Close to 4000 messages from U.S. residents have been sent to CryptoLaws Connect to Congress application demanding an investigation into SEC Chair Gary Gensler’s actions in the ongoing FTX fraud plus what the contents of his talks with SBF were before exposure. [See, CryptoLawUS. Tweet. (Accessed November 16, 2022)]. A review of the online petition contains the following ‘suggested language’ for a message to your legislators:

The SEC’s job is to protect investors, but Gary Gensler as chairman has failed to protect retail digital asset holders over and over. Now, evidence has emerged that proves that Gensler met with the mastermind of what may be one of the biggest frauds in American history, Sam Bankman-Fried, before the $14 billion collapse of FTX. Members of Congress have already been informed that Gensler was working with Bankman-Fried to give FTX a regulatory free pass while a massive fraud was going on right under the SEC’s nose […] It’s time for a full Congressional investigation of Gensler’s role in one of the biggest financial frauds in American history. I strongly urge you to write to the committee overseeing the SEC and demand that an immediate investigation be started. The American people deserve nothing less than the truth.

[CryptoLaw. Connect to Congress. (Accessed November 16, 2022)].

Almost at the same time the troubles with FTX surfaced, so did Gensler’s alleged links to Sam Bankman-Fried. Representative Tom Emmer (R-MN), a long-time crypto supporter, tweeted on November 10, 2022:

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Although Emmer did not disclose the source of information for the reports to his office, Fox News has reported a 45 minute Zoom meeting on March 23, 2022, between SEC Senior Counsel Amanda Fischer, SEC Senior Adviser Corey Frayer, IEX Exchange representatives and FTX Exchange representatives, including SBF himself. [See, e.g. Gasparino, C. SEC Chairman Gary Gensler met with head of FTX months before collapse. (Accessed November 16, 2022); see also, Andersen, D. Thousands petition for congressional investigation of alleged Gensler–SBF links. (Accessed November 16, 2022)]. Seemingly, the occurrence of this meeting is confirmed by what appears to be an internal SEC Memo by Amanda Fischer posted via Twitter by FoiaFan:

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As noted by Fox News, SBF was a large donor to the Democratic Party, having given $10 million to the 2020 Biden campaign and an additional $36 million to Democrats campaigning in this years mid-term elections. And, as always in Washington, his money yielded influence. While it is common for security executives to meet with the SEC on new business ideas that may peak the SEC’s interest, this usually takes place following the formalization of Rules by the SEC. Herein, this was not the case, and it is unknown if new SEC rules are in the offing regarding crypto exchanges. [See, e.g. Gasparino, supra].

Given the foregoing, it appears that SBF, et. al, were granted preferential treatment by the SEC meetings. Should the Republicans take Congressional control, Gensler will likely have to answer for all these actions.

Table of Authorities

• Andersen, D. Thousands petition for congressional investigation of alleged Gensler–SBF links. (Accessed November 16, 2022)

• CryptoLaw. Connect to Congress. (Accessed November 16, 2022)

• CryptoLawUS. Tweet. (Accessed November 16, 2022)

• Foia Fan. Tweet. (Accessed November 16, 2022)

• Gasparino, C. SEC Chairman Gary Gensler met with head of FTX months before collapse. (Accessed November 16, 2022)