Maxine Waters doesn't have current plans to subpoena Sam Bankman-Fried trends now
House Finance Services Committee Chair Maxine Waters allegedly told Democrats she doesn't plan to subpoena disgraced FTX founder Sam Bankman-Fried.
In a private meeting with Securities and Exchange Commission Chair Gary Gensler on Tuesday, Waters informed members of her decision not to force Bankman-Fried to testify about the catastrophic and rapid failure of his crypto empire, sources familiar with the matter told CNBC.
The sources claim Waters wants committee members to convince the 30-year-old to accept her invitation to testify voluntarily at a hearing over FTX's failings next Tuesday.
Waters has denied the allegations about wanting to avoid a subpoena and said she would issue one if necessary.
'Lies are circulating @CNBC that I am not willing to subpoena @SBF_FTX,' Waters said in a statement. 'He has been requested to testify at the December 13th hearing. A subpoena is definitely on the table. Stay tuned.'
The former cryptocurrency golden boy is facing intense scrutiny over the collapse of FTX and has since hired high-profile white collar defense attorney Mark S. Cohen to represent him.
House Finance Services Committee Chair Maxine Waters (pictured) allegedly doesn't plan to subpoena disgraced FTX founder Sam Bankman-Fried
Waters allegedly wants Bankman-Fried (above) to testify willingly, despite him dodging questions on whether or not he'll appear at a hearing next Tuesday
Waters denied allegations that she is unwilling to issue a subpoena, saying it's 'definitely on the table' ahead of next week's hearing
Bankman-Fried, who was once touted as a budding entrepreneur after A-list celebrities backed his company, is facing questioning by American and Bahamian authorities investigating if he mismanaged funds, leading investors to lose billions of dollars last month as the company filed for bankruptcy.
The company is already under investigation by the DOJ, Securities and Exchange Commission and the Commodity Futures Trading Commission, with its collapse being overseen by new CEO John Ray, who oversaw the fall of Enron.
While Bankman-Fried has previously promised to testify about the company's downfall, he has not confirmed whether or not he will appear in the December 13 meeting.
Waters has faced criticism over failing to yet file a subpoena after it was revealed that a member of the House Finance Services Committee was among the many Democrats who had received donations from FTX.
In 2018, US Rep. and committee member Sean Casten, of Illinois, had received $2,700 from FTX.
While records indicate that Bankman-Fried donated $40 million to political candidates, most of which were Democrats, Elon Musk alleged that the disgraced FTX founder actually handed over $1 billion in a bid to get close to left-leaning lawmakers.
As Republicans take control of the House in 2023, it will likely fall on GOP congressman Patrick McHenry, the panel's top Republican, to decide whether or not to
