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Now-bust crypto exchange Former CEO and founder of FTX, Sam Bankman-Fried is being included officially as a witness for the upcoming Congressional hearing on the fallout of crypto exchange this week.
As per the memo released by the United States House of Representatives Committee in Financial Services, under the subject head of Full Committee hearing, with “investigating the collapse of FTX part I.” SBF of bankrupt crypto exchange FTX has been called as a witness on December 13 at 10 a.m. (EST).
After the CEO of the world’s largest crypto exchange announced the bulk sellout of FTT token before the FTX collapse, and soon they moved their hands from non-binding agreement to save the sinking crypto exchange. Also, the bankrupt crypto exchange has a huge hole of $8 to 10 billion in their balance sheet and they thus filed for bankruptcy under Chapter 11 on November 11, 2022.
According to the news reports, FTX assets were frozen by the Bahamas securities regulators, the Securities Commission of the Bahamas, its affiliated parties and FTX Digital Markets as on November 10, along with suspending the FTX’s license in the United States. As the authorities stated that the firm has misused customers’ funds. Almost 1 million investors are affected via this collapse.
Soon after the bankruptcy filing, SBF stepped down from his post and apologized from his position of CEO. After that, John ray III, took over as current CEO, after SBF resigned. He also noted over the recent situation, that “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of trustworthy financial information as occurred here,” adding in an affidavit presented to the U.S. Bankruptcy Court in Delaware. “We are now writing things down.”
In the previous week, Democratic Congresswoman Maxine Waters, who is the head of the Committee on Financial Services, clearly specified SBF to be present at the hearing.
Waters posted on Twitter on December 5, “Based on your role as CEO and your media interviews over the past few weeks, it’s clear to us that the information you have thus far is sufficient for testimony.
As you know, the collapse of FTX has harmed over one million people. Your testimony would not only be meaningful to Members of Congress, but is also critical to the American people.
It is imperative that you attend our hearing on the 13th, and we are willing to schedule continued hearings if there is more information to be shared later.
getting better, Maxine, but you are going to need to subpoena him if you are actually serious.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
