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.
— Bitcoin Magazine NL (@BitcoinMagNL) November 21, 2022
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.