SEC accused of failing to control FTX
2022.12.17 14:35
SEC accused of failing to control FTX
Budrigannews.com – In the Saturday Report on December 17, Representative Pete Sessions stated that the Securities and Exchange Commission (SEC) was “asleep at the wheel” regarding the manner in which FTX Group and its subsidiaries met financial and corporate control requirements.
“We really want to take a gander at what the Protections and Trade Commission was doing”, expressed the Texas Senator, adding that “the SEC was sleeping at the worst possible time for these billions of dollars that we currently learn about a year after the fact.”
On December 13, the Securities and Exchange Commission (SEC) brought charges against the former CEO of FTX, Sam Bankman-Fried (SBF), claiming that Bankman-Fried had broken the Securities Exchange Act of 1934 and the Securities Act of 1933. The SEC asks for an injunction to prevent Bankman-Fried from participating in the issuance, purchase, offer, or sale of securities unless he does so for his own account in the complaint.
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,” according to SEC Chair Gary Gensler. A day after his arrest by Bahamian authorities at the request of the United States, the charges were filed against him.
Additionally, Representative Sessions mentioned that a year ago, Bankman-Fried testified before a congressional committee and was questioned about the need for cryptocurrencies to be regulated. Sessions claims that Bankman-Fried responded, “it’s just a matter of transparency.”
Bankman-Fried also had “full access to members of Congress and the U.S. Senate,” the congressman said.
Session’s remarks follow those of Senator Tom Emmer, who called on Gensler to appear before Congress to explain his flawed “crypto information-gathering efforts” and criticized Gensler for them.
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Emmer likewise framed that Gensler hasn’t showed up before the House Advisory group on Monetary Administrations since October 2021, leaving crypto media to make up for the shortcoming for the SEC’s disappointments in researching.
