Maxine Waters (chair of the House Financial Services Committee) says she will not subpoena Sam Bankman Fried, CEO, to testify at Tuesday’s hearing. SBF should be allowed to testify, but she prefers that they do so “voluntarily”. ”
Bankman-Fried tweeted that he would testify once he had “completed learning” and “reviewed the events.”
SBF is aware of the events that took place to his company. He merged funds from FTX with Alameda Research to create his trading company.
FTX’s headquarters are in Bahamas. It was established in 2019 and now has over 1 million users. It was revealed that Alameda Research, FTX and Bankman-Fried had significant overlaps in their balance sheets because of the cryptocurrency FTT. Binance then announced it would be releasing all cryptocurrency holdings and then reversed its plans for buying FTX.
The 30-year-old bankrupt went from $15.6 billion net worth to “no tangible wealth” in just two days. Federal officials and state officials are looking into whether Bankman Fried violated any laws through his actions within the company.
Half of the federal regulatory agencies would like to have a closer look at SBF’s books. Rep. Rep. Waters was a 30-year-old dealer in snake oil and contributed $40 million to political campaigns. Most of that money went to Democrats.
Democrats may feel relieved that SBF won’t be subpoenaed for a variety reasons.
Fox News reported that Bankman Fried was second among donors to Democrats in the last election cycle after George Soros, a megadonor. He donated at least $38million for leftist causes and PACs.
Politico reported that Bankman Fried was a key resource for Democrats as they looked into cryptocurrency regulation. Because of his willingness to write multimillion-dollar checks in order to support Democrats, this was evident.
Bankman Fried stated earlier this year that he would spend $100 million to $1billion on the 2024 presidential elections to keep Democrats in power.
The germs of scandal are hidden in millions of dollars worth of contributions. SBF didn’t give the money out because he was passionate about politics or to support Democratic members. With the Republicans controlling that committee, they might be able to dig deep enough to find exactly what Bankman Fried wanted.