US Congress asks SEC to release details on interactions between FTX, its founder, and DoJ
Representatives McHenry and Huizenga of the US House Financial Services Committee have voiced their concerns about the cooperation between the United States Securities and Exchange Commission (SEC)and the Department of Justice (DoJ).
Representatives McHenry and Huizenga speak out
The lawmakers have also expressed their disapproval of SEC Chair Gary Gensler due to the timing of charges against Sam Bankman-Fried, the founder of FTX. They have urged Gensler to provide records and communications from the SEC’s Division of Enforcement, his office, and between the agency and the Justice Department. The request pertains to Bankman-Fried’s charges from Nov. 2 until Feb. 9.
Sam Bankman-Fried was set to appear before the House Financial Services Committee hearing on Dec. 13. However, he was arrested in the Bahamas as part of an extradition agreement with the US. Sam Bankman-Fried, who previously served as the CEO of FTX, was charged with eight criminal counts, including wire fraud.
Meanwhile, the SEC and the Commodity Futures Trading Commission (CFTC) lodged separate civil suits against him. The arrest and charges’ timing raises questions about the SEC’s process and cooperation with the Department of Justice.