Tom Emmer of Wisconsin's congressional delegation claims that SEC Chairman Gensler was aware of the FTX fraud.
U.S. Congressman Tom Emmer alleged (1) that the Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, was aware that FTX was a phony company but met with the discredited company's founder, Sam Bankman-Fried.
Sam Bankman-Fried, the founder of FTX, had a very busy day on the 13th of December due to recent events. The authority of the Bahamas reprimanded the disgraced former chief executive officer. At the same time, he was incarcerated, and subsequent charges were brought against him by the SEC, the CFTC, and the Southern District of New York (SDNY).
The Securities and Exchange Commission accused Sam Bankman-Fried of cheating FTX investors out of more than $1.8 billion since the company's start in May 2019. In response to the accusations made by the SEC, Gary Gensler issued a press release in which he stated:
"Sam Bankman-Fried created a house of cards based on deception while promising investors that it was among the safest properties in crypto while simultaneously creating a house of cards on a foundation of deception."
In addition, the SEC said that Sam Bankman-Fried organized fraudulent operations and neglected to report the transfer of monies from FTX customers to a company that he privately controlled called Alameda Research.
Nevertheless, United States Congressman Tom Emmer highlighted in a tweet a piece of the SEC's filing that reads as follows:
"From the very beginning of FTX, Bankman-Fried siphoned off FTX consumer monies to Alameda, and he continued to do so all the way up to FTX's demise in November 2022,"
After investigating the file, Congressman Tom Emmer made the assertion that SEC Chairman Gary Gensler was aware from the beginning that FTX was a phony company.
"Gary Gensler is aware that FTX has been a dishonest enterprise ever since it was founded. This is appalling when one considers that he met with Bankman-Fried more frequently than anyone else in the space."
Emmer has stated that the Chairman of the SEC will be held accountable for participating in multiple meetings with the founder of a trading platform that the SEC has determined to be fraudulent.
Emmer Examining Gensler's tie to FTX
It was rumored that Gary Gensler (2) had a meeting with Sam Bankman-Fried earlier in March. Congressman Emmer asserted that the meeting's primary purpose was to persuade the SEC Chairman to side with FTX regarding the terms of its regulatory framework.
Tom Emmer (3) has stated that his office will investigate the nature of Gensler's relationship with FTX. In addition, he stated that the reports that were made available to him suggested that Gensler was assisting FTX in obtaining a regulatory monopoly.
In addition, Congressman Emmer pointed the finger of blame at Gary Gensler and Sam Bankman-Fried for the demise of FTX, which he views as a failure of business ethics and regulatory oversight.