Thousands petition for congressional investigation of alleged Gensler–SBF links

Published at: Nov. 15, 2022

Almost 4,000 people have used a CryptoLaw petition app to demand that Congress investigate United States Securities and Exchange Commission head Gary Gensler’s “actions in the FTX fraud,” the organization claimed in a tweet on the morning of Nov. 14. 

The CryptoLaw website is run by lawyer John Deaton, who is representing Ripple against the SEC and contributes frequently to the public discourse on the case. The petition reads, in part:

“Evidence has emerged that proves that Gensler met with […] [FTX CEO] Sam Bankman-Fried, before the $14 billion collapse of FTX. Members of Congress have already been informed that Gensler was working with Bankman-Fried to give FTX a regulatory free pass while a massive fraud was going on right under the SEC’s nose. […] It’s time for a full Congressional investigation of Gensler’s role in one of the biggest financial frauds in American history.”

Gensler’s alleged links with bankrupt FTX and Bankman-Fried, also known as “SBF,” began to attract attention practically as soon as the disgraced exchange’s troubles became public. Republican Representative Tom Emmer, who has a long record as a crypto supporter, tweeted on Nov. 10 that “reports to my office allege he [Gensler] was helping SBF and FTX work on legal loopholes to obtain regulatory monopoly.”

Memo on Samuel Bankman Fried’s 3/23/22 meeting with SEC Chairman Gensler’s staff. Remember these names. pic.twitter.com/CmsIqhtQQX

— FoiaFan (@15poundstogo) November 14, 2022

Emmer did not elaborate on the source or nature of the reports he referred to, but media reports point to a 45-minute Zoom meeting on March 23 between senior counsel Amanda Fischer and senior adviser Corey Frayer from the SEC and representatives of the IEX stock exchange and FTX, including SBF himself. FTX later invested in the IEX exchange.

Tags
Related Posts
WATCH LIVE: CEOs of Facebook, Apple, Amazon and Alphabet Square Off With Congress
Facing rising accusations of running monopolies, the CEOs of four of the world’s biggest tech firms are testifying before the Judiciary Committee’s Antitrust Subcommittee today, July 29. The hearing was originally scheduled for July 27 and was moved to 12PM EST today. It is seeing further delays today and as of 12:25 had not been called to order. Global monopolies The hearing is entitled “Online Platforms and Market Power, Part 6: Examining the Dominance of Amazon, Apple, Facebook, and Google.” It continues a lengthy series of investigations into the role these giant companies play. All of these firms except for …
Regulation / July 29, 2020
Is US politics divisive enough to make crypto a partisan issue?
As the perceived legitimacy of blockchain technology increases, politicians in the U.S. have shown a growing interest in turning this non-partisan technology into a topic of political divisiveness. Speaking via video to an audience of the Bloomberg New Economy Forum in Singapore on Friday, former presidential candidate Hillary Clinton said while cryptocurrencies were an “interesting” technology, they also had the power to undermine the U.S. dollar and destabilize nations — “perhaps starting with small ones but going much larger.” While no longer the leader of the Democratic Party, Clinton’s sentiment on crypto resembles that of top Democrat and senator Elizabeth …
Regulation / Nov. 19, 2021
Congress members concerned SEC stifling innovation with crypto scrutiny
In a bipartisan letter put forward by Republican Minnesota Congressman Tom Emmer, a cohort of Congress members has written to Securities and Exchange Commission (SEC) Chairman Gary Gensler, challenging the regulator's scrutiny of cryptocurrency firms and expressing concern that “overburdensome” investigation may be suffocating the crypto industry. They suggest the SEC is drowning companies in paperwork in contravention of the SEC’s stated aims and mandated jurisdiction. Emmer tweeted to his 51,000 followers: “My office has received numerous tips from crypto and blockchain firms that SEC Chair @GaryGensler’s information reporting ‘requests’ to the crypto community are overburdensome, don’t feel particularly… voluntary… …
Adoption / March 17, 2022
US senators Lummis, Gillibrand reveal working on bipartisan crypto legislation
United States Senator from New York Kirsten Gillibrand revealed working with Senator Cynthia Lummis on a broad-based regulatory framework for the crypto industry on Thursday during a live event in Washington, D.C. As Gillibrand specified, she and Lummis are undertaking “a very complex and intensive review” of different aspects of the industry, with a future regulatory task-sharing in mind. The framework will see both the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) get their share of a regulatory mandate. Speaking of her and Lummis’ motivations for taking up the initiative, Gillibrand said: “Many of the goals …
Regulation / March 25, 2022
US lawmakers introduce bill aimed at reporting on crypto miners' potential environmental impact
Three United States lawmakers have introduced legislation that would direct the Environmental Protection Agency, or EPA, to report on the energy usage and environmental impact of crypto miners. In a Dec. 8 announcement, California Representative Jared Huffman and Massachusetts Senate Ed Markey said they were “sounding the alarm” the energy use from crypto mining in the United States, claiming that Bitcoin (BTC) miners accounted for roughly 1.4% of the country’s electricity consumption. Together with Senator Jeff Merkley, the lawmakers introduced the Crypto-Asset Environmental Transparency Act, aimed at instructing the EPA to report on mining activity consuming more than 5 megawatts. …
Regulation / Dec. 8, 2022