Elizabeth Warren Speaks Out Against SBF, Asks DoJ to Investigate
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Massachusetts Senator Elizabeth Warren has called on the head of the Department of Justice, Attorney General Merrick Garland, to launch a thorough criminal investigation into the collapse of the Bahamian exchange FTX.
In a letter to Attorney General Garland, Senators Elizabeth Warren and Sheldon Whitehouse asked the US Attorney General to launch an investigation to advance an earlier commitment to help victims of white-collar crime.
Elizabeth Warren calls for justice for FTX victims
The letter cited Garland’s commitment in a speech at the American Bar Association’s White Collar Crime National Institute, where he pledged to refocus on victims of white-collar crimes.
“Given the department’s recent commitment to holding perpetrators of white collar crime personally accountable, we expect the DoJ to investigate the actions that led to the collapse of FTX with the utmost scrutiny,” the letter urged.
Senators then zeroed in on middle- and working-class FTX investors whose funds have been frozen.
“FTX created a false sense of security and legitimacy and encouraged consumers to invest their hard-earned money in stock market investments,” they said.
The letter assumes that FTX employees, including former CEO Sam Bankman-Fried, must be held accountable for fraudulent activities to enrich themselves at the expense of customers.
“We urge the Department to focus on these ‘flesh and blood’ victims in its investigation and, if deemed necessary, prosecute those responsible for their harm,” the letter concludes.
Elizabeth Warren and Mike Novogratz demand justice
Galaxy Digital CEO Mike Novogratz expressed his disbelief that Bankman-Fried is walking free because he violated the contract between his company and FTX.
“I may not be a judge or a lawyer, but I read my contract and he certainly did things with our coins that were illegal. When you deposit your crypto or dollars into his exchange, they are your coins and you borrow them. His family office was not part of the contract… That’s fraud.”
He compared the slow legal process to the New York Police Department’s quick arrest of criminals who broke into his apartment.
“And [Bankman-Fried] running around the Bahamas doing press conferences,” he mumbled.
By the way, Bankman-Fried is also scheduled to speak at the 2022 New York DealBook Summit on November 30, 2022, although FTX has several investigations. His participation in the conference has irritated crypto industry players.
Bankman-Fried and FTX are also the subject of a new eight-episode TV series on Amazon, Variety reports. The production company has not announced a date for the pilot.
“I think his day will come,” Novogratz concluded.
Elizabeth Warren renounced nepotism
Sen. Elizabeth Warren initially did not mention Bankman-Fried after the SEC opened its investigation on November 10, 2022.
BeInCrypto suggested that Warren’s silence on SBF was related to the connections he had with his father, Joe Bankman. Bankman passed the 2016 tax bill that would simplify the tax filing process for Americans. Additionally, Barbara Fried, Bankman-Fried’s mother, had been a strong supporter of Elizabeth Warren’s Democratic political party. Bankman-Fried had donated $39 million to the party for the 2022 midterm elections.
Warren dropped her suspicions of nepotism when she wrote a letter to Bankman-Frid demanding that FTX be more transparent about how its business was doing before the bankruptcy.
He has also said that the only way to remove bad actors is to close loopholes and use aggressive enforcement.
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