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 Securities and Exchange Commission (SEC) Chairman Gary Gensler seeking answers about the arrest of FTX co. -founder Sam Bankman-Fried before his scheduled testimony before the House Financial Services Committee. McHenry and Huizenga argue 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 Reps. McHenry and Huizenga Investigate SEC Over Timing of Charges and Arrest of Sam Bankman-Fried
Following the Securities and Exchange Commission’s (SEC) crackdown on Kraken’s betting services in the US, 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-Stekt.” The two representatives have sent a letter to SEC Chairman Gary Gensler requesting “records and communications” between the chairman’s office, the SEC’s enforcement agency and the Justice Department regarding the Bankman-Fried matter.
“Presumably, the SEC’s Division of Enforcement conducted a full investigation of the actions of Sam Bankman-Fried and presented its findings to the Commission for review and to approve the charges,” the letter said. “However, 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,” the letter added.
The letter requests all records and communications between SEC Division of Enforcement employees related to Bankman-Fried’s allegations. The second requirement is for all records and communications between the SEC and the DOJ. The third demand is for all documentation and communication between the employees in the chairman’s office and chairman Gensler in relation to Bankman-Fried’s accusations 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 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.”
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Jamie Redman
Jamie Redman is the news editor at Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.
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