FTX Founder Dodges Subpoena, Agrees to Testify in Congress

Sam Bankman-Fried, the founder and former CEO of FTX, will testify Dec. 13 at a congressional listening to associated to the collapse of the crypto alternate.

Key Takeaways

  • FTX founder Sam Bankman-Fried agreed to testify earlier than the Home of Representatives’ Monetary Providers Committee after its chairman, Rep. Maxine Waters, mentioned a subpoena was “on the desk.”
  • Questioning will doubtless revolve round whether or not FTX executives diverted buyer funds to dangerous investments.
  • Bankman-Fried denies intentional wrongdoing and blames the crash on poor bookkeeping.

There was a lot dialogue in Washington over whether or not Bankman-Fried can be subpoenaed, however he tweeted Friday that he would voluntarily testify as a result of the Home Monetary Providers Committee “nonetheless thinks it might be helpful.” It was unclear whether or not he would come to the U.S. Capitol to testify in particular person or keep within the Bahamas, the place Bankman-Fried has been since his firm filed for chapter final month.

On Twitter, Bankman-Fried mentioned he would “shed some gentle” on what he believes led to the demise of his firm, in addition to tackle the solvency of the U.S. subsidiary and his personal “failings.”In his preliminary rejection of Waters’ invitation to testify Dec. 13, Bankman-Fried on Sunday indicated he would wait till he had totally discovered and reviewed what occurred earlier than showing.

Within the Dec. 13 listening to there’ll doubtless be a number of questions on whether or not FTX executives diverted buyer funds to dangerous investments. In interviews over the previous week, Bankman-Fried has mentioned his function within the FTX collapse with out disclosing how issues went incorrect or who was accountable. The truth is, he appears to have admitted that cryptocurrency held by prospects in accounts that ought to not have been out there to FTX was commingled with different buyers’ property on its most important worldwide alternate however not the corporate’s U.S. operation. He has additionally blamed poor bookkeeping and monetary controls.

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