Maxine Waters doesn’t plan to subpoena Bankman-Fried to testify

House Financial Services Committee Chair Maxine Waters told Democrats she doesn’t plan to subpoena former FTX CEO Sam Bankman-Fried to testify at Tuesday’s hearing in regards to the crypto exchange’s rapid demise, in keeping with individuals with direct knowledge of the conversation.

Waters informed committee members of her decision at a personal meeting Tuesday with Securities and Exchange Commission Chair Gary Gensler on Capitol Hill, these people said, declining to be named so as to speak freely about private conversations.

Those on the meeting say Waters said she wants committee staff to attempt to persuade Bankman-Fried to voluntarily testify, those with knowledge of the meeting said. As of late Wednesday, Bankman-Fried has yet to conform to voluntarily testify to the House committee, two of the people explained.

Waters, who will lose the chair title when Republicans take control of the House on Jan. 3, could find yourself deferring to Rep. Patrick McHenry, R-N.C., the panel’s top Republican and sure next chair, to choose whether to subpoena Bankman-Fried in the subsequent congressional session if the FTX founder declines to voluntarily testify under oath next week.

Bankman-Fried has been under scrutiny by federal investigators and lawmakers on Capitol Hill since his cryptocurrency exchange suddenly collapsed last month, bringing to light a number of questionable transactions. Senate Banking Committee Chair Sherrod Brown, D-Ohio, announced that his committee will hold a hearing on FTX’s implosion on Dec. 14. The corporate’s crash arrived after FTX reportedly transferred billions of dollars in client funds to Bankman-Fried’s trading firm, Alameda Research.

Waters invited Bankman-Fried to voluntarily testify before the panel and will at all times change her mind and subpoena him before Tuesday. A committee spokeswoman declined to comment.

Bankman-Fried tweeted his answer to Waters, saying he felt it was his “duty” to elucidate what happened, even though it may not occur next week. John Jay Ray III, the brand new FTX CEO, is scheduled to testify at next week’s House hearing.

“Once I actually have finished learning and reviewing what happened, I might feel prefer it was my duty to seem before the committee and explain,” Bankman-Fried said. “I’m undecided that can occur by the thirteenth. But when it does, I’ll testify.”

Bankman-Fried’s fall from grace was swift and unforgiving after spending years because the crypto “darling” on Capitol Hill. He donated almost $40 million toward the 2022 congressional midterm elections, with much of it going to Democrats.

Nishad Singh, who became FTX’s lead engineer in 2019 following a stint at Bankman-Fried’s trading firm Alameda Research, has donated greater than $13 million to Democratic Party causes because the start of the 2020 presidential election.

Ryan Salame, the co-CEO of FTX Digital Markets, donated one other $23 million, with most of his contributions benefiting Republicans.