House Republicans Demand Answers From SEC Over FTX Co-Founder’s Arrest

On Feb. 10, 2023, Republicans Patrick McHenry of North Carolina and Bill Huizenga of Michigan, each members of the U.S. House of Representatives, despatched a letter to Securities and Exchange Commission (SEC) chairman Gary Gensler looking for solutions in regards to the arrest of FTX co-founder Sam Bankman-Fried previous to his scheduled testimony earlier than the House Financial Services Committee. McHenry and Huizenga assert that the timing of Bankman-Fried’s fees and arrest raises “severe questions in regards to the SEC’s course of and cooperation with the Department of Justice.”

House Representatives McHenry and Huizenga Probe SEC Over Timing of Charges and Arrest of Sam Bankman-Fried

Following the Securities and Exchange Commission’s (SEC) crackdown on Kraken’s staking providers within the United States, House Financial Services chairman Patrick McHenry and Oversight Subcommittee chairman Bill Huizenga stated they’re investigating the SEC relating to the “timing of the SEC-DOJ action against Sam Bankman-Fried.” The two representatives have sent a letter to SEC chairman Gary Gensler requesting “records and communications” between the Office of the Chair, the SEC’s enforcement company, and the Department of Justice relating to the Bankman-Fried concern.

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

The letter calls for all data and communications between the SEC Division of Enforcement staff regarding Bankman-Fried’s fees. The second demand is for all data and communications between the SEC and the DOJ. The third demand is for all data and communications between the Office of the Chair staff and chairman Gensler in relation to Bankman-Fried’s fees and subsequent arrest. The House Republicans need the supplies as quickly as potential and have given the SEC a deadline.

“Please provide this material as soon as possible, but no later than 5:00 p.m. on February 23, 2023,” the letter written by McHenry and Huizenga calls for. “The Committee on Financial Services has jurisdiction to oversee the activities of the Securities and Exchange Commission pursuant to Rule X of the Rules of the House of Representatives.”

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