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Two of the largest financial regulators in the United States and the Department of Justice jointly decided to file a massive fraud allegation against the founders of bankrupt cryptocurrency exchange FTX, but less than a year later, the same The story of a town whose founder is Washington. The former crypto billionaire, Sam Bankman-Fried, has been quarreling with lawmakers and regulators alike. A new email shows how the 30-year-old former FTX CEO used former regulators as a means to get closer to US institutions.
of los angeles times FTX General Counsel Ryne Miller used old contacts with former regulators to get Bankman-Fried to dinner with then-Commodity Futures Trading Commission Commissioner Dan Berkovitz, according to an email The October 2021 meal was at a fine dining restaurant in Washington, DC. This is according to an email received by the LA Times via a Freedom of Information Act request.
do you understand, mirror From 2012 to 2013, Miller served as General Counsel to Gary Gensler, chairman of the CFTC and current chairman of the Securities and Exchange Commission. FTX in 2021. Miller reportedly paid Berkowitz $50 for his share of the dinner.
Also present at the dinner was former CFTC Chairman and Commissioner Mark Wetjen, who was working as FTX’s Policy Director at the time. His CEO of LedgerX, Zach Dexter, was also promised a seat at the table. LedgerX is his FTX affiliate, citing him as one of the few solutions to Bankman-Fried’s former crypto empire. After FTX and many of its affiliates declaration of bankruptcyLedgerX was then placed Sale.
The email also shows that Miller tried to invite then-CFTC Commissioner Dawn Stamp to dinner, but it could not be confirmed if she actually attended. You will no longer find her in her CFTC as she is now working as a laborer. advisor For crypto risk monitoring firm Solidus Labs.
gizmodo is Revolving Door Between US Financial Regulators and Crypto Firms, a door that was spinning so fast it made my head spin. Former officials from the U.S. Treasury, CFTC, SEC, and others are joining Binance, Coinbase, Astra Protocol, and other crypto-minded financiers like venture capital firm a16z.
Both the SEC and CFTC have filed despite this alleged rapprochement between crypto players and those intent on regulating the industry civil litigation Sam Bankman-Freed vs. Both agencies allege that the FTX founder committed fraud by allowing “unlimited lines of credit” between the cryptocurrency exchange and his sister hedge fund firm, Alameda Research. increase. The cryptocurrency founder, who often refers to his initials as SBF, claims Alameda operates as a separate entity, although regulators say he is still nominally both FTX and Alameda. , claiming it was pouring users’ cryptocurrencies into hedge funds.
Gizmodo reached out to the CFTC for comment but did not immediately hear back. Berkovitz, who helped organize a dinner with the SBF and cryptocurrency regulators, is now the SEC’s general counsel.We also reached out to the SEC to see if they had any comment on his Berkovitz role in his current SEC allegations against Bankman-Fried, but the SEC declined to comment..
inside recent hearings Current CFTC Chairman Rostin Behnam, along with the U.S. Senate Agriculture Committee, discussed why his agency is flagging the cryptocurrency industry while battling claims that his agency is interfering with the SBF’s FTX. I tried to claim who has the highest ability to regulate the whole. He said his agency met with his FTX executives 10 times, but further claimed that all of those meetings were for creating a cryptocurrency clearinghouse. He further praised LedgerX for being sound because it is regulated by the CFTC.
Some U.S. government officials have been eager to share a bed with the nascent crypto industry, and now that that same industry has finally shown its ugliest side, users and investors will be forced into cryptocurrencies. The regulator bros, who were supposed to protect against the worst whims of the It’s of little use to the lost investor, but flagrant crypto exchange.
