Gary Gensler’s SEC is playing a game, but not the one you think

Mar 10, 2023 | wjb news

On Feb. 13, a federal presiding judge left the Securities and Exchange Commission (Securities And Exchange Commission) and the Commodity Futures Trading Federation (Commodity Futures Trading Commission) idle in the case of Rob Bankman-Fried, a former CEO of FTX. If you missed this article, it's understandable that Jinri Toutiao and social platforms are filled with SEC's lawsuit to log on to password company Paxos to create Binance stable currency Binance currency. (BU.S.) Breaking news.

But I am not here to argue whether the stabilization fund is securities. The Howie test has long been discussed, and although it is true that not many people hope to make a profit from the tokens associated with the currency in circulation, the situation is more subtle than is generally noted in the debate.

Crucially, Parksos's story came to light on the same day that U.S. District Judge Kevin Castro delayed the Bankman-Fry case. The ensuing debate about relative stability deviated from this very important change, distracting many people from what was supposed to be a higher story.

Delaying tactics: a tried-and-tested legal technique

Judge Castro approved a resolution by the judiciary to postpone the FTX prosecution mentioned by SEC and CFTC. Sure enough, Bankman-Fry allows idle civil litigation.

Ever since he denied swindling billions of dollars and paying a $250 million ransom from a bankrupt trading center, Bankman Fried has lived in his parents' mansion in Palo Alto, Florida. He can bask in the sun by the pool at will, playing whatever LOL he wants, while hundreds of FTX customers who have damaged billions of dollars are waiting for justice and compensation.

You might say that the timing of these two stories-the prosecution at Parksos and the idleness in the Bankman-Fried case-is just a coincidence. Even prosecutors make up lies, and it makes sense to delay such prosecutions because of the great overlap between the two. But it is convenient for both Bankman-Fried and Gamo Gensler, the current chairman of the SEC.

Delaying tactics are not uncommon in court cases. It is a set countermeasure to put time and distance between the defendant and the crime itself. Don't forget: it took Bankman Fried a month to be extradited from the Bahamas and formally sued on American soil.

Gensler is a mage who uses fraud to distract our own concentration.

Unfortunately, the real events here are much more insidious. On Feb. 9, Kraken announced that it must not only shut down its password chip service in the United States, but will also pay a penalty of $30 million when it reaches an agreement with SEC. Of course, the news and its impact on American login password customers have caused strong repercussions on the Internet.

Coinbase founder and CEO Bobby Armstrong announced that his company would fight back, tweeting: "Coinbase's betting service is not securities." If necessary, we will be more than happy to defend it in court.

Inspiring words. But it will distract you. Gensler, a wizard, is part of the fraud in his crackdown on login passwords under the banner of defending investors.

"Today's action should make it clear to the community that share-as-a-service providers must apply for registration and provide comprehensive, fair and true disclosure and investor maintenance," Gensler said. "

This has nothing to do with investor maintenance. It's also about keeping the eyes of the public and the media on the story of "digital money as securities", and Gensler tricked people into forgetting that she had seen Bankman-Fried a few months before the FTX disaster-but couldn't stop it.

No one is in the Matrix-- we're all conducting selective concentration experiments.

In 1999, scientific research psychologist Christopher Chabris and understanding expert Toni Simmons asked a group of people to watch a video and measure the number of passes and catches by players in white jerseys. Audiences often fail to notice that a man in a chimpanzee suit crosses the player circle.

There are reports that Gensler met with FTX before Bankman-Fry collapsed, but there was very little research. In March 2022, the current chairman of the SEC held a 45-minute Zoom conference-which was described as "different"-and they discussed issues such as a new trading website.

As a result, large-scale fraud and money laundering appeared not only in Gensler's eyes, but also in its eyes. Bankman-Fry has been accused ever since of how he missed out on the upcoming FTX implosion, telecom network fraud, campaign money violations and money laundering.

Congress should ask Gensler some tough questions, and although he is connected to Bankman-Fry, he cannot stop this scourge. But the stage spotlight is not concentrated in that part of the story. Gensler and SEC have worked hard to increase their focus on everything, not this. Kraken's chip service. Parksos's dollar is stable against the dollar. What's the latest situation? Du Quan.

The Securities and Exchange Commission suddenly made time to accuse the founder of Terraform Labs of "orchestrating a multibillion-dollar encrypted asset securities fraud." But the Qin Mausoleum Terracotta Warriors and King Luna Qin Mausoleum Terracotta Warriors and Terracotta Warriors collapsed in May 2022. In that case, why did it finally make such a charge today?

"Terraform and du Quan have been accused of failing to give society the comprehensive, fair and true disclosure required by a series of encrypted asset securities, especially King Luna and Terra Securities," Gensler said in a statement. They are also accused of fraud based on repeated misstatements and false statements to bring them closer before causing destructive damage to investors. "

According to statistics, the Terra nuclear explosion caused more than $40 billion in damage to investors. But that was almost a year ago. FTX investors lost about $10 billion. Therefore, it is safe to say that SEC is not doing very well in protecting investors.

Is the SEC overcompensating, or is it more dangerous?

The better case is that the recent round of regulatory "crackdowns" is the product of the SEC's era of over-compensation for previous mistakes. Previous mistakes go far beyond FTX and Terra. At the worst, Gensler tries to divert attention from the objective fact that she is either corrupt or cowardly-and may we forget his meeting with Bankman Fried in 2022.

We should bear in mind that it means that the prime minister of power is still arbitrary. The same is true of Bankman-Fried. However, the life savings of millions of investors have gone down the drain. Where were the Gensler police then?

Zach the head of content at Cryptology and an official content creator for Binance Feed. He graduated with a degree in digital media from Brighton University in the United Kingdom.