FTX conspired with the SEC for special treatment

According to Tom Emmer, a crypto advocate and U.S. congressional representative for Minnesota, the SEC has been offering FTX special treatment and turning a blind eye to the exchange’s practices despite holding multiple meetings with the exchange’s Executives earlier this year.

The politician has said that SBF attempted to get “special treatment” from the SEX through meetings with the agency, and aimed to push legislation to the same effect.

The collapse of FTX leaves a big question mark as to how the SEC, or rather, any regulatory body within the financial system failed to see this coming. Just to be clear, FTX did not fail because of one or two bad calls and hard luck. FTX was in fact so disorganised that the new CEO, John Ray has said that:

“Never in my career have I seen such a complete failure of corporate controls”

The entire mind-numbing dumpster fire that is the internal FTX structure was outlined in the FTX bankcrupcy report. Go check it out if you haven’t already, it’s wild stuff. But basically:

• FTX did not keep proper financial documents
• Loans and expenses were being approved using emojis
• SBF instructed the staff to use auto-destroying messages when communicating