Attorney Deaton told the Ripple community that the failure of the United States Commission to investigate questionable Chinese investments by Sequoia Capital could be the end of the SEC’s Gary Gensler.
Gary Gensler Fails To Investigate Sequoia
In his recent tweet, John Deaton noted that Sequoia was also an FTX investor. It came in response to a thread by Brian Costello, a technology executive with a background in international finance. Costello, in his line, calls out Congress for playing a role in allowing China to become a more significant threat to U.S. national security by turning a blind eye to the reluctance of the Gensler-led SEC to investigate firms like Sequoia.
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However, their tweet of Costello has prompted the response of Texas Senator John Cornyn, saying that investments from venture capitals like Sequoia have fueled predatory economic policy in China while also supporting the Chinese People’s Liberation Army’s arms race which he claims threatens the world peace.
According to the FOX interview where Colonel Derek Harvey, a former member of the National Security Council and the House intelligence committee investigation into China was shared by Costello, unveiling the Federal Bureau of Investigation, investigating findings of the committee similar to the claims made by Senator Cornyn, had faced resistance from the SEC and Department of Justice. However, in the same interview, Costello points to significant political funding from Sequoia in the U.S. mid-term elections as a possible reason for the stonewalling.
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Notably, the claims against Sequoia surround the activities of Neil Shen, a founding partner of Sequoia China and a senior Chinese government advisory body member.
It is worth noting that this is not the first time when the attorney Deaton and Costello will be digging deep into perceived SEC corruption in the service of Chinese interests.
Costello And Deaton Has Been On Close Watch Over Gary’s Failure
Costello once revealed last August, saying that the 2018 Bill Hinman speech was a result of the Chinese’s previous interest in wall street interested in blockchain. He further revealed that most Bitcoin and Ethereum mining firms were resident in China. The Hinman speech paved the way for these firms to launch IPOs in the U.S. which largely benefitted law firms and Wall Street firms that Hinman and Clayton have worked with.
Notably, Costello added that Gensler seems bent on continuing this legacy of protecting Chinese interests at the expense of American customers, as he has also expressed reluctance to investigate Chinese firms
In the same premise, in September 2021, Deaton shared a blog post which drew links between the case against Ripple and the then SEC chair Jay Clayton’s links with Alibaba, which owns Alipay, a cross-border payment platform offering services similar to Ripple’s On-Demand Liquidity service.