Gary Gensler FTX, chairman of the U.S. Securities and Exchange Commission (SEC), speaks during a House Appropriation Subcommittee hearing in Washington, D.C., US, on Wednesday, May 18, 2022.

Thousands Sign Petition Demanding An Investigation Into US Regulator Chief’s Ties to FTX

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More than 9,000 people have signed a petition demanding further investigation between disgraced FTX CEO Sam Bankman-Fried and the Chair of the US Securities and Exchange Commission (SEC), Gary Gensler. 

The CryptoLaw organisation is headed by American lawyer John Deaton, who represents holders of Ripple in its ongoing lawsuit with the SEC. The petition alleges that there is a nefarious connection between now-disgraced Bankman-Fried and Gensler.

Gary Gensler and FTX

“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,” the petition reads. 

“It’s time for a full Congressional investigation of Gensler’s role in one of the biggest financial frauds in American history,” the petition adds.

Gensler’s rumoured ties to Sam Bankman-Fried have been the subject of growing scrutiny since US Republican Lawmaker, Tom Emmer first published a tweet on November 11.

“Interesting. Gary Gensler runs to the media while reports to my office allege he was helping SBF and FTX work on legal loopholes to obtain a regulatory monopoly. We’re looking into this,” Emmer wrote. 

Gensler spoke to CNBC’s Squawk Box an hour before Emmer’s Tweet, saying that: “When you mix together a bunch of customer money, non-disclosure, and leverage, borrowing against it…investors get hurt,” said Gensler. However, Gensler failed to confirm reports as to whether the SEC was actively investigating FTX in the lead up to the exchanges US$8 billion collapse.