The Securities and Exchange Commission’s (SEC) very own Chairman Gary Gensler is now being accused of market manipulation by a large part of the crypto community.
Crypto investors allege that the Chairman has a $2.5 million short position on Bitcoin (BTC).
CryptoRank says Coinbase may have evidence of Gensler shorting BTC though Allegations are unverified.
“The potential consequences of these claims extend beyond Gary Gensler’s career.
They could also threaten the credibility of the SEC, the primary regulatory organization for financial and securities markets in the United States.
As Chairperson of the SEC, Gensler is responsible for ensuring fair and transparent markets.
However, it is important to keep in mind that these are only allegations at this point; thus, it is crucial to maintain the presumption of innocence until the charges can be substantiated or refuted.”
Interestingly enough, Gary Gensler applied to serve as an advisor for crypto exchange Binance in 2019 prior to becoming SEC chair, now the SEC plans to freeze Binance accounts.
While the crypto community might be on the Chairman’s case for his relentless attack on crypto, a petition has now re-surfaced asking for Gary Gensler’s removal.
So far, more than 33,000 people have signed the petition.
SEC Dismisses 42 New Cases After Big Mistakes From Staff
In other SEC news, the agency just dismissed 42 new cases after confidential information was improperly handled by unauthorized staff.
The SEC announced Friday it had dismissed 42 pending enforcement cases after discovering enforcement staff had improper access to materials meant for commission officials ruling on those cases.
“We deeply regret that the agency’s internal systems lacked sufficient safeguards surrounding access to Adjudication memoranda, and we are continuing our work to ensure that, going forward, work product from the Adjudication staff is appropriately safeguarded,” the SEC said in a statement.
“We take this lapse in controls very seriously and are committed to both informing the public about the scope of this issue and preventing any similar lapses in the future,” the agency added.
Law360 was first to report on the SEC’s disclosure.
“The 42 cases were proceedings against individuals and companies being handled within the agency’s in-house courts.
Among the group was the agency’s case against Jeffrey Wada and David Middendorf, two individuals involved in the notorious KPMG cheating scandal,” said Compliance Week.
The SEC described the improper access as effectively an accident, as administrative staff in its enforcement arm worked to track and collect all relevant materials, but some databases were not appropriately safeguarded to wall off adjudication materials.
The agency decided to dismiss all pending cases, primarily against individuals and smaller firms, who were impacted by the improper access.
The SEC also said it was agreeing to lift industry bans on 48 people who had petitioned the SEC for that relief whose cases were also involved in the mistake.
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