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

On February 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 asking him to answer a question about FTX’s arrest. —Founder Sam Bankman-Fried prior to scheduled testimony before the House Financial Services Committee. McHenry and Huizenga argue that the timing of Bankman-Freed’s indictment and arrest raises “serious questions about the SEC process and cooperation with the Justice Department.”

House Representatives McHenry and Huizeng Investigate SEC Over Timing of Charges and Arrest of Sam Bankman-Fried

Following the SEC’s crackdown on Kraken’s staking services in the United States, House Financial Services Chairman Patrick McHenry and Subcommittee on Oversight Chairman Bill Huizenga said they were investigating the SEC regarding “the timing of the SEC-DOJ against Sam Bankman.” -Fried. Two representatives have sent a letter to SEC Chairman Gary Gensler requesting “records and communications” between the chairman’s office, SEC law enforcement, and the Department of Justice in the Bankman-Fried case.

“Allegedly, the Securities and Exchange Commission’s Enforcement Division has conducted a full investigation into the actions of Sam Bankman-Fried and has submitted the findings to the Commission for review and approval of the allegations,” the letter said. “However, the timing of the charges and his arrest raises serious questions about the SEC process and cooperation with the Justice Department. The American people deserve openness from you and your agency,” the letter reads.

The letter requires all records and communications between SEC Enforcement Officers relating to the Bankman-Freed allegations. The second requirement applies to all records and communications between the SEC and the Department of Justice. The third requirement applies to all records and communications between members of the Chairman’s Office and Chairman Gensler regarding the Bankman-Freed allegations 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 February 23, 2023,” the letters written by McHenry and Huizenga demand. “The Financial Services Committee has jurisdiction to oversee the activities of the Securities and Exchange Commission under Rule X of the Rules of the House of Representatives.”

What do you think of the House Republicans’ demands from the Securities and Exchange Commission for the arrest of Sam Bankman-Fried? Share your thoughts on this in the comments section below.

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