House Republicans examine SEC inquiry of FTX crypto exchange failure

On Friday, the House Financial Services Committee, chaired by Rep. Patrick McHenry (R-N.C.) and ranking member Rep. Bill Huizenga (R-Mich.), sent a letter to the Securities and Exchange Commission (SEC) Chairman Gary Gensler. The letter requested documents and communications between the SEC, the Justice Department, and Gensler's office related to the SEC's recent action against Sam Bankman-Fried, the former CEO of the failed cryptocurrency exchange FTX.

The letter also mentioned Bankman-Fried's scheduled appearance before the committee on Dec. 13, a day after his arrest by Bahamian officials. He was later indicted by a New York federal court on Dec. 9, and arrested three days later ahead of extradition to the U.S. The Financial Services Committee requested records and communications between the SEC's enforcement division and Gensler's direct staff, as well as between the SEC and the Justice Department, by 5 p.m. on Feb. 23.

The request for documents and communications comes a week after McHenry announced the panel would examine certain so-called overreaches by financial oversight agencies. Whether or not the committee's request will be granted is yet to be seen as this story continues to develop.


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