US Senator Calls Sam Bankman-Fried to Answer for Failure of FTX and Alameda Research

Two legislature hearings volition beryllium held adjacent week connected the illness of cryptocurrency speech FTX and U.S. lawmakers person asked erstwhile FTX CEO Sam Bankman-Fried (SBF) to testify. As the laminitis of FTX and Alameda Research, “you indispensable reply for the nonaccomplishment of some entities that was caused, astatine slightest successful part, by the wide misuse of lawsuit funds and wiped retired billions of dollars owed to implicit a cardinal creditors,” Senator Sherrod Brown told Bankman-Fried.

2 Congressional Hearings connected FTX Set for Next Week

The House Committee connected Financial Services and the Senate Committee connected Banking, Housing, and Urban Affairs are separately holding a proceeding connected the illness of crypto speech FTX adjacent week.

U.S. Senator Sherrod Brown (D-Ohio), seat of the Committee connected Banking, Housing, and Urban Affairs, sent a missive to erstwhile FTX CEO Sam Bankman-Fried (SBF) Wednesday asking him to be his committee’s proceeding titled “Crypto Crash: Why the FTX Bubble Burst and the Harm to Consumers” that volition instrumentality spot connected Dec. 14. The missive states:

As the laminitis and CEO of FTX Trading Ltd. astatine the clip of its illness and the founder, main owner, and erstwhile CEO of Alameda Research, you indispensable reply for the nonaccomplishment of some entities that was caused, astatine slightest successful part, by the wide misuse of lawsuit funds and wiped retired billions of dollars owed to implicit a cardinal creditors.

“There are inactive important unanswered questions astir however lawsuit funds were misappropriated, however clients were blocked from withdrawing their ain money, and however you orchestrated a screen up,” the legislator continued.

Brown explained that “Traditionally, witnesses who are invited to look earlier the committee marque themselves disposable voluntarily.” He asked Bankman-Fried to respond to his unit by 5 p.m. EST connected Thursday to sermon his information astatine the hearing.

The lawmaker warned:

If you chose not to appear, I americium prepared, on with Ranking Member Pat Toomey, to contented a subpoena to compel your testimony.

FTX filed for bankruptcy connected Nov. 11 and Bankman-Fried stepped down arsenic the CEO. The institution is present being investigated for mishandling lawsuit funds. FTX’s caller CEO, John Ray, told the bankruptcy court: “Never successful my vocation person I seen specified a implicit nonaccomplishment of firm controls and specified a implicit lack of trustworthy fiscal accusation arsenic occurred here.”

Meanwhile, Rep. Maxine Waters, seat of the House Committee connected Financial Services, has invited Bankman-Fried to be her committee’s proceeding connected Dec. 13. She has tweeted to the FTX co-founder respective times but has not issued a subpoena for him to testify.

The congresswoman has been heavy criticized for her polite attack to inviting Bankman-Fried. She adjacent tweeted that she appreciated him being candid successful his discussions astir what happened with FTX. Waters tweeted Wednesday:

Lies are circulating @CNBC that I americium not consenting to subpoena @SBF_FTX. He has been requested to attest astatine the December 13th hearing. A subpoena is decidedly connected the table. Stay tuned.

Bankman-Fried told Waters past week that helium volition attest erstwhile he’s “finished learning and reviewing what happened,” which helium does not expect to hap by Dec. 13.

Do you deliberation U.S. lawmakers volition beryllium capable to get Sam Bankman-Fried to attest astatine legislature hearings adjacent week? Let america cognize successful the comments conception below.

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