US Congress wants hearing on FTX fiasco in December

Last Updated: 21 November 2022

FTX’s implosion has prompted a Congressional hearing. US politicians want to have a conversation about the crypto exchange’s collapse.

Hearing on FTX

In the process, Binance is expected to report on its role in the fiasco.

The US Senate Financial Services Committee also wants to hear the story of FTX founder Sam Bankman-Fried. All sorts of issues will pass by: from fraud to siphoning off customer funds.

The hearing is scheduled for December. It is not clear whether Bankman-Fried will attend. Well-known crypto-sceptic and Republican Brad Sherman has his doubts whether the young American will show up.

“I assume Sam Bankman-Fried is going to Dubai in a private submarine, so I think it will be hard to catch him unless Maxine has depth charges. I think he is on the run for justice, let alone committee testimony.”

He responds to Maxine Waters. In doing so, the Democrat would not comment on whether the political movement will return the millions of dollars that ‘SBF’ donated in recent years. This could then be used to provide relief to victims.

SEC and Binance

The Securities and Exchange Commission (SEC) is also expected to contribute in the hearing. There are multiple reports from SEC chairman Gary Gensler. He spoke to Bankman-Fried months ago. The politicians are no doubt going to challenge the chairman on how this could have happened (and whether the SEC could have foreseen it).

Lawmakers also want to know Binance’s side of the story. In its own words, top executive ‘CZ’ Binance did not intend to bust FTX. The CEO earlier hinted that he will not send a representative to Congress. So there is a possibility that he will be there himself.

  • Ivan Brightly

    Ivan Brightly is a leading cryptocurrency analyst and author with over 5 years of experience in the blockchain and digital asset space. He previously served as a senior analyst at a major cryptocurrency hedge fund where he led quantitative research and trading strategy development.

    Ivan holds a Master's degree in Finance from the London School of Economics and a Bachelor's in Computer Science from Stanford University. He is frequently invited to speak at fintech and blockchain conferences worldwide on topics spanning cryptocurrency trading, blockchain technology, and the future of digital assets.

    Ivan's commentary has been featured in several major finance and technology publications including Forbes, Bloomberg, and CoinDesk. He is considered one of the most insightful voices analyzing new developments in the cryptocurrency and blockchain industry.

error: Alert: Content is protected !!