US lawmakers question SEC chair on timing of Sam Bankman-Fried’s arrest

Two members of the US House of Representatives Committee on Financial Services are calling Securities and Exchange Commission Chairman Gary Gensler "regarding the timing of charges filed against FTX founder Sam Bankman-Fried ", based on his scheduled appearance at a hearing.

In a Feb. 10 notice, committee chair Patrick McHenry and Rep. Bill Huizenga, who chairs the Subcommittee on Oversight and Investigations, saying The timing of the charges and Bankman-Fried's arrest in the Bahamas raised "serious questions about the SEC process and cooperation with the Department of Justice." The two lawmakers asked Gensler to provide records and communications from the SEC's Enforcement Division, his office, and between the agency and the Justice Department related to the SBF charges from Nov. 2 to Feb. 9.

Bankman-Fried had been scheduled to testify ahead of a Dec. 13 House Financial Services Committee hearing exploring the collapse of cryptocurrency exchange FTX. However, the former FTX CEO was arrested in the Bahamas pursuant to an extradition deal with the United States. The Justice Department charged Bankman-Fried with eight criminal charges, including wire fraud, while the SEC and the Commodity Futures Trading Commission filed separate civil lawsuits against the former chief executive.

“Since Gary Gensler will not abide by his own policies [sic] to 'come in and talk,' the House GOP will hold you accountable," saying Huizenga on a Feb. 10 tweets.

From @garygensler you won't abide by your own "get in and talk" policies, the House GOP will hold you accountable. Today, as promised, our supervision of the @SECGov begins with a request for documents related to your interactions with @SBF_FTX, @FTX_Officialand @TheDepartmentOfJustice pic.twitter.com/cQ9L66I0t5

— Rep. Bill Huizenga (@RepHuizenga) February 10, 2023

McHenry and Huizenga asked Gensler to provide the information no later than February 23. The SEC chairman faced additional scrutiny this week after the agency announced a deal with Kraken in which the exchange agreed to stop offering staking services or programs to US clients.

Related: US lawmakers call on Justice Department to hold FTX executives accountable 'to the fullest extent of the law'

With Bankman-Fried absent, FTX CEO John Ray was the only witness at the December committee hearing, but the Senate Banking Committee also investigated FTX's "bubble burst" at its own hearing on December 14. The banking committee has scheduled an additional hearing about the 2022 "crypto crash" that will occur on February 14.