US Congressman Claims SEC’s Gensler Had Dubious Ties to FTX, Promises Investigation

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US Congressman Tom Emmer said in a tweet that he had received reports that SEC Chairman Gary Gensler had helped Sam Bankman-Fried and FTX “work through legal loopholes to gain a regulatory monopoly “.

The crypto community questions the relationship between Gensler and SBF

The crypto community has questioned the relationship between Gensler and the FTX founder, with many calling it shady.

Speculation within the community has alleged that SBF’s drive for regulation is fueled by attempts to control the crypto space. Some have also speculated that the SEC Chairman was influenced by connections during his time at the Massachusetts Institute of Technology (MIT).

A tweet from HR Cult said Gensler’s boss at MIT was the father of Alameda CEO Caroline Ellison. The SBF Wikipedia page shows that he graduated from the school in 2014.

Additionally, SBF caught up with Gensler earlier this year, leading the community to examine his donations to politicians.

Delphi Digital’s general counsel, Gabriel Shapiro, called the money spent by FTX “political bribes.”

Popular crypto attorney Jake Chervinsky said FTX was close to making a deal with the financial regulator that would have set a bad precedent for everyone else. Chervinsky thanked Congressman Emmer for looking into these allegations.

Meanwhile, reports have surfaced that US lawmakers are advancing the SBF-backed bill with plans to increase oversight of the crypto space. Several crypto industry leaders have critical The law project.

The SEC would investigate SBF

In a separate development, Bloomberg News reported that the SEC was investigating whether SBF and its companies violated securities regulations, citing unnamed sources.

According to the report, the regulator was scrutinizing SBF’s role in the recent liquidity crisis. He added that the watchdog is also investigating whether FTX.US and its cryptocurrency lending activities violate the law.

FTX came under intense regulatory scrutiny after its implosion. US regulators are investigating the relationship between SBF’s myriad businesses and whether the crypto exchange mishandled customer funds.

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