Bankman-Fried, Alameda execs set to testify on FTX collapse

Sam Bankman-Fried and several other executives will be asked to testify at an upcoming House Financial Services Committee hearing on the collapse of the FTX cryptocurrency exchange. 

The exchange’s implosion has contributed to its native FTX token dumping by more than 90% in the past two weeks.

A CNBC report on Wednesday notes that House lawmakers want to see the FTX founder at Capitol Hill to give an account of what happened at the now bankrupt crypto exchange. 

Alameda and Binance execs to also testify

Apart from SBF, lawmakers are also looking to have executives from Alameda Research and Binance among others testifying, the report added.

The bipartisan hearing, being put together by HFSC’s Chairwoman Maxime Waters (D-CA) and ranking Republican Rep. Patrick McHenry (R- NC), will be held in December.

Waters said in a statement that FTX’s collapse had “posed tremendous harm”, with over one million people affected. Many of these users, the US lawmaker noted, are just everyday people whose hard-earned savings have disappeared.

According to her, the fall of the FTX cryptocurrency exchange is unfortunately just one of many crypto platforms to implode in 2022. As CoinJournal reported earlier today, there’s more to come out of this FTX crisis.

In May this year, cryptocurrency Terra (LUNA) and its algorithmic stablecoin TerraUSD (UST) collapsed. Millions of people lost money as over $60 billion in market value flushed down the drain within days, while contagion hit multiple crypto companies, including Three Arrows Capital.

The fall of the Singapore-based crypto hedge fund then impacted several other companies, notable among them crypto lenders Celsius and Voyager Digital that went bankrupt.

Last week, FTX filed for Chapter 11 – with about 130 affiliates included in the filing.