© Reuters Gensler punished companies that wanted to work with the SEC: Deaton
- John Deaton predicted that the SEC would pursue a few exchanges by the end of the year.
- The SEC instead chose to punish companies that “begged” to work with the SEC, Deaton says.
- Former Coinbase (NASDAQ:) CTO Balaji Srinivasan claimed to have decoded the link between Bankman-Fried and Gensler.
Crypto Law founder John Deaton said he predicted about six months ago that the U.S. Securities and Exchange Commission (SEC) would sue an exchange or two by the end of the year. However, SEC Chairman Gary Gensler only chose to punish companies that “begged” to work with the SEC while siding with fraudulent companies, according to Deaton.
Deaton shared a message from former Coinbase CTO Balaji Srinivasan, who successfully decoded the common bond between Sam Bankman-Fried and Gensler:
6 months ago I predicted that by the end of the year, Gensler would be pursuing an exchange or two (i.e. @coinbase, @binance, @krakenfx, etc). Only in Gensler’s world would you punish corporate America who practically begged to work with the SEC while speaking with a fraudster who donated https://t.co/u2w2GIJ2H9
— John E Deaton (@JohnEDeaton1) November 16, 2022
According to Srinivasan, the ties between FTX and SEC go beyond in-person meetings. To everyone’s disbelief, Gary Gensler’s boss at MIT, Glenn Ellison, is the father of Caroline Ellison, co-CEO of Alameda Research. Bankman-Fried also attended MIT and helped establish Alameda Research. The claimed connection is believed to be aimed at cracking down on crypto and controlling the system.
It should also be noted that FTX US General Counsel had served as Gensler’s lead counsel at the CFTC. There are many leads leading the crypto community to believe that the SEC has backed FTX in many instances. Additionally, Bankman-Fried’s meeting with Gensler earlier this year prompted the community to investigate his political contributions. Delphi Digital’s general counsel, Gabriel Shapiro, called these political donations under the FTX name “political kickbacks.”
On March 23, Gensler granted a meeting between SEC officials and Bankman-Fried over Zoom. The meeting was attended by Senior Counsel Amanda Fischer and Senior Counsel Corey Frayer of the SEC and representatives from the IEX exchange and Bankman-Fried. The agenda for the meeting was to get SEC approval for a trading platform that met the standards.
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