Outside the Box: An antiquated regulatory regime allowed SBF to ‘f— up’

by | Dec 13, 2022 | Stock Market

“I f—ed up.” That what Sam Bankman-Fried was supposedly going to admit under oath to the House Financial Services Committee Tuesday. But his indictment and subsequent arrest Monday night obviously canceled his planned appearance. And within hours, the Securities and Exchange Commission and the Commodity Futures Trading Commission have now piled on for additional civil actions against SBF. SEC charges Sam Bankman-Fried with defrauding investors in now-bankrupt FTX

Yes, he and the executives at FTX/Alameda f—ed up. But these failures are not in a vacuum. He was allowed to f—up by a system that has ignored the need for regulatory guidance and oversight in a time of unprecedented financial innovation.

“ The SEC and the CFTC failed FTX, its investors, and the crypto community as a whole. ”

John J. Ray III, the new chief executive of FTX, testified in front of a House committee Tuesday on the collapse of the crypto exchange. His testimony came less than a day after the company founder, Sam Bankman-Fried, was arrested in the Bahamas. Photo: Al Drago/Bloomberg News

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