Maxine Waters Is Prepared To Subpoena, Sam Bankman-Fried Responds

The representative says reports claiming that she is unwilling to do so are “lies,” and bowing to pressure, Bankman-Fried says he will comply

article-image

US Rep. Maxine Waters | majunznk/"Maxine Waters" (CC license)

share

Maxine Waters, chair of the House Financial Services Committee, tweeted on Thursday that plans to subpoena fallen crypto celebrity Sam Bankman-Fried to testify at the FTX hearing on Dec. 13 are still very much on the table. 

CNBC first reported that Waters had been trying to convince Bankman-Fried to testify voluntarily and did not have plans to subpoena him, claims Waters denied.

Loading Tweet..

The representative of California’s 43rd District in Congress previously tweeted at the fallen crypto celebrity, politely inviting him to participate at the hearing. In response, Bankman-Fried said, “Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain.”

Adding, “I’m not sure that will happen by the 13th. But when it does, I will testify.”

Waters’ gentle approach to Bankman-Fried, was criticized by crypto community members, and many were concerned about his cushy relationship with elected officials through previous campaign donations.

Her subsequent pleas, which took a dig at the former FTX CEO’s recent media tour, were initially left unanswered by Bankman-Fried.

Loading Tweet..

Under US law, a court can issue a subpoena to a US resident or national in a foreign country if “the court finds that particular testimony or the production of the document or other thing by him is necessary in the interest of justice.”

A subpoena can also be issued if it is not possible to obtain a testimony without the appearance of the witness. Which means in the case of FTX, whether or not a subpoena of Bankman-Fried — who is currently believed to be in the Bahamas — can be issued will also depend on the other witnesses who will be called upon to testify.

But by Friday morning, Bankman-Fried caved, announcing on Twitter that he would participate in the hearing as requested.

Loading Tweet..

He expressed the intention to limit his testimony to four main areas: FTX US’s solvency and American customers, pathways that could return value to users internationally, the causes of the crash, and his own failings.

Given that the testimony will be under oath, upon penalty of perjury, it will be interesting to see how the ex-CEO handles questions that touch upon his own potential legal liability.

This story was updated on Dec. 9 at 9:08 a.m. ET following Bankman-Fried’s notice of willingness to testify.


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

Mon - Wed, March 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience: Attend expert-led panel discussions and fireside chats Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts.

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Research report - cover graphics (1).jpg

Research

In this report, we dive into crypto private market data to gather insights on where the future of the industry is headed. Despite a notable downturn in private raises, capital continues to infuse promising projects that aim to transform payments, banking, consumer experiences, community, and more, with 2023 being the fourth-largest year for crypto venture capital.

article-image

Ethereum Dencun will enable Ethereum transactions to be submitted as blobs, potentially alleviating the costs of posting data on the blockchain

article-image

After a rocky start, bitcoin ETF shareholders are now well in the green

article-image

Revolut said that the standalone crypto exchange is currently “invite only”

article-image

The stock price jump comes after Coinbase reported ending its seven-quarter run of net losses during the fourth quarter

article-image

BUZZ holds shares of Coinbase, Robinhood and MicroStrategy

article-image

Opinion: Even though I didn’t pay for my “Diamond Hands” burger with BTC, don’t let that fool you into thinking that crypto’s development is futile