House lawmakers criticise SEC over explanations relating to the arrest of SBF

The chair of the U.S. House of Representatives’ Financial Services Committee, Patrick McHenry, and the head of the Oversight and Investigations subcommittee, Bill Huizenga, set April 17 as a new deadline for the SEC to provide information regarding the arrest of former FTX chief Sam Bankman-Fried (SBF).

#NEW: Chairman @PatrickMcHenry and @RepHuizenga call out @SECGov Chair Gensler for failing to provide information on charges against @SBF_FTX.

The lawmakers are considering all avenues to compel documents requested by Congress.

? Read more ?https://t.co/LzZllFfHaQ pic.twitter.com/q1CNfW1npm

— Financial Services GOP (@FinancialCmte) April 13, 2023

Lawmakers expressed dissatisfaction with the nature of the documents provided by the SEC in response to the February 10 request.

In it, McHenry and Huizenga demanded records and transcripts between the SEC’s enforcement division and the Office of the Chairman with the U.S. Department of Justice regarding indictment timelines and Bankman-Fried’s arrest.

On December 13, 2022, SBF was due to testify before the House Financial Services Committee; the following day, similar hearings were scheduled by the Senate Banking Committee.

On the scheduled date Bahamian authorities arrested Bankman-Fried at the request of the U.S. government. SBF’s testimony before Congress did not take place.

The SEC missed the deadlines for producing documents, hindering the committee’s work. Staff handed over 232 pages of data that were publicly available and did not answer the questions posed, lawmakers said.

The committee will consider compulsory measures to obtain the requested information if it is not provided, they warned.

Lawmakers hope to receive a response ahead of the April 18 hearing featuring Chair Gary Gensler.

In March 2023, lawyers for the former FTX reached a deal with U.S. prosecutors on new terms of his release. The agreement must be approved by a court. After extradition Bankman-Fried was released on bail of $250 million.

Earlier, House Republican Majority Leader Tom Emmer criticised Gensler’s approach to overseeing digital assets.

At the end of 2022, U.S. congressman stated the need for the SEC head to disclose his approach to regulating the digital assets market in hearings.