In a shock to those following the FTX collapse saga, it appears that former CEO and political donor Sam Bankman-Fried won’t have to testify over the crypto exchange’s sudden demise, despite running what’s turning out to be one of the biggest ponzi schemes since Bernie Madoff. However, Maxine Waters’ cozy relationship with SBF isn’t being reciprocated amongst other Senate Banking Committee members, two of whom told the disgraced SBF they expect him to appear in person next week.
According to CNBC which cited people familiar with internal discussions, House Financial Services Committee Chair Maxine Waters recently told fellow committee members as well as SEC Chair Gary Gensler that she doesn’t plan on subpoenaing SBF to testify at the forthcoming Congressional hearing regarding the demise of FTX. Instead, Waters told the committee she wants SMB to voluntarily testify under oath come the December 13 meeting.
SBF, for his part, acknowledged Waters’ warm invite, tweeting that he feels it’s his “duty” to explain how it all went down, but not until he’s done “learning and reviewing what happened.” SBF did warn, however, that it might not happen by the 13th, but it’s the thought that counts, right?
For those still baffled, SBF continues to be a free man aside from a small slap on the wrist in the Bahamas, despite pulling off one of the largest and most blatant scams in US history. Authorities and regulatory bodies have thus far refrained from holding SBF to account, which may or may not have something to do with his generous donations to the same House Financial Services Committee members supposedly tasked with investigating him.
As per the Federal Election Commission records cited by the Washington Free Beacon, FTX allegedly gave nine House Committee members $300,351, with the biggest donations going to the committee’s Digital Assets Working Group, which was tasked with devising regulations of the crypto sector.
However, shortly after CNBC’s report went viral, Waters seem to have taken offence, insisting it’s a lie that she isn’t willing to subpoena SBF; still the latter sentence in the tweet establishes that she hasn’t done anything about it because a “subpoena is definitely on the table.” Nonetheless, while Waters is still presumably blowing kisses to SBF, at least two prominent Senate Banking Committee members informed the former FTX CEO his presence at next week’s hearing is expected, and should he fail to show up voluntarily, he will, in fact, be subpoenaed.
“FTX’s collapse has caused real financial harm to consumers, and effects have spilled over into other parts of the crypto industry. The American people need answers about Sam Bankman-Fried’s misconduct at FTX,” Senators Sherrod Brown and Pat Toomey said in a statement, as cited by Business Insider. “The Committee has requested that he testify at our upcoming hearing on FTX’s collapse, and will consider further action if he does not comply.”
Information for this briefing was found via CNBC, Twitter and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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HE’S MAKING PLANS TO RUN