Just-In: U.S. House Committee Will Hold Hearing on FTX Collapse
The U.S. House Financial Services Committee will hold a hearing in December on the demise cryptocurrency exchange FTX. The committee stated that they expect to hear from all parties, including Alameda Research and Binance, FTX exCEO Sam Bankman Fried, and other associated organizations.
U.S. House Wants to Know More
Reps. Maxine Wassers (D.Calif.) & Patrick McHenry, (R.N.C.) made a joint statement indicating that they would be interested to learn more about the demise and wider implications for the cryptocurrency ecosystem.
The committee will hear testimony from Sam Bankman-Fried (the former CEO of FTX), representatives from FTX and Alameda Research, as well as Binance, which briefly attempted to acquire FTX.
Waters stated in an official statement:
“Unfortunately, this is only one of many instances of cryptocurrency platforms that have crashed in the past year. [I] know that legislative action is needed to ensure that digital assets entities are not operating in the shadows without strong federal oversight and clear rules of operation.”
McHenry’s own statement, in which he referred to FTX’s collapse as a “debacle,” stressed the need for the committee know what transpired for FTX’s customers while pointing out Congress’s role in oversight.
Read More: BlockFi Preps For Potential Bankruptcy After FTX Collapse
Bankruptcy Filing – FTX
Currently, more than 100,000 creditors are involved in FTX’s bankruptcy proceedings. The majority of these are trading clients whose funds have been frozen. A hack of FTX’s operational wallets on November 12 led to the theft of $477million worth of cryptocurrency.
Read More: Kraken’s CSO Claims to Have Identified FTX Hacker
According to reports, FTX financed Alameda Research (a related trading firm), billions of dollars in customer assets to finance risky trades.
Several federal and state officials are currently investigating FTX.
About the author
The content presented may contain the author’s personal opinion and is subject to market conditions. Before investing in cryptocurrency, do your market research. The publication or the author are not responsible for any financial loss.