U.S. Senator Calls Sam Bankman-Fried to Respond to FTX and Alameda Research Failure CryptoBlog

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Two congressional hearings will be held next week into the collapse of 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, “you must answer for the failure of both entities which was caused, at least in part, by the overt misuse of client funds and wiped out billions of dollars owed to over a million creditors,” Sen. Sherrod Brown told Bankman-Fried.

2 Congressional hearings on FTX scheduled for next week

The House Financial Services Committee and the Senate Banking, Housing, and Urban Affairs Committee are separately holding a hearing on the collapse of crypto exchange FTX next week.

U.S. Senator Sherrod Brown (D-Ohio), chairman of the Banking, Housing, and Urban Affairs Committee, sent a letter to former FTX CEO Sam Bankman-Fried (SBF) on Wednesday asking him to to attend its commission hearing entitled “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers” which will take place on December 14. The letter states:

As founder and CEO of FTX Trading Ltd. at the time of its collapse and founder, principal owner and former CEO of Alameda Research, you must answer for the failure of both entities which was caused, at least in part, by the overt embezzlement of customer funds and wiped out billions dollars owed to over a million creditors.

“There are still important unanswered questions about how client funds were misappropriated, how clients were prevented from withdrawing their own money, and how you orchestrated a cover-up,” the senator continued.

Brown explained that “traditionally, witnesses who are invited to appear before the committee make themselves available voluntarily.” He asked Bankman-Fried to respond to his staff by 5 p.m. EST Thursday to discuss his participation in the hearing.

The legislator warned:

If you choose not to appear, I am prepared, along with ranking member Pat Toomey, to issue a subpoena to compel your testimony.

FTX filed for bankruptcy on November 11, and Bankman-Fried resigned as CEO. The company is currently under investigation for mishandling customer funds. New FTX CEO John Ray told the bankruptcy court: “Never in my career have I seen such a complete failure of corporate controls and such a complete absence of reliable financial information as has happened. is produced here.”

Meanwhile, Rep. Maxine Waters, chair of the House Financial Services Committee, invited Bankman-Fried to attend her committee’s hearing on Dec. 13. She tweeted the FTX co-founder several times but did not issue a subpoena for him. bear witness.

The congresswoman was heavily criticized for her polite approach in inviting Bankman-Fried. She even tweeted that she appreciated his candor in his discussions of what happened with FTX. Waters tweeted on Wednesday:

Lies are circulating @CNBC that I’m not willing to assign @SBF_FTX. He was invited to testify at the December 13 hearing. A subpoena is definitely on the table. Stay tuned.

Bankman-Fried told Waters last week he would testify when he’s ‘finished learning and reviewing what happened’, which he doesn’t expect to happen. by December 13.

Tags in this story Congress, SBF Congress, Congress Hearings, SBF Congress Hearings, ftx, Rep Maxine Waters SBF, Rep. Maxine Waters, Sam Bankman-Fried, Senate Hearing, SBF Senate Hearing, Senator Sherrod Brown, Senator Sherrod Brown SBF, Senators, SBF Senators

Do you think US lawmakers will be able to get Sam Bankman-Fried to testify at congressional hearings next week? Let us know in the comments section below.

Kevin Helms

An economics student from Austria, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests include Bitcoin security, open source systems, network effects, and the intersection between economics and cryptography.

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