Senator Josh Hawley has sent a letter addressed to Attorney General Merrick Garland, Securities and Exchange Commission (SEC) Chairman Gary Gensler, and Commodity Futures Trading Commission (CFTC) Chairman Rostin Behnam, demanding all correspondence between the three federal entities and the Democrat party.
Following the bankruptcy of FTX – once the second largest crypto change in the world- it has emerged that its founder and former CEO Sam Bankman-Fried was the second largest donor to the Democrat party – after George Soros.
At the same time, Bankman-Fried’s family has been actively aligned with the Democrat party, which has fueled speculation and allegations that political influence played a role in the lack of oversight of the crypto firm.
Referencing the collapse of FTX, Hawley states in the letter:
“The perpetrators of these criminal acts and their enablers must be investigated and prosecuted to the fullest extent of the law, and you must conduct a full conflict-of-interest review to ensure that Mr. Bankman-Fried’s status as a top donor to the Democratic Party did not insulate him from oversight and accountability.”
Hawley claims that “billions of dollars were stolen from investors and handed over to Democrats and left-wing organizations.”
The Senator requests the following actions:
1. Prior to the public revelation of Mr. Bankman-Fried’s scheme to withdraw customer deposits from FTX to offset losses incurred by Alameda, had your respective agencies initiated an investigation into allegations of fraud perpetuated by FTX, Alameda, and their executives? If so, when were the investigations initiated and when were they expected to conclude?
2. Have FTX, Almeda, or any of the executives associated with these companies previously entered into confidential settlements or deferred prosecution agreements with your respective agencies? If so, please provide all materials associated with these settlements and agreements.
3. Please provide all correspondence between your agencies, the Biden Administration, the Democratic National Committee, the Democratic Congressional Campaign Committee, and the Democratic Senatorial Campaign Committee regarding FTX, Alameda, and its executives, including Mr. Bankman-Fried, Caroline Ellison, and Gary Wang.
He requests a response no later than November 25, 2022.