John Deaton has often complained about the preferential treatment that the founder of the defunct FTX exchange, Sam Bankman-Fried (SBF), has received. During a recent conversation, Deaton stated that SBF, who is the head of an offshore exchange that was involved in a controversy, got access to the US regulators as well as the politicians in an unusual manner. Deaton also noted that Sam Bankman-Fried got preferential treatment because he donated money to the Biden administration and had close contacts with the officials.

John Deaton Comes For Sam Bankman-Fried

In a recent post on X, John Deaton reiterated his stance that Sam Bankman-Fried (SBF) enjoyed unprecedented access to U.S. regulators despite heading an offshore crypto exchange. Deaton points out that SBF’s political donations played a role in securing this preferential treatment. Bankman-Fried’s total political donations amounted to $72 million, with $10 million going to the current administration. This has fueled speculation of potential regulatory favoritism.

Deaton highlights a series of meetings that SBF had with key figures, including SEC Chairman Gary Gensler. According to Deaton, while Gensler met with Bankman-Fried on at least two occasions, the SEC chair refused to meet with U.S.-based crypto executives, including Coinbase CEO Brian Armstrong.

The XRP lawyer suggests that this discrepancy raises questions about why the SEC was willing to engage only with Sam Bankman-Fried (SBF). He argues that this selective engagement warrants further scrutiny.

Moreover, Deaton urged the Trump administration to investigate these allegations stating,

“One way to end all the speculation and rumors related to SBF is to release all correspondence and meeting notes related to him.” 

Tagging Donald Trump, Musk, and Vivek Ramaswamy, the XRP lawyer added,

“Please assign me to lead the investigation into this and/or Chokepoint 2.0. I’ll do it for free and save the taxpayers money.”

Sam Bankman-Fried’s Family Ties to Politics Under Scrutiny

Also, John Deaton questioned why no criminal charges have been filed against SBF’s parents. Joe Bankman and Barbara Fried, the two individuals who have been exposed as having received stolen FTX funds, have not been punished. He stressed that the couple bought tens of millions of dollars of property in the Bahamas, funded by clients’ assets.

John Deaton pointed out that SBF’s parents were politically connected, Joe Bankman was involved in the formulation of Elizabeth Warren’s tax policy. In addition, Barbara Fried supported a progressive PAC, which only strengthened their political connections.

Amid growing concerns, John Deaton has called for an investigation into what he refers to as Operation Chokepoint 2.0. This alleged initiative, according to Deaton, targets crypto companies and aims to debank entities associated with the industry. 

Deaton claims that Kraken’s Jesse Powell and Ripple CEO Brad Garlinghouse, among others, have faced similar issues with U.S. financial institutions.

Consequently, the lawyer has called for a probe into Operation Chokepoint 2.0, urging government figures, including President-elect Donald Trump, to investigate. He suggests that an independent counsel be appointed to probe the issue. More so, Deaton mentioned Nic Carter as a potential candidate to lead the investigation. 

Deaton also criticized figures such as Senator Elizabeth Warren, who has been accused of supporting the debanking efforts.

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Ronny Mugendi

Ronny Mugendi is a seasoned crypto journalist with four years of professional experience, having contributed significantly to various media outlets on cryptocurrency trends and technologies. With over 4000 published articles across various media outlets, he aims to inform, educate and introduce more people to the Blockchain and DeFi world. Outside of his journalism career, Ronny enjoys the thrill of bike riding, exploring new trails and landscapes.

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