The U.S. House of Representatives was represented by Patrick McHenry of North Carolina and Bill Huizenga of Michigan. They sent a letter asking Gary Gensler, chairman of Securities and Exchange Commission (SEC), for information about Sam Bankman-Fried’s arrest. This was prior to Bankman-Fried’s scheduled testimony before the House Financial Services Committee. McHenry, Huizenga claim that Bankman-Fried’s arrest and charges were made at the wrong time. This raises serious questions about the SEC and its cooperation with the Department of Justice.
McHenry, Huizenga probe SEC over Timing of Charges & Arrest of Sam Bankman Fried
After the crackdown by the Securities and Exchange Commission (SEC), Kraken’s staking activities in the United States were shut down, the chairman of House Financial Services Patrick McHenry and the chairman of Oversight Subcommittee Bill Huizenga stated that they are now investigating the SEC about the “timing” of the SEC’s action against Sam BankmanFried. sent a letter Gary Gensler, Chairman of the SEC, requested “records, communications” between the Office of the Chair (the Enforcement Agency of the SEC) and the Department of Justice concerning the Bankman-Fried matter.
The letter explains that “Presumably the SEC’s Division of Enforcement conducted a thorough investigation into Sam Bankman-Fried’s actions and presented its findings to the Commission for review and authorization of the charges.” The timing of his arrest and the charges he faces raise serious questions about the SEC and its cooperation with the Department of Justice. “The American people deserve transparency from your agency,” the letter states.
The letter requests all records and communications between SEC Division of Enforcement employees regarding Bankman-Fried’s charges. The second request is for all records, communications and correspondence between the SEC Division of Enforcement and the DOJ. The third demand is to have all records and communications between the Office of the Chair employees, and Chairman Gensler regarding Bankman-Fried’s charges and subsequent arrest. The House Republicans demand the materials as quickly as possible, and have given the deadline to the SEC.
McHenry & Huizenga demand that you provide the requested material “as soon as possible, but not later than February 23, 2023 at 5:00 p.m.” “The Committee on Financial Services is authorized to supervise the activities of Securities and Exchange Commission in accordance with Rule X of Rules of the House of Representatives.”
What are your thoughts on the House Republicans’ request for information from the SEC regarding Sam Bankman-Fried’s arrest? Comment below to share your views.