The US House of Representatives stated it will hold exclusive hearings to hear reviews on the collapse of cryptocurrency exchange FTX.
According to an announcement from the US House of Representatives, the agency’s Financial Services Committee will hold a hearing on Dec. 13 (US time) to take into consideration the bankruptcy of cryptocurrency exchange FTX.
Based on the title of the hearing “Inquiry into the FTX Crash, Part 1”, it can be witnessed that it will be a series of meetings for US lawmakers to clarify the occasions that led to a single of the most major “catastrophes” in the cryptocurrency sector in 2022.
As reported by Coinlive, FTX is the world’s top cryptocurrency exchange, valued at up to $32 billion as of early 2022. However, following it was identified to have liquidity concerns, the exchange was massively withdrawn by consumers and had to file for bankruptcy following only seven days. The speedy demise of FTX has had a knock-on result on lots of other firms this kind of as Genesis and BlockFi.
The House Financial Services Committee has not still launched a record of people who will be invited to the hearing. However, the committee chair, Congressman Maxine Waters, and long term chair, Congressman McHenry, each expressed strategies to summon former FTX CEO Sam Bankman-Fried for questioning. Other visitors to take into consideration are the management of the Alameda Research investment fund and the Binance exchange.
Sam Bankman-Fried has previously attended hearings in Washington on cryptocurrency concerns, as effectively as supporting a cryptocurrency regulation bill that has drawn a great deal criticism from the crypto local community due to proposed stringent manage of the DeFi array . This particular person is also accused of investing heavily on political lobbying efforts for lots of US events to stay away from legal scrutiny.
The former FTX CEO is anticipated to participate on the internet in a conference held in New York on November thirty (US time) with a number of other prestigious visitors, marking the very first time he has appeared in public because the exchange’s bankruptcy.
Meanwhile, the US Senate will also open hearings on FTX quickly, with a resolution from the Senate Agriculture Committee (which is taking into consideration Sam Bankman-Fried’s cryptocurrency regulatory bill) this week, and an an additional session of the Senate Banking Committee.
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