Securities and Exchange Commission General Counsel Dan Berkowitz has stepped down amid reports that he met and dined with FTX founder Sam Bankman-Fried.
In a recent announcement, the SEC Said That Berkowitz is leaving his role at the agency effective January 31. Megan Barbaro, currently the SEC’s Principal Deputy General Counsel, will be appointed General Counsel upon her departure.
Berkowitz was an associate of FTX within the financial regulatory agency and had meetings with Bankman-Fried and other crypto lobbyists, The Washington Examiner Reported, The outlet claimed it had seen emails that suggested the SEC official had a cozy relationship with the SBF.
The emails were initially obtained by watchdog Protect the Public Trust. Michael Chamberlain, director of Protect the Public Trust, said:
“If ever there was a scene to capture the eye of DC rigging corrupt insiders at the expense of the little guy, it’ll be hard to top it. Shortly before its downfall and a flurry of fraud allegations, SBF and its gang were luring.”
Last October, as the SEC and CFTC were discussing the best way to regulate cryptocurrencies, Bankman-Fried, FTX General Counsel Rain Miller and then-FTX President Brett Harrison met with Berkowitz at a luxury restaurant . Berkowitz’s presence at the dinner reflects the SBF’s efforts to influence lawmakers and regulators.
As reported, the SBF was the second largest donor to the Democratic Party in the 2021-2022 election cycle, after billionaire George Soros, who donated $39,884,256 to the Democrats. Elon Musk has even suggested that it could be donated up to $1 billion To the Democrats.
In early November, SBF also revealed that he has donated millions of dollars to support bipartisan politicians in order to woo more crypto allies in the 2024 United States presidential election.
After the collapse of FTX, the crypto boss was arrested Earlier this month, US prosecutors in the Bahamas formally filed criminal charges against him. Last week, he was extradited to the US to face multiple criminal charges.
The Southern District of New York, which is probing the collapse of Bankman-Fried and FTX and its associated trading firm Alameda, charged SBF with eight criminal charges including wire fraud and conspiracy by misappropriation of client funds. Separately, the Securities and Exchange Commission accused SBF of “conducting a scheme to defraud equity investors in FTX”.
Bankman-Fried was released from prison last week posting a $250m bond in a New York court. As of now, he is being held under house arrest at the Bankman-Fried family home in Palo Alto.
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