Rep. Maxine Waters (D-California) attends a hearing before the House Financial Services Committee in Washington on October 23, 2019.
Erin Scott | Reuters
House Financial Services Committee Chairman Maxine Waters Subpoenas Democrats Former FTX CEO Sam Bankman-Fried to Testify at Tuesday’s Hearing on the Rapid Demise of Crypto Exchanges He said he wasn’t going to.
Waters told members of the commission of her decision in a closed-door meeting with Securities and Exchange Commission Chairman Gary Gensler at the Capitol on Tuesday, said those people speaking freely about private conversations. He refused to give his name because of
Waters asked committee staff to persuade Bankman-Fried to testify voluntarily, according to people familiar with the meeting. As of late Wednesday, Bankman-Fried has yet to agree to voluntarily testify before a House committee, two people said.
Waters, who will lose the title of Speaker if Republicans take control of the House on January 3, was the top Republican on the panel and likely the next in line to decide whether to serve a subpoena to Bankman. It could turn to the Speaker, Rep. Patrick McHenry. -Fried at the next congressional session if the FTX founder refuses to voluntarily testify under oath next week.
Bankman-Fried has been under scrutiny by federal investigators and lawmakers on the Capitol since his crypto exchange suddenly collapsed last month, exposing a number of questionable transactions.Senate Banking Committee Chairman Sherrod Brown, Democrat, Ohio, said his committee hearing About the December 14th FTX Bombing forwarded Provides billions of dollars in customer funding to Alameda Research, a Bankman-Fried trading company.
Waters invited Bankman-Fried to testify before the panel voluntarily and could change her mind at any time and subpoena him by Tuesday. . In response to the story, the Commission and Waters tweeted that a subpoena to Bankman-Fried is “definitely under consideration. Stay tuned.”
Bankman-Fried tweeted his response to Waters, saying he felt it was his “obligation” to explain what happened. His new FTX CEO, John Jay Ray III, is set to testify at a House hearing next week.
Bankman-Fried said, “When I have learned and considered what happened, I will feel it is my duty to go before the committee and explain it.” I don’t know, but if it does, I’ll testify.”
Bankman Freed’s downfall was quick and merciless after years As Crypto’s “darling” at Capitol Hill. He contributed about $40 million towards his 2022 congressional midterm elections, much of it going to Democrats.
Nishad Singhbecame the lead engineer of FTX 2019 After working for Bankman-Fried trading firm Alameda Research, he has donated more than $13 million to the Democratic Party since the 2020 presidential election began.
FTX Digital Markets Co-CEO Ryan Salame donated another $23 million, most of his donation benefiting the Republican Party.