U.S. House Committee Announces Hearing on FTX Collapse

Joshua Ramos
Source: CryptoSlate

In a statement released by current Chairwoman Maxine Waters, the U.S. House Committee of Financial Services has announced a hearing on the FTX collapse. The U.S. House is swiftly seeking answers to the platform’s financial ruin.

The hearing has been set for this December and will see the House speak to some of the major players involved in the fiasco. This includes now disgraced founder Sam Bankman-Fried and his connected quantitative trading company, Alameda Research.

FTX hearing officially set

It was a controversy that rocked the cryptocurrency world the last two weeks. One of the most well-known cryptocurrency exchange platforms on the planet, FTX, started its tragic downfall. What began as a plummeting FTT native token would eventually cascade into bankruptcy fillings for FTX. Additionally, we witnessed the resignation of Bankman-Fried as the CEO.

This was all magnified by reports that the company’s downfall was following Bankman-Fried’s inappropriate use of customer assets. Furthermore, it was reported that he was utilizing them to fund bets made by the sister platform, Alameda Research. This eventually resulted in the exchange being billions of dollars in debt.

FTX’s Sam Bankman-Fried Says That His Goal is to do Right by Customers
Source: Crain’s New York Business

Now, the U.S. House Committee of Financial Services has announced a hearing for the FTX downfall and will seek answers to its deterioration. In a statement, chairwoman Maxine Waters discussed the necessity for investigation following the impact that the bankrupt platform has had on the cryptocurrency industry.

“The fall of FTX has posed tremendous harm to over one million users,” Waters stated. “…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.”

FTX Drama Triggers Billions of Dollars Worth of Exchange Outflows

Waters added, “That’s why it is with great urgency that I, along with my colleague Ranking Member McHenry, announce the Committee’s intention to hold a hearing to investigate the collapse of FTX.”

Ranking Member Patrick McHenry is working with Waters on the case. He added, “Oversight is one of Congress’ most critical functions and we must get to the bottom of this for FTX’s customers and the American people.”

McHenry concluded, “It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system.”