JAKARTA The bankruptcy of FTX has dragged a number of important parties including from the government and regulators. This time, the US Securities and Exchange Commission (SEC) general adviser, Dan Berkovitz was fired from the SEC on Thursday. Officially, Berkovitz will leave the SEC on January 31.
His position was replaced by Megan Barbero, deputy general adviser at the SEC. Berkovitz bid farewell to the SEC and hoped the agency could increase investor protection.
"After thirty-four years of public service, now is the time for me to pursue new and different challenges and opportunities," Berkovitz said.
"It is an extraordinary honor and privilege to work with so many very talented and dedicated people across this agency to contribute to the success of the SEC's mission to improve investor protection, strengthen our capital markets, and facilitate capital building," he added.
Berkovitz started working at the SEC in November last year. Previously, he worked as Commissioner at the Commodity Futures Trading Commission (CFTC) for three years. In both institutions, Berkovitz works with the current SEC Chair, Gary Gensler.
"I thank you for your extraordinary and dedicated public services to this institution," said Gensler.
"And have led the General Advisory Office during a time during which we have proposed important reforms across the capital market. His advice, judgment and leadership were invaluable to our work at the SEC. I have been blessed to work with Dan in two great market regulators, and I congratulate him for 34 years in public service," added SEC chairman Gary Gensler, commenting on Berkovitz' departure.
And Berkovitz was invited to dinner by FTX founder Sam Bankman-Fried. It is possible that SBF and Berkovitz have a close relationship. Washington Examiner reported that Berkovitz joined Bankman-Fried, FTX General Advisor Ryne Miller, and then FTX president Brett Harrison for dinner at India's Rasika West End luxury restaurant in October 2021.
At the time, Bankman-Fried was lobbying and Berkovitz was on duty at the CFTC (Commodity Futures Trading Commission), one of the US agencies that regulates the crypto market. Although the exact details of their conversation are unknown, several reports state that Bankman-Fried wants to influence CFTC to allow FTX users to borrow trade money.
Other reports suggest that Bankman-Fried frequently met with CFTC officials during its trip to Washington over the past year. Bankman-Fried appears to have made a search to make FTX a dominant player in the crypto market.
Bankman-Fried is also known for its generous donations to the Democratic party. Reports show that he may have donated up to US$40 million in this political cycle, CoinSpeaker reported.
On November 11, 2022, FTX officially filed for bankruptcy protection. Shortly after, Sam Bankman-Fried's position was replaced by John Ray III from the CEO position. The official website of the FTX partner company, Alameda Research, was inaccessible. Then, SBF was arrested by the Bahamas police and extradited to the US. The FTX founder was released from prison with a security deposit. His position was demoted to house arrest. Shortly after, the CEO of Alameda Research pleaded guilty to alleged fraud with SBF.
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