CEO of FTX Sam Bankman-Fried testifies throughout a listening to earlier than the House Financial Services Committee at Rayburn House Office Building on Capitol Hill December 8, 2021 in Washington, DC.
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House lawmakers are calling FTX founder Sam Bankman-Fried and different executives to Capitol Hill to testify concerning the crypto trade’s collapse at a listening to in December.
House Financial Services Committee Chairwoman Maxine Waters, D-Calif., and the rating Republican Rep. Patrick McHenry, of North Carolina, are holding a uncommon bipartisan listening to on the matter. They plan to haul up executives from FTX, Alameda Research, Binance and others to testify as properly.
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“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,” Waters stated in an announcement. “Unfortunately, this event is just one out of many examples of cryptocurrency platforms that have collapsed just this past year.”
After a deal to shore up its liquidity with Binance fell by earlier within the week, FTX filed for Chapter 11 chapter safety Friday together with 130 affiliated corporations, together with Bankman-Fried’s crypto buying and selling agency Alameda Research and FTX.us, the corporate’s U.S. subsidiary. Bankman-Fried has since stepped down as CEO of the corporate he based.
In a matter of days, FTX went from a $32 billion firm to chapter as liquidity dried up and clients demanded to withdraw their funds. FTX founder Bankman-Fried admitted final week that he “f—ed up.”
“There is no sugar coating it. The collapse has been a dumpster fire. Users left out to dry. Ecosystem in limbo,” McHenry stated, talking at an unrelated listening to Wednesday.
CNBC’s Mary Catherine Wellons and MacOkenzie Sigalos contributed to this text.
Source: www.cnbc.com”