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Musk and former head of Facebook's cryptocurrency project complain: Does it matter if FTX has regulatory oversight? Revealing the strong background behind SBF

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Musk and former head of Facebook

FTX Exchange is on the verge of bankruptcy due to a run on the bank. During this period, Tesla founder Elon Musk and former head of Facebook's cryptocurrency David Marcus have both publicly complained, "Why hasn't FTX been regulated or scrutinized for so long?" Online communities are also discussing the solid background of SBF and Alameda CEOs.

Elon Musk: He Escaped Investigation Because He Is a Major Democratic Party Donor

American conservative figure Tom Fitton previously stated that the Biden camp had harassed and threatened Musk and his companies. Despite being involved in one of the worst contemporary financial scams, due to a White House regular and the Democratic Party's second-largest donor, the scheme managed to survive in their eyes. Reference: Second-largest Democratic Party donor: SBF

Tesla founder Elon Musk responded, "It's because SBF is a major Democratic Party donor, that's why he hasn't been investigated."

Musk also jokingly suggested Netflix make a documentary similar to "The Inventor: Out for Blood in Silicon Valley" about SBF:

Former Head of Facebook's Libra: We Were Investigated Within a Day

Diem, formerly known as Libra, a Facebook cryptocurrency, was stillborn due to regulatory resistance. David Marcus, the former head, mentioned:

"It's worth noting that when we released part of the Libra whitepaper on 6/18/2019, within 24 hours, I was summoned to hearings in the Senate and House of Representatives. But at the same time, FTX brazenly misappropriated over $10 billion of customer funds..."

Gossip: The Background of SBF and Alameda's CEO?

Speculation about the influence of high-level connections at FTX surfaced online, with Musk even retweeting related memes. However, the inference is rather straightforward:

Alameda's CEO, Caroline Ellison, is the daughter of MIT's economics department head Glenn Ellison. Current SEC Chairman Gary Gensler previously served at MIT Sloan School of Management, where they had a working relationship.

Conservative media outlet FOX News's program suspects that based on Caroline Ellison's relationship with SBF, FTX receives protection from Gary Gensler. FTX's current legal advisor, Ryne Miller, was a legal advisor during Gary Gensler's time at the CFTC. FTX US's regulatory strategy lead, Mark Wetjen, also worked with Gary Gensler at the CFTC, further fueling speculation about Gensler's ties with FTX.

SBF's mother, Barbara Fried, is a law professor at Harvard University and co-founder of the political fundraising organization Mind the Gap, which funds the Democratic Party. SBF's father, Joseph Bankman, is a law professor at Stanford University and has been involved in FTX's fundraising efforts. He introduced FTX to his student Orlando Bravo, who then invested $125 million in FTX, becoming one of the largest investors.

Regardless, SBF's past success has led many to speculate on these interpersonal connections.

Despite the anticipated DCCPA bill being pushed by Democratic lawmakers Stabenow and Boozman still intending to move forward, due to the FTX incident, it has faced protests from many consumer advocacy groups. Whether the CFTC can gain the authority for crypto regulation through this bill may not be optimistic.

Reportedly, Republicans Plan to Hold FTX Hearing

According to CoinDesk's report, two Republican members of the U.S. House Financial Services Committee plan to hold a hearing next month regarding FTX and its related entities. The lawmakers stated that FTX, like many collapsed cryptocurrency platforms in the past, requires legislative action to ensure these operators do not operate in the gray areas of federal law.