsible in the aftermath of the crisis. The market crash triggered by Binance’s announcement with FTX wiped out more than $100 billion in gains. CZ abandoned the planned acquisition this week. However, it is known that this decision was made after the examination of the documents belonging to FTX.
Meanwhile, the comments made by SEC Chairman Gary Gensler after the FTX crisis drew attention. Several crypto leaders and experts said they were disappointed. In an interview, Gensler explained that investors need better protection in this area. Gensler also explained that investors have suffered serious losses.
It is known that the SEC has already launched an investigation into the US arm of FTX. The Commission also began investigating the link between FTX and several other SBF-related companies.
Will it affect the litigation between XRP and the SEC?
Stuart Alderoty, Ripple’s advisor, shared his views on the SEC chairman’s comment. He stated that Gensler was on the wrong talking point. He says the SEC chairman has influenced the regulation of the crypto industry due to his quest for power. According to Alderoty, this directly causes a deep financial loss in the country.
The only runway that’s running out is these worn out (and frankly false) talking points from SEC Chair @GaryGensler. His insistence on elevating the SEC’s quest for power over effective regulation in this country is creating deep financial damage. https://t.co/U17bfOWRRY
— Stuart Alderoty (@s_alderoty) November 10, 2022
Alderoty also claimed that the SEC Chair had failed once again. However, he pointed out that while there are a lot of companies pending in bankruptcy courts, the SEC still continues to talk about the Kim Kardashian case. He says what happened in FTX had a big impact. The cryptocurrency market has lost over $100 billion in just a few days.
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