Bobos & Wojaks

Get rich or die tryin

SBF, Gensler, and CeFi are being blamed by a US Congressman for the FTX collapse

In a Nov. 22 Fox Business interview, US Congressman Tom Emmer said FTX’s failure was a failure of centralized finance (CeFi), Sam Bankman-Fried, and SEC Chairman Gary Gensler.

According to Emmer, the failure of FTX was also a failure of business ethics, government oversight, and regulatory oversight.

The Minnesota Representative questioned Gary Gensler, the chair of the SEC, regarding his involvement in the FTX debacle. He emphasized the March meeting between SBF and the regulator. “Emmer” said “They were working with Sam Bankman-Fried and others to give them special treatment from the SEC that others aren’t getting.”

The senator also chastised the SEC for failing to probe problematic actors in the cryptocurrency market. When numerous cryptocurrency firms, including Terra Luna, Voyager Digital, and Celsius, went bankrupt, Emmer wondered what the regulator was up to.

Instead, he claimed the Commission was making “backroom agreements” with the bad guys while investigating and prosecuting the community’s good actors.

“We need to get to the bottom of this—we need to understand why Gary Gensler and the SEC were not doing their job. We need to understand how this was allowed to get to the point where people’s savings are getting hurt.”

ftx-crypto-blockchain-defi

The lawmaker added that his office was looking into whether Gary Gensler, the chairman of the SEC, was aiding Sam Bankman-Fried and FTX in obtaining a regulatory monopoly.

Emmer also chastised the New York Times for a piece on Sam Bankman-Fried. He questioned why the media company would produce a report about “a guy who misused funds.”

The crypto community chastised conventional media outlets for portraying Sam Bankman-Fried as a good person.

The US senator maintained that the FTX debacle had nothing to do with cryptocurrency or decentralized finance. He believes that the emphasis should be on centralized finance and the necessity to regulate it. “It’s not about decentralized money. This isn’t about the cryptocurrency sector; it’s about Sam Bankman-Fried and the authorities.”