Congresswoman Maxine Waters has come under fire for saying she appreciated former FTX CEO Sam Bankman-Fried (SBF)’s candor in his discussions about the bankruptcy of crypto exchange FTX. “SBF, in fact, was not sincere in its discussions. He cheated, full stop,” the critic emphasized.
Maxine Waters criticized for appreciating Sam Bankman-Fried
Congresswoman Maxine Waters (D-CA), chair of the House Financial Services Committee, came under fire on social media after she thanked former FTX CEO Sam Bankman-Fried (SBF) on Friday.
Waters is leading a congressional hearing on the bankruptcy of cryptocurrency exchange FTX, which will begin on December 13. The lawmaker wrote: “We appreciate your frankness in your discussions about what is happening in the FTX. Your willingness to speak to the public will help the company’s customers, investors and others. For this purpose, we would welcome your participation in the hearings to be held on the 13th.
Many people were quick to point out to Waters that the former head of the FTX was a fraud and should be arrested on sight. Some people have even compared the Bankman-Fried and FTX implosion to Bernie Madoff’s Ponzi scheme.
“If you don’t arrest him, I will lose all faith in the fairness of our government,” bitcoin supporter Dan Held he answered to Waters.
Lawyer Jake Czerwinski responded to the congressman: “Rep. Waters, thank you for holding the hearing on the 13th and we look forward to a thorough investigation of what happened at FTX.” He he added:
I am sure that an investigation of the facts will show that the SBF was not actually sincere in its discussions. He cheated, full stop.
However, given her good relationship with Bankman-Fried, not many are surprised by Waters’ tweet. He even appeared at the end of a congressional hearing last year kisses in SBF. Some people also noted that the former executive of FTX gave $300,000 to members of the Waters committee.
On November 11, the cryptocurrency exchange FTX collapsed and declared bankruptcy. An estimated one million customers and investors lost billions of dollars in the collapse. FTX is currently under investigation by authorities in multiple jurisdictions. In the US, the Department of Justice (DOJ), the Securities and Exchange Commission (SEC) and other regulators are investigating the exchange for mishandling client funds, among other charges.
Jeremy Hogan, Partner at Hogan & Hogan, he said Waters:
You, as the chair (or the Committee itself), can simply call him to testify. No need to ask nicely on Twitter. 2(m) of Article XI of the House of Representatives. But I’m sure you already knew that.
Bankman-Fried was the second largest donor to the Democratic Party during the 2021-22 election cycle. According to Opensecrets, he donated $39,884,256 to Democrats before FTX imploded and had to file for bankruptcy. However, Tesla CEO and Twitter chief Elon Musk estimates that SBF’s actual support for Democrats was more than $1 billion.
What do you think about Rep. Maxine Waters’ statement about Bankman-Fried and whether she should lead the investigation into the FTX bankruptcy? Let us know in the comment section below.
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