FTX Founder’s Prison Cell Accusation: SEC’s Gensler Allegedly Orchestrated Crypto Power Grab

In a dramatic development from behind bars, FTX founder Sam Bankman-Fried has launched explosive allegations against SEC Chair Gary Gensler, claiming the regulator engaged in a systematic campaign to consolidate cryptocurrency oversight under the SEC while deliberately denying necessary licenses. This accusation reignites the long-standing jurisdictional battle between the SEC and CFTC over digital asset regulation, bringing the power struggle to new heights as the crypto industry continues to navigate an uncertain regulatory landscape. The timing of these claims, coming from an incarcerated figure who once stood at the pinnacle of crypto exchange leadership, adds significant weight to ongoing debates about regulatory overreach and the future of digital asset governance in the United States.

FTX Founder Accuses SEC's Gensler of Crypto Regulatory Power Grab

Sam Bankman-Fried, the incarcerated FTX founder, has reignited the crypto regulatory debate with explosive claims against SEC Chair Gary Gensler. From his prison cell, Bankman-Fried alleges Gensler orchestrated a covert campaign to consolidate crypto oversight under the SEC while systematically denying necessary licenses.

The power struggle between the SEC and CFTC over digital asset jurisdiction reaches new heights as Bankman-Fried credits the Trump administration for recent regulatory shifts. His social media post highlights the appointment of Paul Atkins as a turning point, marking a departure from Gensler's enforcement-heavy approach.

This regulatory turf war represents what Bankman-Fried calls "the biggest threat to crypto" during the Biden administration. The claims emerge as the industry continues grappling with unclear regulatory frameworks and enforcement actions against major exchanges.

Major Exchange Collapses Drive Surge in Crypto Self-Custody

Public confidence in centralized cryptocurrency exchanges has plummeted since 2022, with recent research indicating a dramatic shift in user trust. A Cointelegraph survey reveals 65% of respondents now distrust these platforms more than they did four years ago, driven by high-profile collapses like Mt. Gox and others.

The fallout is clear: 57% of users now prioritize self-custody, opting to control their private keys rather than rely on third-party exchanges. This marks a fundamental change in behavior—not just a reaction to past failures, but a deliberate embrace of sovereignty over assets.

The trend underscores a broader industry reckoning. Once-dominant exchanges are losing ground as users seek alternatives that align with crypto's original ethos of decentralization. The data suggests this shift is accelerating, with no immediate reversal in sight.