Congressman Tom Emmer alleges SEC Chairman Gensler was aware of FTX fraud

US Congressman Tom Emmer claims that SEC Chairman Gary Gensler knew FTX was a scam, but had meetings with its disgraced founder, Sam Bankman Freed. did.

In recent developments, December 13th was a day of lots of activity for FTX founder Sam Bankman-Fried. The disgraced former CEO was reprimanded in prison by Bahamian authorities and subsequently indicted by the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), and Southern District of New York (SDNY).

The SEC has charged Sam Bankman-Fried with defrauding FTX investors of more than $1.8 billion since its inception in May 2019.

Sam Bankman-Fried built a house of cards based on deception while telling investors it was one of the safest buildings in cryptocurrency.

The SEC added that Sam Bankman-Fried orchestrated fraud and failed to disclose the diversion of FTX client funds to his privately owned Alameda Research.

However, U.S. Congressman Tom Emer shared a portion of the SEC filing in a tweet:

Bankman-Fried diverted FTX customer funds to Alameda since FTX’s inception and continued to do so until FTX’s collapse in November 2022.

In reviewing the filing, Rep. Tom Emmer said Alleged SEC Chairman Gary Gensler has known FTX to be fraudulent from the beginning.

Gary Gensler knows FTX has been rigged from the start.

Emmer said the SEC chairman would be held accountable for holding several meetings with the founders of exchanges that the commission deemed fraudulent.

Emer investigates Gensler’s relationship with FTX

Gary Gensler reportedly met with Sam Bankman-Fried in early March. Rep. Emmer claimed the meeting was centered around lobbying the SEC chairman to endorse her FTX in regulatory terms.

Tom Emmer said his office gets to the root of Gensler’s relationship with FTX. He added that reports he obtained claimed Gensler was working to help FTX obtain a regulatory monopoly.

Rep. Emmer also blamed Gary Gensler and Sam Bankman-Fried for the collapse of FTX. He believes this is a failure of business ethics and regulatory oversight.