US financial committee to hold hearing on FTX collapse in December News ▸ US ▸ FTX ▸ Regulation
US financial committee to hold hearing on FTX collapse in December
The Committee wants to hear from Sam Bankman-Fried, Binance and other related entities in the FTX's collapse.
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Updated: Nov. 16, 2022 at 4:16 pm UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The United States House Committee on Financial Services plans to hold a hearing into FTX collapse in December.
According to the press statement, the committee would “hear from the companies and individuals involved, including Sam Bankman-Fried, Alameda Research, Binance, FTX, and related entities.”
The press release also noted that the hearing would focus on “the broader consequences for the digital asset ecosystem.”
Speaking on the development, Chairwoman Maxine Waters (D-CA) said:
“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. Unfortunately, this event is just one out of many examples of cryptocurrency platforms that have collapsed just this past year. “
Rep. Patrick McHenry (R-N.C.) said Congress “must get to the bottom of this for FTX’s customers and the American people.” He added that it was essential to “hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system.”
Lawmakers in the U.K. already quizzed Binance for its role in the eventual collapse of FTX.
Meanwhile, Reuters reported that Sam Bankman-Fried was sued in a U.S. court by investors who alleged the company’s yield-bearing crypto accounts violated Florida’s law.
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Alameda Research
Alameda Research was once a principal trading firm, operating as an arm of the failed crypto exchange, FTX.
Sam Bankman-Fried is the former CEO, and co-founder of defunct crypto exchange FTX and Alameda Research.