SEC Nominee Suspected of FTX Ties
Date: 2025-03-26 Author: Oliver Abernathy Categories: BUSINESS
Ahead of Paul Atkins’ scheduled confirmation hearing to chair the U.S. Securities and Exchange Commission (SEC), Senator Elizabeth Warren sent him a 34-page letter expressing concerns about his possible involvement with FTX. She noted that Atkins may have had reason to suspect illegal activities at the exchange long before its collapse.
Atkins previously served as an SEC commissioner from 2002 to 2008, and founded consulting firm Patomak Global Partners in 2009. It was this firm that, according to media reports, provided consulting services to FTX in early 2022. For ten months, Atkins allegedly cooperated with the exchange, and in November of the same year, it went bankrupt. The senator called FTX an example of large-scale fraud, emphasizing that Atkins, instead of warning about the problems in time, criticized the American regulatory system as too conservative for the crypto industry.
Warren demanded an explanation from the candidate. In particular, why he, being an experienced financial specialist, did not identify the risks in FTX operations, whether he knew about the connections between FTX and Alameda Research and whether these companies had common client funds. The senator was also interested in how much Atkins received from FTX and whether he returned any funds during the company's bankruptcy.
Additionally, Warren questioned Atkins' ability to effectively combat violations in the crypto market, recalling that the SEC recently dropped cases against such large exchanges as Coinbase and Kraken. She also questioned his willingness to confront market manipulation that she said might involve representatives of former President Donald Trump and his family through the TRUMP and MELANIA cryptocurrencies.
Earlier this year, the senator proposed expanding the powers of the US Treasury Department to increase oversight of cryptocurrency companies and combat their possible involvement in money laundering and terrorist financing.
