Key Takeaways:
- The US Securities and Exchange Commission (SEC) is suing Binance & Coinbase
- The Financial Watchdog turned a blind eye when Sam Bankman-Fried of FTX cheated his way to Billions
- Are SEC officials, along with Chair Gary Gensler, biased?
YEREVAN (CoinChapter.com) — The officials at the US Securities and Exchange Commission (SEC) are a bunch of crooks. Its head, Gary Gensler, is perhaps the biggest of them all. After allowing crypto exchange FTX, and its founder, Sam Bankman-Friend, to scam billions, they are back targeting other exchanges like Coinbase and Binance.
In a financial world plagued by scams and fraudulent practices, investors rely on regulatory bodies to ensure a level playing field and protect their interests. Among these agencies, the SEC holds a critical role. However, recent events raise serious concerns about the SEC’s alleged corruption and bias.
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FTX and Sam Bankman-Fried: A Tale of Ignored Red Flags
The SEC’s credibility comes into question when examining its handling of the FTX case. The exchange’s founder, Sam Bankman-Fried, was allowed to dupe investors of billions of dollars, despite numerous red flags that should have caught the regulator’s attention. This negligence resulted in significant losses for institutional investors who trusted the SEC’s oversight.
Multiple reports indicated irregularities within FTX. These included potential market manipulation, dubious accounting practices, and misleading statements by its founder. Yet, the SEC conveniently turned a blind eye, failing to take appropriate action until it was too late.
Such inaction raises suspicions of either incompetence or a compromised regulatory environment. The SEC’s questionable approach becomes even more apparent when we consider its recent actions against other cryptocurrency exchanges.
Coinbase and Binance, two prominent platforms in the crypto industry, have faced legal battles initiated by the SEC. These cases highlight the regulator’s inconsistency and potential bias.
Binance became the focus of swift regulatory action. The financial watchdog accuses it of inflating trading volumes, diverting customer funds, improperly commingling assets, and misleading customers about its controls.
Coinbase, a well-established exchange, faces allegations of trading in unregistered securities. The fact that Coinbase had operated for years before facing legal action raises suspicions about the SEC’s motivations and whether they align with investor protection or selective targeting.
While the allegations must be thoroughly investigated, the question arises: why was the SEC so swift to target these exchanges while overlooking the warning signs at FTX?
Also Read: FBG Capital “supports” Binance with 44M USDT to offset $600M withdrawals – will it help?
Political Influence and Favored Personalities Reek SEC
Critics have argued that the SEC’s actions against other exchanges stem from its close ties to Sam Bankman-Fried, a prominent figure in the crypto industry. Bankman-Fried’s political connections, and regular campaign donations—especially to Democratic candidates– have raised concerns about potential favoritism. The influence his parents yield in Washington’s corridors of power is also suspicious.
Traditionally, being sued by the SEC implied wrongdoing. However, the targeting of crypto companies under the leadership of SEC Chair Gary Gensler challenges this perception. Observers now question whether Gensler’s actions align with protecting investors or serve alternative interests.
The cryptocurrency industry and investors want a strict regulatory environment. However, it should be genuine and unbiased. If the SEC wants to establish trust among investors and companies, it needs to shed its biases.
Disclaimer: The views expressed above are strictly those of the author alone. They in no way reflect the views of the company.
