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.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

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 (4).jpg

Research

Despite crypto gaming related projects and funds raising close to a billion dollars in November 2021, there have been only a handful of games that have attracted users apart from mercenary capital, and have had sustained activity for longer than a few months. Crypto gaming is going through an infrastructure phase. Theoretically, crypto gaming stands to benefit from purpose-built, high throughput chains, where blockspace is cheap (especially for games which are fully onchain). However, despite the launch of many gaming-focused chains, most crypto games are lacking in quality and quantity. Most new crypto gaming infrastructure either have no games or only a few games launched (e.g. Xai) or have failed to garner meaningful attention (e.g. Immutable X).

article-image

Successful distributed validator technology needs distributed funding, founders say

article-image

As Bloomberg analysts up their ether ETF approval odds, concerns about ETH’s liquidity and its possible status as a security remain

article-image

Ethereum is becoming a multilayered lasagna-like system, pushing people to the margins with its complexity and fees

article-image

Ether would be set to re-test its 2021 price high should the regulator unexpectedly approve ETH funds, industry watchers say

article-image

The Financial Innovation and Technology for the 21st Century Act, known as the FIT21 Act, is expected to head to the floor for a vote in the House in the afternoon on May 22

article-image

NYAG announced details about its settlement with bankrupt lender Genesis on Monday