SBF Summoned to Congressional Listening to on FTX’s Downfall

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The previous CEO of the FTX, Sam Bankman-Fried, has been formally included as a witness for the Congressional listening to on the collapse of the crypto trade. The listening to will happen on December 13.

SBF to testify at Congressional listening to

A authorities memo has confirmed that Bankman-Fried is being referred to as to testify as a witness earlier than the US Home of Representatives Committee of Monetary Providers. The FTX and Alameda founder will likely be testifying earlier than US legislatures at 10 a.m. on December 13.

Apart from Bankman-Fried, the opposite witness that has additionally been referred to as to testify is the present CEO of FTX, John J. Ray III, overseeing the agency’s chapter proceedings. Ray’s testimony will likely be heard earlier than that of Bankman-Fried.

The previous FTX CEO is being accused of mismanaging consumer funds by loaning them to different of his corporations, together with Alameda. Bankman-Fried additionally allegedly didn’t handle dangers. He’s additionally being investigated for market manipulation.

Final week, Maxine Waters, a Democrat Congresswoman and the pinnacle of the Committee of Monetary Providers, urged Bankman-Fried to testify earlier than US legislatures and supply perception into the demise of FTX. Waters famous that Bankman-Fried’s testimony was vital to US clients affected by the trade’s collapse.

“Primarily based in your function as CEO and your media interviews over the previous few weeks, it’s clear to us that the data you will have so far is adequate for testimony. As you recognize, the collapse of FTX has harmed over a million individuals. Your testimony wouldn’t solely be significant to Members of Congress, however can be vital to the American individuals,” the legislature added.

Bankman-Fried has already agreed to testify earlier than the home. Nonetheless, he has famous that there’s a restrict to what he can reveal in the course of the testimony as a result of he didn’t have entry to most of his private {and professional} knowledge.

Bankman-Fried’s media technique

Bankman-Fried has remained vocal on Twitter and has even gone on a number of interviews because the FTX trade collapsed. With the trade having round a million collectors, some have seen his technique to clarify his facet of the story as a PR mechanism.

One in every of his most publicized interviews in latest weeks was on the New York Instances Dealbook Convention. Bankman-Fried was among the many audio system on the convention, denying that he had engaged in fraud. He has repeatedly stated he would do proper by the trade’s clients.

Nevertheless, his media technique isn’t being taken positively by everybody. The CEO of Binance, Changpeng Zhao, lately said that Bankman-Fried was the best fraudsters in historical past. The 2 additionally lately engaged in a web based altercation on claims that Binance had induced the financial institution run on FTX.

Final week, Bankman-Fried additionally appeared to assist the concept of launching a brand new FTT token that will be used to reimburse the trade’s clients. He steered that the crew at the moment in control of FTX discover this feature. Nevertheless, the crypto neighborhood on Twitter appeared to disagree with such plans.