The U.S. Securities And Exchange Commission (SEC) Is Losing Its Top Lawyer

The General Counsel of the Securities and Exchange Commission (SEC) of the United States has declared his intention to leave the organisation in January.

On December 22, the Washington Examiner reported that SEC General Counsel Dan Berkovitz had announced his departure from the organisation on January 31.

The government official had dined and drank with FTX founder Sam Bankman-Fried and his lobbyists.

Berkovitz stated, After 34 years in the public sector, it’s time for me to explore new and fresh chances. Furthermore, Berkovitz served as a Commodity Futures Trading Commission commissioner in the past (CFTC).

The timing of his statement coincides with SBF’s $250 million bail being approved, too.

Connections with FTX revealed via @PublicsTrust FOIA.

Deals Made In The SEC’s Backroom With Lawbreakers

According to The Examiner, SBF and FTX were close with Berkovitz. It mentioned emails that the public trust monitor Protect the Public’s Trust, which also covered the resignation, had received.

It stated that in October 2021, SBF, Ryne Miller, Brett Harrison, and Ryne Miller, the general counsel for FTX, met Berkovitz at an upscale dining establishment.

Protect the Public’s Trust director Michael Chamberlain stated:

If ever there were a scene to conjure up a vision of a D.C. rigged toward corrupt insiders at the expense of the little guy, it would be difficult to top this one,

Just before its collapse and a slew of fraud allegations, SBF and his crew were wooing one of its potential regulators, he continued, doubtless to influence the rules to their advantage.

Furthermore, Several meetings between the SEC and FTX were also mentioned by Republican Senator Tom Emmer. He said these discussions created a unique regulatory framework that would benefit FTX.

In his remarks, Gary Gensler, the chairman of the SEC, also addressed employing all of his resources to enforce compliance.

Making backroom regulatory deals with bad actors is not a tool in the SEC’s toolbox.

@GaryGensler and the SEC had more meetings with SBF and FTX/IEX than anyone else in crypto, allegedly to craft a special regulatory framework designed to benefit FTX alone. Making backroom regulatory deals with bad actors is not a tool in the SEC’s toolbox.

Federal Agencies That Regulate

Chamberlain continued by saying that lawmakers and regulators should be held accountable as well:

While the collapse of FTX and the behavior of its executives has certainly made a lot of news, the actions of federal officials should also be under scrutiny.

Around eight months before his crypto enterprise collapsed, Gary Gensler met with SBF. The idea for a new cryptocurrency trading platform that has received SEC approval was discussed at the conference. If granted, SBF and his businesses would be far ahead of their rivals.

Moreover, Ritchie Torres, a Democrat in Congress, cited Gensler as the cause of the FTX collapse earlier this month. Chair Gensler admitted at the time that he was to blame for his primary failure as a regulator about FTX.

Related Reading | Despite High-Profile Crashes, Retail Investors Are Flocking To Bitcoin

The maze of deceit is even more profound. Elizabeth Warren, a senator who opposes cryptocurrency, was connected to the Bankman-Fried family, according to BeInCrypto.

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