Ripple Legal Counsel: “SEC Ignores Interests of FTX Retail Investors”

Ripple General Counsel Stuart Alderoti commented on the allegations made by the US Securities and Exchange Commission (SEC) against FTX founder Sam Bankman-Freed.

The SEC charged Sam Bankman-Fried with violating the Securities Act of 1933 and the Stock Exchange Act of 1934. The regulator is also seeking an injunction that would bar an FTX executive from participating in the sale, issuance, and offering of securities.

According to SEC Chairman Gary Gensler (Gary Gensler), Bankman-Fried organized a fraudulent scheme with which he deceived investors in FTX shares. In particular, Bankman-Fried managed to raise more than $1.8 billion in equity capital, while hiding from investors that their funds were being redirected to Alameda Research.

“Sam Bankman-Fried built a house of cards, telling investors it was one of the safest buildings in the cryptocurrency space,” Gensler said.

Ripple’s Chief Legal Counsel Stuart Alderoty commented on these SEC allegations on Twitter. According to him, the regulator intends to protect the interests of only experienced investors who have invested in FTX shares, ignoring retail investors.

Alderothy’s followers agreed, writing that the SEC is trying to return funds to investors who not only failed to do a serious due diligence on FTX, but also helped Bankman-Freed create the impression that his trading floor is trustworthy.

This is not the first time Alderothy has criticized the SEC’s approach to regulating the cryptocurrency industry. Earlier, commenting on the lawsuit between Ripple and the SEC, the lawyer said that the main task of the SEC is to become the main regulator of cryptocurrencies, while the agency does not care about deceived investors who have suffered huge losses due to the lawsuit.