Congressman Emmer Accuses SEC Chair Gensler Of Being Aware Of FTX Fraud

December 14, 2022 5:18 pm Comments

It seems that the collapse of the FTX exchange may have even more to the story than some speculators expected.

Recently, Congressman Tom Emmer just alleged that the SEC Chairman Gary Gensler actually knew about the fraudulent activity of FTX prior to its collapse.

Emmer then claims that Gary continued to hold meetings with the FTX founder Sam Bankman-Fried despite having knowledge of the fraud.

As of right now, the SEC is charging Sam Bankman-Fried for defrauding investors of the exchange of over $1.8 billion which makes it one of the biggest frauds in crypto history.

Investors and speculators are comparing this incident to the collapse of Enron many years ago. reports:

Following the SEC’s charges, Gary Gensler released a press release which stated:

“Sam Bankman-Fried built a house of cards on a foundation of deception while telling investors that it was one of the safest buildings in crypto.”

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

However, U.S. Congressman Tom Emmer in a tweet shared a section of the SEC’s filing which reads:

“From the inception of FTX, Bankman-Fried diverted FTX customer funds to Alameda, and he continued to do so until FTX’s collapse in November 2022.”

In scrutinizing the filing, Congressman Tom Emmer alleged that SEC Chairman Gary Gensler was aware that FTX was fraudulent from its inception.

“Gary Gensler knows that FTX was fraudulent from its inception. This is egregious considering he had more meetings with Bankman-Fried than anyone in the space.”

Based on this claim, Tom Emmer says that Gensler must be held accountable for withholding this information in one way or another.

After all, the SEC’s job is to prevent these type of scenarios in order to help protect investors and this might indicate that the SEC is not doing its job well.

Looking back at history, the records show that Gary Gensler had met with Sam Bankman-Fried back in early March this year.

The meeting was likely to help create a regulatory environment that would benefit FTX specifically, but there is still a lot of details that need to be confirmed.

As a result, Emmer has mentioned that his office will continue this investigation on what the relationship is between Gensler and FTX. reports:

Emmer concluded:

Gary Gensler must testify before Congress and answer questions about the cost of his regulatory failures.

The lawmaker has repeatedly criticized Gensler and his enforcement-centric approach to crypto regulation.

In June he said: “Under Chair Gensler, the SEC has become a power-hungry regulator, politicizing enforcement, baiting companies to ‘come in and talk’ to the Commission, then hitting them with enforcement actions, discouraging good-faith cooperation.”

Last month, he said: “Chair Gensler’s regime at the SEC has been characterized by regulatory hypocrisy and inconsistency. Unacceptable that Gary Gensler doesn’t hold himself to the same transparency standards that he places on the private sector.”

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