• The US House Committee on Financial Services has requested documents related to charges filed against FTX founder Sam Bankman-Fried by the Securities and Exchange Commission (SEC).
• Due to this, the lawmakers want the Commission to provide all records and communications of its employees between Nov. 2 to Feb. 9. in the enforcement division and office of the chairman relating to the SBF charges.
• The SEC is currently facing backlash over its recent enforcement action against the crypto exchange Kraken.
Charges Filed Against Sam Bankman-Fried
The United States House Committee on Financial Service has requested documents related to charges filed against FTX founder Sam Bankman-Fried by the Securities and Exchange Commission (SEC). The lawmakers wrote that the timing of the SEC’s charges against SBF raises „serious questions about its process and cooperation“ with the US Department of Justice (DoJ).
Request for Documents from SEC
Due to this, the lawmakers want the Commission to provide all records and communications of its employees between Nov. 2 to Feb. 9. in the enforcement division and office of the chairman relating to the SBF charges. The Committee further asked the financial watchdog to provide similar documents of its interactions with the DoJ during said period. The SEC has been asked to produce these documents before Feb. 24th.
SBF Arrested in Bahamas
SBF was arrested on Dec 12 in Bahamas after US Attorney Damian Williams filed criminal charges against him. On Dec 13, both SEC and Commodity Futures Trading Commission (CFTC) have also filed their own charges against him as well.
Backlash Against SEC Enforcement Action
The SEC is currently facing backlash over its recent enforcement action against crypto exchange Kraken which sparked a debate around regulation by enforcement for staking activities conducted by exchanges like Kraken, Binance etc.,
Conclusion
In conclusion, it appears that there are many raised questions regarding how exactly did SBF get charged, what was his relation with DOJ prior being arrested? Moreover, why is there such a sudden pushback towards crypto exchanges conducting staking activities? All these questions remain unanswered as we await more information from official sources involved in these cases