Congresswoman Maxine Waters, chairwoman of the House Financial Services Committee, said on Monday that the arrest of disgraced former FTX CEO Sam Bankman-Fried “denies the public the opportunity” to get answers from SBF himself, under oath, before congress.
To the chairwoman’s apparent surprise, SBF was arrested by the Royal Bahamas Police Force less than 24 hours before he was set to remotely appear before the US congress to give his testimony on the collapse of FTX.
“It’s about time the process to bring Mr. Bankman-Fried to justice has begun,” Waters, who is leading the congressional hearing into the collapse of FTX, said. “However, as the public knows, my staff and I have been working diligently for the past month to secure Mr. Bankman-Fried’s testimony before our Committee tomorrow morning.”
The arrest means that SBF will not be able to appear in congress. Fortunately, Forbes was able to get a hold of a copy of his planned testimony for the committee hearing. You can read more about that, and learn more about everyone he intended to blame in his testimony here.
New FTX CEO John J. Ray III, who’s been tasked to oversee the company’s chapter 11 bankruptcy proceedings and whose findings were released shortly before SBF’s arrest was ordered, will appear before congress to give his testimony.
Waters was earlier criticized for saying that she “appreciates” how SBF had been candid in his discussions about FTX. Her remark and earlier reported decision not to subpoena the failed crypto mogul left many baffled, with some comparing SBF and FTX to Bernie Madoff and his Ponzi scheme.
According to the indictment that was unsealed this morning, SBF was charged with eight counts, including wire fraud against customers and lenders, conspiracy to defraud the US and violate campaign laws. He is facing up to 115 years in prison.
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