He calls on the crypto community to investigate the Gensler-FTX tapes

Important takeaway

  • Individuals sent more than 9,000 letters calling for an investigation into SEC Chairman Gary Gensler’s ties to FTX.
  • Gensler met with FTX earlier this year, but the content of their discussions remains largely unknown.
  • Although Gensler historically had ties to Bankman Fried’s father through his MIT affiliation, little is known about the nature of their relationship.

The crypto community is appealing to the US Congress to investigate possible links between SEC Chairman Gary Gensler and FTX.

Gensler met with FTX

The cryptocurrency public is calling for a congressional investigation into SEC Chairman Gary Gensler’s relationship with FTX and its officers.

Legal news site Crypto-Law.com revealed on Twitter Today he has facilitated the delivery of more than 9,000 letters to Congress demanding an investigation into Gensler’s possible ties to the failed stock exchange. The petition notes that “evidence has come to light” that Gensler met with former FTX CEO Sam Bankman-Fried, who “orchestrated” the exchange before last week’s crash.

SEC filings confirm that Gensler met with Sam Bankman Fried and two FTX employees in March. According to these records, the group discussed “the unique risks associated with custodial digital assets.” Four members of the IEX Exchange, who will later receive financial support from FTX, also attended the meeting.

Crucially, the minutes of the meeting mention “conditional relief without action.” According to a 2020 SEC statement, a no-action parole is “a mechanism that allows registrants to obtain certain assurances when their behavior touches a regulatory gray area, or may be technically prohibited, but does not give rise to lies of the policy behind a particular rule.” However, it does not. There is evidence that FTX has been given this consideration.

according to Reports From Fox Business reporter Charles Gasparino, the meeting amounted to a “45-Minute Lecture from Gensler,” which made no promises and demanded more disclosure from both exchanges. He wrote “no approval indicated.”

Disclosure: At the time of writing, the author of this piece owns BTC, ETH, and other crypto assets.

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