As the probe into the FTX saga rages on, a group of US congressmen now want the U.S. Securities and Exchange Commission to shed more light on its involvement with the collapsed crypto exchange.
On Friday, US congressman Bill Huizenga wrote to SEC chair Gary Gensler requesting to be furnished with records and communications between the SEC’s Division of Enforcement, Gensler’s office, and the Department of Justice (DOJ). In particular, the lawmaker requested records relating to the charges filed against Sam Bankman-Fried from Nov. 2, 2022, to Feb.9, 2023, stating that “the American people deserve transparency from you and your agency.”
Although the congressman acknowledged that the SEC’s Division of Enforcement may have completed investigating Sam Bankman-Fried before presenting the findings to the commission for review, the act of charging Sam Bankman fried raised suspicions considering the agency’s “bad standing” with the crypto industry.
“The timing of the charges and his arrest raises serious questions about the SEC’s process and cooperation with the Department of Justice,” read the letter.
According to Mr Huizenga, the records, which are expected no later than 5:00 p.m. on Feb. 23 will shed more light on the timing of the charges filed against Bankman-Fried before the one-time billionaire faces the House Financial Services Committee at a later date. As ZyCrypto reported, although the House Committee had planned to hear Sam Bankman-friend’s testimony in early December, his arrest in the Bahamas made it impossible. However, FTX’s bankruptcy CEO Jay Ray was able to testify before the committee on Dec 13.
Sam Bankman-fried was charged by the SEC on Dec 13, just a day after his arrest in the Bahamas, for “concealing his diversion of FTX customers’ funds to crypto trading firm Alameda Research while raising more than $1.8 billion from investors.”
However, following the collapse of FTX, pressure has been mounting over the SEC for its failure to foresee the firm’s crisis, especially after the exchange’s new CEO, Jay described its collapse as a “complete failure of corporate control.” In the past, Gary Gensler has also been cornered for holding “unusual” meetings with Bankman-Fried where they reportedly discussed among other issues, regulations and a new crypto trading platform.