- John Deaton predicted that the SEC would sue a few exchanges by the end of the year.
- The SEC rather chose to punish companies that “begged” to work with the SEC, says Deaton.
- Former Coinbase (NASDAQ:COIN) CTO Balaji Srinivasan claimed to have decoded the link between Bankman-Fried and Gensler.
Crypto Law founder John Deaton said he predicted about six months back that the U.S. Securities and Exchange Commission (SEC) would sue an exchange or two by the end of the year. However, SEC chair Gary Gensler only chose to punish companies that “begged” to work with the SEC while siding with fraudulent companies, according to Deaton.
Deaton shared a post by the former Coinbase CTO, Balaji Srinivasan, who managed to decode the common link between Sam Bankman-Fried and Gensler:
6 months ago I predicted that by the end of the year, Gensler would sue an exchange or two (ie @coinbase, @binance, @krakenfx, etc.). Only in Gensler’s world would you punish U.S. companies who have practically begged to work w/the SEC while speaking w/a fraudster who donated https://t.co/u2w2GIJ2H9— John E Deaton (@JohnEDeaton1) November 16, 2022
According to Srinivasan, the ties between FTX and SEC go beyond in-person meetings. To everyone’s utmost disbelief, Gary Gensler’s boss at MIT Glenn Ellison is the father of Caroline Ellison, the Co-CEO of Alameda Research. Bankman-Fried also attended MIT and helped to establish Alameda Research. It is believed that the claimed connection aims to crack down on crypto and control the system.
It is also noteworthy that the general counsel of FTX US had served as lead counsel to Gensler at the CFTC. A lot of leads bring the crypto community to believe that the SEC backed FTX in many instances. Additionally, Bankman-Fried’s meeting with Gensler earlier this year prompted the community to investigate his political contributions. The General Counsel at Delphi Digital, Gabriel Shapiro, labeled these political donations under the name of FTX as “political bribes.”
On March 23, Gensler granted a meeting between the authorities of SEC and Bankman-Fried over Zoom. The meeting was attended by the senior counsel Amanda Fischer and senior adviser Corey Frayer from the SEC and representatives of the IEX stock exchange and Bankman-Fried. The agenda of the meeting was to gain approval from the SEC for a trading platform that met the standards.
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