Wednesday, June 7, 2023

Sam Bankman-Fried Summoned to Answer Questions on US Capitol Hill

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Former crypto king Sam Bankman-Fried, who was once the CEO of Bahamas-based exchange FTX was called to Capitol Hill to testify of his dealings in the $32 billion empire that collapsed into bankruptcy.

Lawmakers on the House Finance Services Committee will meet directly with Bankman-Fried and his executive team next month to discuss the failed cryptocurrency exchange and his purported mishandling of billions of dollars.

“The fall of FTX has posed tremendous harm to over one million users, many of whom were everyday people who invested their hard-earned savings into the FTX cryptocurrency exchange, only to watch it all disappear within a matter of seconds,” Chairwoman Maxine Waters said in a statement.

“Unfortunately, this event is just one out of many examples of cryptocurrency platforms that have collapsed just this past year.”

Cryptocurrency has long been considered a volatile industry but Bankman-Fried hailed a crypto genius, helped to restore faith in the market before the second biggest exchange imploded last week.

Bankman-Fried lost about 14 billion dollars overnight and his empire fell from a $32 billion valuation to bankruptcy. The Securities Commission of the Bahamas also froze his assets.

Bankman-Fried has had several FTX offices in the USA. He stepped down last week as CEO of the company.

“It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system,” Rep. Patrick T. McHenry (R-NC) said.

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