Two congressional hearings on the collapse will be held next week. Cryptocurrency exchange FTX and US lawmakers have asked former FTX CEO Sam Bankman-Fried (SBF) to testify. As the founder of FTX and Alameda Research, I believe that “both entities were caused, at least in part, by the apparent misuse of client funds and by wiping out billions of dollars owed to over one million creditors. I have to answer for the failure of ,” Senator Sherrod Brown told Bankman-Fried.
Two congressional hearings on FTX scheduled next week
The House Committee on Financial Services and the Senate Committee on Banking, Housing, and Urban Affairs held separate hearings. Regarding the collapse of the virtual currency exchange FTX next week.
U.S. Senator Sherrod Brown (D, Ohio), chairman of the Committee on Banking, Housing and Urban Affairs, wrote Wednesday to former FTX CEO Sam Bankman-Fried (SBF). and asked to attend a meeting of the committee. Public hearing titled “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers” on December 14th. The letter states:
As Founder and CEO of FTX Trading Ltd. At the time of its demise, and the failure of both the founder, principal owner and former CEO of Alameda Research, You have to answer what was caused by the apparent misuse of client funds and wiped out billions of dollars. We owe more than a million creditors.
“About how the client’s funds were diverted, how the client was blocked from withdrawing his money, and how you organized the cover-up. , there are still important open questions,” the senator continued.
Brown explained, “Traditionally, a witness invited to appear before a committee is allowed to attend voluntarily.” He told Bankman-Fried at 5 p.m. We have asked staff to respond by the time of EST on Thursday to discuss his participation in the hearing.
Rep warned:
If you choose not to attend, Ranking, along with his member Pat Toomey, will issue a subpoena to compel your testimony. I am ready to do so.
FTX filed for bankruptcy on his November 11th, and Bankman-Fried resigned as his CEO. The company is currently under investigation for mishandling customer funds. FTX’s new CEO, John Ray, said in bankruptcy court:
Meanwhile, Rep. Maxine Waters, chairman of the House Financial Services Committee, invited Bankman-Fried to a committee hearing on December 13. She tweeted the FTX co-founder several times, but no subpoena was issued for him to testify.
This female member of parliament has been heavily criticized for her polite demeanor in inviting her banker Mr. Freed. She even tweeted that she was grateful that he had an open discussion about what happened at FTX. A lie is circulating on @CNBC that you are not going to submit a He was asked to testify at his December 13 hearing. The summons is definitely on the table. stay tuned.
Bankman-Fried told Waters last week that he would testify when he “has learned and reviewed what happened,” but is not expected to testify before December 13.
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