The FTX collapse continues to fuel serious questions about whether regulators showed favoritism and were influenced by politics. As crypto lawyer John E Deaton points out, Sam Bankman-Fried (SBF), the disgraced founder of FTX, allegedly used $10 million in donations to the Biden administration to gain special access to regulators.
This calculated move apparently allowed him to cultivate relationships with key officials, including those at the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
Coinbase Demands Answers on SEC Enforcement Spending
Meanwhile, SEC Chair Gary Gensler aggressively pursued enforcement actions against other crypto firms while meeting with SBF multiple times.
Because of this, new calls for accountability are surfacing, with Coinbase leading the push for transparency about the SEC’s enforcement spending.
Here’s what we know: @SBF_FTX paid $10M to the Biden administration in order to “gain access to regulators” and man did it work. He met @CFTCbehnam and others at the CFTC more than once and was blown kisses 😘 from @RepMaxineWaters after SBF testi-lied about everything.… https://t.co/dsGHMh7wpx
— John E Deaton (@JohnEDeaton1) March 3, 2025
SBF’s Political Donations Opened Doors to Regulators
SBF’s financial contributions reportedly helped him meet with regulators repeatedly, giving him an advantage over others in the crypto industry. For example, he met with CFTC Chair Rostin Behnam on several occasions, raising questions about whether FTX was getting special treatment.
Related: SEC Clears Path for Consensys After Dropping Legal Battles with Coinbase, Gemini, and More
Adding to the suspicion, House Representative Maxine Waters acted strikingly warm toward SBF, further increasing speculation about political favoritism. Reports also say Gensler met with SBF at least twice, with rumors suggesting they were close to reaching an agreement that would benefit FTX.
Stolen Customer Funds May Have Fueled Donations
Beyond just getting regulatory meetings, the source of SBF’s political donations adds even more controversy.
Reports indicate that the funds came from stolen FTX customer assets. If this is proven, it would mean that FTX customers unknowingly financed political contributions. These contributions may have protected SBF from regulatory oversight while his exchange was operating illegally.
Coinbase Seeks SEC Transparency Through FOIA Request
Coinbase is now demanding answers about the SEC’s enforcement priorities under Gensler. The company submitted a Freedom of Information Act (FOIA) request.
This request seeks detailed records of investigations and lawsuits against crypto firms from April 2021 to January 2025. This includes information on SEC employees, hours worked, pay, and budget used for crypto enforcement.
Taxpayers Deserve Transparency, Says Coinbase CLO
Coinbase’s Chief Legal Officer, Paul Grewal, stated firmly that taxpayers deserve transparency about the SEC’s actions.
Related: FTX Creditors to Be Repaid Starting Feb 18, but at 2022’s Rock-Bottom Prices
The request aims to find out if the agency’s aggressive approach to crypto enforcement was motivated by politics or by real concerns about investor protection. While the SEC has not yet responded, this request signals a growing demand for regulatory accountability.
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