SBF Allegedly Used Political Donations to Gain Access to Regulators
The collapse of FTX continues to raise questions about possible regulatory favoritism and political influence. Crypto lawyer John E. Deaton pointed out that Sam Bankman-Fried (SBF), the founder of FTX, donated $10 million to the Biden administration. This donation allegedly helped him gain special access to regulatory agencies like the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
This relationship reportedly allowed FTX to operate despite suspicions of fraudulent activity.
Coinbase Demands Answers on SEC Enforcement Spending
SEC Chairman Gary Gensler has aggressively pursued enforcement actions against crypto firms while meeting multiple times with SBF, raising concerns about possible preferential treatment.
In response, Coinbase is pushing for greater transparency on SEC’s enforcement spending, demanding answers on how the agency allocates resources, including its budget, employee hours, and regulatory priorities.
SBF’s Political Donations Opened Doors to Regulators
SBF’s financial contributions allegedly secured frequent meetings with regulators, giving him an unfair advantage over other crypto industry players.
For example, he met several times with CFTC Chairman Rostin Behnam, raising concerns that FTX was receiving special treatment.
Additionally, suspicions grew after Congresswoman Maxine Waters was seen acting unusually friendly toward SBF, further fueling speculation of political favoritism.
Reports also suggest that Gensler met with SBF at least twice, with rumors indicating that they were close to a deal that would have benefited FTX over competitors.
Were Political Donations Funded with Stolen Customer Money?
Another major controversy surrounds the source of funds for SBF’s political contributions. Some reports suggest that the money came from misappropriated customer funds from FTX.
If proven, this would mean that FTX customers unknowingly financed political donations, potentially shielding SBF from stricter regulatory oversight while his exchange operated illegally.
Coinbase Files FOIA Request for SEC Transparency
In response to these concerns, Coinbase has filed a Freedom of Information Act (FOIA) request to obtain detailed records of SEC investigations and lawsuits against crypto firms from April 2021 to January 2025.
This request seeks information on:
SEC employees involved in enforcement actionsWork hours and salariesSEC’s total budget for crypto enforcement
Taxpayers Deserve Answers, Says Coinbase
Coinbase’s Chief Legal Officer, Paul Grewal, stated that taxpayers deserve transparency regarding SEC’s actions against crypto firms.
He emphasized the need to determine whether SEC’s aggressive approach was genuinely aimed at protecting investors or politically motivated.
While SEC has yet to respond to the FOIA request, pressure continues to mount for greater accountability and regulatory transparency.
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