The chairwoman of the House Financial Services Committee, Maxine Waters, D-Calif., and the ranking Republican, Rep. Patrick McHenry of North Carolina, are holding an unusual bipartisan hearing on the failure of cryptocurrency exchange FTX.

Authorities want to hear from Sam Bankman-Fried and other parties involved in the FTX collapse because it caused “tremendous harm” to investors.

House Financial Services Committee Wants SBF

According to announcements made by lawmakers on November 17, they will hear from Sam Bankman-Fried next month about the failure of his crypto venture. According to Chairwoman of the House Financial Services Committee Rep. Maxine Waters (D-Calif.) and Ranking Member of the HFSC Rep. Patrick McHenry, the bipartisan hearing will look into FTX’s fall and its “broader consequences for the digital asset ecosystem” (R-N.C.).

In December, the Committee expects to hear from the parties involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX, and associated organizations, among others. According to Chairwoman Waters, the demise of FTX has harmed over one million users.

She went on to say that the majority of users were ordinary people who put their hard-earned money into the FTX cryptocurrency exchange only to see it all disappear in a matter of seconds.

As Chairwoman of the Financial Services Committee, I have led the effort in examining and investigating the digital assets marketplace, and know that we need legislative action to ensure that digital assets entities cannot operate in the shadows outside of robust federal oversight and clear rules of the road. I look forward to holding this important hearing, and uncovering all that Congress must do to ensure this never happens again.

Unfortunately, this is only one of several cryptocurrency platforms that were shut down in the previous year. As a result, Chairwoman Waters believes it is critical to schedule an inquiry hearing into FTX’s demise.

SEC, CFTC, and DOJ are Investigating FTX

On November 11, FTX and 130 other related companies declared bankruptcy. That filing was the result of the exposure of highly questionable trades and bets, which sparked a rush on the exchange and triggered federal fraud investigations.

SBF filed for bankruptcy and resigned as CEO at the same time. His net worth was almost zero because he was entirely dependent on FTX and related companies.

Furthermore, his luck with coin flipping eventually ran out.

Binance, the world’s largest cryptocurrency exchange, was the first to offer to buy FTX as it was collapsing. However, after reviewing FTX’s accounts, Binance determined that the problem was too large to be resolved. Binance withdrew due to “mishandled customer funds” discoveries, describing the books as “a nightmare” and “a black hole.”

FTX went from a $32 billion firm to bankruptcy in a matter of days due to a lack of liquidity and consumer demands for money withdrawal. Following the loss of billions of dollars in investor funds, the Bahamas Police Department and US authorities have begun an investigation into the FTX.

Consumer financial manipulation is strictly prohibited. The Securities and Exchange Commission (SEC), the Commodity Futures Trading Commission (CFTC), and the Department of Justice are all investigating how FTX managed client funds (DOJ).

They are looking into whether FTX followed securities regulations regarding the division of client assets and trading against customers.

Dash 2 Trade - New Gate.io Listing

Our Rating

Dash 2 Trade
  • Also Listed on Bitmart, Changelly, LBank, Uniswap
  • Collaborative Trading Platform Token
  • Featured in Bitcoinist, Cointelegraph
  • Solid Proof Audited, CoinSniper KYC Verified
  • Trading Community of 70,000+ Members
Dash 2 Trade
Buy D2T