Lawmakers Probe SEC Over Strange ‘Timing’ Of Democrat Megadonor, Alleged Fraudster Sam Bankman-Fried’s Arrest

Ben ZeisloftFebruary 10, 2023

House Republicans Requested any communications regarding the arrest of former FTX CEO Sam Bankman-Fried The officials were sent to the Securities and Exchange Commission.

Bankman-Fried has been charged with several counts of fraud after he allegedly commingled assets between FTX and sister trading company Alameda Research without customers’ knowledge. He was due to testify before Congress on December 12th, hours after he was arrested by the entrepreneur over misconduct at his business. Representative Patrick McHenry (R.NC) and Rep. Bill Huizenga, (R.MI), were the top Republicans on this committee. Let me know Gary Gensler, Chair of the SEC, stated that “timing of the charges and his arrest raise serious questions about the SEC’s process and cooperation with the Department of Justice.”

Authorities in the Bahamas where FTX was headquartered are pleased to assist. Arrest After they received notice that the United States had filed criminal cases against the executive, Bankman-Fried. Current FTX CEO John Ray III, an attorney overseeing the company’s bankruptcy, Witness testimony In his place before Congress McHenry, Huizenga requested for “all records and communications” SEC Division of Enforcement Director Gurbir Grewal (and other staffers) “referring or relating to the charges filed against Sam Bankman-Fried” By February 23,

Bankman-Fried plead Not guilty Eight charges were brought against him last month, including conspiracy to wirefraud, conspiracy to defraud securities fraud and conspiracy to finance campaign financing violations. He could be sentenced to up to 115 year imprisonment.

The disgraced mogul’s ausführlich political connections came to light in the weeks after his company’s bankruptcy, including the $39 million he donated to Democrats ahead of the midterm elections and four Meetings With senior advisers Steve Richetti & Bruce Reed, he was granted White House power. Bankman-Fried was also a major donor to the campaign that would ultimately grant Joe Biden control over the White House.

Previous Analysis Coindesk released Federal Election Commission data that showed that 196 of 535 House and Senate members received donations from Bankman Fried, his associates, and last month the Senate had 196. Sunday’s announcement by FTX that they would be sending out donations was made public. “confidential messages to political figures, political action funds, and other recipients of contributions” made by the company’s former executives.

House Republicans sent the letter shortly after Gensler (and other senior regulators) revealed a few enforcement initiatives Taking actions Companies that are cryptocurrency-related were targeted. The agency announced that Kraken, the cryptocurrency exchange, would pay $30 million to settle its staking–as-a–service initiative. This allows retail investors to be reimbursed for holding certain assets. A report also revealed that Paxos stablecoin issuer is currently under investigation by New York Department of Financial Services.

Lawmakers have begun to look at new regulations for the nascent industry after hearing about Bankman-Fried’s charges and the untold losses incurred from FTX customers. Recently, members of the Senate Agriculture Committee gehalten Rostin Begnam, chairman of the Commodity Futures Trading Commission discussed increasing federal oversight of this sector.

“For years many have recognized that a patchwork of federal and state-based regulation is an unsuitable substitute for a comprehensive approach,” The official commented. “We are here today because many Americans invested in a novel product and will likely lose money because digital asset markets lack the basic protections that we have all come to expect and have made American financial markets the envy of the world.”