As the reports broke out, the General Counselor of SEC, Dan Berkovitz, submitted his resignation.
The reports have alleged that the senior SEC officials secretly met with the former FTX CEO. Sam Bankman-Fried, the founder of FTX, is currently facing a series of criminal proceedings as he was alleged of scamming the investors.
This secret meeting has raised ethical and moral questions about whether the senior official of SEC did the right thing to meet the likely culprit behind the demise of FTX.
SEC quickly took matters into their hands and made the official statement that Berkovitz had been removed from his role and no longer will continue his legal duties.
Moreover, Megan Barbero has been handed over an additional charge of the General Counsel of SEC.
The news has also argued that Berkovitz was the FTX supporter and did only meet SBF, but he also had meetings with other crypto lobbyists.
The report was published by “Washington Examiner, “the outlet has further said that it has gone through the emails, which clearly shows that Mr. Berkovitz and Sam Bankman-Fried both had quite a warming relationship.
The emails were initially examined by Michael Chamberlain, the executive director of Protect the Public’s Trust. This institute works as the watchdog that protects the public interest.
Michael Chamberlain The Executive of Protect the Public’s Trust Further Emphasized:
There is no point in that SEC official meeting the alleged person who has rigged people of millions. There is no ethical or legal justification for this secret meeting.
The only justification that can be assumed is that both might have similar financial goals. SBF and his gang have deep roots; they even have some regulators to back them.
Regardless of all these allegations, Mr. Berkovitz, the ex-member of SEC, has not responded to these rumors.
Berkovitz, who was previously a member of CFTC, had also met two of FTX’s top-ranked officials in the lavish resort while discussing the financial regulations of FTX.
The recent meeting of Berkovitz and SBF shows that SBF has managed to influence the SEC official.
SBF Was Also Among the Biggest Donors of the Democratic Party
Back in 2021, SBF, along with billionaire George Soros, emerged as the biggest donor of the Democratic party.
SBF donated the sum of $39,884,256 to Democrats back in 2021. Elon Musk responded to this act by saying that SBF could have donated even $1 billion.
This shows that SBF has the means and the personal relations with both the regulators and the politicians, which is why he was found to be circumventing the legal provisions while he was running the FTX, once the world’s biggest cryptocurrency exchange.
However, the implications of this meeting on Sam Bankman-Friend’s legal case will become clear when the cases move forward.
SBF also disclosed in early November, just weeks before the collapse of FTX he had contributed millions of dollars to help democratic lawmakers.
The contribution was made so Democratic lawmakers might make the rapid law provisions to help the rapid adoption of cryptocurrency.
However, things turned drastically for the SBF as his cryptocurrency exchange filed for bankruptcy, and he was arrested early in December from the Bahamas.
As of this writing, criminal charges were submitted against him last week. He was transferred to the U. S. last week to face many criminal accusations.
Currently, his cases are being heard by The Southern District of New York. SBF and his sister, the owner of Alameda Research, are both facing serious allegations. However, SBF has been alleged in 8 different criminal allegations.
It is worth mentioning that SBF has recently been granted bail after he paid the $250m bond in the New York court. However, he cannot travel or go outside New York.
Following this high-profile case, SBF’s parents have also lost their jobs at Stanford University.
Although SBF has been accused of everything, lawmakers have yet to prove a single allegation against him in court.