Report: SEC Chair Gensler Met with FTX Founder Twice Prior to Collapse

According to an investigative report by the New York Post, U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler held two meetings with FTX founder Sam Bankman-Fried (SBF) within a six-month period. This revelation comes amid ongoing regulatory scrutiny following the collapse of the cryptocurrency exchange in late 2022.

The report highlights Gensler's subsequent position regarding cryptocurrency regulation in the aftermath of the FTX scandal. Despite the magnitude of the collapse, Gensler has maintained that the existing legal framework already provides sufficient regulatory tools to address misconduct in the digital asset space. According to the SEC Chairman, the current regulatory and legal system possesses adequate mechanisms to prosecute bad actors in the cryptocurrency industry without necessarily requiring additional regulations.

The meetings between the SEC Chairman and the FTX founder occurred during a period that preceded the exchange's dramatic collapse, which ultimately led to multiple fraud charges against Bankman-Fried and several other FTX executives. The SEC filed charges against Bankman-Fried in December 2022, alleging he defrauded investors and misled them about FTX's financial condition.

The New York Post's reporting adds new context to the relationship between the regulatory body and the cryptocurrency platform prior to its downfall, raising questions about regulatory oversight in the cryptocurrency industry.