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US Lawmaker Slam Former FTX CEO For Slowing Down Regulation

  • Brad Sherman accused FTX of using its political donations to prevent regulation.
  • The Miami Heat recently terminated its naming rights deal with FTX.
  • FTX filed for bankruptcy following an unexpected liquidity crisis.

Crypto skeptic and US lawmaker Brad Sherman blamed the delayed regulation of cryptocurrencies on “billionaire crypto bros.,” referring to Sam Bankman-Fried. Sherman’s comments come less than a week after the crypto exchange FTX collapsed and filed for bankruptcy.

In a statement released on November 13, Sherman claimed FTX’s collapse has been a “dramatic demonstration of both the inherent risks of digital assets and the critical weaknesses in the industry that has grown up around them.” The US lawmaker further claimed that the situation showcased the urgent need for crypto regulation.

Sherman asked authorities to investigate the “chain of events and management failures that led to this collapse.” He also commended law enforcement agencies for their actions since the FTX saga began and urged them to ensure that “those responsible are held accountable.”

Sherman wrote,

For years I have advocated for Congress and federal regulators to take an aggressive approach in confronting the many threats to our society posed by cryptocurrencies.”

The 68-year-old has held a strong opinion on cryptocurrencies and has continuously backed the Securities and Exchange Commission (SEC) to regulate the industry and sanction unregistered platforms. In his recent statement, Sherman urged the SEC to “take decisive action to put an end to the regulatory gray area in which the crypto industry has operated.”

Sherman disclosed his plans to collaborate with his colleagues in Congress to explore options for federal legislation. The politician claimed that attempts to regulate the industry had been thwarted by “billionaire crypto bros,” who keep funding campaigns and donations with millions of dollars.

Sherman’s comments directly referenced disgraced former FTX CEO, Sam Bankman-Fried, whose political donations were aimed at the Democratic Party. Sherman also mentioned Ryan Salame, the co-CEO of FTX, who made generous donations to the Republicans in 2022.

Bankman-Fried was reported as the sixth largest donor in the recent US mid-term elections. The former crypto billionaire donated almost $40 million to the Republican Party and Democrats. However, his political agenda recently came under fire as crypto community members branded him “overly ambitious.”

Jesse Powell, the former Kraken CEO, slammed Bankman-Fried for “acting like you know everything after showing up for battle 8 years late.” In a rant posted on Twitter, Powell claimed FTX made some ego purchases, including huge sports deals that cost the platform fortunes.

FTX Losses Sporting Deal With NBA Teams

FTX recently lost one of its sporting deals after the NBA’s Miami Heat and Miami-Dade County announced that they had called off the deal with the crypto exchange and were searching for a new naming rights partner for their arena.

The news came hours after FTX filed for bankruptcy and its founder, Bankman Fried, announced his resignation. The Miami Heat and Miami-Dade County both called the FTX reports “extremely disappointing.”

Like some other crypto businesses, FTX has significantly invested in sports sponsorships. According to reports, FTX signed a $135 million, 19-year agreement to rename the Miami arena in June 2021.

The crypto exchange also reached a five-year agreement in 2021 for Major League Baseball to recognize FTX as its official cryptocurrency exchange. The trading platform extended its sporting ambitions to college sports and reportedly has ties with the University of California, Berkeley. FTX negotiated a $17.5 million, 10-year naming rights arrangement for the school’s football stadium in 2021.

Lawrence Woriji Verified

Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.

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