SBF Met With US SEC Chairman 2 times In Half A Year Not For FTX Misbehavior

Key Points:

• SBF and US SEC Chairman did not necessitate more regulation to combat digital currency abuse and fraud.
• The reason for these meetings was not related to FTX misbehavior.

Gary Gensler, chairman of the US Securities and Exchange Commission (SEC), met with former FTX CEO SBF twice in less than a year, and it was not because Gensler detected FTX misbehavior. 

Gary Gensler also stated that the FTX’s encryption crisis did not necessitate more regulation to combat digital currency abuse and fraud. When Gary Gensler was teaching at the Massachusetts Institute of Technology, he worked with and reported to Glenn Ellison, the father of Alameda CEO Caroline Ellisons. Furthermore, before FTX went bankrupt, SBF had at least four covert meetings with Biden’s senior advisers, according to Bloomberg. Gabriel Bankman-Fried, SBF’s brother, has also visited the White House. According to officials, Gabriel Bankman-Fried mostly discussed issues with his Guarding Against Pandemics Foundation.

His contributions to the District of Columbia opened doors, even to the Biden White House (Sam was a key supporter to the president’s 2020 campaign). He was also a popular speaker before several congressional committees eager to hear from the young crypto guru. SBF’s expertise of crypto pleased House Financial Services Committee Chair Maxine Waters (D-Calif.), who blew him a kiss after hearing him speak.

Like Madoff, there were some SBF skeptics, especially given how he appeared to be thriving while others were being devastated by the 2022 crypto downturn. On the side, he ran an exchange and a hedge fund, which is always a formula for disaster when the hedge fund loses money and customer accounts are compromised.

SBF continued to meet with allies in Congress, contacts at the CFTC, and significant investors, not to mention all those fawning media types, almost up until it was revealed that billions of dollars in customer money was taken from SBF’s FTX crypto exchange and lost in his hedge fund’s gaming.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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