The Securities and Exchange Commission (SEC) is under fire as the House Financial Services Committee Chair Patrick McHenry and Bill Huizenga threaten a subpoena if SEC Chair Gary Gensler fails to provide information related to charges against Sam Bankman-Fried.
The Republican Congressmen have requested the staff memo recommending charges for Bankman-Fried and additional information regarding the charges filed against the failed crypto mogul by the agency and U.S. prosecutors.
The inquiry, which began on February 10, relates to the timing of Bankman-Fried’s arrest, which occurred the night before he had agreed to testify before the House committee alongside caretaker FTX CEO John Ray III in December.
Congressmen from both parties were frustrated over losing the chance to grill Bankman-Fried, particularly after the high-profile negotiation to secure his appearance before the committee.
The Republicans claim that Gensler and his staff have failed to produce the information they requested, including communications in the SEC’s Enforcement Division related to Bankman-Fried, as well as records related to communications between the agency and the Justice Department concerning their coordination on civil and criminal charges filed against him.
In their latest letter, McHenry and Huizenga have set a new deadline for the SEC to provide its charging recommendation memo by 5 pm ET on Monday, April 17, the evening before Gensler will testify before the House committee.
If the SEC fails to provide the memo, the Republicans threaten to use compulsory process, if necessary, to obtain the requested information, including a subpoena to the agency.