Former FTX CEO Sam Bankman-Fried seems to want to talk to the authorities about the collapse of the crypto exchange. Here are the details…
US House invites FTX CEO for Dec. 13
FTX CEO Sam Bankman-Fried (SBF) revealed that he feels compelled to speak to US lawmakers. But it may not do so on their timeline. Falling out of favor with the crypto community following the bankruptcy, SBF said it needed to learn more about what caused FTX to explode and file for bankruptcy protection before appearing at a congressional hearing on the matter. Meanwhile, the US House Financial Services Committee invited Bankman-Fried to testify at the hearing on December 13. Bankman-Fried used the following statements in a recent Twitter statement:
Representative Waters and the House Financial Services Committee: When I’ve finished learning what happened and reviewing events, I feel it’s my duty to go before the committee and explain what’s going on. I’m not sure this will happen on the 13th. But when the time comes, I will testify.
Rep. Waters, and the House Committee on Financial Services:
Once I have finished learning and reviewing what happened, I would feel like it was my duty to appear before the committee and explain.
I'm not sure that will happen by the 13th. But when it does, I will testify. https://t.co/c0P8yKlyQt
— SBF (@SBF_FTX) December 4, 2022
Lawmakers praised Bankman-Fried’s “candid” statement on the FTX crash in recent days. Committee Chairperson Maxine Waters said she would welcome her participation in the hearing. Waters used the following statements:
We appreciate your candor in your discussions about what happened at FTX. Your willingness to speak to the public will help the company’s customers, investors, and others. To this end, we welcome your participation in our hearing on the 13th day.
Pressure is being exerted to have SBF attend the hearing
Representative Patrick McHenry, who is likely to chair the committee next year, also pressed Bankman-Fried to attend the hearing. The trial is scheduled to be part of a process related to the FTX disaster. So the US will wait for Sam Bankman-Fried, the founder of FTX, to finish “learning and investigating” the events that led to the massive crash of the cryptocurrency market. Sam Bankman-Fried tweeted that he will testify before the House Financial Services Committee once these issues sit on his mind.
As it is known, the bankruptcy of Bankman-Fried’s company surprised the investors. The FTX collapse left creditors with billions of dollars in losses. However, Bankman-Fried denied the fraud allegations in a recent interview. As we reported as Kriptokoin.com, FTX would make a possible merger with rival cryptocurrency exchange Binance. However, Binance CEO Changpeng Zhao stated that FTX’s financial picture is much worse than expected. For this reason, Binance has reportedly given up on buying FTX.
All these developments began when Bankman-Fried was accused of transferring customer deposits to Alameda Research, a trading company affiliated with FTX. After the allegations, users withdrew about 6 billion dollars from the exchange in just 72 hours. After a week like this, FTX filed for bankruptcy in November.
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