Top U.S. Rep Makes Shocking Claims, Says SEC Arrested SBF to Stop Congressional Hearing

Top U.S. Rep Makes Shocking Claims About SBF’s Arrest, Indicts Gary Gensler and SEC.

Rep. Davidson said SBF was arrested hours before the congressional hearing because Gary Gensler did not want him to answer questions about the SEC’s failed oversight.

U.S. Rep. Warren Davidson (R-OH), a member of the Financial Services Committee (FSC), has commented on the timing of the arrest of disgraced FTX founder Sam Bankman-Fried (SBF).

According to Rep. Davidson, Bankman-Fried was arrested hours before the Congressional hearing because the Securities and Exchange Commission and other regulators did not want Congress members to ask him about their “failed [regulatory] oversight.”

Speaking at a recent interview with Newsmax, Rep. Davidson said SEC’s Gary Gensler’s cozy relationship with Alameda Research and Bankman-Fried played a big part in the timing of his arrest. Warren Davidson believes that SBF was arrested before the Congressional hearings this week because the SEC and other regulators did not want to allow Congress to ask Sam about their failed oversight.

“The best theory I have is that the SEC and other regulators didn’t want SBF to give his version of ‘so what were you doing with Gary Gensler in the Securities and Exchange Commission with all these meetings and interactions you’ve had with regulators?” Rep. Davidson said.

Davidson added that SBF would have answered the question from his own perspective.

“He would have given his own side [to the question]. The regulators, the SEC, Gensler, and others would not have been able to filter the questions. They didn’t know where it would go. I think that was part of what drove some of the timing of the arrest,” the FSC member said.

I believe SBF was arrested before the Congressional hearings this week because the SEC and other regulators did not want to give Congress an opportunity to ask SBF about their failed oversight.

Why do you think SBF was arrested just before the Congressional hearings? pic.twitter.com/5EJTqhvIEW

— Warren Davidson (@WarrenDavidson) December 15, 2022

Reacting to Davidson’s claims, Crypto Law founder attorney John Deaton described the comments as an interesting perspective from a sitting member of Congress.

“Very interesting perspective from a sitting member of Congress who sits on the FSC.”

SBF Arrested Hours Before Scheduled Congressional Hearings

Recall that SBF was arrested earlier this week on fraud and money laundering charges. The arrest comes hours before the FSC’s scheduled congressional hearing. In a Twitter Space, Bankman-Fried stated that he would not attend the committee hearing in person due to the “large paparazzi effect.” However, SBF disclosed that he would attend the hearing virtually.  

SBF had previously attempted to turn down his invitation to the Congressional hearing scheduled by the FSC. The founder of the now-bankrupt exchange claimed he was still learning about what caused the crypto trading firm’s collapse.

Rep. Waters, and the House Committee on Financial Services:

Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain.

I'm not sure that will happen by the 13th. But when it does, I will testify. https://t.co/c0P8yKlyQt

— SBF (@SBF_FTX) December 4, 2022

Reacting to the tweet, Maxine Waters, chair of the House Committee on Financial Services, said Bankman-Fried must attend the hearing due to the damage the incident caused U.S. investors. She further threatened to subpoena Bankman-Fried should he refuse to attend the hearing.

Lies are circulating @CNBC that I am not willing to subpoena @SBF_FTX. He has been requested to testify at the December 13th hearing. A subpoena is definitely on the table. Stay tuned.

— Maxine Waters (@RepMaxineWaters) December 8, 2022