On February 10, 2023, Republicans Patrick McHenry of North Carolina and Bill Huizenga of Michigan, both members of the US House of Representatives, sent a letter to the Chairman of the Securities and Exchange Commission (SEC), Gary Gensler, looking for answers about the arrest of FTX co. -Founder Sam Bankman-Fried before his scheduled testimony before the House Financial Services Committee. McHenry and Huizenga say the timing of the charges and Bankman-Fried’s arrest raises “serious questions about the SEC process and cooperation with the Department of Justice.”
House representatives McHenry and Huizenga probe SEC into timing of charges and arrest of Sam Bankman-Fried
Following the Securities and Exchange Commission (SEC) crackdown on Kraken staking services in the United States, House Financial Services Chairman Patrick McHenry and Supervisory Subcommittee Chairman Bill Huizenga said they are investigating to the SEC regarding the “timing of the SEC-DOJ action against Sam Bankman.” -Fried.” The two representatives have sent a letter SEC Chairman Gary Gensler requesting “records and communications” between the Office of the President, the SEC’s enforcement agency, and the Department of Justice regarding the Bankman-Fried matter.
“The SEC’s Enforcement Division reportedly conducted a full investigation into the actions of Sam Bankman-Fried and submitted the findings to the Commission for review and to authorize the charges,” the letter details. “However, the timing of the charges and his arrest raises serious questions about the SEC process and cooperation with the Department of Justice. The American people deserve transparency from him and from his agency,” the letter added.
The letter requires all records and communications between employees of the SEC’s Enforcement Division regarding the Bankman-Fried charges. The second lawsuit is for all filings and communications between the SEC and the DOJ. The third lawsuit is for all records and communications between employees of the Office of the President and President Gensler in connection with the Bankman-Fried charges and subsequent arrest. 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 pm 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 House Rules.”
What do you think about the SEC Answer House Republicans’ lawsuit over the arrest of Sam Bankman-Fried? Share your thoughts on this topic in the comments section below.
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