'Why Didn't You Do That?': John Kennedy Does Not Let Up On SEC Chair For Failing To Investigate FTX

thanks Mr chairman thank you Senator Durbin Senator Kennedy thank you Mr chairman and Mr chairman welcome it's always good to see you Senator I've I enjoy our times on in our private talks and in these hearing rooms um the the feeling is mutual Mr chairman why did uh did you and the SEC allow the FTX fraud to happen the the crypto field is often one that is commingling and bundling Services as I said earlier and often also offshore and uh it is Rife with abuses and fraud uh it also takes time to thoughtfully and buy the book and buy the law build investigated shins and bring actions there's a public figure on average about 23 months from start to to either settlement or bringing an action at the SEC we we did uh bring actions over the course of The Last Five Years on 150 companies or that was out the barn I mean he I I follow your your your your your remarks Mr chairman because I have great respect for you and you've said repeatedly before FTX blew up that the SCC has the authority to wreck to regulate cryptocurrency now here you have this company FTX run by a young man who has more Zeal than wisdom he Prides himself looking like the fourth runner-up in a John Belushi look-alike contest he Prides himself on being underdressed and over-haired reeks with arrogance you could have sent down one investigator from the FTC with an ego like Mr bankman freed and said I want to send someone down for the F's from the SEC and let them just watch you for a day and he probably would have welcomed you in I mean his dad is on a is a chaired professor at Stanford Law School where was Stanford but where was the where was the SEC I mean this was this was an accident waiting to happen and I don't understand where the SEC was so sir I would say that the whole field has hurt more Americans than it should yeah but I'm talking about FTX I mean we look back at FT I mean Senator made this point and we we have this elaborate complex regulatory Machinery the SEC which I support which is supposed to guarantee transparency and combat fraud in any fair-minded person has to look at FTX and Mr bankman freed and these kids and go what in God's where were it where was everybody where was the SEC and I would say where we were is my predecessor and also under uh my honor to be chair we've brought 140 or 150 actions there are 15 to 20 000 tokens and there are dozens of the facts and Gary I mean here's this man he did everything but by Mount Rushmore curious where's this guy getting this money I I would say that in this summer of 2021 when we Wells noticed a a very large crypto Exchange in the U.S they went on Twitter and said that we were sketchy when we when we subpoenaed doe Quan this is all public so I can say it when we subpo we gave him a subpoena he fought Us in the district court but but I'm not talking about how many lawyers can dance on the head of a pen I'm talking about why didn't you sin somebody down I guarantee you with his ego Mr bankman freed would have welcomed you okay he probably would have asked you to bring a film crew uh you just send an investigator down spend a half a day with these young people come back and go get an injunction shut them down until until they can answer some very basic fundamental questions like for example were they co-mingling funds why didn't we do that why didn't you do that that's what we pay you folks to do well again I mean I get all the wells letter and all that we've gotten we've got tens of thousands of people that lost a lot of money and and they look they look at this young man and they'll go how did how did the Reagan authorities or regulatory authorities allow this guy to function I mean his secret service name is butthead that's how bad he is where was the SEC and and again sir I I can't speak to one enforcement matter like that but let me just broadly well it's a big one this whole field the whole crypto field is built on models that we wouldn't allow in traditional Securities markets of commingling the co-mingling why did you allow FTX and we've we've why did you allow it we're vigorously we investigate by the book you I'm sure in the American public want us to follow the facts follow the law properly give people subpoenas they get lawyered up they give us replies they do effectively burn clock and on average you could have gotten an injunction half a day foreign

Channel: Forbes Breaking News

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Length: 6min 40sec (400 seconds)

Published: Mon Aug 14 2023