HomeTechnologyFTX founder Sam Bankman-Fried plans to testify before Congress

FTX founder Sam Bankman-Fried plans to testify before Congress

The former chief executive of failed cryptocurrency exchange FTX said in a tweet on Friday that he is willing to testify before Congress next week, but that he will be limited in what he can say and “won’t be as helpful” as he is. I would like to be

The tweet came in response to several tweets earlier this month from House Financial Services Committee Chair Maxine Waters, who requested that Sam Bankman-Fried attend next week’s hearings on the collapse of FTX.

Waters, a California Democrat, said in a series of tweets to Bankman-Fried that based on multiple media interviews since FTX collapsed, it was “clear to us that the information you have thus far is sufficient for testimony.”

The Former Crypto Wunderkind talked with The New York Times at a Dealbook event on November 30. A live audience sat in silence as Bankman-Fried, speaking by video from his home in the Bahamas, stumbled upon what caused FTX’s collapse.

FTX failed last month in what was essentially a cryptocurrency version of a bank run. Users withdrew around $5 billion worth of crypto assets in a single day amid growing concerns about FTX’s solvency. Since its collapse, FTX’s new management has called the management of the cryptocurrency exchange “total failure of corporate controls.

In tweets in response to Waters, Bankman-Fried listed specific issues she could discuss with the committee, including the solvency of FTX’s US business, its US clients and potential solutions for returning assets to international clients. He also said that he could talk about what he believes led to the accident and “my own failings.”

FTX Co-Founder Sam Bankman-Fried Defends Cryptocurrency Exchange Collapse


Bankman-Fried has said that it takes responsibility for the collapse of FTX and that could not comprehend the amount of risk Bermuda-based FTX and Alameda Research, FTX’s trading arm, were taking over both businesses. Bankman-Fried has said in public interviews that he did not “knowingly” mix client assets with Alameda.

Bankman-Fried’s name was listed as a defendant in a class action lawsuit lawsuit filed Friday, accusing him and several celebrities of deceptive marketing. It marks the third class action lawsuit that clients have filed against celebrities who promoted FTX Trading. Tom Brady and Larry David are among those accused of defrauding investors in the collapse of FTX.

According to the lawsuit, the celebrities promoted FTX “to induce confidence and encourage consumers to invest in what was ultimately a Ponzi scheme, misleading clients and prospective clients with the false impression that any cryptocurrency assets held on the FTX’s deceptive platform was safe and they were not investing in unregistered securities.”

Bankman-Fried has said it believes FTX’s US affiliate is fully solvent and could start processing withdrawals immediately. As for the rest of FTX, which was significantly larger than the US division, he said the fate of client funds was largely out of his control.

Waters has said that the FTX collapse had “harmed more than a million people” and had threatened to subpoena the 30-year-old if he was not willing to testify. “There is definitely a subpoena on the table,” he said. tweeted on Tuesday.

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