Two members of the Committee on Financial Services of the House of Representatives of the United States question the chairman of the Securities and Exchange Commission, Gary Gensler, “regarding the timing of the charges against the founder of FTX, Sam Bankman-Fried”, following his scheduled appearance at a hearing.
In a notice dated February 10, committee chair Patrick McHenry and Rep. Bill Huizenga, who chairs the Subcommittee on Oversight and Investigations, they stated that the timing of the allegations and Bankman-Fried’s arrest in the Bahamas raised “serious questions about the process and the SEC’s cooperation with the Department of Justice.” The two lawmakers asked Gensler to provide records and communications from the SEC’s Control Division, his office, and between the agency and the Justice Department regarding the allegations against Bankman-Fried between November 2 and November 9. February.
Bankman-Fried was scheduled to testify before a House Financial Services Committee hearing on December 13 to discuss FTX’s bankruptcy. However, the former FTX CEO was detained in the Bahamas under an extradition deal with the United States. The Justice Department charged Bankman-Fried with eight criminal charges, including wire fraud, while the SEC and the Commodity Futures Trading Commission have filed separate civil lawsuits against the former CEO.
“Since Gary Gensler doesn’t stick to his own ‘come and talk’ policy, the House GOP will hold him to account,” said Huizenga in a February 10 tweet.
Since @garygensler won’t abide by his own police to “come in and talk”, the House GOP will hold him accountable. Today, as promised, our oversight of the @SECGov begins with a request for documents surrounding their interactions with @SBF_FTX, @FTX_Officialand @TheJusticeDept pic.twitter.com/cQ9L66I0t5
— Rep. Bill Huizenga (@RepHuizenga) February 10, 2023
McHenry and Huizenga asked Gensler to provide the information no later than February 23. The SEC chairman faced additional scrutiny this week after the agency announced a settlement with Kraken in which the exchange agreed to stop offering staking services or programs to US clients.
With Bankman-Fried absent, FTX CEO John Ray was the only witness at the December committee hearing, but the Senate Banking Committee also probed FTX’s “bubble burst” at its own hearing on December 14th. The banking committee has scheduled a further hearing on the 2022 “crypto crash” for February 14.
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