GOP Lawmakers Looking Into Timing of Sam Bankman-Fried’s Arrest

Republican members of the House Financial Services Committee requested that the Securities and Exchange Commission turn over records relating to the timing and activities of the Dept. of Justice (DOJ), against whom charges have been filed Sam Bankman Fried, founder of FTX His arrest just before he was due to testify before the panel.

Following the collapse of his business, Bankman-Fried was willing to testify before the House Financial Services Committee on Tuesday 13 December 2022. cryptocurrency empire There were allegations that he defrauded investors of billions of dollars during the implosion. Bankman-Fried began making interviews at various locations after November’s bankruptcy of FTX and Alameda Research. New York Times Dealbook Summit To appear in Twitter Spaces.

House lawmakers hoped to question him under oath – particularly after he Refused to appear before the Senate Banking Committee, prompting its bipartisan leader to call it “an unprecedented abdication of accountability.” Bankman-Fried couldn’t testify on 12/12/13, however, he was taken into custody in the Bahamas at the command of the DOJ. The DOJ announced eight charges against Bankman Fried the next day. He was kept in a Bahamas jail until his extradition but didn’t give evidence before the committee.

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Sam Bankman-Fried left the New York court on January 03, 2023. Alameda and FTX CEOs were released on bail of $250M. (Fatih Aktas/Anadolu Agency via Getty Images / Getty Images

“Presumably, the SEC’s Division of Enforcement did a complete investigation into the actions by Sam Bankman-Fried and presented the findings to the Commission for its review and to authorize the charges,” Patrick McHenry, Chairman of the Financial Services Committee (Republican-N.C.), and Bill Huizenga, Chairman of the Subcommittee on Oversight and Investigations (Republican-Mich.), wrote Friday to Gary Gensler. 

The chairmen said: “Yet, the timing of the charges and his arrest raise serious questions about the SEC’s process and cooperation with the Department of Justice. The American people deserve transparency from you and your agency.”

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Sam Bankman-Fried, founder of FTX, arrives at Manhattan Federal Court in New York City for a court appearance. Bankman-Fried faces eight criminal charges of fraud, conspiracy and money-laundering offenses, which include makin (Michael M. Santiago/Getty Images/Getty Images

The House Financial Services Committee asked the SEC to provide all records and communications spanning Nov. 2, 2022 to Feb. 9, 20,23 that pertain to Bankman-Fried charges. These records included the following types of agency employees:

• SEC Division of Enforcement employees, including Gurbir Grewal, the director of the division;
• Employees in Office of the Chair, which includes Chairman Gary Gensler;
• Anyone who was a SEC employee and communicated with the Department. During that time, Justice was involved.

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The committee chairmen requested that these materials be provided by the SEC as soon as possible, but not later than February 24, 2023 at 5:00 p.m. The House Rule X allows committees to request documents for investigative purposes.

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