Rep. Pete Sessions, R-Texas, told Newsmax on Wednesday that congressional Republicans will examine the role of the Securities and Exchange Commission in the collapse of cryptocurrency exchange FTX, and that if former company CEO Sam Bankman-Fried met with government regulators, it would be "highly unusual" and "against the law."
During an appearance on Newsmax's "National Report," Sessions said that what stands out from Tuesday's hearing on Capitol Hill about the collapse of FTX is that "this had been going on for quite some time and the Securities and Exchange Commission wasn't aware of how large the company was becoming."
"They allowed conversation with the chairman and no follow up," he said. "So I think that when you fail to do your job as a regulator, it means you've been influenced to do otherwise. We're going to have that as a part of what we will look at, also."
U.S. prosecutors on Tuesday accused Bankman-Fried of fraud and violating campaign finance laws by misappropriating his customers' funds.
Citing a "great" risk of flight, Bahamas Chief Magistrate JoyAnn Ferguson-Pratt denied the petition for Bankman-Fried to be released on bail and ordered the former CEO of FTX sent to the country's department of corrections until Feb. 8.
In New York, U.S. Attorney Damian Williams said Bankman-Fried made illegal campaign contributions to Democrats and Republicans with "stolen customer money," and called it part of one of the "biggest financial frauds in American history."
Sessions took issue with the bipartisan characterization of Bankman-Fried's campaign contributions.
"This was not about a bipartisan attempt," Sessions said. "This was an attempt with this man to be the second largest contributor to the Democratic Party, to influence races all across this country."
According to Newsweek, Bankman-Fried was arrested in the Bahamas on Monday, the day before he was scheduled to appear remotely before the House Financial Services Committee. Republican lawmakers and even progressive Congresswoman Maxine Waters, D-Calif., questioned the timing of the arrest.
"I am not surprised that he was arrested," Sessions said. "I'm not surprised that they do not want him giving testimony. He is a witness who openly sees that he, I think, thinks he did nothing wrong, and he's rather open in his descriptions about what he did, who he gave money to, and what those conditions might have meant.
"It does not surprise me that the government did not want him to give testimony about meeting with members of Congress, about meeting with the political party, the Democratic committee, and about meeting with high government officials that are regulators.
"That is highly unusual and it would be something that would be against the law."
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