According to the SEC’s complaint, the overseas cryptocurrency exchange that SBF said it had set up was nothing more than “a house of cards” built on “a foundation of lies” while investors were told it was one of the safest buildings in crypto.
During his brief period of prominence, SBF frequented the nation’s capital. In the DoJ’s charge, it is said that SBF and “others known and unknown” gave to political campaigns in excess of the legal threshold.
It appears that the focus of FTX’s company was on finding ways to make something official out of something that wasn’t.
The cryptocurrency industry has tried to shake up the existing banking system and get new rules set up quickly to help it get started.
Gensler and others have insisted that crypto rules are an issue for the crypto sector, but this year’s events have proved that crypto industry issues are not investment industry issues. which is clearly the opposite of what SBF and the rest of us hoped wouldn’t happen.
On Tuesday, the House Financial Services Committee called in current FTX CEO John J. Ray III to answer for numerous of SBF’s transgressions.
Even while Congressional hearings are always political spectacles (because what else would they be? ), the underlying tone of Tuesday’s proceedings sounded just like what the crypto sector has struggled against over the previous several years: the idea that crypto promises one thing, then does another.
All during the hearing, Ray, who oversaw the dissolution of Enron and other failed corporations, made it apparent that he had had no dealings with SBF. Instead of trying to explain or justify SBF, Ray’s job is to return as much money as possible to customers and investors.
Concerning this matter, Ray said on Tuesday, “At the end of the day, we’re not going to be able to recover all the damages here.” An attempt by a serious lawyer that ended in a serious defeat
Ever since FTX’s sudden demise, members of the cryptocurrency community have been demanding to know where the authorities and regulators have been. The group showed up on Tuesday.
For a long time, those working in the cryptocurrency industry have demanded more definitive rules for their product. Gensler has made sure that the current securities laws are easy to understand, cover enough, and are ready to be used.
Without clear rules for the crypto market, many exchanges have failed, the market value of cryptocurrencies has dropped by almost $2 trillion, and fraudsters have stolen billions from investors.
As a result, the urgency that authorities may (or may not) have felt to develop new regulations for crypto has been tempered. Neither of these events damaged faith in the global financial system or the real economy.
Another thing the business world was hoping to avoid