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Thursday, February 9, 2023

Sam Bankman-Fried Will Be Subpoenaed to US Capitol Hill, If He Doesn’t Agree

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US Senate Banking Committee says it will subpoena FTX founder Sam Bankman-Fried to testify on his former company’s failings on December 14, if he does not come voluntarily.

Chairman Sherrod Brown (D-Ohio), in a public letter, said the former crypto billionaire must appear in person to “answer for the failure of both entities (FTX and Alameda Research) 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.”

Bankman-Fried was CEO when the third biggest crypto exchange collapsed and he filed bankruptcy, losing billions of dollars in customer funds on the platform. He has denied any misappropriation of funds and has said it was simply an accounting mistake.

“There are still significant unanswered questions about how client funds were misappropriated, how clients were blocked from withdrawing their own money, and how you orchestrated a cover-up,” Brown said in the letter.

The 30-year-old will be forced to the hearing in Dirksen Senate Office Building, Room G50, at 10:00 a.m.

“If you chose not to appear, I am prepared, along with Ranking Member Pat Toomey, to issue a subpoena to compel your testimony.”

The tone of this request is somewhat different from the friendly tweet Congresswoman Maxine Waters posted on Twitter when she invited him to testify before the Finance Committee which she chairs: “We appreciate that you’ve been candid in your discussions about what happened at FTX. Your willingness to talk to the public will help the company’s customers, investors and others. To that end, we would welcome your participation in our hearing on the 13th.”

Investigations appear to be ramping up as the US and the Bahamas investigators report that they are probing Bankman-Fried’s dealings in his former company.

 

Featured Image: Chairman Sherrod Brown (D-Ohio) and Sam Bankman-Fried

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