U.S. Senate Committee to Subpoena SBF if He Fails to Appear at FTX’s Hearing Next Week
The United States Senate Banking Committee has requested the presence of Sam Bankman-Fried (SBF), the founder and former CEO of bankrupt crypto exchange FTX, at a hearing next week and plans to issue a subpoena if he fails to show up.
Senate Committee Summons SBF at Upcoming Hearing
According to a public letter dated December 7, the Committee on Banking, Housing, and Urban Affairs requested the appearance of SBF at a hearing scheduled to be held on December 14.
The hearing, titled “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers,” is set to probe SBF for the failure of FTX and its sister trading firm Alameda Research.
“As the Founder and CEO of FTX Trading Ltd. at the time of its collapse and the founder, principal owner, and former CEO of Alameda Research, you must answer for the failure of both entities that was caused, at least in part, by the clear misuse of client funds and wiped out billions of dollars owed to over a million creditors,” the letter read.
Sherrod Brown, chairman of the committee, said SBF was yet to answer significant questions on how client funds were mishandled, how withdrawals were halted, and how a cover-up was arranged.
Brown argued that witnesses usually appear voluntarily before the committee upon invitation and that SBF had until 5 p.m. on December 8 to respond and discuss his participation at the hearing. Failure to do so would attract a subpoena to demand his testimony.
“If you choose not to appear, I am prepared, along with Ranking Member Pat Toomey, to issue a subpoena to compel your testimony,” Brown stated.
SBF Under Several Investigations
Despite the media rounds that SBF has taken within the past couple of weeks, the ex-billionaire has intentionally avoided addressing reports concerning the misappropriation of customer funds and fraudulent activities that occurred at his firms before their collapse.
Several agencies are currently looking into the matter and evaluating the events that took place at both entities. One such case is that of U.S. prosecutors investigating whether SBF played a role in the collapse of Terra’s cryptocurrencies — LUNA and UST.
~ By William A. Frederick ~
