Gary Gensler was partly responsible for the collapse of the FTX crypto exchange, Minnesota representative Tom Emmer believes. Such remarks would call into question his legitimacy as head of the United States Securities and Exchange Commission. Hence the launch of seduction operations which recently resulted in the indictment of the 8 influencers for manipulation of shares to the tune of 100 million dollars.
FTX scandal and SEC counterattack
At the end of November, Tom Emmer attacked the SEC for his clumsiness causing the FTX scandal. A remark that the member for 6e district of Minnesota had authorized itself since it does not integrate the list of elected Americans fattened by SBF. Also, he is aware of recent meetings between Gary Gensler and the deposed CEO of crypto exchange FTX.
The reply from the boss of the SEC was not long in coming. To restore the image of his institution, Gary Gensler launched lawsuits against FTX for concocting ” a plan to defraud investors “. Sam Bankman-Fried, currently incarcerated in a rat-infested prison in the Bahamas, will therefore have to answer a long list of charges before the court in the near future.
And that’s not all. The SEC is also going to the influencer hunting authors of a pump-and-dump on social networks.
” The SEC indicts 8 social media influencers in a $100 million stock manipulation scheme executed on Discord and Twitter. »
Below are the names of those charged in this case.
According to federal prosecutors and the Securities and Exchange Commission, these influencers allegedly:
- committed stock market fraud resulting in illicit gains worth $100 million since January 2020;
- conspired to commit stock market fraud;
- and used Twitter and Discord to perfect their actions.
Thus, the DOJ and the SEC are hoping for “permanent injunctions, restitutions, compensation for damages and civil penalties” against them.
A word of caution for cryptocurrency traders?
” As our complaint indicates, the defendants used social media to attract a large number of novice investors and then took advantage of their followers by regularly feeding them false information, which allowed them to make fraudulent profits from about $100 million,” points out Joseph Sansone, head of the SEC’s Enforcement Division’s Market Abuse Unit.
Compared to the funds lost by crypto investors in FTX and Terra, which amount to tens of billions of dollars, this is a small drop in the ocean. But vigilance is required for crypto traders since scamers are currently swarming the web.
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