Michigan Representative Bill Huizenga, who chairs the US House Oversight and Investigations Subcommittee, criticized the Securities and Exchange Commission (SEC) for its failure to produce appropriate documents related to the timing of charges and arrest of former FTX CEO Sam Bankman-Fried. In a June 22 hearing on oversight of the SEC, Rep. Huizenga said that “100% of the documents” the commission had provided on SBF’s charges and arrest were publicly available, suggesting an inadequate response to the congressional committee. The lawmakers criticized the SEC for failing to meet a February deadline to produce documents that allegedly raised “serious questions about the SEC’s process and cooperation with the Department of Justice” in regards to SBF’s charges and arrest.
In the same hearing, Texas Representative Pete Sessions requested details regarding a reported meeting between Gary Gensler and SBF, claiming the SEC chair had “personal access” to the former FTX CEO. Texas Representative Al Green called for regulating crypto firms like FTX, which “destroy[ed] investors’ dreams with ignoble schemes” and also requested Gensler testify.
The SEC inquiry stemmed from Bankman-Fried being scheduled to testify before the House Financial Services Committee hearing on Dec. 13. He was based in the Bahamas at the time FTX declared bankruptcy in November 2022 and the criminal investigation into his alleged misconduct was underway. Before Bankman-Fried could testify in Congress, he was arrested in the Bahamas and later extradited to the United States. Authorities are planning two criminal trials for Bankman-Fried for 8 criminal charges and 5 counts scheduled to begin in October 2023 and March 2024, respectively. The SEC and Commodity Futures Trading Commission also filed separate civil suits against SBF, but those cases have been deferred until the criminal proceedings have been completed.