Toomey, Brown Blast Bankman-Fried Counsel's "Unwillingness" To Accept Service Of Senate Hearing Subpoeana

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by Tyler Durden
Monday, Dec 12, 2022 - 09:51 PM

Update (1645ET): Senators Brown and Toomey are noit best pleased with Bankman-Fried's refusla to attend their hearing and have just issued the following statement:

Virtually every CEO, financial regulator, and administration official for Republicans and Democrats has agreed to testify in front of both the Senate and House when called upon – that is how congressional oversight works. We have offered Sam Bankman-Fried two different dates for providing testimony before the Senate Banking, Housing, and Urban Affairs Committee, and are willing to accommodate virtual testimony. He has declined in an unprecedented abdication of accountability,” said Senators Brown and Toomey.

“Given that Bankman-Fried’s counsel has stated they are unwilling to accept service of a subpoena, we will continue to work to have him appear before the Committee. He owes the American people an explanation.

Forgive us for our ignorance here... but since when do you get to decide if you accept a subpoena... it's punishable as contempt... just ask Steve Bannon?

And just in case the Senators needed a reminder, a Walsh Act subpoena provides a method of compelling testimony or production of evidence from a non-party American citizen or resident who is abroad and thus cannot be compelled through more conventional methods. Because of the flexibility of this statute and its ability to reach American citizens no matter where they are in the world, it is a powerful tool for litigants that should not be overlooked by those embroiled in cross-border litigation.

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Having been asked so nicely by Maxine Waters (a recipient of his donations), and agreed, to virtually-attend tomorrow's Congressional hearing about the collapse of FTX, Sam Bankman-Fried has made it clear he will not be attending Wednesday's Senate Banking Committee hearing on the same topic.

Specifically, Bloomberg reports that the former FTX CEO said he is “currently not scheduled” to attend the Senate Banking Committee’s hearing on Dec. 14.

The founder of bankrupt exchange said on a Twitter Space on Monday that he’s “open and willing” to having a conversation with the chair about the hearing if his attendance is deemed important.

Last week saw, U.S. Sen. Sherrod Brown (D-OH), Chairman of the Senate Committee on Banking, Housing, and Urban Affairs, and U.S. Sen. Pat Toomey (R-PA), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, released the following statement regarding the Committee’s request that Sam Bankman-Fried testify on FTX’s collapse.

Sam Bankman-Fried’s counsel did not respond by the stated deadline. We believe it’s important that Bankman-Fried show he is willing to provide transparency and accountability to the American people by providing testimony,” said Senators Brown and Toomey.

“We will continue to work on having him appear before Congress as detailed in Wednesday’s letter.”

So we suspect subpoenas will be incoming very soon.