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, both members of the U.S. House of Representatives, sent a letter to Securities and Exchange Commission (SEC) chairman Gary Gensler seeking answers about the arrest of FTX co-founder Sam Bankman-Fried prior to his scheduled testimony before the House Financial Services Committee. McHenry and Huizenga assert that the timing of Bankman-Fried’s charges and arrest raises “serious questions about the SEC’s process 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) បង្ក្រាប on Kraken’s staking services in the United States, House Financial Services chairman Patrick McHenry and Oversight Subcommittee chairman Bill Huizenga said they are investigating the SEC regarding the “timing of the SEC-DOJ action against Sam Bankman-Fried.” The two representatives have បានផ្ញើលិខិតមួយ to SEC chairman លោក Gary Gensler requesting “records and communications” between the Office of the Chair, the SEC’s enforcement agency, and the Department of Justice regarding the Bankman-Fried issue.

“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 details. “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 adds.

The letter demands all records and communications between the SEC Division of Enforcement employees relating to Bankman-Fried’s charges. The second demand is for all records and communications between the SEC and the DOJ. The third demand is for all records and communications between the Office of the Chair employees and chairman Gensler in relation to Bankman-Fried’s charges and subsequent arrest. The House Republicans want the materials as soon as possible 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 demands. “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.”

ស្លាកនៅក្នុងរឿងនេះ

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What do you think about the House Republicans’ demand for answers from the SEC on the arrest of Sam Bankman-Fried? Share your thoughts about this subject in the comments section below.

Jamie Redman

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