U.S. House Financial Services Committee Plans Official Hearing on FTX Collapse: Report

The U.S. House Financial Services Committee is reportedly planning on holding an official hearing regarding the recent collapse of the crypto exchange platform FTX.

According to a new report by The Wall Street Journal, the leaders of the committee, Democratic Representative Maxine Waters of California and Republican Representative Patrick McHenry of North Carolina, said they are planning to hold a hearing in December to investigate the downfall of FTX.

The committee members expect to hear testimony from FTX rival Binance, FTX founder and former CEO Sam Bankman-Fried, and Alameda Research, FTX’s trading branch, about what exactly happened to the crypto exchange.

As stated by committee chairperson Waters in an email, according to the Wall Street Journal,

“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.”

Recently, Bankman-Fried was accused of mishandling the company’s funds by loaning over $10 billion worth of customer deposits to Alameda Research. FTX filed for bankruptcy last week after failing to cut a deal with Binance CEO Changpeng Zhao for a financial bailout.

Representative McHenry says it’s imperative that lawmakers get to the bottom of what happened to FTX and hold those at fault accountable.

“We must get to the bottom of this for FTX’s customers and the American people. It’s essential that we hold bad actors accountable so responsible players can harness technology to build a more inclusive financial system.”

Earlier this week, veteran hedge fund manager Anthony Scaramucci pleaded with Bankman-Fried and his family, asking them to get ahead of the situation and get themselves in front of regulators to disclose the truth.

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